Davis v. Hollins Law

942 F. Supp. 2d 1004, 2013 WL 1091221, 2013 U.S. Dist. LEXIS 36350
CourtDistrict Court, E.D. California
DecidedMarch 15, 2013
DocketNo. CIV. S-12-3107 LKK/GGH
StatusPublished
Cited by1 cases

This text of 942 F. Supp. 2d 1004 (Davis v. Hollins Law) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Hollins Law, 942 F. Supp. 2d 1004, 2013 WL 1091221, 2013 U.S. Dist. LEXIS 36350 (E.D. Cal. 2013).

Opinion

ORDER

LAWRENCE K. KARLTON, Senior District Judge.

Plaintiff Michael Davis sues defendant Hollins Law, A Professional Corporation, alleging violations of the federal Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692-1692p (“FDCPA”) and California’s Rosenthal Fair Debt Collection Practices Act, Cal. Civ. Code §§ 1788-1788.38 (“Rosenthal Act”).

Defendant has filed motions to dismiss and/or to strike plaintiffs second cause of action, which is brought under the Rosenthal Act. This matter was originally set for hearing on March 11, 2013. It has been decided on the papers submitted.

I. ALLEGATIONS & BACKGROUND

In 1977, Congress enacted the FDCPA to “eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.” 15 U.S.C. § 1692(e). That same year, the California Legislature enacted the Rosenthal Act “to prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and to require debtors to act fairly in entering into and honoring such debts.” Cal. Civ. Code § 1788.1(b). In 1999, the California Legislature substantially amended the Rosenthal Act to incorporate many FDCPA provisions by reference, thereby making violations of these provisions into Rosenthal Act violations. Cal. Civ. Code § 1788.17. While the FDCPA authorizes enforcement action by the federal Fair Trade Commission, 15 U.S.C. § 1692Í, both statutes largely rely on the efforts of private attorneys to regulate the debt collection industry.

Plaintiffs complaint alleges that defendant telephoned and left him at least one voicemail in an attempt to collect a debt. The challenged voicemail failed to disclose that the communication was from a debt collector.

Plaintiffs complaint asserts (1) violations of the FDCPA, 15 U.S.C. §§ 1692e, 1692e(10) and 1692e(ll), and (2) by reference, a violation of the Rosenthal Act, Cal. Civ. Code § 1788.17. (Complaint ¶¶ 17, 22, ECF No. 1.)

Defendant moves to dismiss the Rosenthal Act count under Federal Rule of Civil Procedure 12(b)(6)1 for failure to state a claim. In the alternative, defendant moves to dismiss the count under California’s anti-SLAPP2 law, Cal. Code Civ. Proc. § 425.16. Defendant also moves to strike this count under Rule 12(f).

II. STANDARD ON MOTION TO DISMISS UNDER RULE 12(b)(6)

A dismissal motion under Rule 12(b)(6) challenges a complaint’s compliance with federal pleading requirements. Under Rule 8(a)(2), a pleading must contain a “short and plain statement of the claim showing that the pleader is entitled to relief.” The complaint must give the defendant “ ‘fair notice of what the ... claim [1007]*1007is and the grounds upon which it rests.’ ” Bell Atlantic v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), quoting Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957).

To meet this requirement, the complaint must be supported by factual allegations. Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). Moreover, this court “must accept as true all of the factual allegations contained in the complaint.” Erickson v. Pardus, 551 U.S. 89, 94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007).3

“While legal conclusions can provide the framework of a complaint,” neither legal conclusions nor conclusory statements are themselves sufficient, and such statements are not entitled to a presumption of truth. Iqbal, 556 U.S. at 678, 129 S.Ct. 1937. Iqbal and Twombly therefore prescribe a two-step process for evaluation of motions to dismiss. The court first identifies the non-conclusory factual allegations, and then determines whether these allegations, taken as true and construed in the light most favorable to the plaintiff, “plausibly give rise to an entitlement to relief.” Iqbal, 556 U.S. at 664, 129 S.Ct. 1937.

“Plausibility,” as it is used in Twombly and Iqbal, does not refer to the likelihood that a pleader will succeed in proving the allegations. Instead, it refers to whether the non-conclusory factual allegations, when assumed to be true, “allow[ ] the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 663, 129 S.Ct. 1937. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 557, 127 S.Ct. 1955).4 A complaint may fail to show a right to relief either by lacking a cognizable legal theory or by lacking sufficient facts alleged under a cognizable legal theory. Balistreri v. Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir.1988).

III. ANALYSIS

A. Is defendant subject to the Rosenthal Act?

Defendant argues that it cannot be held liable under the Rosenthal Act. I cannot agree.

[1008]*1008According to Cal. Civ. Code § 1788.2(c), the term “debt collector” does not include an attorney or counselor at law. Defendant contends that the phrase “attorney” necessarily encompasses law firms, and therefore, that it is outside the ambit of the Rosenthal Act.

Defendant’s argument is largely based on the California Court of Appeals’ opinion in Carney v. Rotkin, Schmerin & McIntyre, 206 Cal.App.3d 1513, 254 Cal.Rptr. 478 (1988) (Kennard, J.).5

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Related

Davis v. Hollins Law
25 F. Supp. 3d 1292 (E.D. California, 2014)

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Bluebook (online)
942 F. Supp. 2d 1004, 2013 WL 1091221, 2013 U.S. Dist. LEXIS 36350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-hollins-law-caed-2013.