2nd Circuit Declines to Revive Class Action Lawsuit Over Priceline, AAA Fees

The 2nd Circuit recently upheld a lower court decision to dismiss a AAA fees class action lawsuit after finding the plaintiff doesn’t have standing to claim breach of contract.

According to the appellate court, the New York federal court was correct in granting summary judgment in the AAA fees class action lawsuit. The appellate court determined the plaintiff’s claims for unjust enrichment and breach of implied covenant of good faith and fair dealing could not move forward as these allegations had no grounds, agreeing with the lower court’s 2019 summary judgment decision.

“Upon de novo review of the record on appeal and upon consideration of the arguments advanced by the parties, for substantially the reasons set forth in the Magistrate Judge’s thorough and well-reasoned report and recommendation, we conclude that the District Court properly granted summary judgment to Defendants,” 2nd Circuit Clerk Catherine O’Hagan Wolfe wrote for the Court in the decision.

As a result of the 2nd Circuit’s decision, plaintiff Iris Rothstein’s claims, which go back five years, will come to an end.

Rothstein filed her AAA fees class action lawsuit in 2015, claiming she and other consumers had paid a higher price when booking a hotel room through AAA compared to the cost of booking directly with the hotel operator; she also alleged AAA failed to honor advertised discounts on hotel rooms booked through Priceline.com.

According to Rothstein, the higher prices flew in the face of AAA advertisements that promised members “exclusive discounted rates” by booking through AAA. Instead of getting these advertised discounted rates when booking, Rothstein and other AAA members were allegedly charged unauthorized and undisclosed AAA fees, which increased the cost of hotel reservations.

Rothstein had sought to represent a Class of AAA members who had booked hotel rooms through the company since 2010. The plaintiff filed a certification motion in January 2019, though AAA quickly countered this bid in April 2019.

According to AAA, Rothstein’s claims could not be brought on behalf of a Class since the proposed Class Members lived in more than 10 different states. The company argued that, due to this, affected consumers would have to bring their claims on an individual basis.

Later in 2019, Rothstein’s claims hit another roadblock when a New York federal court accepted recommendations from a magistrate judge who found that the plaintiff’s claims did not have enough evidence. According to the court, Rothstein had failed to show how AAA reneged on its promises for exclusive, discounted rates. As a result, Rothstein’s claims were dismissed.

In October 2019, Rothstein contested this decision when she petitioned the 2nd Circuit to review the case. However, this appeal did not work out in her favor — leaving her claims dismissed.

Did you pay AAA fees when booking through the company? Let us know in the comment section below.

Rothstein is represented by Noah Axler of Axler Goldich LLC and Jayne Arnold Goldstein of Shepherd Finkelman Miller & Shah LLP.

The AAA Fees Appeals Case is Iris Rothstein v. Auto Club South, et al., Case No. 19-3340, in the U.S. Court of Appeals for the 2nd Circuit. The AAA Fees Class Action Lawsuit is Iris Rothstein et al. v. Auto Club South, et al., Case No. 1:15- cv-09391, in the U.S. District Court for the Southern District of New York.

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