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Judge Holbrook issues stay in FPUC case

Marc Dann

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A quick update of the FPUC case. After a hearing on the afternoon of February 24, Judge Holbrook issued a stay  of his earlier decision in which he ordered the state to obtain the FPUC funds from the U.S. Department of Labor. You may read the order here. We will of course appeal this decision.

Separately, we have asked the Tenth District Court of Appeals for an order requiring the Governor to send a letter to the Federal Government requesting the money.  That motion will be fully briefed on Monday March 3, one week from today. We are hopeful that the Court of Appeals will see things differently than Judge Holbrook.

We have no idea why the Governor continues to refuse to ask for and at the very least secure the $900 Million in benefits owed to 330,000 Ohioans.  Nothing in Judge Holbrook’s stay prevents him from asking for the money right now.  The State’s right to appeal won’t be prejudiced and the state will be protected from the risk that if the federal dollars are reappropriated we would take action to obtain the money from the State of Ohio.

We hope the Governor reconsiders.  Please keep encouraging him to do so.

We expect the Court of Appeals to consider this matter on an expedited basis.

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Hearing is critical juncture in the battle to secure benefits owed to 300,000 Ohioans

In a hearing scheduled for 1:30 PM today in Franklin County Common Pleas Court, the attorneys who represent thousands of Ohioans unjustly denied nearly $1 billion in Federal Pandemic Unemployment Compensation (FPUC) benefits by the state will ask Judge Michael Holbrook to deny the state’s motion to stay his February 12 ruling in favor of the plaintiffs and order Governor Mike DeWine to immediately take steps to reinstate Ohio’s participation in the FPUC program. The motion, filed by DannLaw and Zimmerman Law Offices may be viewed and downloaded here.

“It is difficult, if not impossible, to understand why the state continues to fight a battle it lost decisively in both the trial and appellate court,” Marc Dann said. “The governor’s stated reason for pulling out of the program, that the benefits would serve as a disincentive for people to rejoin the workforce, was specious when he asserted it in 2021 and no longer exists in 2025.”

“There is absolutely no legal or policy reason why nearly $1 billion in federal funds should be sitting dormant in an account in Washington, D.C. when they could and should be flowing into the hands of Ohio families and fueling this state’s economy,” Dann continued. “Our motion asks Judge Holbrook to end the state’s defiance of his order as well as the delaying tactics that put the funds at risk of being repurposed by Congress and the Trump administration.”

In the motion, the legal team asserts that state and federal law governing the unemployment system trump the state’s right to a stay under Ohio’s Civil Rules of procedure:

Ohioans’ right to those benefits are created, defined, and regulated by statute–both federal and state. And as set forth in R.C. 4141.28(I), part of that right is to receive payment of employment compensation benefits promptly after a court renders a determination of entitlement to those benefits.

In its Order And Entry, this Court stated: “There is no question that plaintiffs were eligible

for FPUC benefits at the time defendants terminated its FPUC termination [sic].” Order And Entry, p. 10. The Court went on to state “there is also no question of fact and that plaintiffs are entitled to a writ of mandamus restoring Ohio’s participation in the FPUC program and resulting benefits as a matter of law.” Id., p. 11. In other words, this Court’s Order and Entry constitutes a determination that Plaintiffs were entitled to receive the available FPUC benefits after the State withdrew from the program.

 Pursuant to R.C. 4141.28(I), the State is under an affirmative statutory duty to immediately

pay those benefits notwithstanding its appeal. The State cannot rely on a Civil Rule of Procedure to curtail Plaintiffs’ substantive statutory right to prompt payment.

According to Dann if Judge Holbrook grants the state’s motion for a stay of his February 12 order the plaintiffs will immediately appeal to the Tenth District. DannLaw and Zimmerman filed a motion in the same court last week asking them to order the Governor to rejoin FPUC and secure the funds by a date certain in order to preserve the validity of the appeal. That motion is pending.   “As we’ve said repeatedly, time is of the essence. It would be unconscionable for the state to allow the money owed to 300,000 of this state’s citizens to vanish into the black hole of the federal budget. We will continue to do everything in our power to ensure that does not happen,” Dann concluded.

