Beasley

I. Introduction

In this case we affirm a $5,227,617 judgment in a class action which challenged Wells Fargo Bank’s assessment of fees against credit card customers who failed to make timely payments or exceeded their credit limits.

We hold as follows: (1) although there is no right to a jury trial on an affirmative claim for relief from liquidated damages, a jury trial was proper here because the plaintiffs sought defensive relief by opposing a cross-complaint; (2) the judge erred in submitting to the jury the legal question whether the challenged fees were valid as liquidated damages, but the bank has shown no prejudice from the error; (3) the plaintiffs could obtain monetary relief under the statute governing the validity of liquidated damages; (4) the applicable limitations period was four years; and (5) the judgment was supported by substantial evidence.

II. Background

This litigation concerns two types of fees—“late” and “overlimit”—that Wells Fargo imposed on customers who had Mastercard or VISA credit card accounts. The late fee was assessed against customers who did not make a monthly payment on time. The overlimit fee was charged to customers whose account…