New UCL/CLRA choice-of-law decision: Brack v. Omni Loan Co.

In Brack v. Omni Loan Co., ___ Cal.App.4th ___ (Jun. 17, 2008; pub. ord. Jul. 16, 2008), the Court of Appeal (Fourth Appellate District, Division One) refused to enforce a choice-of-law provision in a consumer loan contract, holding that California had a greater interest in the transactions and the claims than Nevada. The court relied primarily on the fundamental policy underlying the Finance Lenders Law (Fin. Code §§ 22000 et seq.), but also cited the CLRA's anti-waiver provision (Civ. Code § 1751). Slip op. at 14-15, 21. The Court observed that earlier opinions have held that the CLRA's anti-waiver provision precludes enforcement of choice-of-law and forum selection clauses. Id. at 14-15 (citing American Online, Inc. v. Superior Court, 90 Cal.App.4th 1, 15 (2001)).