November 5, 2008

On January 20, 2009, the United States Court of Appeals issued the mandate, allowing the citizens of South Carolina who are battling abuses of Pay Day Lending Companies to reduce to the state courts to litigate their claims. In Dennison v. Carolina Pay Day Loans, 549 F.3d 941 (4th Cir. 2008), and the companion case of Johnson v. Advance America, 549 F.3d 932 (4th Cir. 2008), the Fourth Circuit rejected efforts by the pay day lending companies to be able to use either their state of incorporation or their principal place of business to support removal based on diversity, when each of the companies was sued only by South Carolina citizens who have borrowed from these companies. Joe Whatley argued both of these cases. After learning of the victory, Whatley stated: “The Class Action Fairness Act was never intended to move all class litigation to federal court. This is an important victory for plaintiffs who seek to benefit from our system of federalism and present their cases to state courts.” Whatley Drake & Kallas are actively litigating on behalf of victims of lending abuses of all types. In addition to these pay day lending cases, the firm is also co-lead counsel for subprime borrowers who are the victims of Countrywide’s practices.