Demetra Baylor v. Mitchell Rubenstein & Associat

857 F.3d 939, 97 Fed. R. Serv. 3d 940, 2017 WL 2324304, 2017 U.S. App. LEXIS 9333
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 30, 2017
Docket16-7070 Consolidated with 16-7071
StatusPublished
Cited by65 cases

This text of 857 F.3d 939 (Demetra Baylor v. Mitchell Rubenstein & Associat) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Demetra Baylor v. Mitchell Rubenstein & Associat, 857 F.3d 939, 97 Fed. R. Serv. 3d 940, 2017 WL 2324304, 2017 U.S. App. LEXIS 9333 (D.C. Cir. 2017).

Opinions

Concurring opinion filed by Circuit Judge HENDERSON.

EDWARDS, Senior Circuit Judge:

In order to pursue a Master’s degree in Computer Graphics, Demetra Baylor (“Appellant”) took out six student loans, Several years after her graduation, Mitchell Ru-benstein & Associates, P.C. (“Appellee”) came calling to collect. At the heart of this case are a number of inconsistencies in letters that Appellee sent Appellant over the course of several months regarding her loans and the amounts that she owed on them, as well as Appellee’s failure to direct all of its communications to Appellant’s attorney after she retained counsel. In response, Appellant filed suit on December 17, 2013, alleging that Appellee had violated the Fair Debt Collection Practices Act (“FDCPA”), the District of Columbia Consumer Protections Procedures Act (“CPPA”), and the District of Columbia Debt Collection Law (“DCDCL”), statutes which target abusive debt collection and improper trade practices. See 15 U.S.C. § 1692(e); D.C. Code §§ 28-3904, -3814.

Over the course of the next few years, 'the parties engaged in what the District Court termed a “particularly striking expenditure of effort and resources,” generating “excessive, repetitive, and unnecessarily sharp pleadings.” Order, Dkt. No. 41, at 2. Nonetheless, all of Appellant’s statutory claims were eventually resolved. Appellant accepted Appellee’s offer of judgment regarding her FDCPA claim and the District Court, with the aid of a Magistrate Judge, determined the attorney’s fees to which she was entitled for this success. Appellee, meanwhile, prevailed in its Motion to Dismiss all of Appellant’s CPPA claims and some of her DCDCL claims, the remainder of which were rejected when the District Court subsequently granted Appellee’s Motion for Summary Judgment.

A number of orders from this “clutter[ed] ... docket” are challenged on appeal. Id. First, the parties dispute the District Court’s decision to adopt a Magistrate Judge’s recommendation that Appellant receive approximately twenty percent of the attorney’s fees that she requested. Second, Appellant asserts that the District Court erred in finding that Appellee’s conduct does not fall within the aegis of the CPPA. Third, Appellant also contends that the District Court abused its discretion in failing to credit her objections to a different Magistrate Judge’s denial of her Motion to Compel the disclosure of communications between Appellee and an agent of Appellant’s creditor on the grounds that these documents were protected by attorney-client privilege. Appellant additionally disputes the District Court’s refusal to award her attorney’s fees for her efforts in litigating this issue. Finally, Appellant argues that the District Court improperly granted Appellee’s Motion for Summary Judgment on her DCDCL claims. On this last point, Appellant contends that the District Court failed to appropriately account for evidence demonstrating that Appellee had “willfully violated” the DCDCL and was therefore subject to liability under the statute.

We do not reach the question of whether the District Court abused its discretion in awarding Appellant only a percentage of [943]*943the attorney’s fees she sought in connection with her FDCPA claim. In addressing this issue, the District Court relied on the standard set forth in Local Civil Rule 72.2 in finding that the Magistrate Judge’s proposed disposition was not “clearly erroneous or contrary to law.” This was error. Federal Rules of Civil Procedure 54(d)(2)(D) and 72(b)(3) foreclose the District Court from using a “clearly erroneous or contrary to law” standard when evaluating a Magistrate Judge’s proposed disposition of a fee request. The correct standard of review is de novo. We therefore reverse and remand to allow the trial judge to reconsider this matter in the first instance applying de novo review to assess the Magistrate Judge’s recommendation. We affirm all of the remaining Orders challenged on appeal.

I. BACKGROUND

On February 21, 2013, Appellee, a law firm whose primary focus is the recovery of consumer debts, sent the first of several letters to Appellant notifying her that her account, which had been assigned file number R80465, “ha[d] been referred to [its] office for collection.” Complaint, Dkt. No. 1, Ex. E; see Answer, Dkt. No. 28, at 2. It listed the creditor for her debt as Arro-wood Indemnity Company and stated that she currently owed $26,471.07, though cautioned that, “[bjecause of interest, late charges and other charges that may vary from day to day, the amount due on the day you pay may be greater.” Complaint, Dkt. No. 1, Ex. E. Following a request for more information regarding both the ownership and amount of this debt from Appellant, Appellee sent a second letter. It provided a new total for the amount that Appellant owed, $31,268, a slight reformulation of the name of Appellant’s creditor, Arrowood Indemnity Company/Tuition Guard, and identified her original creditor as Citibank (South Dakota) N.A. Complaint, Dkt. No. 1, Ex. D; Baylor v. Mitchell Rubenstein & Assocs., P.C., 55 F.Supp.3d 43, 46 (D.D.C. 2014).

Appellant retained counsel, who contacted Appellee regarding the provenance of this debt and advised that any “future communication regarding this matter should be directed to [her] firm” rather than to Appellant. Complaint, Dkt. No. 1, Ex. B. The parties then entered into settlement negotiations, during which Appellant informed Appellee that she had additional outstanding loans not referenced in its second letter. Appellee’s client referred these new loans to Appellee so that Appellant could settle all of her debt at once. See Baylor v. Mitchell Rubenstein & Assocs., P.C., 174 F.Supp.3d 146, 150 (D.D.C. 2016); Appellee’s Statement of Undisputed Facts, Dkt. No. 96 ¶¶ 12-13. On August 22, 2013, Appellee sent another letter to Appellant’s home, albeit addressed to her attorney, regarding this second set of loans. Complaint, Dkt. No. 1, Ex. A. It provided a new file number for this debt, R83798, which totaled $27,459.48, and noted that her creditor was Tuitionguard Arrowood Indemnity; Id. After Appellant’s counsel requested additional information regarding these loans, Appellee stated that Appellant owed “$27,459.48 plus interest from 10/21/11 at the rate of 3.75% until paid” and listed Tuitionguard/Arrowood Indemnity and Student Loan Corp. as the creditor and original creditor, respectively, of this debt. Complaint, Dkt. No. 1, Ex. C.

On December 17, 2013, Appellant filed suit in the District Court. She claimed that the inconsistencies in the communications she had received from Appellee, including, most notably, the variance in the “character and amount” of Appellant’s alleged debt and the creditors associated with these loans, as well as Appellee’s failure to direct all of its communications to Appellant’s counsel after she had retained legal representation, constituted violations of [944]*944both the FDCPA and CPPA. Complaint, Joint Appendix (“JA”) 26-28, 31-33.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
857 F.3d 939, 97 Fed. R. Serv. 3d 940, 2017 WL 2324304, 2017 U.S. App. LEXIS 9333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/demetra-baylor-v-mitchell-rubenstein-associat-cadc-2017.