Timbers vs. Sounders; Sugerman vs. Sitcov: A win

My dear friend and Seattle-based colleague, Steve Sitcov, is a great guy. But as with all great and heroic types, he suffers a fatal flaw. And his fatal flaw is that he is a diehard fan of the Seattle Sounders Football Club. (I am putting a link only to show that I can be fair and evenhanded. The Sounders deserve no link love.)

I, on the other hand, am a totally committed fan of the greatest soccer team in the Northwest, if not all of North America, the Portland Timbers.  As the whole world knows–and by “whole world,” I mean fan-boys and -girls who live and breathe MLS soccer–our teams meet in the playoffs in the first round.

I’m not sure who exactly started the trash talking, but bets were laid this morning. Bets for the good, I might add.

Here is the deal. If (when, really) the Timbers win, Steve must donate $100 to the charity of my choosing. I chose Street Roots here in Portland because I am a total fan of how they go about publishing news and working on the issues of homelessness and poverty. Should the Sounders somehow manage to vanquish the much-loved Timbers, Steve has designated National Multiple Sclerosis Society to take my $100.

No doubt Steve and I will razz each other mercilessly over the course of the next 10 days, as our teams square off in their home-and-home, two-game series.  Regardless of the outcome, I will always love Steve even with his whole misguided Sounders thing.

David Sugerman

BP class action certified for ARCO station debit card fees

In our long running consumer case, Scharfstein v. BP West Coast Products, Judge LaBarre ruled late last week that the case may go forward as a class action. Judge LaBarre appointed David Sugerman and Tim Quenelle to serve as class counsel. Notice to the class is expected to go out in early November, and trial is set for January 14, 2014.

In the case, consumers claim that BP violated the Oregon Unlawful Trade Practices Act by improperly selling and advertising gas at ARCO stations and am-pm minimarkets. The gas stations advertise their prices without condition, but when consumers pay with debit cards, they are charged a fee–now $.35–on top of the gas purchase price. The consumers claim that the failures to disclose the charges and the addition of the charges on top of the total gas purchase violate Oregon law.

The class seeks $200 per consumer.

There is far to go on this case. If you have experience with these charges and would like to share your story with us, could you drop me a line or call us (503.228.6474)?

-David

Update: Class members’ brief filed in consumer fraud case against Career Ed Corp and Western Culinary Institute

On our long-running consumer fraud class action against Career Education Corp and Western Culinary Institute/Le Cordon Bleu Portland, I am pleased to report that we filed our answering brief in the Oregon Court of Appeals today. It’s a monster, and if the WordPress Gods are with me, it appears in PDF here: Brief – Answering FINAL

My dear friend and colleague, Maureen Leonard, joined our team to handle the briefing. The brief is her work, and it is a thing of beauty.

About the brief:

For consumers and class members-This is a technical brief on rules about procedure, appeals, and arbitration that might cause you to snooze. The gist is that Career Education Corp. was content to use the court system to enforce its rights and then when things were going bad, CEC sought to delay by filing another motion to compel arbitration.

For attorneys-The posture is such that this is something of a one-off brief and case. Still, if you want to see an appellate master at work, read Maureen’s work.

So next up is CEC/WCI/LCB-Portland reply brief. And then it is on to oral argument in front of a three-judge panel. We’ll keep you posted, of course.

David Sugerman

Sallie Mae collections against Western Culinary Institute/Le Cordon Bleu Portland students?

In our ongoing case against Career Education Corp. and Western Culinary Institute/ Le Cordon Bleu Portland, we’re continuing our work on the appeal. Background here.

There is an interesting development that may or may not be related. We’re hearing occasional reports that Sallie Mae may be upping its collection activities.

Sallie Mae recently sued a family from the Southern California culinary school in court. We also know that Sallie Mae has been contacting WCI/Le Cordon Bleu Portland students about outstanding balances.

The team is on the lookout for cases in which Sallie Mae has filed a collection lawsuits in court against Western Culinary/Le Cordon Bleu-Portland graduates.  If Sallie Mae starts to sue Oregon culinary students in Oregon court, we want to hear about it. It could have major impact on our case and help many, many graduates of Western Culinary/Le Cordon Bleu Portland.

So this is a bit of a reach out to WCI/Le Cordon Bleu-Portland graduates: If you are sued in a collections case by Sallie Mae, please call or contact us immediately. While it would certainly be a frightening prospect if Sallie Mae sues, it may provide us with significant opportunities.

If you are sued, it is very important that you act act quickly upon receipt of the papers. Usually we have 30 days from the date you are served within which to file an appearance. So that would make quick action important.

Because of the importance of this issue, feel free to circulate this to other graduates of Western Culinary Institute/Le Cordon Bleu Portland who are facing collections from Sallie Mae.

