Epps v. JP Morgan Chase Bank, N.A.
675 F.3d 315
4th Cir.2012Background
- Epps purchased a used vehicle in Maryland in 2007 via a Maryland RIC with a CLEC reference; the contract stated applicable federal and Maryland law and subject to CLEC.
- Thompson Toyota Scion assigned the RIC to Chase after default; Chase repossessed and sent a private-sale notice lacking required location/time details under CLEC.
- After sale, Chase issued an
- Explanation of Calculation of Surplus or Deficiency
- indicating a deficiency and potential judgment against Epps.
- Epps filed a putative class action in Maryland state court asserting CLEC claims and related contract, restitution, and consumer-protection theories; Chase removed under CAFA.
- The district court dismissed claims, holding CLEC preempted by NBA/OCC regulations and that the RIC did not mandate CLEC; Epps appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CLEC is preempted by NBA and OCC regulations | Epps contends CLEC is not preempted | Chase argues §7.4008(d) preempts CLEC | CLEC not preempted; savings clause applies |
| Whether Chase bound itself to CLEC via RIC assignment | Epps argues Chase is bound by CLEC through assignment | Chase claims non-binding due to voluntary agreement | Chase bound by election of CLEC; contract survives enforcement |
| Whether district court erred by dismissing non-CLEC/RIC claims | Epps seeks relief on other Maryland-law claims | Chase argues those claims fail independent of CLEC | Remand to address non-CLEC claims consistent with opinion |
Key Cases Cited
- National Bank v. Commonwealth, 76 U.S. 353 (U.S. 1869) (national banks subject to state law on debts and property)
- Wyeth v. Levine, 555 U.S. 555 (U.S. 2009) (Supreme Court on preemption and Congress as touchstone)
- Aguayo v. U.S. Bank, 653 F.3d 912 (9th Cir. 2011) (preemption of similar Rees-Levering Act; savings clause applies)
- Turnbaugh v. National City Bank of Ind., 463 F.3d 325 (4th Cir. 2006) (presumption against preemption not applicable; federal presence in area of lending/subsidiaries)
- Wells Fargo Home Mortgage v. Neal, 398 Md. 705 (Md. 2007) (voluntary contractual terms enforceable; not preempted where term chosen by contracting parties)
- Wolens v. American Airlines, 513 U.S. 219 (U.S. 1995) (contract terms chosen by parties may be enforceable despite federal preemption)