Just Film, Inc. v. Buono, No. 14-16132 (9th Cir. 2017)
Annotate this CasePlaintiffs, small businesses and small business owners who leased "point of sale" credit and debit card processing equipment, filed suit against the Leasing Defendants, alleging that they defrauded plaintiffs in a scheme involving equipment leases and credit card processing services. Of five proposed national classes, the district court certified two: the SKS Post-Lease Expiration Class and the Property Tax Equipment Cost Basis Class. In regard to the SKS Post-Lease Expiration class, the court concluded that there are individualized issues related to the representative plaintiff's injury, common questions exist; and common questions predominate for the alleged Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1962, violation. In regard to the Property Tax Equipment class, the court concluded that the district court did not abuse its discretion in concluding that common questions predominate and the class was superior because litigation on a classwide basis would promote greater efficiency in resolving the cases' claims. Accordingly, the court affirmed the classification orders.
Court Description: Class Certification. The panel affirmed the district court’s orders certifying two national classes pursuant to Federal Rule of Civil Procedure 23(b)(3) in an action under RICO, the Fair Credit Reporting Act, and state law. Small businesses and small business owners who leased “point of sale” credit and debit card processing equipment alleged that the “Leasing Defendants,” a group of entities that financed their acquisition of the equipment, defrauded them in a scheme that involved equipment leases and credit card processing services. The panel held that the district court did not abuse its discretion in certifying the “SKS Post-Lease Expiration Class” and the “Property Tax Equipment Cost Basis Class” to pursue claims under RICO and California state law. The panel held that plaintiffs established typicality, commonality, 4 JUST FILM V. BUONO and predominance for the SKS Post-Lease Expiration Class. The plaintiffs established commonality, predominance, and superiority for the Property Tax Equipment Cost Basis Class.
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