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DannLaw, Zimmerman Law Offices file motion after state appeals Common Pleas Court ruling ordering the state to secure and distribute $900,000,000 in federal FPUC funds

Reacting to the state of Ohio’s decision to appeal Judge Michael Holbrook’s ruling in favor of thousands of Ohioans unjustly denied nearly $1 billion in Federal Pandemic Unemployment Compensation (FPUC) benefits, attorneys from DannLaw and Zimmerman Law Offices today asked the Tenth District Court of appeals to order Governor Mike DeWine and the Ohio Department of Jobs and Families Services (ODJFS) to take all action necessary to obtain the funds from the U.S. Department of Labor and deposit them with the Clerk of Franklin County Common Pleas Court. The motion is designed to ensure that the funds will continue to be available as the state’s appeal proceeds. You may read and download the motion here: Bowling Candy 2025 02 20 Motion for Injunction WITH EXHIBITS

“Once the funds are deposited with the Clerk of Courts, they will be available for distribution to Ohioans who need and deserve them when we ultimately prevail,” Marc Dann said. “If, for some reason, our victory is overturned, the money will simply be sent back to the federal government. Given the current status of the case, what we are proposing is the most equitable path forward.”

In the motion the plaintiff’s argue that “time is of the essence and there is a compelling need for this Court to grant injunctive relief to prevent manifest injustice because federal policymakers have publicly expressed their intent to use unspent pandemic emergency money for other causes.”

“Congress is already talking about using unspent COVID relief dollars as part of a deal to raise the debt ceiling and the DOGE crew is turning over rocks to find and repurpose unspent money,” Dann explained. “The governor can preserve the FPUC funds with the stroke of a pen by signing a letter to the Department of Labor requesting the money.”

“Of course, he could use the same pen to abide by the orders Judge Holbrook issued on February 12. Even though he and the Tenth District Court ruled that the Governor has a legal obligation to secure and distribute these funds to eligible Ohioans, he continues to fight against the people he was elected to serve,” Dann said. “Because he refuses to do the right thing voluntarily, we are forced to protect our clients by asking the Court of Appeals to order him to do so.”

The motion notes that the Appellate Court has “…the power to issue an ‘affirmative injunction’ as necessary to “prevent manifest and extreme injustice where all or some part of those rights [obtained by the trial court’s judgment] will otherwise be irrevocably lost to appellee, and the appellant has little or nothing to lose.”

“That certainly applies in this case. Our clients could lose $900,000,000 while the state has no real interest in the FPUC funds and are merely the conduit that passes the money from the federal government to Ohioans,” Dann said. “The state’s continued defiance of court orders and refusal to abide by their legal obligation to secure these funds makes injunctive relief appropriate and absolutely necessary.”

In their motion the plaintiffs ask for an order that directs the Defendants to:

(1) take all action necessary to reinstate Ohio’s participation in the FPUC program from June 26, 2021 through its expiration;

(2) to take all action necessary to obtain Ohio’s share of FPUC program benefits from the U.S. Department of Labor;

(3) deposit the FPUC program benefits with the Clerk of the Court of Common Pleas, Franklin County Ohio, pending resolution of this appeal; and

(4) for all other relief this Court may deem just and proper.

For additional information please contact Marc Dann at 330-651-3131

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Franklin County Judge rules Governor DeWine violated Ohio law when he rejected fully federally funded Federl Pandemic Unemployment Compensation payments

In a landmark and long-awaited decision, Franklin County Common Pleas Court Judge Michael Holbrook today ordered Governor Mike DeWine and the Ohio Department of Jobs and Family Services (ODJFS) to immediately reinstate Ohio’s participation in the Federal Pandemic Unemployment Compensation (FPUC) program and take all action necessary to obtain Ohio’s share of FPUC program benefits  from the United States Department of Labor (DOL). A copy of the decision is available here.

Former Ohio Attorney General Marc Dann, whose law firm, DannLaw, originally filed suit in July of 2021 on behalf of thousands of Ohioans who were denied $300 in weekly supplemental unemployment benefit payments due to Governor DeWine’s unwarranted decision to end the state’s participation in the fully-federally funded program on June 26, 2021, hailed the ruling as a major victory for his clients and the state of Ohio.

“Today, Judge Holbrook validated our contention that Governor DeWine and ODJFS were required by Ohio law to accept and distribute the FUPC payments to Ohioans devastated by COVID-19,” Dann said. “The Governor’s decision to deny federal aid to families in crisis was arbitrary and unconscionable, and illegal. It is our sincere hope that he will now honor his obligation to obey the law without delay.”

According to Dann, eligible Ohioans will receive an estimated $900,000,000 in FUPC benefits as a result of Judge Holbrook’s ruling. “The payments will both enable people still reeling from the effects of the pandemic to rebuild their lives and significantly boost the state’s economy,” he said. “We’ve never understood why the Governor would leave nearly a billion dollars sitting in an account in Washington, D.C. rather than allowing that money to flow into Ohio’s 88 cities, townships, and villages where it will fuel sales for local businesses and generate tax revenue. Aside from being cruel, refusing funds made no sense from an economic standpoint.”

