Justia U.S. 1st Circuit Court of Appeals Opinion SummariesArticles Posted in Consumer Law
Robinson v. Camarena
The First Circuit affirmed the judgment of the district court entering a final approval order approving a class settlement, holding that there was no error or abuse of discretion.James Robinson brought this class action lawsuit against National Student Clearinghouse (NSC) alleging that NSC violated the statutory requirements of the Fair Credit Reporting Act. The parties negotiated a class action settlement providing for a settlement fund, injunctive relief, and a free self-certification report of university degrees and dates of enrollment for each class member. Paul Camarena, a class member, appealed from the district court's final order approving the class settlement. The First Circuit affirmed, holding that Camarena's arguments were without merit. View "Robinson v. Camarena" on Justia Law
United States v. Manubolu
The First Circuit reversed the ruling of the district court suppressing blood alcohol content evidence from a warrantless blood draw because no exigent circumstances were present, holding that the district court misapplied the law to the facts in this case.After a car accident that killed three people, a police officer ordered a warrantless blood of Defendant's blood without Defendant's consent and without exigent circumstances. The government charged Defendant with three counts of manslaughter and other intoxicated-driving crimes. Defendant filed a motion to suppress evidence from the warrantless blood draw, which the district court granted. The First Circuit reversed, holding that the government met its burden to show it was reasonable for the police officer to think exigent circumstances existed when he took the blood draw. View "United States v. Manubolu" on Justia Law
Bais Yaakov of Spring Valley v. ACT, Inc.
The First Circuit vacated the judgment of the district court against Bais Yaakov of Spring Valley, a small private high school on its action seeking injunctive relief and statutory damages against ACT, Inc., a non-profit entity that develops and administers the ACT college admissions test, holding that the district court erred in finding that Bais Yaakov's individual claim was rendered moot.In its complaint, Bais Yaakov claimed that three one-page faxes sent by ACT in 2012 were unsolicited advertisements sent in violation of the Telephone Consumer Protection Act (TCAP, 47 U.S.C. 227(b)(1)(C) and seeking injunctive relief and statutory damages in the amount of approximately $400 million dollars. After extended litigation, the district court concluded that class certification was unwarranted and that Bais Yaakov's individual claim was rendered moot by ACT's offer to pay the full amount of that claim and a promise not to sent further faxes to the high school. The First Circuit affirmed the denial of class certification and the dismissal of the claim for injunctive relief but otherwise vacated the judgment, holding (1) the district court did not abuse its discretion in finding that the proposed classes could not be certified or in denying injunctive relief; and (2) Bais Yaakov's damage claim was not moot. View "Bais Yaakov of Spring Valley v. ACT, Inc." on Justia Law
Anoush Cab, Inc. v. Uber Technologies, Inc.
The First Circuit affirmed the district court's final judgment against Plaintiffs on their claims that Uber Technologies competed unlawfully in the on-demand, ride-hail ground transportation in and around Boston, Massachusetts, holding that Uber did not compete unfairly in violation of statutory and common law prohibitions governing the commercial marketplace.Plaintiffs - owners of companies that dispatched, leased, and maintained taxicab vehicles and owned taxi medallions - brought this complaint alleging that, in violation of Boston regulations, Uber caused asset devaluation by competing unfairly under Mass. Gen. Laws ch. 93A, violating the common law for unfair competition, and aiding and abetting a conspiracy to engage in unfair competition. The district court issued judgment in favor of Defendants. The First Circuit affirmed, holding that Uber's conduct in the transportation market during a period of regulatory uncertainty did not violate the statutory or common law governing the commercial marketplace. View "Anoush Cab, Inc. v. Uber Technologies, Inc." on Justia Law
Primarque Products Co. v. Williams West & Witt’s Products Co.
In this appeal and cross-appeal stemming from litigation that followed the termination of an almost forty-year business relationship between a company that manufactured and supplied soup base products (Manufacturer) and a company that distributed them (Distributor), the First Circuit reversed in part and vacated in part Distributor's appeal and affirmed in Manufacturer's cross appeal, holding that the district court erred in part.Following a trial, the jury awarded Distributor $255,000 in damages for its state law breach of contract and tortious interference with business relationships claims against Manufacturer. The district court granted summary judgment to Manufacturer on Distributor's claim against it under Mass. Gen. Laws ch. 93A and to Manufacturer on its counterclaim for breach of contract, for which the court awarded Manufacturer $97,843 in damages. The First Circuit held that the district court (1) erred in granting summary judgment on the Chapter 93A claim; (2) erred in striking as duplicative the jury's damages award on Distributor's breach of contract claim; (3) erred in denying Distributor prejudgment interest on the damages award it received on the tortious interference with business relations claim; and (4) erred in denying Distributor's offset request. View "Primarque Products Co. v. Williams West & Witt's Products Co." on Justia Law
Barbosa v. Midland Credit Management, Inc.
