Judge Holds UCL Claim Raises Novel State Law Issue, Declines Jurisdiction

Mealey's (February 8, 2019, 1:55 PM EST) -- SAN FRANCISCO — After holding that a claim asserted by borrowers who allege that interest rates on loans are unconscionable in violation of California’s unfair competition law (UCL) raises a new and undetermined issue of state law, a California federal judge on Feb. 5 declined to exercise supplemental jurisdiction over the case and dismissed it with leave to refile in a state court (Eduardo De La Torre, et al. v. CashCall Inc., No. 08-cv-03174, N.D. Calif., 2019 U.S. Dist. LEXIS 18624)....