On December 2, the U.S. District Court for the District of Utah denied lease-to-own financing companies’ motions to transfer or stay their case. The defendants sought a transfer to the U.S. District Court for the Eastern District of Texas, due to its filing a declaratory judgment in Texas, to oppose the CFPB’s complaint, which was filed in Utah (covered by InfoBytes here). The court found the defendants did not demonstrate Utah was an inconvenient forum, noting both companies are Utah LLCs, and the key defendant is a Utah resident.
The defendants also requested a stay pending the resolution of a related Texas action. The court denied this request as well, emphasizing the Texas action was an anticipatory suit and did not warrant the first-to-file rule. The court highlighted that granting a stay would prejudice the CFPB’s enforcement efforts.