“We’ve been assured the money is there, it’s far past time for the state to ask for it on behalf of citizens who desperately need it,” Dann continued.

Judge Holbrook’s Judgement Entry reads as follows:

1, Pursuant to  State  ex  rel Candy Bowling  v. Mike DeWine,  2021-Ohio-2902, FPUC is one of the “available advantages” described in R.C. 4141.43(I) that the General Assemble requires Defendants “secure” to the citizens of the State of Ohio.

2. Defendants acted  in  violation  of  R.C.  4343.41(I) when  they  terminated participation in the FPUC program prior to its expiration.

3. Defendants are hereby ORDERED pursuant to R.C. 4343.41(I) to take all action necessary to reinstate Ohio’s participation in the FPUC program from June 26, 2021 through its expiration; and

4. Defendants are hereby ORDERED pursuant to R.C. 4343.41(I) to take all action necessary to obtain Ohio’s share of FPUC program benefits  from the United States Department of Labor.

Dann acknowledged that decision could be appealed, but noted the 10th District Court of Appeals had already ruled against the state. “The law, Judge Holbrook’s ruling, and the opinion from the 10th District Court of Appeals are crystal clear: the state is required to obtain and distribute these funds. But, as we’ve now proven multiple times, if the Governor refuses to abide by the law, we will fight and we will win,”

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DannLaw founder Marc Dann
Attorney Marc Dann

Marc Dann and the entire DannLaw team is dedicated to protecting consumers and holding unscrupulous lenders accountable for their actions. That is why Marc is testifying against HB 182 during a hearing of the Ohio House Financial Institutions Committee on Tuesday, June 18, 2024. The hearing will be broadcast live and archived on the Ohio Channel: Ohio House Financial Institutions Committee | The Ohio Channel.

If you believe, as we do, that this legislation threatens consumers, please contact your state representative and tell them to oppose HB 182.

Marc’s testimony follows:

Chairman LaRe, Vice Chairman Pizzulli, Ranking Member Dell’Aquilla,  and Members of the House Financial Institutions Committee:

 I’m Marc Dann. Both as Ohio Attorney General and in private practice I’ve dedicated my career to protecting consumers from financial predators including non-bank lenders.  At my firm DannLaw we have represented hundreds of working- and middle-class Ohioans who have been buried in inescapable consumer debt.

On behalf of the National Association of Consumer Advocates (NACA) and all Ohio Consumers I offer this testimony in opposition to HB 182.

House Bill 182 would harm Ohio consumers by giving non-bank, virtually unregulated consumer lending companies free reign to gouge and take advantage of Ohio consumers. In addition, the legislation will open a gaping hole that will bring the scourge of predatory payday loans back to Ohio.

Let’s remember that everyone in this room is a consumer, including the members of the committee, your staff, the lobbyists who are promoting this bill and each and every one of your constituents.

There is so much wrong with this bill that it’s hard to find a good place to start today.

But, perhaps the worst part of this bad law is the Bona Fide Error provision that  will give lenders  a free pass when they are caught cheating their customers.

This ill-conceived “Free Pass” language creates an incentive for unscrupulous lenders to cheat their customers because they will face neither risk nor consequences for adding extra fees and costs to loans, misreporting customers’ delinquency status to credit reporting agencies, or for suing borrowers who are not actually behind on their obligations.  Combine that with the fact that most of these contracts contain one sided Arbitration provisions that bar consumers suing lenders in court or bringing class action cases over these small dollar loans, and one can only conclude that HB 182 will declare open season on Ohio Borrowers. If you are determined to pass this bill, at least consider an amendment that will prevent lenders from including arbitration provisions and class action waivers in their contracts.

But that’s not the only anti-consumer provision in the proposed law. While loan sharks in the old days were more than happy to charge desperate friends and neighbors 25% “vig”, even they would be embarrassed to demand 36% interest for a short-term loan. Coupled with fees that are often assessed with these loans and language in the bill that will permit lenders to add the interest due on the loan up front and the actual cost balloons to nearly 50%. One of the best days I spent in a legislative hearing room like this was in 2018 when representatives and senators of both parties worked together to pass one of the best payday lending laws in the country, which among other things limited interest on payday loans to a more reasonable 28%. Now short-term lenders propose to gouge consumers 8% more for loans that are underwritten to be more likely to be repaid.

Allowing lenders to charge unlimited fees to refinance or renew these short-term loans is another feature of this bill that will return Ohio to the bad old days of predatory payday lending that existed prior to 2018.  This is another feature that would make these loans more like pre-2018 push your friends and neighbors into an unsustainable cycle of debt that many of us thought were banished once and for all from our state.

