A California state appeals court ruled Tuesday that a disgruntled Discover Card holder, Christopher Boehr, can't bring a class action against the company. Boehr filed a potential class action against Discover Bank in 2001, claiming the company breached its agreements by charging a $29 late fee for payments received on the due date, but after 1 p.m.
A Los Angeles Superior Court judge ruled the ban on class actions "unconscionable" under state law. But, in the Appeals Court decision that followed, the judge said that in this case, state law was trumped by the Federal Arbitration Act and Delaware law, which governs the cardholder agreement. Rick Richmond and C. Robert Boldt, of Kirkland & Ellis in Los Angeles, represented Discover.
This article appeared in its entirety in the January 15, 2003 issue of the Los Angeles Daily Journal.