This case was last updated from U.S. District Courts on 03/17/2023 at 05:54:22 (UTC).

Hurt et al v. Citizens Equity First Credit Union

Case Summary

On February 7, 2019, Julian Hurt (“Plaintiff”), on behalf of himself and all others similarly situated, represented by Irwin B. Levin, Lynn A. Toops, Richard E. Shevitz, and Vess A. Miller of Cohen & Malad LLP; and Jeffrey D. Kaliel and Sophia G. Gold of Kaliel LLC, filed a contract lawsuit against Citizens Equity First Credit Union (“Defendant”), seeking damages and injunctive relief for alleged breach of contract. This case was filed in the U.S. District Court for the Central District of Illinois, with Judges James E. Shadid and Jonathan E. Hawley presiding.

In the complaint, the plaintiff alleged, “Plaintiff brings this action on behalf of himself and classes of all similarly situated consumers against Citizens Equity First Credit Union (‘CEFCU’), arising from its routine practice assessing Overdraft Fees on transactions that did not actually overdraw a checking account.”

The plaintiff then alleged, “CEFCU misleadingly and deceptively misrepresents its practice, including its own account contracts. CEFCU also omits material facts pertaining to each of the above practices, including its account contracts” and that “CEFCU still assesses crippling $30 Overdraft Fees on many of these transactions, and mispresents its practices in its account documents.”

Plaintiff further alleged, “Despite putting aside sufficient available funds for debit card transactions at the time those transactions are authorized, CEFCU later assesses Overdraft Fees on those same transactions when they purportedly settle days later into a negative balance. These types of transactions are APPSN transactions.”

The plaintiff also alleged, “When a customer makes a purchase with a debit card, CEFCU sequesters the funds needed to pay the transaction, subtracting the dollar amount of the transaction from the customer’s available balance. Such funds are not available for any other use by the accountholder, and such funds are specifically associated with a given debit card transaction.”

Plaintiff alleged that “when any subsequent, intervening transactions are initiated on a checking account, they are compared against an account balance that has already been reduced to account for any earlier debit card transactions. This means that many subsequent transactions incur Overdraft Fees due to the unavailability of the funds sequestered for those debit card transactions.”

Plaintiff then alleged that “despite keeping those held funds off-limits for other transactions, CEFCU improperly charges Overdraft Fees on those APPSN Transactions, although the APPSN transactions always have sufficient available funds to be covered.”

Additionally, the plaintiff alleged, “Besides being deceptive, unfair, and unconscionable, these practices breach contract promises made in CEFCU’s adhesion contracts—contracts which fundamentally misconstrue and mislead consumers about the true nature of CEFCU’s processes and practices. These practices also exploit contractual discretion to gouge consumers.”

The plaintiff further alleged, “CEFCU’s practice of charging Overdraft Fees even when sufficient available funds exist to pay a transaction violates a contractual promise not to do so. This discrepancy between CEFCU’s actual practice and the contract causes consumers like Plaintiff to incur more overdraft fees than they should.”

Plaintiff presented three claims for relief, including for alleged breach of contract for breach of the covenant of good faith and fair dealing, unjust enrichment, and violation of the Illinois Consumer Fraud and Deceptive Business Practices Act.

In the complaint, the plaintiff requested a judgment for declaratory relief as well as injunctive relief enjoining the defendant from engaging in the aforementioned practices. The plaintiff also requested an award for actual, incidental and consequential damages along with compensatory damages, punitive damages, and restitution.

This is a summary of a legal complaint. All statements, claims, and allegations listed herein reflect the position of the plaintiff only and do not represent the position of UniCourt. Additionally, this case summary may not reflect the current position of the parties to this litigation or the current status of this case. To view the latest case updates and court documents, please sign up for a UniCourt account.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:19-CV-01040

  • Filing Date:

    02/07/2019

  • Case Status:

    Disposed - Other Disposed

  • Case Type:

    Contract - Other Contract

Judge Details

Presiding Judge

James E. Shadid

Referral Judge

Karen L. McNaught

 

