From our private database of 35,600+ case briefs...
Lafferty v. Wells Fargo Bank
California Court of Appeals
213 Cal. App. 4th 545, 153 Cal. Rptr. 3d 240 (2013)
Patrick and Mary Lafferty (plaintiffs) bought a motor home in late 2005 manufactured by Fleetwood Motor Homes (Fleetwood) (defendant) from Geweke Auto & RV Group (Geweke) (defendant) under an installment contract. Geweke assigned the contract to Wells Fargo Bank (Wells Fargo) (defendant). Pursuant to a requirement of the Federal Trade Commission known as the Holder Rule, the installment contract included a clause stating that the holder of the contract was subject to all claims and defenses the buyer could assert against the seller and that recovery by the buyer could not be greater than the amount paid by the buyer. The motor home began having problems almost immediately, including electrical issues. The motor home began having problems almost immediately. The Laffertys returned the motor home to Geweke and stopped making payments. Wells Fargo eventually took possession of the motor home. While Wells Fargo made no efforts to collect more money from the Laffertys, Wells Fargo did report the Laffertys’ nonpayment to consumer credit reporting agencies. In November 2006, the Laffertys sued Fleetwood, Geweke, Wells Fargo, and Phoenix American Warranty Company, Inc. (Phoenix American) (defendant), from whom the Laffertys had bought an extended warranty. As against Wells Fargo, the Laffertys made claims for various breaches and violations of various acts, all based on Wells Fargo being the assignee of the installment contract between the Laffertys and Geweke. The Laffertys also made a claim against Wells Fargo based on Wells Fargo’s own negligence. Wells Fargo demurred to the Laffertys’ amended complaint in regard to several claims, and that was sustained by the trial court. Wells Fargo then moved for summary judication of the remaining six causes of action. The trial court granted summary judgment to Wells Fargo, finding that the Laffertys had presented no real evidence beyond the pleadings in the complaint. The trial court also found that the Holder Rule applied only when the buyer received little or no value and that the assignment from Geweke to Wells Fargo was intended merely as a security interest and not an assumption of warranty obligations. The Laffertys did receive a judgment against Geweke for $210,000, and the Laffertys appealed the summary-judgment ruling in favor of Wells Fargo.
Rule of Law
Holding and Reasoning (Hoch, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 618,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 618,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.