COURT DISMISSES ACTION AGAINST ACE CASH EXPRESS WITH PREJUDICE
The United States District Court for the Southern District of Indiana has granted defendants’ motion to dismiss for failure to state a claim. The plaintiff sued ACE Cash Express, Inc. and Goleta National Bank for making so called “payday” loans in violation of the Indiana usury law. In May, the Indiana federal district court found that based on the pleadings Goleta made the loan. In reaching this conclusion the court considered documents attached to the complaint. The court explained that on a motion to dismiss a court may consider exhibits attached to a pleading and when the exhibits contradict the assertions in the complaint, the information in the exhibits can trump the assertions in the complaint. The court also considered the Master Loan Participation Agreement and amendments attached to the defendant’s motion to dismiss, finding the documents within the pleadings for purposes of a motion to dismiss as the agreement was referenced in the complaint. The court stated that as the loan was made by a national bank, Section 85 controlled and the complaint failed to state a claim upon which relief can be granted. The court gave the plaintiff an opportunity to file an amended complaint, but found that the amended complaint did not differ from the original complaint in any material aspect. Thus, the court dismissed the action with prejudice.