Party Details

Plaintiffs

Julian Hurt

Mary Wilson

Defendant

Citizens Equity First Credit Union

Attorney/Law Firm Details

Plaintiff Attorneys

Irwin B Levin

Attorney at COHEN & MALAD LLP

Suite 1400, One Indiana Square

Indianapolis, IN 46204

Jeffrey D Kaliel

Attorney at KALIEL GOLD PLLC

4Th Floor, 1100 15Th Street Nw

Washington, DC 20005

Lisa M La Fornara

Attorney at COHEN & MALAD LLP

Suite 1400, One Indiana Square

Indianapolis, IN 46204

Richard E Shevitz

Attorney at COHEN & MALAD LLP

Suite 1400, One Indiana Square

Indianapolis, IN 46204

Lynn A Toops

Attorney at COHEN & MALAD LLP

Suite 1400, One Indiana Square

Indianapolis, IN 46204

Tiffany Marko Yiatras

Attorney at CONSUMER PROTECTION LEGAL LLC

308 Hutchinson Road

Ellisville, MO 63011

Vess Allen Miller

Attorney at COHEN & MALAD LLP

Suite 1400, One Indiana Square

Indianapolis, IN 46204

Sophia Goren Gold

Attorney at KALIEL PLLC

10Th Floor, 1875 Connecticut Avenue Nw

Washington, DC 20009

Defendant Attorneys

James R Branit

Attorney at LITCHFIELD CAVO LLP

Suite 300, 303 West Madison Street

Chicago, IL 60606

Bradley Edwin Faber

Attorney at LITCHFIELD CAVO LLP

Suite 300, 303 West Madison Street

Chicago, IL 60606

Keith L Gibson

Attorney at LITCHFIELD CAVO LLP

Suite 300, 303 West Madison Street

Chicago, IL 60606

Michael Paul Baniak

Attorney at LITCHFIELD CAVO LLP

Suite 300, 303 West Madison Street

Chicago, IL 60606

 

Court Documents

#65

DOCUMENT UNAVAILABLE

#64

(#64) ORDER APPROVING PAYMENT OF ATTORNEYS' FEES, EXPENSES, AND SERVICE AWARDS FROM CLASS ACTION SETTLEMENT FUND. Entered by Judge James E. Shadid on 12/14/2022. (JS) (Entered: 12/15/2022)

#63

DOCUMENT UNAVAILABLE

#62

(#62) FINAL APPROVAL ORDER. Entered by Judge James E. Shadid on 12/14/2022. (JS) Modified on 12/15/2022 (JS). (Entered: 12/15/2022)

#61

(#61) NOTICE of Appearance of Attorney by Bradley Edwin Faber on behalf of Citizens Equity First Credit Union (Faber, Bradley) (Entered: 12/06/2022)

60 #60

Main Document

59 #2

Text of Proposed Order Final Approval Order

59 #1

Text of Proposed Order Proposed Order Approving Payment of Attorneys' Fees,

59 #59

Main Document

#7

#6

#5

RESTRICTED

#4

#3

#2

1 #2

Summons

1 #1

Civil Cover Sheet

#1

95 More Documents Available
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Docket Entries

  • 12/14/2022
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  • Docket(#65) +++ SEALED DOCUMENT - ORIGINAL ORDER APPROVING PAYMENT OF ATTORNEYS' FEES, EXPENSES, AND SERVICE AWARDS FROM CLASS ACTION SETTLEMENT FUND UNREDACTED (JS) (Entered: 12/15/2022)

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  • 12/14/2022
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  • Docket(#64) ORDER APPROVING PAYMENT OF ATTORNEYS' FEES, EXPENSES, AND SERVICE AWARDS FROM CLASS ACTION SETTLEMENT FUND. Entered by Judge James E. Shadid on 12/14/2022. (JS) (Entered: 12/15/2022)

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  • 12/14/2022
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  • Docket(#63) +++ SEALED DOCUMENT - ORIGINAL FINAL APPROVAL ORDER UNREDACTED (JS) (Entered: 12/15/2022)

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  • 12/14/2022
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  • Docket(#62) FINAL APPROVAL ORDER. Entered by Judge James E. Shadid on 12/14/2022. (JS) Modified on 12/15/2022 (JS). (Entered: 12/15/2022)

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  • 12/14/2022
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  • DocketMinute Entry for proceedings held before Judge James E. Shadid: Parties present in open court by Attorney Lynn Toops for Plaintiffs and Attorney Bradley Faber for the Defendant for a Fairness Hearing held on 12/14/2022. Discussion held regarding #59 Consent MOTION for Settlement Final Approval of Class Action Settlement, MOTION for Attorney Fees, Expenses, and Service Awards. For the reasons stated on the record, the Court GRANTS #59 Consent MOTION for Settlement Final Approval of Class Action Settlement, MOTION for Attorney Fees, Expenses, and Service Awards and approves the Final Approval Order and Order approving payment of attorneys' fees, expenses, and service awards from class action settlement fund. (Court Reporter NM.) (JS) (Entered: 12/15/2022)

