GrayRobinson Beats Class Action for BB&T

In Braham v. Branch Banking and Trust Company, BB&T was faced with a putative class action arising from certain fees it allegedly charged in exchange for cashing an over-the-counter check for a non-customer.  Specifically, the named Plaintiffs argued that BB&T violated Florida Statute § 655.85, which according to Plaintiffs’ Complaint, prevented BB&T from settling a check for less than par.  On behalf of BB&T, GrayRobinson was able to successfully overcome prior binding negative precedent on the issue by arguing that no private right of action arising exists under § 655.85. Accordingly, the Court dismissed the Complaint and provided Plaintiffs with an opportunity to amend their claims.

An Amended Complaint was subsequently filed and asserted ten causes of actions against BB&T, again all arising from BB&T’s alleged actions in charging non-customers a fee in exchange for cashing a check.  The Amended Complaint included alleged violations of Florida’s Consumer Collection Practices Act and Fraud and also sought injunctive relief as well as punitive damages on behalf of the class. In response, GrayRobinson attorneys relied on 12 U.S.C. § 1831a(j)(2)—which, after a nationwide search, is a section of the National Banking Act which had apparently never been relied upon in any reported case—to successfully argue that BB&T, a North Carolina state-charted bank, can engage in any banking activity in the host state, Florida, so long as the activity is permissible in North Carolina (BB&T’s home state) and for national banks with branches in Florida. On behalf of BB&T, GrayRobinson argued that, because it is permissible for BB&T to charge the fee at issue in North Carolina, and because federal regulations allow national banks to charge such a fee in Florida, BB&T was also entitled to charge the same fee in Florida.  The Court agreed and dismissed all claims asserted against BB&T, with prejudice. This outcome was significant because it was a matter of first impression and resulted in a dismissal, with prejudice, prior to class certification or class merits-based discovery.  As the matter proceeds through appeal, it will likely be the first appellate decision written on this issue in the entire nation as there are no appellate decisions on this issue.  To read the full article, Law360 subscribers click here.