Mabary v. Hometown Bank, N.A.
888 F. Supp. 2d 857
S.D. Tex.2012Background
- Plaintiff filed a putative class action alleging EFTA violations for terminal fees charged at Defendant's ATMs without proper notices.
- EFTA requires two forms of notice: at the ATM and on-screen or via a paper notice prior to transaction, per 15 U.S.C. § 1693b(d)(3).
- Plaintiff alleges a May 2010 $2.00 terminal fee was charged without any notice at/near the ATM.
- Defendant moved to dismiss for lack of standing or stay pending Supreme Court decision; the stay was later lifted.
- Plaintiff concedes no actual out-of-pocket injury but asserts a statutory injury via notice violation under EFTA.
- Court previously stayed consideration but ultimately held Plaintiff has standing and denied the Motion to Dismiss.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Plaintiff have Article III standing under EFTA? | Plaintiff asserts statutory right to notice creates injury-in-fact. | Defendant argues no actual injury and lack of standing for class action. | Yes, Plaintiff has standing. |
| Is an EFTA notice violation itself an injury-in-fact sufficient for standing? | Statutory violation suffices as injury-in-fact; multiple courts align with this. | Statutory violation does not automatically prove injury; may require actual damages. | Yes, statutory violation creates injury-in-fact. |
| Can the case proceed as a class action given standing? | Standing exists for the class representative and likely others similarly situated. | Individualized proof of injury would defeat class treatment. | Class action may proceed; standing established for Plaintiff. |
Key Cases Cited
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (sets three elements of standing: injury, causation, redressability)
- Warth v. Seldin, 422 U.S. 490 (1975) (injury-in-fact must be concrete and particularized)
- Hardin v. Kentucky Utilities Co., 390 U.S. 1 (1968) (statutory rights can create standing when invasion of protected interest occurs)
- Linda R.S. v. Richard D., 410 U.S. 614 (1973) (statutory rights may confer standing even without actual injury)