Beasley v. Wells Fargo Bank

235 Cal. App. 3d 1407, 1 Cal. Rptr. 2d 459 (1991)

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Beasley v. Wells Fargo Bank

California Court of Appeal
235 Cal. App. 3d 1407, 1 Cal. Rptr. 2d 459 (1991)

MP

Facts

A class-action lawsuit challenged Wells Fargo Bank’s (defendant) assessment of fees against its credit-card customers (plaintiffs) who failed to make timely payments or exceeded their credit limits and resulted in a judgment for the credit-card customers. A subsequent judgment required the bank to pay the credit-card customers their attorney fees and expenses based on California’s private attorney general statute—California Code of Civil Procedure § 1021.5. The statute permits a fee award when: (1) the action enforces an important right affecting the public interest; (2) the general public or a large class has received a significant benefit; (3) the necessity and financial burden of private enforcement make the award appropriate; and (4) in the interest of justice, the fees should not be paid out of the recovery. The bank appealed and argued that the financial burden, interest of justice, and public interest criteria were lacking.

Rule of Law

Issue

Holding and Reasoning (Reardon, J.)

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