Publications

For the second time in five years, the U.S. Supreme Court will decide a case that arises out of the Telephone Consumer Protection Act’s (TCPA) ban on the sending of unsolicited faxes. On Friday, October 3, 2024, the Court said it would hear arguments about whether to reopen a class action lawsuit filed by a group of chiropractors, McLaughlin Chiropractic Associates, against medical tech company McKesson Corp.

On September 30, 2024, the District Court for the Eastern District of New York denied dismissal of plaintiff-tenant’s claim against her landlord’s counsel for abusive collection practices in violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692f, finding that the commencement of more than one suit against the same consumer in different courts could potentially violate the FDCPA prohibition on abusive acts or practices.

In this episode of our series of deep dives into consumer financial services, we're going to discuss bank partnership programs in a different way.

As interest rates decline in 2024, lenders who make home loans to Texas residents are seeing an uptick in loan modification requests. Although a “mod” for a conventional loan is straightforward, there are – as always – unique challenges when it comes to home equity loans. This article will explore some key issues Texas lenders may consider when navigating these modifications.

On September 11, 2024, the 4th Circuit held that a named plaintiff in a putative class action failed to establish a concrete injury that could satisfy the injury-in-fact requirement for Article III standing against consumer reporting agency, RentGrow, Inc. Plaintiff alleged that Defendant inaccurately reported on rental applications that Plaintiffs were on the Office of Foreign Assets Control’s (OFAC) list of individuals who threaten America’s national security. However, the 4th Circuit held that Plaintiff had no Article III standing when the undisputed evidence suggested that the inaccurate OFAC reports were never reviewed by a third party, and therefore, no concrete injury could be established.

The final installment in McGlinchey’s Deep Dive Series covering all things payments is a client-only CLE webinar featuring attorneys from McGlinchey’s Financial Institutions Compliance team.

Delivered in digestible, insightful bites, McGlinchey’s Litigation Byte is a monthly roundup of financial services decisions and cases nationwide that impact your business.

On September 13, 2024, the United States Court for the District of Massachusetts dismissed a pro se litigant’s claims against four executives of a bank for alleged violations of the Truth in Lending Act (TILA) and certain provisions of Regulation Z, 12 C.F.R. §§ 226.22, 1026.5 after Plaintiff alleges that he was inaccurately charged more than the Annual Percentage Rate (APR) reflected in a promissory note.

Recently, the U.S. Circuit Court of Appeals for the Eighth Circuit affirmed a discovery ruling, including an award of $93,243.50 in attorneys’ fees, against a defendant in a lawsuit arising under the Fair Credit Reporting Act (FCRA). The court found that the defendant “crossed the line when it demanded mostly irrelevant information” from the consumer’s law firm.

Member Ben Schupp (New Orleans) published an article in the 2024 Q3 edition of Marine Money International, "Revisiting Coast Guard Deference on Vessel Modifications - Brand New Bag or Same As It Ever Was."

Zero-tolerance drug policies in the workplace are an endangered species. Traditional drug laws and policies as they relate to the workplace are being upended, and employers are increasingly struggling to grapple with the patchwork of state drug-testing laws – that oftentimes conflict with federal law – as well as the proliferation of legal THC-containing products derived from hemp.

The U.S. District Court for the District of Nevada granted a defendant’s motion for summary judgment in a case arising under the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA). It found that the evidence did not reasonably support an inference that the defendant had actual knowledge of the plaintiff’s legal representation regarding an account and that the plaintiff providing her phone number regarding the original transaction is consent to communications originating from that transaction, including efforts to collect on the debt.

The district court for the Northern District of California recently denied a defendant's motion to compel arbitration and, in so ruling, found that a bellwether provision related to mass arbitrations was unconscionable. Avia involved various statutory claims challenging an online gaming company’s representations regarding gameplay. In response, the gaming company moved to compel arbitration. The plaintiff argued, among other things, that the arbitration agreement, and specifically, the bellwether provision, were unconscionable.

The issue in MacKenzie, a Chapter 7 bankruptcy, was how to allocate the proceeds from the sale of the debtor’s real estate between the Internal Revenue Service (IRS), which had filed a valid lien against the real estate for taxes, interest, and penalties, and the Bankruptcy Estate. The sale proceeds were sufficient to satisfy the taxes, a portion of the interest, but none of the penalties. The bankruptcy court allocated the proceeds on a pro rata basis between the IRS and the Bankruptcy Estate. The District Court affirmed, but the Ninth Circuit reversed and remanded, finding that pro rata allocation of the sales proceeds is inconsistent with the Code.