The upfront interest provision would allow lenders to collect interest on interest when a borrower defaults on the loan. This is something that is not legal for virtually any other lender.

And a separate provision–unprecedented in lending legislation–allows lenders to collect fees and penalties first instead of applying any payments received to principal first and interest and fees second.

Finally, unlike other consumer protection laws in Ohio this proposed revision of the Short-Term Loan Act would enable lenders to charge for attorney’s fees that are not awarded by a court. That is unfair and will erect another barrier that will make it incredibly difficult for borrowers who have fallen behind to catch up on their payments.

This bill was crafted to create financial products that set up consumers to fail, default on their loan and ultimately force them into bankruptcy.  While that might be good for lawyers or the lenders who charge high fees and interest that will almost certainly generate a profit for companies before consumers default, this bill does nothing to improve the lives of Ohioans or fill an actual marketplace need.

In sum, Ohio consumers would be best served and protected by maintaining current state law which provides reasonable limitations on short term lenders–not by creating an open door that will lead to the restoration of predatory payday lending in Ohio.

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DannLaw founder Marc Dann
Attorney Marc Dann

Spring is celebrated as a time for renewal. Here at DannLaw, we’re marking the beginning of the season by renewing our commitment to seeking and securing justice for consumers who have been ripped off by credit card companies, banks and retailers, homeowners abused by mortgage lenders and servicers, and victims of identity theft and other cybercrimes resulting from data breaches.

That commitment, along with our knowledge of the law, experience, expertise, and ability to develop and utilize highly effective, innovative legal strategies have made DannLaw a consumer protection powerhouse people trust to safeguard their families, their homes, and their family’s future.

Building upon that and assisting more clients than ever before are our primary goals for 2024. Here’s a look on how we plan to achieve them…

DannLaw’s Forced Arbitration Practice Group battles for consumers trapped in an unfair system

Fueled by a series of Supreme Court decisions handed down over the past 40 years, forced arbitration clauses have been adopted by tens of thousands of companies that provide a seemingly limitless array of goods and services.

This has not exactly been a positive development for consumers. Shennan Kavanagh, the director of litigation at the National Consumer Law Center (NCLC) explains why:

“Forced arbitration robs consumers of their basic Seventh Amendment right to access the courts. These fine print traps allow predatory lenders, fraudsters, unscrupulous banks, and other repeat offenders to escape accountability by depriving consumers of choice and forcing disputes into closed-door, biased proceedings where consumers rarely win.”

By the way, “rarely” is an understatement. According to NCLC attorney Lauren Saunders, consumers who take on companies alone lose 96% of the time.

To make matters worse, a recent study released by NCLC revealed that the vast majority of Americans have no idea what a forced arbitration clause is or does or that they unwittingly agreed to clauses buried in the fine print of contracts they clicked “yes” to online or physically signed.

That lack of knowledge can have an extremely high price tag, a fact that doesn’t hit consumers until they become embroiled in a dispute with a company and discover they have no path to justice or reasonable opportunity to recover what they are owed.

The inequities in the system cry out for reform. That is why DannLaw has joined the NCLC and other consumer advocates in calling on Congress and the Consumer Financial Protection Bureau (CFPB) to end the forced arbitration reign of terror. To date, both have refused to act.

In reaction to their inexcusable inaction, DannLaw has formed a Forced Arbitration Practice Group led by attorneys Alisa Adams and Kurt Jones who have extensive experience pursuing and winning forced arbitration claims. Alissa, Kurt, and the Group’s talented paralegals are ready, willing, and more than able to take on banks, financial services firms, and any company that is using forced arbitration to prey upon, rip off, or exploit their customers.

If you or someone you know is a victim of forced arbitration, click here to arrange a free consultation with our Forced Arbitration team.

We are also available to co-counsel with attorneys who now represent clients with forced arbitration claims. To learn more about collaborating with us or to refer a client to us, please click here.

The companies and industries that have been inducted into the DannLaw Forced Arbitration Hall of Shame are among the worst abusers of the process, but they are not alone. As we noted above, thousands of other providers of goods and services use it to exploit consumers. We are prepared to battle them all.

 

 

Consumer Class Action Cases

In addition to helping our clients win forced arbitration cases, DannLaw regularly files suit on behalf of individual and groups of consumers whose claims are not subject to the unfair process.

