California Supreme Court Cites Article by Professor Schmitz in Consumer Loan Ruling

The California Supreme Court cited Professor Amy J. Schmitz’s article, Embracing Unconscionability’s Safety Net Function, 58 ALA. L. REV. 73-117, in unanimously holding that interest rates may render a consumer loan unconscionable even in the absence of a statutory interest rate cap.

The court and the amicus brief filed by the consumer advocacy organizations relied on Professor Schmitz’s analysis of the contract doctrine of unconscionability as a doctrine historically rooted in courts of equity.

The ruling has been covered in the LA Times and the American Banker. See to read the ruling.