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  • 12/06/2022
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  • Docket(#61) NOTICE of Appearance of Attorney by Bradley Edwin Faber on behalf of Citizens Equity First Credit Union (Faber, Bradley) (Entered: 12/06/2022)

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  • 10/28/2022
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  • Docket(#60) MEMORANDUM in Support re #59 Consent MOTION for Settlement Final Approval of Class Action Settlement MOTION for Attorney Fees , Expenses, and Service Awards by Julian Hurt, Mary Wilson. (Attachments: #1 Affidavit of Lynn A. Toops and Jeffrey Kaliel, #2 Affidavit of Karen Rogan Re: Notice Procedures)(Miller, Vess) (Entered: 10/28/2022)

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  • 10/28/2022
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  • Docket(#59) Consent MOTION for Settlement Final Approval of Class Action Settlement, MOTION for Attorney Fees , Expenses, and Service Awards by Plaintiffs Julian Hurt, Mary Wilson. Responses due by 11/14/2022 (Attachments: #1 Text of Proposed Order Proposed Order Approving Payment of Attorneys' Fees, Expenses, and Service Awards from Class Action Settlement Fund, #2 Text of Proposed Order Final Approval Order)(Miller, Vess) (Entered: 10/28/2022)

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  • 07/12/2022
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  • Docket(#58) ORDER granting #57 Motion to Reset Class Administration Deadlines and Final Approval Hearing. Parties shall file a Motion for Final Approval on or by 10/28/2022. Hearing set for 10/12/22 on final approval is hereby stricken and reset to 12/14/2022 at 10:00 AM in Courtroom A in Peoria before Judge James E. Shadid. SEE FULL WRITTEN ORDER. Entered by Judge James E. Shadid on 7/12/22. (FDS) (Entered: 07/12/2022)

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  • 07/01/2022
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  • Docket(#57) MOTION Reset Class Administration Deadlines and Final Approval Hearing re Order on Motion for Settlement,,,, Set/Reset Hearings, Unopposed by Defendant Citizens Equity First Credit Union. Responses due by 7/15/2022 (Attachments: #1 Text of Proposed Order)(Branit, James) (Entered: 07/01/2022)

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76 More Docket Entries
  • 03/04/2019
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  • Docket(#8) MOTION for Extension of Time to File Answer re #1 Complaint by Defendant Citizens Equity First Credit Union. Responses due by 3/18/2019 (Branit, James) (Entered: 03/04/2019)

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  • 03/01/2019
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  • Docket(#7) NOTICE of Appearance of Attorney by Michael Paul Baniak on behalf of Citizens Equity First Credit Union (Baniak, Michael) (Entered: 03/01/2019)

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  • 03/01/2019
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  • Docket(#6) NOTICE of Appearance of Attorney by James R Branit on behalf of Citizens Equity First Credit Union (Branit, James) (Entered: 03/01/2019)

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  • 02/21/2019

  • DocketMagistrate Judge Tom Schanzle-Haskins added. Magistrate Judge Jonathan E. Hawley no longer assigned to case. (FDS, ilcd) (Entered: 02/21/2019)

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  • 02/21/2019

  • DocketText only order of recusal. Magistrate Judge Jonathan E. Hawley disqualifies and recuses himself from participation in this matter pursuant to 28 U.S. C. 455(a). Pursuant to instructions from Chief Judge James E. Shadid, this matter is reassigned to Magistrate Judge Tom Schanzle-Haskins for further proceedings. Entered by Magistrate Judge Jonathan E. Hawley on 2/21/19. (WG, ilcd) (Entered: 02/21/2019)

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  • 02/08/2019
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  • Docket(#5) Summons Issued as to Citizens Equity First Credit Union. (FDS, ilcd) (Entered: 02/08/2019)

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  • 02/07/2019
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  • Docket(#4) NOTICE of Appearance of Attorney by Richard E Shevitz on behalf of Julian Hurt (Shevitz, Richard) (Entered: 02/07/2019)

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  • 02/07/2019
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  • Docket(#3) NOTICE of Appearance of Attorney by Irwin B Levin on behalf of Julian Hurt (Levin, Irwin) (Entered: 02/07/2019)

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  • 02/07/2019
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  • Docket(#2) NOTICE of Appearance of Attorney by Vess Allen Miller on behalf of Julian Hurt (Miller, Vess) (Entered: 02/07/2019)

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  • 02/07/2019
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  • Docket(#1) COMPLAINT against Citizens Equity First Credit Union ( Filing fee $ 400 receipt number 0753-3031489.), filed by Julian Hurt. (Attachments: #1 Civil Cover Sheet, #2 Summons)(Miller, Vess) (Entered: 02/07/2019)

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