Recent UCL "unlawful" prong decision: Pacific Shore Funding v. Lozo

The unpublished portion of Pacific Shore Funding v. Lozo, ___ Cal.App.4th ___ (Apr. 27, 2006) makes three points: (1) "violations of federal law will form the predicate unlawful business practice necessary to bring a claim under the UCL" (emphasis added); (2) the UCL's four-year statute of limitations, not the limitations period that governs the underlying, "borrowed" law, applies to the UCL "unlawful" prong claim; and (3) a plaintiff who paid interest, fees, and penalties to a defendant who violated TILA's loan disclosure requirements has suffered "actual injury" within the meaning of Proposition 64, and may recover the payments as "disgorgement or restitution." (Slip op. at 14-16.)