Castillo v. Duke Capital

CourtDistrict Court, D. Utah
DecidedSeptember 25, 2025
Docket2:20-cv-00229
StatusUnknown

This text of Castillo v. Duke Capital (Castillo v. Duke Capital) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castillo v. Duke Capital, (D. Utah 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

SARAH CASTILLO, VIKTORIA MEMORANDUM DECISION AND ORDER SVENSSON, and ROBIN BEAN, GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS Plaintiffs,

v. Case No. 2:20-cv-00229-JNP-JCB

DUKE CAPITAL, LLC, District Judge Jill N. Parrish Magistrate Judge Jared C. Bennet Defendant.

Sarah Castillo, Viktoria Svensson, and Robin Bean (collectively, “Plaintiffs”) allege that Duke Capital, LLC violated the Fair Debt Collection Practices Act (“FDCPA”) and committed a variety of common law torts. Before the court is Defendant Duke Capital’s motion to dismiss Plaintiffs’ amended complaint. ECF No. 82 (“Def.’s Mot.”). For the reasons set out below, this motion is GRANTED IN PART AND DENIED IN PART. BACKGROUND In 2019, Duke Capital filed lawsuits in Utah state court against Plaintiffs to recover debts it had purchased from prior creditors. Against all three Plaintiffs, it obtained a default judgment. It then sought to enforce the judgments through garnishment proceedings. See ECF No. 78 (“Previous Mem. Decision and Order”) at 1–2 (providing more detail). Plaintiffs then initiated this action as a putative class-action suit in 2020 in a Utah district court. Duke Capital removed the action to this court. After removal, Plaintiffs filed their first amended complaint. ECF No. 5 (“First Am. Compl.”). In the amended complaint, Plaintiffs raised five claims: (1) violations of the FDCPA, 15 U.S.C. § 1692 et seq.; (2) violations of the Utah Consumer Sales Protection Act (“UCSPA”), Utah Code Ann. § 13-11-1 et seq.; (3) a request for declaratory judgment that Duke Capital lacked standing to obtain any judgment in the state courts and that the default judgments on the debts were therefore void and unenforceable; (4) intrusion upon seclusion; and (5) unjust enrichment.

Id. at 9–15. The UCSPA claim was based on the allegation that Duke Capital was not registered with the Utah Division of Corporations and Commercial Code and did not have a bond as required under the Utah Collection Agency Act (“UCAA”), Utah Code Ann. § 12-1-1 et seq.1 First Am. Compl. at 10–12. Duke Capital moved for summary judgment on all of Plaintiffs’ claims. ECF No. 59 (“Def.’s Mot. for Summ. J.”). Its motion was based on four grounds: (1) the UCAA’s licensing requirement did not apply to Duke Capital; (2) all of Plaintiffs’ claims were barred by the doctrine of claim preclusion; (3) all of Plaintiffs’ claims were barred by the doctrine of issue preclusion; and (4) UCAA licensing violations by themselves cannot support a claim under the UCSPA. Id. Plaintiffs opposed the motion on the merits and moved to amend their complaint to “remove all

parts of their claims which could be interpreted as a collateral attack on the prior [state court] judgment[s].” ECF No. 65 (“Pls.’ Mem. in Opp’n to Mot. for Summ J.”); ECF No. 66 (“Pl.s’ Mot. to Amend”) at 1–2. Duke Capital, in turn, opposed Plaintiffs’ motion to amend on futility grounds. ECF No. 73 (“Def.’s Mem. In Opp’n to Mot. to Amend). In its briefing, Duke Capital conceded its first and third arguments. ECF No. 72 (“Reply Mem. in Supp. of Mot. for Summ. J.”) at 8 n.15.

1 The UCAA has since been mostly repealed. See Fell v. Alco Cap. Grp. LLC, 2023 UT App 127, 538 P.3d 1249, 1251 n.4 (Utah App. Ct. 2024). The court cites the applicable statutory provisions that were in effect immediately before the repeal. 2 The court was thus left to rule on Duke Capital’s second and fourth arguments for summary judgment, based on claim preclusion and the significance of UCAA violations. The court issued a memorandum decision and order ruling on Duke Capital’s remaining arguments for summary judgment and Plaintiffs’ request to amend their complaint. See Previous

Mem. Decision and Order. With respect to claim preclusion, the court denied summary judgment, holding that Plaintiffs’ claims—including their FDCPA claims—did not arise out of the same claim as the earlier debt collection actions under Utah’s claim preclusion doctrine. Id. at 6–7. With respect to Plaintiffs’ claims under the UCSPA and Utah common law, the court granted Duke Capital’s motion for summary judgment, reasoning that a violation of the UCAA was not sufficient to create a claim under Utah state law. Id. at 8–9. At the same time, the court granted Plaintiffs’ motion to amend their complaint in part. Id. at 9. Because it found that Plaintiffs’ FDCPA claims were not barred by claim preclusion, the court granted Plaintiffs leave to amend their complaint to remove any allegations that could be interpreted as a collateral attack on the underlying state court judgment. Id.

Plaintiffs then filed a second amended complaint. ECF No. 79 (“Second Amm. Compl.”). In this operative complaint, Plaintiffs removed their request for declaratory judgment regarding state debt collection actions and their claims under the UCSPA. But otherwise, the second amended complaint remained largely unchanged, maintaining claims under the FDCPA and claims for intrusion upon seclusion and unjust enrichment under Utah common law. See id. at 10–13. Duke Capital now brings a motion to dismiss Plaintiff’s second amended complaint for failure to state a claim upon which relief can be granted. Def.’s Mot. at 2 (citing Fed. R. Civ. P. 12(b)). It raises three arguments: (1) all of Plaintiffs’ claims are barred under the doctrine of claim preclusion because they arise out of the same transaction as the underlying debt collection actions; 3 (2) Plaintiffs fail to allege facts sufficient to state a FDCPA claim; and (3) Plaintiffs fail to allege facts sufficient to state common law claims. Id. at 11. In response, Plaintiffs first argue that Duke Capital’s motion is procedurally improper. ECF No. 87 (“Pls.’ Mem. in Opp’n”) at 2–4. Namely, they argue that Duke Capital’s motion is untimely under Federal Rule of Civil Procedure 12(b),

which requires a party to raise a 12(b) motion before answering the complaint. Id. Plaintiffs also respond to Duke Capital’s first two arguments on the merits, arguing that their claims are not barred by claim preclusion and that the alleged facts do make out an FDCPA claim. Id. at 4–6. Plaintiffs, however, concede their common law claims and stipulate to their dismissal. Id. at 6. Duke Capital maintains that its motion is timely and continues to defend it on the merits. ECF No. 89 (“Def.’s Reply”). DISCUSSION Before considering the merits of Duke Capital’s motion, the court first must determine whether this motion should even be considered. Plaintiffs argue the motion is untimely under Federal Rule of Civil Procedure 12(b) and thus should be denied by the court. According to the

text of Rule 12(b), a party’s 12(b) motion “must be made before pleading.” Fed. R. Civ. P. 12(b) (emphasis added). This language suggests that Duke Capital’s Rule 12(b) motion, filed over five years after its answer, is clearly untimely. See Leonard v. Enter. Rent a Car, 279 F.3d 967, 971 n.6 (11th Cir. 2002) (describing a post-answer 12(b) motion as a “nullity”).

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Castillo v. Duke Capital, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castillo-v-duke-capital-utd-2025.