Meanwhile, we continue our work on the case against CEC. They may have slowed down the process, but we remain confident that they will face their day of reckoning.

David Sugerman

 

Food Poisoning: Townsend Farms

Very pleased to be working with Bill Marler, aka @bmarler, of Seattle’s Marler Clark LLC on a food poisoning Hepatitis A contamination case against Townsend Farms to be filed here in Oregon. I’ve long been a fan of Bill’s work. When I told my family I would be jumping this weekend, my teenage daughter described my excitement as a “man crush.” (Yikes!-that sounds kinda creepy.)

The case involves Hepatitis A contaminated fruit products sold through Costco stores. Townsend Farms manufactured the product. CDC recall information is here.

We will be filing a class action State court here in Oregon. Bill’s firm and the the Food Safety News blog are the best source of information on this litigation, though we will from time-to-time provide updates here as well.

Feel free to contact me if you have questions.

David Sugerman

 

Case update: Consumer fraud case against BP headed to trial

Yesterday, Judge LaBarre ruled from the bench on the parties’ motions for summary judgment in our pending consumer fraud against BP. He denied all motions. The case is going to trial.

Background on the case is here, here, and here. It arises out of BP gas sales at ARCO and am-pm mini-markets.

BP charges debit card customers a $.35 debit card fee but does not disclose the charge on its street signs, on its price signs or on its pumps.

Consumers argue that BP’s undisclosed debit card charge violates Oregon rules on gasoline sales.  The consumer fraud claim arises under the Oregon Unlawful Trade Practices Act, ORS 646.608(1)(u).

The Court deferred hearing the class certification motion until August 30, but that motion is fully briefed and ready to go. The Court took up the summary judgment motions. BP argued that it was entitled to summary judgment for a number of reasons, including that it wasn’t required to tell consumers that debit card users would be charged a fee on gas purchases.

A three-hour oral argument put both parties’ positions to the test.

Judge LaBarre announced his decision from the bench, ordered BP to obtain electronic data, and set a schedule for the remainder of the case, including a trial that starts January 13, 2014.

Good progress, to be sure. But far to go.

David Sugerman

Update: Career Education Corp files its appeal brief

For those interested, Career Education Corp and Western Culinary Institute/Le Cordon Bleu Portland filed their appeal brief in our long-running consumer fraud class action, Surrett v. Western Culinary Institute. The brief is long and technical. It focuses on things like arbitration clauses and class action procedure. If you’re really interested, I’ve uploaded it here: Brief – CEC WCI Opening Brief.   (Note: if you’re interested enough to read it for fun, it occurs to me that you might need a hobby. But I digress.)

We are fortunate to have recruited Portland attorney Maureen Leonard to lead on the appeal. In addition to being a dear friend, Maureen is a talented and well-respected lawyer who limits her practice to appeals. We will file a responding brief, and then CEC/WCI files a reply. After their final brief, the appeal will be set for oral argument. There is no firm timeline for when we will be through the appeal process. That said, we are committed to the case and will see it through to the end.

I will post our completed brief once it is up and the occasional update when we have more news. Meantime, thanks for your interest and patience.

David

Economic Fairness Oregon weighs in on ending the consumer fraud exemption for insurance companies

Nice piece here at Blue Oregon from Economic Fairness of Oregon relating to the need to end the consumer fraud exemption for insurance companies. Disclosure: When it comes to EFO, I’ve long been an unabashed  fanboy–they do tremendous pro-consumer work.

HB 3160-A is pending in the Oregon Senate. To my way of thinking this isn’t a blue or red issue. Last I checked, insurance companies don’t discriminate based on political affiliation. They hose the D’s and the R’s, those who live in the city and those who live in the country, the rich and the poor. The things that divide us simply do not matter when it comes to insurance companies taking advantage.

Let’s hope our State senate is listening to EFO and constituents who are pushing on this issue. It’s time to end the special break for insurance companies. Like every other business, they should be covered by Oregon consumer fraud laws.

Let’s end Oregon insurance companies exemption from Oregon consumer protection laws

Great KOIN-6 News report here KOIN-6 Iteam Hold Oregon insurers accountable highlighting the loophole that gives Oregon insurance companies a pass on Oregon’s Unlawful Trade Practice Act, our signature consumer protection law.

A pending bill, HB 3160-A would close the loophole. The bill amends the Oregon Unlawful Trade Practices Act to cover insurance companies.  Like all other Oregon businesses, insurance companies should be held to basic levels of fairness when dealing with consumers. It is time that our legislators act to rein in those insurance companies that engage in fraud and abuse.

That’s why we support HB 3160-A. You should too.