McGlinchey attorneys Robert Savoie and Rachael Aspery are joined by Phil Goldfeder, the CEO of the American FinTech Council, in this installment of the Deep Dive into Bank Partnerships.

The Litigation Byte is the new name and format for McGlinchey's Commercial Law Bulletin. Our new format reflects McGlinchey’s national coverage and our expanded footprint while still serving up the digestible, insightful bites readers have come to expect, with timely coverage of financial services decisions and cases that impact you and your business.

Earlier this summer, the U.S. District Court for the District of Maryland denied a defendant’s motion for summary judgment in a case arising under the Telephone Consumer Protection Act (TCPA), finding that the defendant failed to show that it received prior express written consent for the telemarketing calls at issue.

On August 2, 2024, the Illinois governor signed SB 86 into law to amend the Illinois Know Before You Owe Private Education Loan Act and the Illinois Student Loan Servicing Rights Act. Establishing new requirements that will impact student loan lenders and student loan servicers operating in Illinois, SB 86 became effective immediately upon becoming law on August 2, 2024.

ement Agency’s proposal to reschedule cannabis from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA) has generated considerable buzz across business sectors, including for the banks and credit unions that see opportunity and challenges in transacting in the legal marijuana space. Legality varies by use and by state, while federal law limits how financial institutions can operate.

In a hotly contested decision, a plurality of the Ohio Supreme Court held for the first time that a claim for defamation is subject to the discovery rule, greatly expanding the potential for businesses and individuals to find themselves subject to a defamation lawsuit in the Buckeye state.

On July 18, 2024, the Consumer Financial Protection Bureau (CFPB) issued notice of a proposed interpretive rule (Rule) that walks back a prior 2020 Advisory Opinion on the manner in which Regulation Z defines “credit.” The Rule also declares certain types of optional consumer payments to be “incident to or a condition of the extension of credit” such that the fee is a finance charge for purposes of Regulation Z.

On August 20, 2024, a Texas District Court judge entered a final judgment blocking the implementation of the FTC’s proposed non-compete rule. The rule was previously set to go into effect on September 4, 2024. It would have broadly banned the enforcement on non-compete clauses in employment agreements for nearly all employees nationwide.

A relatively new complexity is how to treat a tip received in cryptocurrency. While this would be an unusual situation in the current market, things may change as cryptocurrency becomes more common in the marketplace.

In July 2024, the United States Court for the District of Massachusetts dismissed a pro se litigant’s claims against Experian Information Services LLC (Experian), TransUnion LLC (TransUnion), and Equifax Information Solutions, Inc. (Equifax) (collectively, Credit Reporting Agencies) for alleged violations of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.

Although not aligned on every issue, defense counsel and coverage counsel can work together to protect the insured from judgment. Keeping that shared goal in mind can help ease the tension created by their different perspectives.

On July 31, 2024, the New York Supreme Court, Appellate Division: Second Department reversed the trial court’s denial of borrowers’ motion to dismiss a foreclosure action filed prior to the enactment of the Foreclosure Abuse Prevention Act (FAPA) because under the new “savings statute” for foreclosure actions under FAPA, plaintiff was precluded from recommencement since the first foreclosure was dismissed as abandoned under CPLR § 3215(c).

Higher education has faced dramatic challenges these past few years, prompting high-profile changes to university leadership and a rethinking of campus policies.

On April 1, 2020, the National Labor Relations Board (NLRB or the Board) made various amendments to its rules and regulations governing blocking charges, the voluntary-recognition bar doctrine, and proof of majority support for labor organizations representing employers in the construction industry. The 2020 Rule became effective on July 31, 2020. The NLRB is rescindingMore

The recent decision in Serafine v. Crump by the Supreme Court of Texas primarily revolves around the interpretation of what constitutes "litigation" under Texas law, particularly in the context of determining whether someone is a "vexatious litigant." This case settled a growing inconsistency within some courts of appeals. 

On July 31, 2024, the New York Supreme Court, Appellate Division: Second Department affirmed the dismissal of a quiet title action, which sought to discharge a mortgage as time-barred under the Foreclosure Abuse Prevention Act (FAPA), because the prior foreclosure was dismissed upon the court’s finding that plaintiff lacked standing.

