Koons v. Night
Koons Buick Pontiac GMC (Koons) violated the Truth in Lending Act (TILA) when Nigh tried to buy a used truck from the dealership. The district court awarded Nigh $24,192 in damages under TILA. Koons appealed the damages award, arguing that a 1983 case interpreted TILA as capping damages at $1,000. The Fourth Circuit Court of Appeals upheld the award. Congressional amendments to TILA in 1995 changed the statutory language relied upon in the 1983 case. Although there is no legislative history to show Congress expressly intended to change the $1,000 cap, the Fourth Circuit held that the changes made by the 1995 amendments eliminated the damage cap for violations concerning individual transactions. The Fourth Circuit interpreted the new limit for damages in such cases as a maximum of twice the finance charges that would have been paid by the individual.
Question Presented:
Whether the $1,000 statutory limit originally adopted in 1968 as a cap on Truth in Lending Act (TILA) recoveries under 15 U.S.C. ยง 1640(a)(2)(A)(i) has been rendered inapplicable to that subpart by
subsequent amendments to Section 1640(a)(2)(A)–though there is no evidence of any Congressional intent to effect such a change–so that parties who suffer no actual damages may now
recover far in excess of the previous $1,000 cap.
