Law Firm of Roxborough, Pomerance & Nye Says Bank of America and Wells Fargo Ordered into Mediation; Firm Believes Bank of America Close to Resolving Class Action Lawsuit

Business Wire, Jan 6, 2005

LOS ANGELES -- Bank of America and Wells Fargo, both facing highly publicized class action lawsuits for charging paycheck cashing fees, were ordered into mediation during a recent initial status conference with the court. The mediations are currently scheduled for February 8. However, according to the plaintiff's lawyer, it was disclosed in court that Bank of America and the plaintiff are close to resolving the case.

"We are very optimistic about reaching a resolution with Bank of America," says Nick Roxborough, a partner of Los Angeles based Roxborough, Pomerance & Nye LLP (RPN), who filed the lawsuits. "Although ordered into mediation, Wells Fargo so far has not been so inclined to resolve this issue and has filed a motion for summary judgment, raising once again the proverbial preemption doctrine as the major lynch pin of its defense."

The motion contends that any action brought against a national bank is completely preempted by federal law, explains Roxborough. To address issues Wells Fargo raised in court and to expand the scope and nature of the case, RPN filed a third amended complaint on behalf of Chaffee Enterprises Inc. -- the lead plaintiff in the Wells Fargo case -- adding causes of action for breach of contract, breach of the implied covenant of good faith and fair dealing, fraud, and negligence to its complaint. In addition, a series of documents and discovery concerning Well Fargo's $5 check cashing fee has been requested.

Both class action lawsuits were originally filed last April on behalf of California employers who believe the banks' fees have placed them in violation of Section 212 of the California Labor Code, which requires that paychecks `be negotiable and payable in cash, on demand, without discount.' The suits seek injunctions to stop the banks from charging a $5 per paycheck cashing fee to employees of business payroll account holders as well as a refund of all such fees already paid by thousands of employees in California -- mostly lower-paid workers who don't hold personal checking accounts and rely on their employers' banks to cash their checks.

Roxborough, Pomerance & Nye LLP (RPN) is a Los Angeles-based law firm providing expert legal counsel and representation to the California business community. Established in 1996, the firm offers a broad range of legal services in all facets of civil litigation with its primary focus on employment, business, and insurance litigation. It is the first law firm in the country to specialize in and make new law when representing employers in workers' compensation premium and dividend disputes with insurance carriers.