Despite the excitement of many over rescheduling cannabis from Schedule I to Schedule III, the move does not make cannabis “legal” unless it is produced, sold, and used within the tightly regulated parameters of the Controlled Substances Act (CSA). Many medical and adult-use cannabis stores and products that currently exist in approximately four-fifths of the United States are not in compliance with the CSA. These businesses violate federal law now, and they will still be violating federal law if and when cannabis is rescheduled; rescheduling does not make the conduct federally legal.

The United States Supreme Court first recognized products liability, including strict liability, as part of the general maritime law in East River Steamship S.S. Corp. v. Transamerica Delaval, Inc., 476 U.S. 858 (1986). The Court noted that “the general maritime law is an amalgam of traditional common-law rules, modification of those rules, and newly created rules.” Since then, numerous courts, including the United States Court of Appeals for the Fifth Circuit, have embraced Section 402A of the Restatement (Second) of Torts as the best expression of the law of products liability under the general maritime law.

On July 10, 2024, the Consumer Financial Protection Bureau proposed a rule it says will streamline mortgage servicing and the loss mitigation process. If enacted, the proposed rule would significantly revise the Real Estate Settlement Procedures Act (RESPA), including regulations related to loss mitigation procedures and reviews, early intervention procedures, and errors in servicing mortgage loans.

It’s Opening Day for Ohio Adult-Use Marijuana – Play Bud!

Today is another red-letter date for Ohio. The Ohio Division of Commerce’s Division of Cannabis Control (DCC) has issued 98 Certificates of Operation (COOs) to dispensaries across the state, allowing them to sell adult-use marijuana at their existing medical marijuana locations (i.e., a “dual-use” license). The issued COOs represent nearly 75% of the provisional licensesMore

The Litigation Byte is the new name and format for McGlinchey's Commercial Law Bulletin. Our new format reflects McGlinchey’s national coverage and our expanded footprint while still serving up the digestible, insightful bites readers have come to expect, with timely coverage of financial services decisions and cases that impact you and your business.

With the sudden change in the Democratic presidential candidate, there are a whole host of implications for the future of America.

The California Supreme Court recently upheld a California law that classifies drivers for app-based transportation companies, such as Uber, Lyft, or DoorDash, as independent contractors and not employees, provided the company does not (1) set drivers’ hours, (2) require acceptance of specific ride and delivery requests, or (3) restrict working for other companies. As a result, app-based drivers are not covered by California workers’ compensation laws, which generally apply to employees and not to independent contractors.

The Louisiana Legislature amended two important employment laws: the wage payment statute and the noncompete statute. The amendments to the wage payment statute become effective on August 1, 2024, and the amendments to the noncompete statute become effective on January 1, 2025.

On Friday, July 26, 2024, a federal appeals court overturned the Biden administration's decision to reverse small-refinery exemptions to the Renewable Fuel Standard (RFS). The U.S. Court of Appeals for the District of Columbia Circuit kept its opinion on the case confidential for seven days but issued a two-page judgment that seems to favor refining companies. The exact number of exemptions impacted remains uncertain.

With few exceptions, a cannabis-related business will be denied access to relief under the U.S. Bankruptcy Code because marijuana remains a controlled substance under the federal Controlled Substances Act

On May 17, 2024, Colorado enacted SB 205, broadly regulating the use of high-risk artificial intelligence systems to protect consumers from unfavorable and unlawful differential treatment.

On June 21, 2024, the Ohio Second Appellate District reversed a trial court decision granting plaintiff summary judgment in a residential foreclosure action, finding that a competing lienholder’s discovery request for production of an original copy of the promissory note should have been made available for inspection prior to filing a dispositive motion.

On July 3, 2024, the United States District Court for the Southern District of New York held that “users of cellphones are not categorically excluded from the definition of ‘residential subscriber’ under the TCPA”.

Three industry groups—the Associated General Contractors of America, the National Waste & Recycling Association, and the Chamber of Commerce of the United States—have filed a legal challenge against the EPA's designation of PFOA and PFOS as hazardous substances under CERCLA.

The Barker decision is a keen reminder that courts are inclined to employ a substance-over-form analysis in evaluating the scope of statutory protections for consumer credit transactions.     

Obtaining retail space for any small business is a big move. There are many issues to consider, and working with a knowledgeable real estate lawyer helps to avoid surprises down the road. This is especially true for a cannabis business for two principal reasons. First, cannabis businesses are highly regulated at the state and local level. Second, cannabis generally remains illegal at the federal level. A standard retail space lease is just not going to suffice. So the question is, what does a cannabis business need to do and watch for when obtaining a retail space?

TIGTA investigated virtual currency tax compliance enforcement by the Internal Revenue Service (IRS), and released its findings in a report dated July 10, 2024.