The First Circuit affirmed the order of the district court granting Defendants' motions to compel Plaintiff's claims to the arbitration process, holding that Defendants had the authority to enforce the arbitration provision.Jackeline Barbosa carried an overdue, unpaid balance on her credit card account. The unpaid balance was sold to Midland Funding LLC. The rights to Barbosa's account were assigned to Midland Credit Management, Inc. (MCM) Schreiber/Cohen, LLC was the law firm retained by MCM on behalf of Midland Funding to assist in MCM's debt collection efforts. Barbosa sued MCM and Schreiber/Cohen, claiming violation of the Fair Debt Collection Practices Act, 15 U.S.C. 1692e and 1692f by the attempt to collect the credit card debt in Massachusetts state court after the statute of limitations for the collection action had expired. MCM and Shreiber/Cohen asked the district court to compel arbitration pursuant to the arbitration election provision in Barbosa's credit card agreement. The district court dismissed Barbosa's claims. The First Circuit affirmed, holding that the district court properly concluded that MCM and Schreiber/Cohen were authorized to compel Barbosa to arbitrate her claims against them. View "Barbosa v. Midland Credit Management, Inc." on Justia Law
Tomasella v. Nestle USA, Inc.
The First Circuit affirmed the district court's dismissal of Appellant's claims in three putative class action lawsuits against Defendants - Nestle USA, Inc., Mars, Inc., and The Hersey Company - holding that Appellant did not plausibly state a claim for relief under Mass. Gen. Laws ch. 93A and that Appellant's unjust enrichment claim was foreclosed by the availability of a remedy at law.Appellant alleged that Defendant's failure to disclose on the packaging of their chocolate products that upstream labor abuses existing in their cocoa supply chains violated Chapter 93A and that Defendants had been unjustly enriched by this packaging omission. The district court dismissed the claims. The First Circuit affirmed, holding (1) Appellant did not plausibly state a Chapter 93A unfairness claim; and (2) Appellant's unjust enrichment claims must be dismissed because an adequate remedy at law was available to her through Chapter 93A. View "Tomasella v. Nestle USA, Inc." on Justia Law
Lee v. Conagra Brands, Inc.
The First Circuit reversed the judgment of the district court dismissing, for failure to state a claim, Plaintiff's complaint alleging that, by labeling Wesson brand vegetable oil (Wesson Oil) "100% Natural," Conagra Brands, Inc. violated Mass. Gen. Laws ch. 93A, holding that Plaintiff's complaint clearly alleged a Chapter 93A injury for pleading purposes.After learning that Wesson Oil contained genetically modified organisms (GMOs), Plaintiff sued Conagra, the manufacturer and distributor, alleging that, by labeling the oil "100% Natural," Conagra violated Massachusetts's prohibition against unfair or deceptive trade practices. The federal district court dismissed the complaint for failure to state a claim, concluding that Wesson Oil's label was neither unfair nor deceptive because it conformed to the Food and Drug Administration's labeling policy. The First Circuit reversed, holding that Plaintiff's claim may proceed because Plaintiff plausibly alleged that a reasonable consumer might think that the phrase "100% Natural" means that a product contains no GMOs, and then base her purchasing decision on that belief. View "Lee v. Conagra Brands, Inc." on Justia Law
Squeri v. Mount Ida College
The First Circuit affirmed the judgment of the district court granting Defendants' motion to dismiss Plaintiffs' complaint alleging that Defendants knew that Mount Ida College was on the brink of insolvency but concealed this information, holding that Plaintiffs' claims were properly dismissed.Mount Ida, a higher education institution in Massachusetts, permanently closed after providing its students six weeks' notice that it was closing. Plaintiffs, current and prospective students, brought a putative class action against Mount Ida, its board of trustees, and five Mount Ida administrators (collectively, Defendants), alleging seven Massachusetts state law claims. The district court dismissed the complaint. The First Circuit affirmed, holding (1) Plaintiffs' breach of fiduciary duty claim failed; (2) the district court did not err in dismissing Plaintiffs' violation of privacy claim; (3) no claims were stated for fraud, negligent misrepresentation, or fraud in the inducement; (4) Plaintiffs' allegations did not plausibly allege a breach of implied contract; and (5) the district court properly dismissed Plaintiffs' Mass. Gen. Laws ch. 93A claim. View "Squeri v. Mount Ida College" on Justia Law
Capitol Specialty Insurance Corp. v. Higgins
In this insurance dispute, the First Circuit affirmed the judgment of the district court ruling for Plaintiff on her action brought under Mass. Gen. Laws ch. 93A and ch. 176D and awarding trebled damages in the amount of $5.4 million but reversed and remanded for calculation of prejudgment interest based on actual damages and not the treble damages figure of $5.4 million, holding that Plaintiff's measure of damages was her "actual damages" because there was no "judgment" in her case.Plaintiff, who was injured in a car accident at age twenty after drinking at a nightclub, sued the nightclub's insurer (Defendant), alleging that Defendant violated chapters 93A and 176D. The federal district court ruled for Plaintiff and assessed actual damages of $1.8 million against Defendant. The court then trebled the award after concluding that Defendant's violations were willful. The First Circuit affirmed on the whole but reversed as to the calculation of prejudgment interest, holding that the district court did not err in finding Defendant's violation of chapter 93A and 176D but erred when it calculated prejudgment interest on the trebled damages award instead of the single damages award. View "Capitol Specialty Insurance Corp. v. Higgins" on Justia Law