Big Win for consumers statewide at the California Supreme Court!

On May 26, 2022, the California Supreme Court ruled unanimously in favor of a vehicle purchaser in Pulliam v. HNL Automotive Inc. et al. (2022) 13 Cal.5th 127. This opinion is the culmination of years of back-and-forth at the courts of appeal and in lower courts about the meaning of the FTC “Holder Clause” that is on the back of most vehicle sale contracts. While the clause allowed consumers to sue the holders of their contracts (the bank or finance company) for violations committed by the selling dealership, whether or not a consumer could also recover their attorney’s fees from the holder under California’s consumer protection statutes remained an open and disputed question. Now, the Supreme Court clarified this issue and agreed with RBB that consumers are entitled to recover their attorney’s fees from the bank or finance company when litigating under California’s consumer protection statutes. Huge win for consumers!