Financial Institutions have utilized service providers for a multitude of purposes over many years.

In the ever-evolving legal landscape, mid-size law firms find themselves at a critical juncture.

Marijuana Reclassification Impacts Bank Servicing of Businesses

On June 14, 2024, in Smitherman v. Midland Credit Mgmt. Inc., the United States District Court for the Western Division of Missouri granted summary judgment for a creditor on a plaintiff’s claim under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq., finding that the Plaintiff lacked standing to assert her claim and ruling that the creditor’s alleged conduct did not violate the FDCPA.

In a recent case from the Fifth Circuit for the United States Court of Appeals, the court held that an employer should or should have known that an employee was working long hours beyond his regular schedule while responding to emails or returning voice mails during his hour-long commute home. This ruling came despite the parties’ agreement that the employee was paid for all the hours worked he reported to his employer and that the employer had a policy requiring employees to report all hours worked.

Per- and polyfluoroalkyl substances (PFAS), often dubbed "forever chemicals," are increasingly scrutinized for their environmental persistence and health risks. Businesses that manufacture, use, or dispose of PFAS face a growing web of regulations and potential liability for contamination. This PFAS guide explores strategies for clients to proactively assess and address PFAS concerns, aiming for both regulatory compliance and minimized legal exposure.

The EPA's move to designate PFAS as "hazardous substances" represents a significant shift in environmental regulation with profound implications for current property owners and those buying, selling, financing, or developing affected properties.

On May 30, 2024, the New York Department of Financial Services (“DFS”) published a press release and issued guidance to Virtual Currency Entities (“VCEs”) concerning the DFS’s expectations for the resolution of customer service requests and complaints (“Guidance”), which expands upon the current requirements found in 23 NYCCR 200.20.

In a maximalist decision that went further than even the most ardent opponents of Chevron deference thought possible, the Supreme Court finally and emphatically overruled Chevron deference, the watershed rule that governed the level of deference afforded to administrative agency interpretation of ambiguous statutes for nearly forty years.

When can an employee talk politics at work? When can employees talk politics outside of work? The answer is going to be different depending on whether your organization is public or private.

On June 18, 2024, in NAIB, et al v. Weiser, et al., the District Court for the District of Colorado granted the motion for preliminary injunction filed by plaintiffs, the National Association of Industrial Bankers (NAIB), American Financial Services Association (AFSA), and American Fintech Council (AFC) against the Colorado Attorney General and Administrator of the Colorado Uniform Consumer Credit Code.

The Texas Department of Savings and Mortgage Lending has proposed a wide-ranging overhaul of its rules concerning residential mortgage loan originators (RMLOs), loan companies, mortgage bankers, and servicers.

The Litigation Byte is the new name and format for McGlinchey's Commercial Law Bulletin. Our new format reflects McGlinchey’s national coverage and our expanded footprint while still serving up the digestible, insightful bites readers have come to expect, with timely coverage of financial services decisions and cases that impact you and your business.

On June 10, 2024, the United States District Court for the Northern District of New York reiterated that a claim for violation of the Telephone Consumer Protection Act (TCPA) cannot be maintained by a consumer who is neither a subscriber of the called telephone number that is billed for the call nor a non-subscriber customary user of the called telephone number which is included in a family or business cellular plan.

On May 30, 2024, the Supreme Court reversed the Second Circuit and found that the National Bank Act (NBA) does not preempt New York General Obligation Law § 5–601, which mandates banks to pay borrowers the interest accumulated on a balance held in an escrow account for residential mortgages on certain types of properties.

The next installment in McGlinchey’s Deep Dive into Bank Partnerships Series features a podcast on lending, presented by attorneys Joe Apatov, Aaron Kouhoupt, and Robert Savoie.

On June 6, 2024, the United States District Court for the Eastern District of New York dismissed claims for violations of the Fair Credit Reporting Act (FCRA) against a credit reporting agency where plaintiff “has not adequately pleaded an inaccuracy because she fails to specify what information in her credit report was incorrect and why” and has not alleged facts regarding the credit reporting agency’s procedures to ensure the accuracy of its reports or to investigate disputed information

The United States Court for the Western District of Virginia recently granted a foreclosure firm’s motion to dismiss on the grounds that the firm’s representation of a lender did not violate the Fair Debt Collection Practices Act (FDCPA).

Eaton outlines how a defendant can successfully utilize arbitration agreements to narrow a class or preclude class certification altogether, even when the named class representative did not agree to arbitrate his or her claims.

