Bridget Rashaw v. United Consumers Credit Union
685 F.3d 739
| 8th Cir. | 2012Background
- Four named plaintiffs filed three state-court class actions alleging Missouri credit unions violated Mo UCC and MMPA via a Centrix-administered subprime lending program.
- Defendants removed to federal court under CAFÉ and the district court dismissed the state-law claims.
- The court reviews de novo and agrees Mo UCC claims are time-barred; it also holds MMPA exemption for Missouri credit unions applies.
- Plaintiffs alleged collateral disposition notices violated Revised Article 9 and were mailed between Dec 20, 2004, and Jan 20, 2005; complaints were filed in 2010.
- Missouri imposes five-year or three-year limitations for statutory liabilities; § 516.420 historically applied to penalties/forfeitures by moneyed corporations, potentially extending accrual.
- Schwartz v. Bann-Cor Mortgage suggested § 516.420 applied to moneyed corporations, but the court narrows that reading to penalties under penal statutes, affecting this case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mo UCC claims are timely. | Plaintiffs rely on § 516.420 to extend prompt accrual. | Schwartz dictates applicability of § 516.420; accrual linked to notices. | Mo UCC claims time-barred; §516.420 limited to penalties under penal statutes, not civil actions. |
| Whether MMPA exemption for Missouri credit unions forecloses claims. | Exemption narrowly construed; claims relate to private enforcement notwithstanding federal regulation. | Credit unions are chartered/regulated in Missouri; exemption applies. | MMPA exemption applies; claims not considered further. |
Key Cases Cited
- Schwartz v. Bann-Cor Mortgage, 197 S.W.3d 168 (Mo. App. 2006) (six-year limit under §516.420 applies to moneyed corporations after discovery)
- State ex rel. Fichtner v. Haid, 22 S.W.2d 1045 (Mo. 1929) (bank deposits; accrual under penalties/three-year limit; controlling precedent)
- Vroom v. Thompson, 55 S.W.2d 1024 (Mo. App. 1932) (moneyed corporation liability/limitations context)
- Hughes Development Co. v. Omega Realty Co., 951 S.W.2d 615 (Mo. 1997) (courts should adhere to statute itself; uneven lurch in limitations jurisprudence)
- State ex inf. Attorney General v. Arkansas Lumber Co., 169 S.W. 145 (Mo. 1914) (statutory penalties; civil action context; limitations governed by civil statute)
- Powel v. Chaminade College Preparatory, Inc., 197 S.W.3d 576 (Mo. banc 2006) (statutory limitations; accrual and damages not needing full knowledge)
- Chem. Workers Basic Union Local No. 1744 v. Arnold Sav. Bank, 411 S.W.2d 159 (Mo. banc 1966) (accrual principle for damages under Mo Rev Stat 516.100)