In a decision by the Supreme Court of Arkansas, Rivera-Ceren v. Presidential Limousine and Auto Sales, Inc. has set an important precedent for consumer protection and class action certification. On December 2, 2021, the court ruled in favor of Jennifer Rivera-Ceren, allowing her case to move forward as a class action after her motion was initially denied by the circuit court.

Background of the Case

Jennifer Rivera-Ceren purchased a vehicle from Presidential Limousine and Auto Sales, Inc., financing the purchase through a retail installment contract. However, after falling behind on payments, the vehicle was repossessed. Presidential sent Rivera-Ceren a notice informing her that the car would be sold at a public sale, but crucially, the notice failed to mention her right to an accounting of the unpaid balance, as required by Arkansas law and the Uniform Commercial Code (UCC).

Rivera-Ceren alleged that the omission of this critical information violated consumer protection laws. She filed a class-action lawsuit, arguing that Presidential’s failure to include the required disclosure was not just an oversight in her case but impacted a broad group of consumers in Arkansas who had received similar notices.

Key Legal Issues

Rivera-Ceren’s lawsuit was grounded in the claim that Presidential’s repossession notices failed to comply with the UCC and Arkansas law, specifically by omitting information about the consumer’s right to an accounting of unpaid indebtedness. Furthermore, the case challenged the legitimacy of a 9.5% per-day interest rate included in the notice, arguing that it was usurious and violated Arkansas law.

The lawsuit sought class-action status, aiming to represent over 200 consumers who had vehicles repossessed and received similar notices from Presidential in the years leading up to the filing of the lawsuit.

The Supreme Court’s Ruling

After the circuit court initially denied Rivera-Ceren’s motion for class-action certification, she appealed to the Arkansas Supreme Court. The Court reversed the circuit court’s decision, holding that Rivera-Ceren met the requirements for class certification.
To achieve class certification, a plaintiff must meet six requirements under Rule 23 of the Arkansas Rules of Civil Procedure: numerosity, commonality, typicality, adequacy, predominance, and superiority.

1. Numerosity: Rivera-Ceren demonstrated that approximately 200 consumers had received repossession notices similar to hers, more than enough to meet the numerosity requirement.

2. Commonality: The central issue—whether Presidential’s notices violated the UCC and Arkansas law—was common across all potential class members. The Court found that this satisfied the requirement that legal or factual issues be shared among the class.

3. Typicality: Rivera-Ceren’s claims were typical of the class members because her complaint was based on the same defective notices sent to all consumers in the proposed class. The Court held that her claims arose from the same conduct and legal theory as those of the other class members.

Ultimately, the Supreme Court’s ruling allowed Rivera-Ceren to proceed with her class-action lawsuit, seeking relief on behalf of all consumers affected by Presidential’s failure to provide legally required information.

What This Means for Consumers

This ruling is a significant victory for consumers, reinforcing that companies cannot sidestep legal requirements when sending notices after repossessing a vehicle. The Court’s decision not only allows consumers who were impacted by this misconduct to potentially recover damages, but it also sends a clear message to lenders about the importance of adhering to both state and federal consumer protection laws.

If you believe you’ve been wronged in a similar situation involving vehicle repossession or other lending practices, it’s essential to seek legal counsel. Class actions like Rivera-Ceren ensure that individual consumers, who might otherwise lack the resources to pursue legal action, can band together to hold companies accountable.
Corey D. McGaha PLLC is proud to represent individuals like Jennifer Rivera-Ceren, fighting for consumer rights and justice. If you think you may be part of the affected class or have other legal concerns, contact our office today for a consultation.

This blog post outlines the key aspects of the Rivera-Ceren v. Presidential Limousine and Auto Sales, Inc. case and highlights how the ruling impacts consumer rights. The decision emphasizes the importance of legal compliance in repossession practices, giving consumers a stronger voice against unfair business practices.