McKeage v. TMBC, LLC, No. 15-3191 (8th Cir. 2017)
Annotate this CasePlaintiffs filed a class action against TMBC, challenging TMBC's nationwide practice of charging a document fee when selling boats and trailers under form contracts governed by Missouri law. The district court approved class certification and then granted summary judgment to the class, awarding treble damages and attorney fees. The district court determined that TMBC prepared legal documents attendant to its sales and that charging a fee for those documents constituted unauthorized law business in violation of Mo. Rev. Stat. 484.010 and 484.020. Both parties appealed. The court concluded that the district court did not abuse its discretion in finding that the class as ultimately defined met the requirements of Rule 23 and certifying the case as a class action; the district court did not err in granting the class members' motion for summary judgment or in calculating damages based upon the entire document fee; and the district court did not err in applying Missouri law to sales that occurred outside Missouri. Accordingly, the court affirmed as to these issues. The court then addressed plaintiffs' contention that the district court erred when it held that the attorneys’ fees should be paid from the common fund rather than paid by TMBC pursuant to the contractual fee-shifting provision, concluding that enforcement of the fee-shifting provision honors both the contract and the principles underlying the common fund doctrine. Therefore, the court reversed and remanded for further proceedings as to the award. The court noted that if the district court, on remand, should determine that counsel for the class is entitled to additional fees from the common fund, apart from those reasonable expenses covered by the fee-shifting provision, it is not prohibited from awarding additional fees.
Court Description: Per Curiam - Before Wollman, Bright and Kelly, Circuit Judges] Civil case - Class actions. In suit alleging defendant's nationwide practice of charging a document fee when selling boats and trailers under form contracts governed by Missouri law, the district court did not err in certifying the class and did not err in determining that charging a fee for the documents constituted unauthorized law business in violation of Mo. Rev. Stat. Sections 484.010 and 484.020; the class was clearly ascertainable and the commonality and predominance requirements of Rule 23(b) were met; Missouri courts have determined the forms for which defendant charged a fee are legal documents - namely, power of attorney forms - and the district court did not err in finding the practice violated Missouri law; district court did not err in applying Missouri law to sales that occurred outside Missouri; on plaintiffs' cross-appeal, in which they contended the district court erred in awarding attorneys fees from the common fund rather than under the contractual fee-shifting provisions, enforcement of the fee-shifting provision honors both the parties' contract and the principles underlying the common fund doctrine, and the award is reversed; however, if on remand the district court should determine that class counsel is entitled to additional fees from the common fund, apart from those reasonable expenses covered by the fee-shifting provision, it is not prohibited from awarding additional fees from the fund as a whole.
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