Strauser v. RJC Investment, Inc.

Summary

The Montana Supreme Court held that the 2007 version of the Montana Retail Installment Sales Act does not create a private right of action. However, the court concluded that the plaintiff could pursue a declaratory judgment construing her mobile-home installment contract and determining whether finance charges and late fees were lawfully collectible. The court affirmed in part, reversed in part, and remanded for further proceedings.

Holdings

1. The 2007 version of RISA does not confer a private cause of action; consumers may not privately sue to employ RISA's enforcement provisions.
2. Strauser stated a claim for declaratory judgment because she presented an existing and genuine dispute concerning whether the installment agreement lawfully obligated her to pay the assessed finance charge and late fees.
3. On remand, the District Court must determine whether the agreement is a retail installment contract under Mont. Code Ann. § 31-1-202(n) (2007). If it is, RISA governs the legal requirements for finance charges and late fees; if it is not and the property qualifies as goods, the identified provisions of Montana's adopted UCC apply.

Questions Presented

1. Whether consumers have a private right of action under the 2007 version of Montana's Retail Installment Sales Act.
2. Whether the Montana Retail Installment Sales Act applies to a retail installment contract that is not being enforced by the Department of Administration.
3. Whether Strauser's claim for a declaratory judgment concerning the legality of finance charges and late fees presented a justiciable controversy and stated a claim under Montana's Uniform Declaratory Judgment Act.

Disposition

reversed_and_remanded