On June 5, 2024, the United States District Court for the Southern District of New York issued a decision adopting in its entirety the May 13, 2024 Report and Recommendation regarding the Truth in Lending Act (TILA). The court held that under TILA, a creditor in an open-end consumer credit plan has no obligation to notify or disclose to consumers information that the creditor has or intends to verify with the Internal Revenue Service (IRS) regarding the consumer’s taxes or income in the course of servicing the consumer’s debt.

Podcast: Securing Retail Space for Your Cannabis Business (Episode 1 of 2)

Obtaining retail space for any small business is a big move. This is especially true for a cannabis business for two principal reasons. First, cannabis businesses are highly regulated at the state and local level. Second, cannabis generally remains illegal at the federal level. A standard retail space lease is just not going to suffice. So, the question is, what does a cannabis business need to do and watch for when obtaining a retail space?

For the first time, the Alabama Supreme Court held that a servicer and/or high bidder from a foreclosure sale can compel a hold-over tenant to make payments into court during the pendency of litigation over the propriety of foreclosure and/or ejectment. Prior to this decision, many trial courts were hesitant to grant such motions, and there was no clear guidance on a movant’s burden of proof.

Governor Jeff Landry has signed into law a bill that significantly limits the situations in which a plaintiff can name and assert a direct action against a defendant’s insurer under Louisiana law. The new law becomes effective on August 1, 2024.  

On June 4, 2024, the CFPB issued a Circular warning companies that the inclusion of “unlawful” or “unenforceable” terms in a form contract constitutes a deceptive act or practice in violation of the Consumer Financial Protection Act (CFPA).

In accordance with Ohio’s new adult-use marijuana legislation, applications for initial dual-use marijuana licenses will be made available by the Division of Cannabis Control (DCC) on its website no later than this Friday, June 7 – a historic day in the state. The applications that will be made available this week allow medical marijuana operators to apply to the DCC for “dual-use” licenses, which permit future licensees to convert their facilities to handle both medical and adult-use marijuana.

imilar to its long-standing requirement for vehicle service warranty administrators to be registered, Oklahoma recently enacted SB 541 to require the registration of debt waiver program administrators. Unlike service warranties, which may be purchased regardless of whether the vehicle is bought for cash or financed and are largely administered by third-party administrators, debt waiver programs are linked to the financing of the vehicle. This new requirement may result in a creditor or its assignee, rather than a third party, acting as an administrator for debt waiver programs and needing to register with the Oklahoma Department of Insurance.

The cannabis industry knows well the economic burden imposed by Section 280E of the Internal Revenue Code of 1986 (Code). It substantially increases the cost of doing business because it disallows deductions for expenses related to “trafficking” in marijuana – expenses that other traditional businesses get to deduct, such as wages, rent, utilities, insurance, and more.

Disputes between contractors, subcontractors and/or owners are relatively common in the construction industry. Although you should not appear over-eager in rushing into a settlement to avoid the time, costs, and stress that comes with protracted litigation, when settlement appears likely and in your company’s best interests, full attention to reaching a mutually agreeable resolution should be given.

As the Drug Enforcement Administration (DEA) moves marijuana from Schedule I to Schedule III, a new pathway for the development of marijuana-based prescription drugs opens.

On May 16, 2024, the Drug Enforcement Administration (DEA) released the proposed rule (Proposed Rule) to reschedule marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA).

Enacted in 1981, the Louisiana Oilfield Anti-Indemnity Act (LOAIA) renders “void and unenforceable” certain contractual defense and indemnification provisions in “agreement[s] pertaining to a well for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state.”

The increasing threat of cyberattacks against U.S. water supplies has raised significant concerns among federal officials, who emphatically stress the need for utilities to bolster their cybersecurity measures. A recent announcement from the U.S. Environmental Protection Agency (EPA) highlighted the alarming frequency of cyber intrusions targeting these critical infrastructures, underscoring the pressing need for enhanced protection and vigilance.

In April 2024, the United States District Court for the District of Massachusetts held in a matter of first impression that a borrower must allege actual damages to qualify for relief under the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2601 et seq. Specifically, the borrower must allege actual damages before arguing statutory damages under 26 U.S.C. § 2605(f)(1)(B)’s “pattern and practice” language.

