Superior Court recommendation signals significance of case

Judge Recuses Himself From Wells Fargo Class Action Case; Case Transferred For Reassignment


LOS ANGELES, CA, October 18, 2004—Judge Charles McCoy recently recused himself from a highly publicized class action case against Wells Fargo due to his current relationship with Wells Fargo as a customer and previous relationship as legal counsel while he was a partner at Sheppard, Mullin, Richter & Hampton over a decade ago. The announcement was made one day prior to a hearing scheduled for the Wells Fargo case. Subsequently, the case was returned and reassigned to Judge Lichtman last week.

“Judge McCoy is also presiding over a similar suit we filed against Bank of America which—in a hearing the day prior to the judge’s announcement—Bank of America argued that their case be ‘related’ to the Wells Fargo case,” explains Nick Roxborough, managing partner of Roxborough, Pomerance & Nye LLP, who filed both class action lawsuits.

“While these matters are merely procedural, it is obvious the Wells Fargo and Bank of America suits are very important cases for the courts,” adds Roxborough. “We believe everyone is taking this issue very seriously here in California which is why the courts have exercised so much caution.”

Both lawsuits seek injunctions to stop the bank from charging paycheck cashing fees without notifying its accountholders of potential adverse legal consequences. The suits were filed last April on behalf of California employers who believe the banks' fees have placed them in violation of Section 212 of the California Labor Code, which requires that paychecks ‘be negotiable and payable in cash, on demand, without discount.’

Roxborough, Pomerance & Nye LLP (RPN) is a Los Angeles-based law firm providing expert legal counsel and representation to the business community. Established in 1996, the firm offers a broad range of legal services in all facets of civil litigation with its primary focus on business, insurance, employment, and wage and hour litigation. It is the first law firm in the country to specialize in and make new law when representing employers in workers’ compensation premium and dividend disputes with insurance carriers. 

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