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Unpublished Paper
Recent case you might find of interest regarding a bank ultimately prevailing in a disputed credit card transaction matter
(2013)
  • William P. Huttenbach
Abstract
Recent case you might find of interest regarding a bank ultimately prevailing in a disputed credit card transaction matter. This case involves a credit card purchase, the customer contesting the charge, and subsequently suing their bank over the charges. See Citibank (South Dakota), N.A. v. Michael S. Tran, M.D. and Thanh Tran., No. 05-11-01423-CV, 2013 WL 3205878 (Tex. App.-Dallas June 21, 2013, no pet. h.) (mem. op.). Plaintiffs purchased medical equipment through Ebay, received the equipment, and were not satisfied. PayPal divided the payment into two credit card transactions. After having Dr. Tran fill out complaint forms, Citibank issued chargebacks for both credit card charges after a delay. Plaintiffs sued Citibank in state court for alleged breach of an oral agreement due to the bank allegedly orally agreeing to issue timely notices of their intent to challenge the purchase of the medical equipment and then allegedly failing to do so. Plaintiffs also claimed that the bank libeled them when it reported the disputed charge to the credit bureaus. Citibank counterclaimed for breach of the written card agreement and claimed there was no evidence the parties agreed to modify the written agreement or that there was ever an oral agreement with the Plaintiffs. The Trial Court granted summary judgment in favor of Citibank on its claims that the Plaintiffs owed the $10,000 credit card charge. However, it found in favor of the Plaintiffs on other issues and awarded them damages and attorney’s fees exceeding $140,000. Citibank moved for judgment despite the verdict on all issues and also filed a motion seeking attorney’s fees for its counterclaim. Both parties appealed. The Appellate Court reversed the trial court’s judgment on the Plaintiffs’ breach of the oral contract claims and claim for attorney’s fees, and the Appellate Court affirmed a take-nothing judgment on the Plaintiffs’ libel claim, and rendered a judgment in favor of Citibank. The Court determined that there was no new oral contract formed when Citibank was trying to assist Plaintiff with the chargebacks. The Court also explained that the credit reporting was true so there was no basis for the libel claim. The Court confirmed a judgment was proper against Plaintiffs on the credit card charges.
Keywords
  • credit card transactions,
  • oral contract,
  • chargebacks,
  • libel
Publication Date
2013
Citation Information
William P. Huttenbach. "Recent case you might find of interest regarding a bank ultimately prevailing in a disputed credit card transaction matter" (2013)
Available at: http://works.bepress.com/william_huttenbach/3/