Latest 2 Cases: Bryan v. Credit Control, LLC (Consumer Law), Hayward v. IBI Armored Services, Inc. (Labor & Employment Law)

COVID-19 Lays Bare the Cruelty of Neoliberalism

JOSEPH MARGULIES

Cornell law professor Joseph Margulies observes how the COVID-19 pandemic is exposing the cruel folly of neoliberal governance. Margulies points out that neoliberalism—the idea that social problems are better solved by the private sector than by government—has brought millions of Americans to the edge of financial and physical ruin, and COVID-19 will push them over. He argues that now more than ever, we must be communitarians rather than individualists.

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Bryan v. Credit Control, LLC

Docket: 19-244

Opinion Date: April 3, 2020

Judge: Richard J. Sullivan

Areas of Law: Consumer Law

Plaintiff, individually and on behalf of a class, filed suit under the Fair Debt Collection Practices Act, alleging that Credit Control, in an effort to collect the outstanding debt on plaintiff's Kohl's private label credit card account, sent him a letter that did not list the "creditor to whom the debt is owed," in violation of 15 U.S.C. 1692g. Plaintiff also alleged that Credit Control's letter constituted a false or misleading representation, in violation of 15 U.S.C. 1692e. The district court granted summary judgment on the pleadings to Credit Control. The Second Circuit held that the district court erred in finding that Credit Control disclosed the "name of the creditor to whom the debt is owed" by listing Kohl's, the servicer of the account, as the "client." Because the district court then relied on this erroneous finding in further holding that the letter did not constitute a false or misleading representation, the court did not reach the question of whether the letter violated Section 1692e. Accordingly, the court reversed as the Section 1692g claim and vacated as to the Section 1692e claim, remanding for further proceedings.

Hayward v. IBI Armored Services, Inc.

Docket: 19-1863

Opinion Date: April 3, 2020

Judge: Per Curiam

Areas of Law: Labor & Employment Law

The Second Circuit vacated the district court's grant of defendant's motion for partial summary judgment and dismissal of plaintiffs' claims for overtime pay under the New York Labor Law's (NYLL) overtime-pay provision. The court held that, although the district court correctly concluded that plaintiffs were ineligible for overtime pay at a rate of one and one-half times their regular wage, the district court erred in holding that plaintiffs were ineligible for any overtime pay under the NYLL. The court explained that a plain reading of the NYLL's overtime-pay provision demonstrates that employees subject to certain exemptions under the Fair Labor Standards Act, including the Motor Carrier Exemption, must be paid overtime at a rate of one and one-half times the minimum wage. Accordingly, the court remanded for further proceedings.