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US Supreme Court refuses TD Bank's appeal of CA ruling that holds them liable for bad acts of car dealers including attorney fees, keeping door open for needy.
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SACRAMENTO, Calif. (Legal Newsline) - Settling a split among California appellate courts, the state Supreme Court affirmed an attorney fee award of nearly eight times what the client recovered in a dispute over a car purchase, saying state law trumps a federal rule limiting how much consumers can win by suing their lenders.
A recent California Supreme Court decision means that lenders can be on the hook for consumers’ attorney fees in situations where car dealers defraud them. The case involved TD Auto Finance and a dealer that allegedly sold a vehicle without certain advertised features.
The Federal Trade Commission recently issued an advisory opinion that could make it easier for consumers to recover their legal costs from banks in situations where they were defrauded by a car dealer.