California Lawyer


April 2014

"Credit card penalty fees have provoked intense consumer agita. ... In this appeal, a class of cardholders ... contend that the fees are analogous to punitive damages. ... [But] the jurisprudence developed to limit punitive damages in the tort context does not apply to contractual penalties, such as the credit card fees at issue. ..."

- Ninth Circuit Judge Dorothy W. Nelson, affirming the dismissal of In re: Late Fee and Overlimit Fee Litigation (741 F.3d 1022,1024 (9th Cir. 2014)).

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