Mandell Menkes Knocks Out Class Action Usury Claim on Summary Judgment

On June 22, 2020, Judge Jorge Alonso of the Northern District of Illinois granted summary judgment to Mandell Menkes’ client on plaintiff’s claim for violations of the Illinois Consumer Installment Loan Act and the Illinois Interest Act. Mandell Menkes argued that plaintiff’s claims were barred by the time-price doctrine, and while the court found that the client’s unique business model “is not a classic case” for the application of this doctrine, it nevertheless “financed a ‘bona fide sale of property’ and services without making a loan of money” for the purpose of these statutes. While certain other claims remained in the case, these claims had the largest potential financial exposure to Mandell Menkes’ client, especially in the context of a class action.

For more information, contact: Bruce Menkes, George Desh