The opinion of the court was delivered by: SWEET
Plaintiff David Miller ("Miller") brought this class action alleging, inter alia, that Defendants, European American Bank ("EAB") and Malcolm A. Hall ("Hall"), had made fraudulent and misleading mass mailing offers to him and to members of the general public, inducing him to sign up for and use EAB-issued credit cards, in violation of the Truth in Lending Act ("TILA"), 15 U.S.C. § 1601, and Regulation Z promulgated thereunder, 12 C.F.R. § 226 et seq., and in violation of state law. Defendants have moved to dismiss Miller's TILA claim pursuant to Federal Rule of Civil Procedure 56 on the grounds that it is time-barred, or in the alternative, pursuant to Rule 12(b)(6), Fed. R. Civ. P., on the grounds that Miller has failed to state a claim upon which relief could be granted. Defendants have also moved pursuant to 12(b)(1), Fed. R. Civ. P., to dismiss for lack of subject matter jurisdiction over the state claims.
For the reasons herein stated, the motion to dismiss with respect to the federal claim for failure to state a claim is granted. The motion to dismiss for lack of subject matter jurisdiction with respect to the state claims is also granted.
Plaintiff Miller is a resident of Missouri.
Defendant EAB is a chartered bank with its headquarters and principal place of business in Uniondale, New York.
Defendant Hall resides in Missouri and was the Vice President for Consumer Credit Product Development at EAB.
Miller filed his Complaint in this action on September 20, 1995, and an Amended Complaint on November 20, 1995. On January 17, 1996, EAB and Hall filed their notice of motion. Oral argument was waived by stipulation of the parties, and the matter was deemed fully submitted on March 20, 1996.
Beginning as early as March 1994, EAB and Hall undertook a mass mailing to hundreds of thousands of members of the public, including Miller, soliciting the use of "pre-approved" EAB Visa and MasterCards. As an inducement to enrollment, EAB offered all those who signed up for the EAB credit card a Certificate for a free TWA air ticket (the "EAB Offer"). The EAB Offer stated in bold face type:
Send for your TWA MasterCard today and receive a FREE ROUND-TRIP COMPANION TICKET. Use this certificate to take someone with you, free, with the purchase of a first class, business class, or comfort class fare (excluding Cairo and Tel Aviv; offer good until March 31, 1995).
The Offer contained no other restrictions and did not indicate that any would apply to the use of the Companion Ticket.
In reliance on the Offer, Miller applied for, received and used the EAB credit card. After his application was processed, Miller received a Certificate. However, in addition to the restrictions mentioned in the EAB Offer, there were also additional restrictions placed on the Certificate's use. The Certificate contained the following restrictions as to travel dates:
Blackout dates: Domestic - November 23, 27 and 28, 1994; December 15, 1994 through January 8, 1995. International - No travel permitted July and August; December 15, 1994 through January 8, 1995.
The companion ticket also contained the following additional restrictions:
1) Purchase of the TWA ticket must be made with EAB/TWA Visa or MasterCard credit card.
2) All travel must be on flights operated by TWA or Trans World Express. Travel is not permitted on TWA designated flights operated by another carrier.
3) Companion Certificate has no cash value and may not be combined with any other certificate, coupon, bonus, promotional fare. Frequent Flight Bonus ...