Bill Text: CT HB05396 | 2018 | General Assembly | Comm Sub

Connecticut House Bill 5396 (Prior Session Legislation)

Bill Title: An Act Protecting Victims Of Fraud By Certain Financial Institutions.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-04-17 - Referred by House to Committee on Judiciary [HB05396 Detail]

Download: Connecticut-2018-HB05396-Comm_Sub.html

General Assembly		*Substitute Bill No. 5396*
*February Session, 2018*		_____HB05396BA____032118____

AN ACT PROTECTING VICTIMS OF FRAUD BY CERTAIN FINANCIAL INSTITUTIONS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective January 1, 2019) (a) Any person who suffers any ascertainable loss of money or property, real or personal, as a result of the use or employment of a method, act or practice prohibited by section 42-110b of the general statutes by any financial institution, out-of-state bank or out-of-state credit union, each as defined in section 36a-2 of the general statutes, or mortgage servicer, as defined in section 36a-715 of the general statutes, may bring an action in the name of the state in the judicial district in which such person resides or is doing business for an order temporarily or permanently restraining and enjoining the continuance of such method, act or practice and for an order directing restitution. Proof of public interest or public injury shall not be required in any action brought pursuant to this section. The court may award the relief applied for or so much as it may deem proper, including reasonable attorney's fees, accounting and such other relief as may be granted in equity.

(b) An action commenced under subsection (a) of this section may allege violations of section 42-110b of the general statutes that have affected other persons similarly situated who are residents of this state or injured in this state.

(c) Any person commencing an action pursuant to subsection (a) of this section shall mail a copy of the complaint by certified mail, return receipt requested, to the Attorney General and the Commissioner of Consumer Protection at the same time such complaint is filed with the court. Such action shall be automatically stayed until thirty days after the complaint is filed with the court. The Attorney General may intervene as plaintiff in the action and prosecute any and all claims asserted in the complaint in the place and stead of the person who initiated the action: (1) As of right during the period of such automatic stay, and (2) for good cause shown after the expiration of such automatic stay. Except as provided in subsection (d) of this section, the Attorney General may dismiss or settle any action in which it intervenes as plaintiff, notwithstanding any objection by the person commencing the action. No person other than the Attorney General may intervene in any action commenced under this section.

(d) The court shall review any proposed agreement to settle an action commenced under this section. If the Attorney General has not intervened in the action, terms of the proposed settlement agreement shall be submitted to the Attorney General by certified mail, return receipt requested, at the same time such agreement is submitted to the court for review. The Attorney General shall have not more than two weeks from the date of such submission to oppose the proposed settlement by sending a letter by certified mail, return receipt requested, to the clerk of the court and all parties to the proposed settlement. Upon receipt of such letter, the clerk of the court shall make the letter a part of the case file. The court shall not approve any proposed settlement opposed by the Attorney General.

(e) Any financial institution, out-of-state bank, out-of-state credit union or mortgage servicer who violates the terms of a temporary or permanent restraining order or an injunction issued pursuant to subsection (a) of this section shall forfeit and pay to the state a civil penalty of not more than twenty-five thousand dollars per violation. For the purpose of this section the court issuing the injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the Attorney General or the person acting in the name of the state may petition for recovery of civil penalties.

(f) If the court finds that a financial institution, out-of-state bank, out-of-state credit union or mortgage servicer is wilfully using or has wilfully used a method, act or practice prohibited by section 42-110b of the general statutes, the state may recover, upon petition of the Attorney General or the person acting on behalf of the state, a civil penalty of not more than five thousand dollars for each violation. For the purposes of this subsection, a wilful violation occurs when the party committing the violation knew or should have known that such party's conduct was a violation of section 42-110b of the general statutes.

(g) In any action where the state recovers a settlement payment or civil penalty pursuant to subsection (e) or (f) of this section, the court shall award (1) not more than ten per cent of the total amount recovered by the state to the person who initiated the action if the Attorney General intervened in such action pursuant to subsection (c) of this section, or (2) not more than twenty-five per cent of the total amount recovered by the state to the person who initiated such action if the Attorney General did not intervene in the action pursuant to subsection (c) of this section.

(h) Any action commenced under this section shall be prosecuted on behalf of the state and no arbitration agreement executed by the person commencing such action shall waive or limit such person's right to prosecute such action in the name of the state. Any person commencing an action under this section shall not be exempt from court fees pursuant to section 52-259a of the general statutes.

(i) An action commenced under this section shall not prevent any person from bringing an action for damages pursuant to section 42-110g of the general statutes, nor shall a prior action brought pursuant to section 42-110g of the general statutes prevent any person from bringing an action under this section.