We are currently litigating a number of class action suits in courts across the nation, and we will continue to seek justice and just compensation via the courts when that is the appropriate course of action. Here is a brief overview of some of the most interesting and consequential cases we are currently pursuing:

Financial Services Wells Fargo

Wells FargoIt should come as no surprise to anyone that we have once again filed class action suits against Wells Fargo. Despite having paid more than $27 billion in fines since 2000, Wells remains a serious serial abuser of its customers and other consumers. \The cases against Wells involve:

Mortgage Discrimination. We allege that during the time interest rates were low, Wells denied loans to applicants who were members of minority groups at a much higher rate than other lenders.

Adding services to customer accounts without authorization. We have filed a series of class action suits alleging that Wells made millions of dollars by adding services including credit protection, supplemental hospital insurance, life and disability Insurance and others to consumers’ accounts without authorization or permission. If you recently received a letter from Wells apologizing for this conduct, we would like to hear from you. Please click here to arrange a free consultation that will enable us to determine if you are entitled to financial compensation from the company.

Financial Services: Bank of America

We recently filed suit in North Carolina alleging that Bank of America opened unauthorized consumer accounts. If BOA opened an account in your name without your consent or permission, please click here to share your story with us. Like people who have been victimized by Wells, you may be eligible for financial compensation.

Retailers: Dollar General

Despite being exposed in media reports like this one featuring DannLaw founder Marc Dann, Dollar General continues to charge higher prices at the register than are posted on shelves.  We are now pursuing cases in New York, New Jersey and Oklahoma, but believe the company is engaging in the practice in other states. If this has happened to you at Dollar General or another store click here to tell us your story

Retailers: Walmart

We are investigating reports that Walmart is treating customers who use two forms of payment unfairly when they are due a refund. If this has happened to you, please let us know.

Data Breaches

Data breaches that enable cyberthieves to steal and misuse victims’ sensitive and confidential information is a growing problem in the U.S. That is why we are expanding our Data Privacy and Security Practice Group and working with the legal community to develop strategies that will ensure we can pursue and secure justice and just compensation for those put at risk when corporations, government agencies, and other entities fail to protect the personal data in their possession. As part of that effort, I am pleased to report that I was recently invited to serve on the prestigious Sedona Conference Data and Privacy Liability Working Group which is working to address challenging questions related to legal liability and damages.

You should be aware that health care companies and insurers have become a prime target for hackers and cyber criminals, a fact underscored by the class action suits we recently filed against Merch Health and Optimum Health.

If you have been or are ever notified that your personal data including but not limited to your driver’s license, social security, credit card and other account numbers, confidential health or medical records, or other identifying information has been hacked, stolen, or compromised, please contact our  data privacy team. immediately so we can begin protecting you, your family, and your future. Do not delay, every moment your data is exposed increases the chances it will be misused.

 Automobile and Motorcycle dealerships:

We regularly file class action suits against car, truck, and motorcycle dealers that add unauthorized products or services to vehicles, misrepresent the amount of the sale, and/or add hidden and opaque charges like “Documentary Fees” to sales agreements.

We have secured multiple multi-million-dollar awards for classes of auto purchasers and we will continue to actively and aggressively pursue claims on behalf of consumers who have been cheated or abused. If you are troubled or suspicious about something related to your vehcile purchase contact us today to arrange a no-cost, no-obligation consultation.

Foreclosure Defense and Mortgage Servicing Litigation Update

 DannLaw began by representing borrowers and homeowners who were in or about to be in foreclosure. Today, after helping thousands of people save their homes and their financial futures, stopping foreclosures and negotiating loan modifications continue to be a primary focus of our practice—and needed as much as ever.

That is because Ohio and New Jersey lead the nation in foreclosures, due in part to a surge in attempts by debt buyers to collect “zombie mortgages”— debts that homeowners thought were forgiven or satisfied long ago but still exist.

The key to our ability to save a home is timing: the earlier we get involved, the more we can do to battle mortgage lenders and servicers who engage in unethical or illegal activities like dual tracking—promising to modify a loan while moving ahead with a foreclosure action.

If you are in or are facing the threat of foreclosure DannLaw will utilize the tested, highly effective legal strategy that has helped thousands of families just like yours.

First, our experienced foreclosure defense team will aggressively defend and foreclosure action that has been filed,

Second, we will identify, document, and pursue claims you may have against your mortgage servicer for dual tracking, misapplying payments, failing to pay taxes or insurances, and other abuses, and,

Third, the members of our talented mortgage modification team will use their expertise to work out an agreement with your mortgage company that will enable you to stay in your home.

Remember, time is of the essence. Every minute you wait brings you one step closer to losing your home, do don’t delay, click here to contact DannLaw’s Foreclosure Defense team today.

Thanks for taking the time to read our Spring 2024 update and, as always, DannLaw is here to help you.

Marc