Castillo v. United Federal Credit Union

Castillo entered into a vehicle and security agreement with the Credit Union. The Credit Union repossessed and sold the vehicle and notified Castillo that she owed a deficiency balance of $6,841.55. Castillo filed a complaint, alleging that the notice of sale violated the Uniform Commercial Code (UCC) and that that the case met the prerequisites for a class action under NRCP 23(a) and that the class was maintainable under NRCP 23(b). She never subsequently requested that the court certify the class due to the anticipation of discovery. Castillo amended her complaint, reducing the number of causes of action, and asserting that the district court had jurisdiction because "each [c]lass [m]ember is entitled to the elimination of the deficiency balance and the statutory damages [NRS 104.9625(3)(b)J," so "the amount in controversy exceeds $10,000.00." The district court dismissed for lack of subject matter jurisdiction because Castillo failed to demonstrate individual entitlement to damages in excess of $10,000. The Supreme Court of Nevada reversed. Because Castillo sought appropriate injunctive relief, the district court possessed original jurisdiction. In Nevada, aggregation of putative class member claims is not permitted to determine jurisdiction. A claim for statutory damages can be combined with a claim for elimination of the deficiency amount to determine jurisdiction. View "Castillo v. United Federal Credit Union" on Justia Law