SAN FRANCISCO (Legal Newsline) – A California man alleges late fees charged by formal wear rental businesses are unlawful and unethical.
Anthony Smith, individually and on behalf of all others similarly situated, filed a complaint on May 14 in the U.S. District Court for the Northern District of California against The Men's Wearhouse Inc. and Tailored Brands Inc. over alleged violation of the Consumers Legal Remedies Act, California Civil Code and Unfair Competition Law.
According to the complaint, the defendants charge a $20 per day fee to customers who return a rented garment after the scheduled due date. The plaintiff alleges that in August 2016, he rented numerous formal wear items from defendants' retail stores in California and paid multiple late fees pursuant to the rental agreement. He alleges he suffered injury through the loss of money and/or property.
The plaintiff alleges the late fees "are impermissible liquidated damages provisions under California law" and that the defendants' policy and practice to include late fees in the agreement is "unlawful, unethical, oppressive and malicious."
The plaintiff requests a trial by jury and seeks permanent injunction, award damages according to proof, costs of suit, pre- and post-judgment interest, attorneys' fees, and for such and further relief as the court may deem proper. He is represented by L. Timothy Fisher, Joel D. Smith, Yeremey O. Krivoshey and Thomas A. Reyda of Bursor & Fisher PA in Walnut Creek, California.
U.S. District Court for the Northern District of California case number 3:18-cv-02840-JD