George Emerson Burnett v. Ala Moana Pawn Shop

Ala Moana Pawn Shop appeals the district court’s judgment that, in dealing with George Burnett, Pawn Shop violated Hawaii law prohibiting deceptive trade practices and the federal Truth in Lending Act. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm the district court’s judgment. We remand for determination of an appropriate award for Burnett’s attorney fees on appeal.

I

Pawn Shop advertised that it made loans. In late 1989, Burnett needed cash and accepted $550 from Pawn Shop for his camera, which had a fair market value of $1,000. By paying $660 within 30 days, Burnett could have reacquired the camera. Burnett entered into a similar arrangement regarding his ring. He accepted $140 for the ring, which he eventually reacquired for $300. Burnett presented uncontradicted evidence that the ring’s wholesale value was $560.

The slip documenting each transaction was denominated as an “agreement of sale.” The slips set forth an option to “repurchase” within 30 days at 120 percent of the original “sale” price. The slips did not specify interest rates or other financing terms.

Pawn Shop’s practice was to extend the deadline by 30 days upon receipt of a 20 percent “service…