Legal buffs-here's wha happenened (I read the easily accessible opinion so handily supplied by one of our writers)
Some RAL clients and their lawyers sued HRB for usury in state court (Alabama?)They cited the very high interest rates on the RAL as being against the state usury law (similarly California has a usury law, which caps interest at about 22%)(See my message in January about usury) HRB lawyers tried to remove the case to Federal Court citing Federal pre=emption under the Banking Laws (Federal Law).Beneficial is a Federal bank. Corporate lawyers often prefer Federal court for many reasons: 1) They don't need admittance to a new state court, eg. Kansas lawyers can practice in any Federal Court but may need special admission to Alabama courts. 2) Federal Court may be more hospitible than a local jurisdiction which has the same values as the parties and their lawyers 3) Trying to exhaust the plaintiffs with procedural tactics
The upshot of this battle is that the case stays in state court.