These two opinions were issued yesterday, May 16, but I had a big oral argument in the afternoon and was too beat to summarize them.

Krieger v. Bank of America — civil / consumer — reversal — Krause

The Third Circuit ruled in favor of a consumer plaintiff in a credit-card dispute with Bank of America. The opinion’s introduction neatly summarizes matters:

The same day Appellant William Krieger fell victim to a credit card scam and discovered a fraudulent $657 charge on his bill, he protested to his card issuer, Bank of America (BANA), and was told both that the charge would be removed and that, pending “additional information,” BANA considered the matter resolved. And indeed, Krieger’s next bill reflected a $657 credit. But over a month later Krieger opened his mail to some particularly unwelcome additional information: BANA was rebilling him for the charge. He disputed it again, this time in writing, but after BANA replied that nothing would be done, he paid his monthly statement and then filed this action, alleging BANA violated two consumer protection laws: the Fair Credit Billing Act, which requires a creditor to take certain steps to correct billing errors, and the unauthorized-use provision of the Truth in Lending Act, which limits a credit cardholder’s liability for the unauthorized use of a credit card to $50. The District Court granted BANA’s motion to dismiss the operative complaint after determining Krieger had failed to state a claim as to either count. Because we conclude the District Court’s decision was contrary to the text, regulatory framework, and policies of both statutes, we will reverse.

Joining Krause were Ambro and Conti WDPA by designation. The district judge was MDPA Judge Brann. Arguing counsel were Brett Freeman of the Sabatini Law Firm for the consumer and Michael Falk of Reed Smith for the bank.

American Orthopedic & Sports Med. v. Independent Blue Cross Blue Shield — ERISA — affirmance — Krause

The Third Circuit rejected an insured’s argument that ERISA bars insurance companies from enforcing anti-assignment clauses (clauses in health insurance plans that prevent the insured from assigning their claim to a third party including the healthcare provider). The court disagreed with two other circuits that viewed the issue as controlled by statutory language, but in the end agreed with all circuits to reach the issue that the clauses were enforceable. The court left open the possibility that a would-be assignee could instead proceed in a power-of-attorney capacity, but held that here that argument was waived.

Joining Krause were Ambro and Rendell. Arguing counsel were Samuel Saltman of Callagy Law for the appellant, and Susan Danielski of Dugan Brinkmann and Michael Holzapfel of Becker for the insurers.