The Litigation Byte is the new name and format for McGlinchey's Commercial Law Bulletin. Our new format will reflect McGlinchey’s national coverage and our expanded footprint while still serving up the digestible, insightful bites readers have come to expect, with timely coverage of financial services decisions and cases that impact you and your business. At the end of each month, our team will compile and send a round-up digest with all of our case summaries delivered to your inbox in one easy-to-reference place.

n May 20, 2024, the United States District Court for the Southern District of New York issued a decision holding that legal fees resulting from violations of the Fair Debt Collection Practices Act (FDCPA) constitute a cognizable monetary harm for the purpose of establishing constitutional standing.

framework for banks and non-depository institutions to offer innovative and unique products to their customers.

On May 23, 2024, the Supreme Court unanimously ruled that when parties have agreed to more than one contract – one that contains a clause sending threshold arbitrability questions to an arbitrator and one that sends those disputes to a court – a court must decide which contract governs.

The Department of Justice’s move to reclassify marijuana as a less dangerous drug, on which it began formal proceedings on May 16, won’t legalize state-level adult use and medical marijuana unless it’s produced, sold, and used within the regulations of the Controlled Substances Act. Banks and other financial institutions may have questions on how these changes could affect their ability to service cannabis businesses.

In light of the rescheduling marijuana news, industry insiders anticipate a significant increase in cannabis-related investments and acquisition activity. While this anticipated increase in activity is exciting, it is no secret that those who have already invested capital into the cannabis industry have learned some hard lessons over the last decade.

On May 6, 2024, Florida enacted SB 902, modifying provisions in the Motor Vehicle Retail Sales Finance Act governing guaranteed asset protection (GAP) products, creating the “Florida Vehicle Value Protection Agreements Act,” and establishing requirements applicable to excess wear and use waivers for motor vehicle leases. Florida SB 902 will take effect on October 1, 2024.

In March 2024, the U.S. Environmental Protection Agency (EPA) announced a ban of ongoing uses of chrysotile asbestos in connection with health problems associated with asbestos exposure. The rule is entitled Asbestos Part 1; Chrysotile Asbestos: Regulation of Certain Conditions of Use Under the Toxic Substances Control Act and was published at 89 Federal Register 21970 (March 28, 2024).

In what should not come as a surprise to anyone who observed the October oral argument in the case of Consumer Financial Protection Bureau v. Community Financial Services Association of America, the U.S. Supreme Court emphatically ruled on May 16 that the bureau's funding structure did not violate the appropriations clause of the U.S. Constitution.

The Proposed Rule will be published on May 21, 2024. Once that occurs, the notice and comment period will open. Interested parties, including those currently involved in the cannabis industry as well as the many industries which cannabis rescheduling will affect, should start considering now whether they wish to submit a comment and request a hearing at which to speak and present a comment.

Following in the footsteps of the American Arbitration Association (AAA), JAMS recently announced the creation of its own mass arbitration procedures and guidelines, designed, in part, “to facilitate the fair, expeditious, and efficient resolution of mass arbitrations.” 

On May 7, 2024, the United States District Court for the District of New Jersey issued a decision holding that the use by a debt collector of the Model Form validation notice under Regulation F does not guarantee compliance with the requirements of 15 U.S.C. § 1692g or other sections of the Fair Debt Collection Practices Act (FDCPA).[1] Consequently, the court joined “several other district courts in finding that compliance with Regulation F and the CFPB's Model Form in and of itself does not provide a ‘safe harbor’ from all alleged violations of the FDCPA.”  

The Supreme Court unanimously held that when a district court compels claims to arbitration and a party has requested a stay under section 3 of the FAA, the district court is required to stay the case, and lacks the discretion to dismiss the suit outright.

On April 4, 2024, the Middle District of Florida dismissed a non-consumer plaintiff’s Florida Deceptive and Unfair Trade Practices Act (FDUTPA) claim for failure to plead injury to consumers. This ruling underscores the stringent requirements for non-consumer plaintiffs under the FDUTPA, highlighting the challenges of navigating consumer protection laws in cases of alleged unfair competition.

Ohio’s Joint Committee on Agency Rule Review (JCARR) approved eleven rules previously submitted by the Division of Cannabis Control (DCC) for administrative rule review. Under Ohio law, JCARR is the final committee that must approve the proposed rules.

Recently, the Pennsylvania Department of Banking and Securities, without a triggering law change or promulgated regulation, quietly issued a statement of policy that reverses the previous interpretation of the term “money” to be inclusive of virtual currency.

April 2024, the Alabama Supreme Court issued an opinion in Alavest. LLC v. Harris. The issue was whether a prior mortgagee of property sold at a foreclosure sale was a necessary and indispensable party in an ejectment action with wrongful foreclosure counterclaims.