Bueno v. LR Credit 18, LLC

269 F. Supp. 3d 16
District Court, E.D. New York·Decided September 7, 2017·No. 16-CV-4737 (WFK) (VMS)·Published·Cited by 5 cases

Opinion

DECISION & ORDER

WILLIAM F. KUNTZ, II, United States District Judge:

Agustina Bueno (“Plaintiff’) brings this action against LR Credit 18, LLC (“Defendant”), as well as Husam Al-Atrash; William Mlotok; and Samserv, Inc.,1 alleging violations of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. §§ 1692-1692p, and section 349 of the New York General Business Law (“GBL”). Am. Compl. at 1, ECF No. 30. On March 8, 2017, Defendant filed a fully briefed Motion for Partial Judgment on the Pleadings regarding only Plaintiffs claim for punitive damages, arguing Plaintiff is limited to $1,000.00 in punitive damages on her claims against Defendant. See ECF No. 51; see also Def.’s Mem. in Supp. (“MJP”), ECF No. 52; PL’s Opp’n (“Opp’n”), ECF No. 53; Def.’s Reply (“Reply”), ECF No. 54. For the reasons discussed below, Defendant’s motion is DENIED.

BACKGROUND2

This action arises from an alleged scheme through which individual and corporate debt collectors, law firms, and process servers conspired to profit by fraudulently obtaining default judgments against more than 100,000 consumers in state courts. See generally Am. Compl. Defendant’s role in this scheme, as a debt collection agency, was to purchase consumer debt at deeply discounted rates and then file suit to collect on those debts. See id. ¶¶ 5, 13. On or about February 23, 2009, Defendant filed such a lawsuit against Plaintiff, seeking to collect a putative debt owed to SEARS on a defaulted “Retail [18]*18Charge Account Agreement,” Id, ¶¶ 21, 23. Plaintiff alleges she never had an account with SEARS, id, ¶¶ 24, 62, and was never served with the lawsuit, id, ¶ 26, but that a default judgment was nonetheless entered against her . in the amount of $3,995,80,. id. ¶ 33, and that Defendant and others attempted to execute on that judgment on multiple, occasions, id. ¶¶ 55, 57.

On Décember 21, 2016, Plaintiff filed her First Amended Complaint, which asserts violations of the FDCPA and section 349 of the GBL.3 See id. ¶¶ 65-84 (setting forth claims). Plaintiff complains she “endured significant emotional: distress” due to Defendant’s conduct, including “nightly, recurring dreams that people came to her home and started taking her belongings,” which caused “difficulty sleeping” and led her to rely on sleeping pills; “a substantial amount” of weight-loss because she was too nervous to eat; and feelings of generalized anxiety and isolation. See id. ¶¶ 60-61.. She seeks disbursements, costs, and attorneys’ fees; pre-judgment and post-judgment interest; and, most relevant here, “actual, treble, statutory, punitive, and exemplary damages.” Id. at 18. Indeed, according to Defendant, “Plaintiff seeks to recover ‘substantial’ punitive damages under GBL § 349,”4 which Defendant contends are limited to $1,000.00. MJP at 1. On this basis, Defendant moyed for partial judgment on. the pleadings, seeking a determination that any punitive damages Plaintiff receives cannot exceed $1,000.00. Id. The Court now addresses this motion.

LEGAL STANDARD

Rule 12(c) of the Federal Rules of Civil Procedure provides that, “[a]fter the pleadings are' closed—but early enough not to delay trial—a party inay move for judgment on the pleadings.” “Judgment on the pleadings is appropriate where material facts are undisputed and where judgment on the merits is possible by considering the contents of the pleadings.” Sellers v. M.C. Floor Crafters, Inc., 842 F.2d 639, 642 (2d Cir. 1988); see also Dargahi v. Honda Lease Trust, 370 Fed.Appx. 172, 174 (2d Cir. 2010) (“A grant of a motion pursuant to Rule 12(c) is proper ‘if, from the pleadings, the moving party is entitled to judgment as a matter of law.’ ” (quoting Burns Int’l Sec. Servs., Inc. v. Int’l Union, 47 F.3d 14, 16 (2d Cir. 1995))). Otherwise, the standard of review for a Rule 12(c) motion is the same as the standard for a Rule 12(b)(6) motion. E.g., Kass v. City of New York, 864 F.3d 200, 205-06 (2d Cir. 2017).

Thus, to survive a Rule 12(c) motion for judgment on the pleadings, “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, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). In applying this standard, the Court must “accept all factual allegations in the complaint as .true and draw all reasonable inferences in [Plaintiffs] favor.” Johnson v. Rowley, 569 F.3d 40, 43 (2d [19]*19Cir. 2009) (per curiam) (citation omitted). The Court need not, however, credit “legal conclusions” or, “[t]hreadbare recitals of the elements of a cause. of action, supported by mere eonclusory statements.” Harris v. Mills, 572 F.3d 66, 72. (2d Cir. 2009) (quoting Iqbal, 556 U.S. at 678, 129 S.Ct. 1937). Rather, legal conclusions must be supported by factual allegations. Iqbal, 556 U.S. at 678, 129 S.Ct. 1937.

DISCUSSION

Defendant argues that; as a matter of law, Plaintiff is not entitled to punitive damages in excess of $1,000.00, and so to the extent Plaintiff seeks punitive damages above that amount, Defendant is entitled to judgment on the pleadings. MJP at 1-2. More specifically, Defendant contends, first, that punitive damages are not recoverable under the FDCPA and, second, that the. statutory text of section 349 of the GBL and the balance of precedent interpreting that provision authorize only recovery of limited punitive damages up to $1,000.00. See., generally Reply. Plaintiff does not contest that punitive damages are unavailable on her FDCPA claim, nor does she disagree that section 349(h) of the GBL contains a capped treble damage clause; rather, she responds, she has a right to “separate punitive damages not limited by the $1,000 cap on treble damages.” See generally Opp’n. The Court adopts Plaintiffs interpretation.

Section 349(a) of the GBL prohibits “[djeceptive acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service.” Section 349(h) of the GBL creates a private right of action to recover actual damages for violations of section 349(a) of the GBL and allows courts to “increase the award of damages to an amount not to exceed three times the actual damages up to one thousand dollars, if the court finds the defendant willfully or knowingly violated this section.” As an initial matter, the Court disagrees with Defendant that section 349’s “clear statutory language” governs the punitive damages question. Reply at 3. To the contrary, that provision contains no mention, whatsoever, of punitive damages.

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Bueno v. LR Credit 18, LLC, 269 F. Supp. 3d 16 (E.D.N.Y. 2017).

269 F. Supp. 3d 16 (Bueno v. LR Credit 18, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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