New Published Appellate Decision: Reyes v. Beneficial State Bank (2022) _ Cal.App.5th _ (Kern County)
The Court of Appeal reversed the trial court’s order denying Auto Fraud Legal Center’s motion for $53,134.50 in attorney fees after our clients accepted the bank’s settlement offer. Beneficial State Bank was the holder of our clients’ retail installment sale contract and was the main defendant in the case after the dealership that defrauded our clients closed. The trial court denied attorney fees based upon then-recent appellate decisions concluding that recovery of attorney fees against a holder is capped by the amount the consumer paid on the contract under the FTC’s Holder Rule. The Court of Appeal disagreed, concluding that our clients were entitled to recover attorney fees for their claims against the Beneficial State Bank through Civil Code section 1459.5.