You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Bowe v. Public Storage

Citations: 106 F. Supp. 3d 1252; 2015 U.S. Dist. LEXIS 71088; 2015 WL 3440418Docket: Case No. 1:14-cv-21559-UU

Court: District Court, S.D. Florida; May 19, 2015; Federal District Court

Narrative Opinion Summary

In this case, plaintiffs filed a class action against Public Storage, claiming violations of federal RICO laws and the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), as well as breach of contract, unjust enrichment, and unconscionability. The core issue revolved around Public Storage retaining a significant portion of premiums from its tenant insurance program, which plaintiffs argued constituted illegal kickbacks. The court reviewed motions for summary judgment, ultimately granting in part Public Storage's motion due to plaintiffs' failure to demonstrate evidence of RICO injury or inflated insurance premiums. The court also struck certain evidence and decertified the nationwide class for RICO claims and a Florida subclass for breach of contract, while allowing a FDUTPA claim to proceed on the basis that Public Storage's conduct did not fall under the business of insurance exemption. The plaintiffs' unjust enrichment and unconscionability claims were dismissed due to the presence of an express contract covering the insurance program and the inapplicability of unconscionability as a remedy for monetary damages. The court's decision emphasized the necessity of concrete evidence to support allegations of inflated premiums and RICO injuries, ultimately narrowing the scope of claims proceeding to trial.

Legal Issues Addressed

Application of FDUTPA

Application: Public Storage's activities do not fall under the insurance exemption of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), as the alleged conduct pertains to undisclosed kickbacks and not the business of insurance.

Reasoning: There is ambiguity regarding whether the prohibition against misleading statements applies here, but the Court determines that the allegations do not pertain to the 'business of insurance.'

Contractual Remedies: Restitution

Application: Plaintiffs cannot claim restitution without demonstrating a material non-performance by Public Storage that would discharge their contractual obligations.

Reasoning: An injured party cannot pursue restitution for what was given to the defendant unless the defendant's non-performance is material enough to discharge the injured party from further contractual obligations.

RICO Injury Requirements

Application: Plaintiffs must demonstrate that they paid inflated premiums due to an access fee to establish a RICO injury, which they failed to do.

Reasoning: Plaintiffs failed to substantiate their claim that an access fee inflated the cost of PSTIP insurance premiums beyond their actual value, which is necessary to establish a RICO injury.

Summary Judgment Standards

Application: The court uses the summary judgment standard to determine whether any genuine disputes of material fact exist, thus precluding summary judgment and allowing the case to proceed to trial.

Reasoning: In terms of the legal standard for summary judgment, the moving party must demonstrate no genuine issue of material fact exists, allowing for judgment as a matter of law.

Unjust Enrichment Claims in Presence of Express Contract

Application: An unjust enrichment claim cannot proceed when an express contract exists governing the dispute, which is acknowledged by both parties.

Reasoning: If an express contract exists concerning the same subject matter, a quasi-contract claim for unjust enrichment cannot proceed.