Mazzei v. Money Store
Plaintiff Joseph Mazzei initiated a class action against The Money Store and related entities, alleging breach of contract for improperly charged mortgage late fees and attorney fee-splitting. The case involved two certified classes: a "Post Acceleration Late Fee Class" and a "Fee Split Class," with a jury finding for Mazzei and the Late Fee Class on late fees but for defendants on the fee-splitting claim. The plaintiff's motion for a new trial regarding the fee-splitting claim was denied, as the court found the jury's verdict was not seriously erroneous. The defendants successfully moved to decertify the Late Fee Class and were granted judgment as a matter of law, because the plaintiff failed to prove class-wide contractual privity with all class members, especially those whose loans were only serviced by the defendants. Consequently, the jury's $54 million damages award for the Late Fee Class could not be upheld, leading to the class's decertification.