JOYCE JONES, MARTHA L. EDWARDS, LOU COOPER and VINCENT E. JACKSON, individually and as class representatives, Plaintiffs-Appellees, v. FORD MOTOR CREDIT COMPANY, Defendant-Appellant., 358 F.3d 205

Summary

The car buyers sued the financing company and alleged it engaged in racial discrimination under the Equal Credit Opportunity Act, 15 U.S.C.S. § 1691 et seq. They had purchased vehicles under the financing company's financing plan. They alleged that the financing company permitted vehicle dealers to mark up the financing rate based on subjective criteria, including race. According to the car buyers, African-American buyers were penalized by having to pay higher rates than those imposed on similarly-situated Caucasian buyers. The financing company denied the discrimination charge and asserted state-law counterclaims against three of the car buyers for the amounts of their unpaid car loans. The trial court determined the counterclaims were permissive and granted the car buyers' motion to dismiss the counterclaims for lack of subject matter jurisdiction. On appeal, the appellate court found the financing company's counterclaims were permissive. It also found that the trial court's ...