ATKINSON v. CREDIT ACCEPTANCE CORPORATION

CourtDistrict Court, M.D. North Carolina
DecidedSeptember 23, 2025
Docket1:22-cv-00369
StatusUnknown

This text of ATKINSON v. CREDIT ACCEPTANCE CORPORATION (ATKINSON v. CREDIT ACCEPTANCE CORPORATION) 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
ATKINSON v. CREDIT ACCEPTANCE CORPORATION, (M.D.N.C. 2025).

Opinion

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

LESLIE ATKINSON, ) ) Plaintiff, ) ) v. ) 1:22-cv-369 ) WAYNE COATS, in his official ) capacity as Sheriff of ) Harnett County, North Carolina, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER OSTEEN, JR., District Judge This case is before this court on remand following the Fourth Circuit’s opinion in Atkinson v. Godfrey, 100 F.4th 498 (2024). In light of that opinion, this court directed the parties to file their respective positions on the issue of municipal liability. (Text Order 07/26/2024.) Both parties have responded. (Docs. 54, 55, 56.) Upon reconsidering this court’s Memorandum Opinion and Order denying Defendants’ Motion to Dismiss, (Doc. 45), this court will vacate its previous denial and will dismiss all claims as to Defendant Harnett County Sheriff Wayne Coats (hereinafter “Coats”). I. FACTUAL BACKGROUND The facts of this case are more fully set forth in detail in this court’s previous Memorandum Opinion and Order. (Mem. Op. & Order (“MTD Order”) (Doc. 45) at 2–4.)1 Relevant facts will be discussed as pertinent to Plaintiff’s claims against Coats. In the course of an argument that arose during a disputed vehicle repossession, Carolina Repo, LLC (hereinafter “CR”) contacted the Harnett County Sheriff’s Office (hereinafter “HCSO”) for assistance. (Compl. (Doc. 1) ¶ 73.) When Deputy Brent Godfrey (hereinafter “Godfrey”) arrived, he saw Plaintiff in her vehicle “lifted into the air” by a tow bar. (Id. ¶ 95.) Godfrey then approached Plaintiff and ordered her to exit the

vehicle. (Id. ¶ 102.) Plaintiff exited the vehicle, and CR completed the repossession. (Id. ¶ 103, 108.) Plaintiff explains that HCSO, and thus Coats, should be liable for her injuries by “act[ing] in concert” with CR to “accomplish the repossession.” (Id. ¶ 106.) Plaintiff asserts that CR called HCSO because it knew that HCSO “has a policy of assisting secured parties with the self-help repossession of collateral.” (Id. ¶ 82.) II. PROCEDURAL HISTORY Coats and Godfrey moved to dismiss Plaintiff’s claims against them pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). (Mot. to Dismiss Defs. Brent Godfrey &

1 All citations in this Memorandum Opinion and Order to documents filed with the court refer to the page numbers located at the bottom right-hand corner of the documents as they appear on CM/ECF. Sheriff Wayne Coats (“Defs.’ Mot.”) (Doc. 18).) This court denied Defendants’ motion, determining that Plaintiffs’ claims against Godfrey in his individual capacity and Coats in his official capacity could not be decided as a matter of law based on the allegations of the complaint. (MTD Opinion (Doc. 45) at 14–15.) Defendants appealed this determination, (Defs.’ Notice of Appeal (Doc. 46)), and the Fourth Circuit reversed this court’s decision on qualified immunity, (Doc. 50), and issued its formal mandate ordering a dismissal of all claims against

Godfrey, (Doc. 53). In its opinion, the Fourth Circuit explained that Godfrey was entitled to qualified immunity because “neither the Supreme Court, our Court nor North Carolina’s high court has provided fair warning that conduct like Godfrey’s was unconstitutional.” Atkinson, 100 F.4th at 508. Additionally, there was no consensus from “other courts of appeals that would have provided fair warning to a reasonable officer standing in Godfrey’s shoes.” Id. Next, the Fourth Circuit “decline[d] to exercise jurisdiction” over Plaintiff’s claims against Coats because the municipal liability claims were “not inextricably intertwined

with [the] resolution of the qualified immunity issues.” Id. at 509. Despite “the rules of pendent jurisdiction” counseling the court into “staying our hand,” the court noted that “it may be less likely that a municipality may be found liable when the constitutional terrain was as murky as that here.” Id. Judge Wilkinson further articulated in a concurring opinion that “the whole idea of fair notice that lies at the heart of qualified immunity for individuals need not be wholly abandoned when policymakers are concerned.” Id. at 510 (Wilkinson, J., concurring). From the Fourth Circuit’s opinion, this court identified

that its decision as to Defendant Coats should be reconsidered. See White v. City of Greensboro, 586 F. Supp. 3d 466, 491 (M.D.N.C. 2022) (citing Sewell Plastics Inc. v. Coca-Cola Co., 912 F.2d 463, n.1 (4th Cir. 1990)). This court directed the parties to file their respective positions on the issue of municipal liability. (Text Order 07/26/2024.) As instructed, both parties filed statements and briefs as to how this case should proceed. (Pl.’s Position Statement (“Pl.’s Resp. to Text Order”) (Doc. 54); Defs.’ Br. in Supp. of Recons. (“Defs.’ Resp. to Text Order 1”) (Doc. 55); Defs.’ Suppl. Br. in Supp. of Recons. (“Defs.’ Resp. to Text Order 2”) (Doc. 56).) After considering the parties’ arguments, the Fourth

Circuit’s opinion, and recently established Fourth Circuit precedent on municipal liability, this court vacates its denial of Defendants’ motion to dismiss Plaintiff’s municipal liability claims, (MTD Order (Doc. 45)). This court accordingly grants Defendants’ motion to dismiss, (Defs.’ Mot. (Doc. 18)). III. STANDARD OF REVIEW To survive a Rule 12(b)(6) motion, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is plausible on its

face if “the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable” and demonstrates “more than a sheer possibility that a defendant has acted unlawfully.” Id. (citing Twombly, 550 U.S. at 556–57). When ruling on a motion to dismiss, this court accepts the complaint’s factual allegations as true. Id. Further, this court liberally construes “the complaint, including all reasonable inferences therefrom, . . . in plaintiff’s favor.” Est. of Williams-Moore v. All. One Receivables Mgmt., Inc., 335 F. Supp. 2d 636, 646 (M.D.N.C. 2004) (citation omitted). This court does not, however, accept legal conclusions as true, and

“[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Iqbal, 556 U.S. at 678. In the context of municipal liability, the Fourth Circuit has explained that “[a]lthough prevailing on the merits of a Monell claim is difficult, simply alleging such a claim is, by definition, easier.” Owens v. Baltimore City State's Att'ys Off., 767 F.3d 379, 403 (4th Cir. 2014). This is because, under Twombly and Iqbal, “the recitation of facts need not be particularly detailed, and the chance of success need not be

particularly high.” Id. (citing Iqbal, 556 U.S. at 678; Twombly, 550 U.S. at 570). However, a plaintiff fails to state a claim in this context when the plaintiff “offers ‘labels and conclusions’ or formulaically recites the elements of his § 1983 cause of action.” Id. (citing Iqbal, 556 U.S. at 678). “[M]erely stating the legal conclusion” that an officer has, for example, “final policymaking authority does not make it so.” Misjuns v. City of Lynchburg, 139 F.4th 378, 385 (4th Cir. 2025).

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ATKINSON v. CREDIT ACCEPTANCE CORPORATION, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atkinson-v-credit-acceptance-corporation-ncmd-2025.