Dist. Ct. erred in granting defendant’s motion to rescind class certification in action alleging that defendant wrongfully imposed interest fees during period when: (1) defendant entered into floor plan agreements with plaintiffs-car dealers that called for defendant to issue plaintiffs line of credit for plaintiffs’ purchase of used vehicles at automobile auctions; and (2) defendant charged plaintiffs interest at time when defendant had not paid funds to auction company that had sold used cars to plaintiffs. While Dist. Ct. found that class certification was inappropriate because floor plan agreements were ambiguous as to when interest charges could begin and because said ambiguities would require extrinsic evidence from plaintiffs as to representations made from defendant, Ct. of Appeals found that record failed to sustain Dist. Ct.’s assumption that commonality and predominance factors were lacking, where: (1) instant floor plan agreements were standard form contracts that would support uniform application and interpretation of contract clauses; (2) ruling on any ambiguity in contract would apply to all signatories of contract; and (3) mere need for extrinsic evidence, by itself, would not render case inappropriate for class litigation.
Federal 7th Circuit Court
Civil Court
Class Action