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ZELTZER v. CARTE BLANCHE CORP.

UNITED STATES COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA


April 30, 1974

JAY S. ZELTZER, in behalf of himself and all others similarly situated, Plaintiffs
v.
CARTE BLANCHE CORPORATION, Defendant

Teitelbaum, District Judge.

The opinion of the court was delivered by: TEITELBAUM

HUBERT I. TEITELBAUM, District Judge.

On September 2, 1971, this suit, purporting to be a class action under the Truth-In-Lending Act (TILA), 15 U.S.C. § 1601 et seq., was filed. The gist of plaintiff's complaint was that defendant had violated TILA in the period between January 1, 1970 and November 1, 1970 by failing to properly disclose the manner in which overpayments to cardholder's airline charge accounts would be credited. It was alleged that by failing to properly disclose the manner in which such a transaction would be handled, Carte Blanche was in violation of Section 1637 (a) (2), (b) (8) and (b) (9) of TILA and Section 226.7a(2), b(8) and b(9) of Regulation Z (12 CFR § 226 et seq.).

 On November 29, 1971, at a status conference with counsel for both parties present, further proceedings in this case were postponed until a decision was rendered by the Court of Appeals for the Third Circuit in the similar and related case of Katz v. Carte Blanche, 53 F.R.D. 539 (W.D. Pa. 1971). *fn1" On March 15, 1974, the Court of Appeals en banc rendered a decision in the case.

 Prior to the en banc Katz decision, the parties had filed briefs on both defendant's motion to dismiss and plaintiff's motion for class determination. Although at the time of the Katz decision both motions were seemingly ripe for adjudication, the Katz opinion made clear that, at least under certain specified circumstances, which circumstances are present in the case sub judice, a decision on the merits should precede any adjudication on the class question. With this background in mind, we proceed to the merits of plaintiff's cause of action, called into question here by Carte Blanche's motion to dismiss.

 During the period in question, Carte Blanche made the following disclosures in its monthly bills to cardholders who used the Carte Blanche card to purchase airline tickets:

 Airline Charges

 Explanation of Extended Pay Plan Monthly installments are billed as follows: Amount of Individual Ticket Monthly Installment $600.00 or less 1/12 (Min. $10. per mo.) $600.01 to $900.00 1/18 $900.01 or more 1/24

19740430

© 1992-2004 VersusLaw Inc.



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