Abbie Byrd, et al. v. TitleMax of South Carolina, Inc. and TitleMax of Virginia, Inc.

CourtDistrict Court, M.D. North Carolina
DecidedMay 4, 2026
Docket1:25-cv-01039
StatusUnknown

This text of Abbie Byrd, et al. v. TitleMax of South Carolina, Inc. and TitleMax of Virginia, Inc. (Abbie Byrd, et al. v. TitleMax of South Carolina, Inc. and TitleMax of Virginia, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbie Byrd, et al. v. TitleMax of South Carolina, Inc. and TitleMax of Virginia, Inc., (M.D.N.C. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA

ABBIE BYRD, et al. ) ) Plaintiffs, ) ) v. ) ) 1:25-cv-1039 TITLEMAX OF SOUTH CAROLINA, ) INC. and TITLEMAX OF VIRGINIA, ) INC., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER Lindsey A. Freeman, United States District Judge This is one of 22 cases involving a dispute about high interest loan transactions between a series of borrowers and “TitleMax” entities. Most of these cases have proceeded by mass action and individual arbitration. Defendants now want to change that practice. In their view, the 87 Plaintiffs here were improperly joined, and they should file separate individual actions. The Court disagrees. Plaintiffs meet the requirements of permissive joinder under Federal Rule of Civil Procedure 20, and the Court declines to sever pursuant to Federal Rule of Civil Procedure 21. For the reasons stated below, Defendants’ motion is DENIED. FACTUAL BACKGROUND Plaintiffs are 87 North Carolina residents who filed a complaint in the North Carolina Superior Court against TitleMax of Virginia, Inc. and TitleMax of South Carolina, Inc. (“Defendants”) on October 9, 2025. Dkt. 4 ¶ 1. Shortly thereafter, they amended their complaint, which is the operative complaint. Dkt. 9 (“Amended

Complaint”). Plaintiffs allege in their Amended Complaint that certain car title loan transactions between them and the Defendants violated North Carolina law. Dkt. 9 ¶¶ 1, 25-38. They

argue that (1) Defendants violated the North Carolina Consumer Finance Act (“CFA”), N.C. Gen Stat. § 53-190, by charging Plaintiffs an annual percentage rate (“APR”) exceeding the maximum allowed under the CFA, Dkt. 9 ¶¶ 25-30; and (2) Defendants

used “unfair and deceptive trade practices” in or affecting commerce in violation of the North Carolina Unfair and Deceptive Trade Practices Act (“UDTPA”), N.C. Gen Stat. § 75- 1.1, Dkt. 9 ¶¶ 31-38. Defendants seek to arbitrate the claims by enforcing an arbitration agreement

contained in the loan contracts. Id. ¶¶ 44-45. Defendants removed the case to this Court on November 14, 2025. Dkt. 1 (Notice of Removal). On the same day, Defendants filed a motion to sever Plaintiffs’ claims and dismiss all Plaintiffs without prejudice except for

the first named Plaintiff—Abbie Byrd—for misjoinder pursuant to Federal Rules of Civil Procedure 20 and 21. Dkt. 4 (the “Motion”). The parties have briefed the merits of the Motion. See Dkts. 5 (Memorandum in Support); 20 (Response in Opposition); 22 (Reply in Support). ANALYSIS The Court is well within its discretion to permit joinder here. Each Plaintiff is a North Carolina resident who borrowed from at least one of the two TitleMax Defendants through the same type of alleged high-interest title lending scheme that Plaintiffs claim violates North Carolina law. Moreover, splitting this case into 87 individual actions to determine the same threshold issues before considering whether to send the cases to arbitration is an unnecessary, administrative nightmare. Joinder will not only be convenient to the Court, but it will also “expedite the final determination of [these] disputes.” Saval, v. BL Ltd., 710 F.2d 1027, 1031 (4th Cir. 1983) (internal quotations omitted). The Rules of Civil Procedure dictate the result here. First, permissive joinder under Rule 20 is appropriate because Plaintiffs’ right to relief arises out of the same series of transactions or occurrences, and questions of law or fact common to all plaintiffs will arise in the action. See infra at Section I. Second, the Court is not persuaded that either prejudice or administrative concerns warrant exercising its discretion to sever pursuant to Rule 21. See infra at Section IL. I. Plaintiffs Meet the Requirements for Permissive Joinder Under Rule 20. Pursuant to its “wide discretion over permissive joinder,” Sakthivel v. Jaddou, No. 21-1207, 2023 WL 2888565, at *5 (4th Cir. Apr. 11, 2023), the Court finds the 87 Plaintiffs in this action were properly joined in this case. Rule 20 states,

[p]ersons may join in one action as plaintiffs if: (A) they assert any right to relief jointly, severally, or in the alternative with respect to or arising out of the same transaction, occurrence, or series of transactions or occurrences; and (B) any question of law or fact common to all plaintiffs will arise in the action. Fed. R. Civ. P. 20(a)(1). While both requirements must be met for permissive joinder to be proper, the transaction and common-question requirements are not “rigid tests.” 7 Charles Alan Wright, et al., Fed. Prac. & Proc. § 1653 (3d ed. 2026). The Court finds both requirements are met here. A. Plaintiffs’ “right to relief” arises out of the same transaction or occurrence. Plaintiffs meet the first prong of Rule 20(a)(1) because their “right to relief ...

arise[es] out of the same transaction or occurrence or series of transactions or occurrences.” Fed. R. Civ. P. 20(a)(1).. While a right to relief is easily understood— essentially a plaintiff’s claim for relief, see Saval, 710 F.2d at 1031 (equating right to relief with claim for relief) — “transaction or occurrence or series of transactions or occurrences” depends heavily on the nuances of each case. Cf. Slep-Tone Ent. Corp. v. Mainville, No. 3:11-ev-122, 2011 WL 4713230, at *4 (W.D.N.C. Oct. 6, 2011) (transaction requirement generally analyzed on a “case by case basis”) (internal quotations omitted). Plaintiffs’ claims here all stem from the same alleged high-interest title lending scheme and unfair trade practices and thus are logically related to the same transaction

or occurrence. “Two claims arise from the same transaction — and therefore can be joined in the same action — when there is a ‘logical relationship’ between them.” Courthouse

News Serv. v. Schaefer, 2 F.4th 318, 325 (4th Cir. 2021) (internal quotations omitted); see also Moore v. N.Y. Cotton Exch., 270 U.S. 593, 610 (1926). Thus, “all ‘logically related’ events entitling a person to institute a legal action against another generally are regarded as comprising a transaction or occurrence.” Mosley v. Gen. Motors Corp., 497 F.2d 1330, 1333 (8th Cir. 1974). There are two steps to the analysis: (1) determining the scope of the transaction by referring to the claims; and (2) determining whether the claim-related

events of the joining plaintiffs generally fit within the scope of the transaction.! Plaintiffs’ claims? concern North Carolina’s public policy protecting North Carolina residents from (1) out-of-state, exceedingly high-interest, low-value loans (the CFA claim), and (2) unfair and deceptive commercial practices associated with those loans (the UDTPA claim). Thus, according to Plaintiffs’ allegations in the Amended Complaint, the scope of the transaction is a title loan lending scheme that violates North

An overview of Fourth Circuit case law confirms these two steps. In both Hinson v. Norwest Fin. S.C., Inc., 239 F.3d 611, 618-19 (4th Cir.

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Abbie Byrd, et al. v. TitleMax of South Carolina, Inc. and TitleMax of Virginia, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbie-byrd-et-al-v-titlemax-of-south-carolina-inc-and-titlemax-of-ncmd-2026.