Baker v. Autos, Inc.

March 25, 2015 by Justia

Darilyn Baker appealed a district court order denying her motion for class action certification. In 2007, Baker purchased a car from Autos, Inc., d.b.a. Global Auto. Baker financed the purchase of the car by trading in her old vehicle and by entering into a retail installment sales contract with Global Auto. The total included a "document administration fee" of $195 and a "loan fee" of $200. Baker agreed to repay the loan in thirty monthly payments of $247.08. The retail installment contract also provided that if the payment was late, Baker would be charged $25. Baker was late on making some of her required monthly payments, and the vehicle was repossessed. Before Baker defaulted on her loan, Global Auto assigned Baker's contract to RW Enterprises. After the vehicle was repossessed, Baker filed suit in state district court alleging Global Auto and RW Enterprises' sales and lending practices violated state usury law, among other claims. Baker also sued Robert Opperude and James Hendershot, the principal owners of Global Auto, and Randy Westby, the principal owner of RW Enterprises. In state district court, Baker filed a motion to have the suit certified as a class action for all putative purchasers who, subject to the applicable statute of limitations period, may have suffered an injury as a result of Global Auto and RW Enterprises' business practices. Baker alleged the "loan fee," the "document administration fee," and the late payment charge violated North Dakota usury law and the North Dakota Retail Installment Sales Act. After a hearing on the motion for class certification, the district court entered an order denying the motion. The court did not rule on the merits of the case. After review, the Supreme Court concluded the district court erred in applying the law to the thirteen sub-factors of the fair and efficient adjudication factor, it reversed the district court's order denying certification and remanded with instructions to reconsider the sub-factors in light of this holding. View "Baker v. Autos, Inc." on Justia Law