In this instance, the defendants numerous sale of tobacco products to residents allowed the City to argue that amount in controversy has been met due to the sheer volume of violations even with the relatively low fine amount per violation. An important factor will still be whether diversity jurisdiction and amount in controversy can be met. This is a big win for the City of Chicago allowing an avenue into federal court to enforce violations of its ordinances against online companies that sell to individuals within the City. Judge Ellis also noted that based on the number of alleged violations (700) and three separate city ordinances allowing fines of $500 to $10,000 per violation, that diversity had been met since amount in controversy potentially exceeds $75,000. Specifically, the consumer fraud can be reported to the City, the attorney general or other agencies that have an interest in the subject matter instead of filing an action with the department of administrative hearings. Judge Ellis found that the statute did provide an enforcement mechanism for injunctive and equitable relief, but did not limit it to these forms of relief. The City of Chicago alleges that the defendants violated the Municipal Code of Chicago against the advertisement and sale of tobacco products to minors as well as the newer regulation prohibiting the sale of flavored liquid tobacco products.ĭefendants argued that the pertinent city code only allowed the city to seek injunctive or equitable relief, not monetary damages in the form of fines. Ellis, in a lawsuit filed by the City of Chicago, denied a motion to dismiss brought by the defendant vape company Equte LLC/Vapes.Com and the owner Jeffrey Evenmo.
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