Eades v. Kennedy, PC. Law Offices

986 F. Supp. 2d 251, 2013 WL 6241272, 2013 U.S. Dist. LEXIS 170407
CourtDistrict Court, W.D. New York
DecidedDecember 3, 2013
DocketNo. 12-CV-6680L
StatusPublished

This text of 986 F. Supp. 2d 251 (Eades v. Kennedy, PC. Law Offices) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eades v. Kennedy, PC. Law Offices, 986 F. Supp. 2d 251, 2013 WL 6241272, 2013 U.S. Dist. LEXIS 170407 (W.D.N.Y. 2013).

Opinion

DECISION AND ORDER

DAVID G. LARIMER, District Judge.

This matter was brought by consumers Joni Eades (“Eades”) and Levere C. Pike, Jr. (“Pike”), to challenge certain debt collection actions by the defendant. Defendant Kennedy, PC Law Offices (“Kennedy”) is a law firm which engages in, among other things, debt collection.

Kennedy allegedly attempted to collect a debt from Eades and Pike via at least one letter and one telephone call, and through a lawsuit that was filed in Pennsylvania. Plaintiffs’ complaint alleges that these actions violated the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq. Kennedy now moves to dismiss the complaint for failure to state a claim (Dkt. # 6), and plaintiffs have cross moved to amend the complaint (Dkt. # 11) to amplify the alleged facts and add a cause of action under the Nursing Home Reform Act, 42 U.S.C. §§ 1395Í-3 et seq. (“NHRA”). For the reasons set forth below, the plaintiffs’ cross motion to amend is granted,1 and defendant’s motion to dismiss is granted.

DISCUSSION

I. Whether Jurisdiction is Established and Venue is Proper

Initially, I find that this Court lacks jurisdiction over this action. Although the parties are diverse, the amount-in-controversy prong for supple[254]*254mental jurisdiction is lacking. As such, the sole claimed basis for jurisdiction is New York’s long-arm statute, which provides that: “a court may exercise personal jurisdiction over any non-domiciliary ... who in person or through an agent,” (1) transacts business with the state or contracts so supply goods or services there; (2) commits a tortious act within the state, except for defamation; (3) commits a tortious act outside of the state to a resident, except for defamation, and regularly does or solicits business within the state, derives substantial revenue from goods used or services rendered in the state, or alternatively, expects or should reasonably expect its acts to have consequences within the state and derives substantial revenue from interstate or international commerce; or (4) owns, uses or possessed real property within the state. N.Y. C.P.L.R. § 302(a). Plaintiffs, who do not allege that Kennedy conducts business or supplies goods or services in New York, that it owns any property here, that it has engaged in an ongoing course of conduct within the state (as opposed to a single letter, service of process for the Pennsylvania lawsuit, and a single phone call), or that it has committed a tort (as opposed to a statutory violation), have failed to allege facts sufficient to establish that Kennedy has sufficient ties to New York for long-arm jurisdiction to apply. As such, plaintiffs have failed to establish that this Court has jurisdiction over their claims.

Even assuming arguendo that the Court did have jurisdiction over this matter, I further observe, as discussed below, that plaintiffs have failed to sufficiently state their claims.

II. Whether Plaintiffs’ Obligation to Pay is a “Debt” Under the FDCPA

In or about October 2010, Pike, a resident of New York, placed his wife Doris in the Corry Manor nursing home in Pennsylvania. As part of the admission process, Pike signed a contract promising to use Doris’s assets to pay for her care. Doris subsequently died, and Corry Manor sought to collect approximately $8,000.00 from Pike for services it rendered to Doris. After its demands for payment were ignored, Corry Manor, through Kennedy, attempted to collect the debt from Pike and his daughter, Eades, by means of at least one item of correspondence and at least one telephone call. Finally, Kennedy filed a lawsuit again Pike and Eades in the state of Pennsylvania (the “Pennsylvania lawsuit”). That lawsuit remains pending, and Pike and Eades have appeared in that action.

The FDCPA defines a “debt” as “any obligation ... of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes ...” 15 U.S.C. § 1692a(5). Plaintiffs claim that because Pike’s debt arose from the admissions contract, it is a “debt” under the FDCPA, and that the FDCPA was violated by Kennedy’s efforts to collect on that debt.

Kennedy contends, on the other hand, that the amount owed to Corry Man- or is not a contract-based “debt” under the FDCPA, but the result of a financial obligation imposed by statute. Kennedy alleges, as it has in the Pennsylvania lawsuit, that the plaintiffs are statutorily liable for the costs of Doris’s care pursuant to 23 Pa.C.S.A. § 4603 (hereafter “Pennsylvania indigent statute”), which provides that spouses and children of an indigent person who have the financial ability to “care for and maintain or financially assist” the indigent are responsible to do so. See 23 Pa.C.S.A. § 4603(a). As such, for exam-[255]*255pie, the Pennsylvania indigent statute “permits a nursing home caring for an indigent person to bring a ... suit in assumpsit against a child of an indigent resident ... for reimbursement of sums expended for the support of the indigent parent.” Five Star Quality Care, Inc. v. Yablonski, 2009 Pa. Dist. & Cnty. Dec. LEXIS 12 at *7 (Pa.2009).

Although there is no case law on point, the Court notes that statutorily-imposed filial support obligations similar to the Pennsylvania indigent statute, such as child support obligations, have previously been held not to give rise to “debts” to which the FDCPA applies. Adymy v. Erie County Child Support Enforcement Unit, 2006 WL 1174322 at *3, 2006 U.S. Dist. LEXIS 25025 at *9-*10 (W.D.N.Y. 2006) (“child support payments are not a ‘debt’ covered by the FDCPA,” but an obligation imposed by statute “to force [parents] to fulfill their parental duty to support their children”). I find no reason to distinguish a statutorily-imposed duty of filial support on the part of spouses and children toward an indigent spouse or parent, such as that presented here, from the statutorily-imposed duty of filial support on the part of parents toward their children, such as that examined in Adymy. See generally Health Care & Retirement Corp. of Am. v. Pittas, 46 A.3d 719, 720 (Pa.Super.Ct.2012) (referring to an action under the Pennsylvania indigent statute as a “filial support action”). There is simply no contrary authority by which the Court could conclude that the duty imposed by 23 Pa.C.S.A. § 4603 is not a statutory filial support obligation, but instead creates a “debt ... arising out of a transaction” for purposes of the FDCPA.

Moreover, even assuming arguendo that collections efforts under 23 Pa.C.S.A. § 4603 could be considered an attempt to collect a FDCPA-covered “debt,” the plaintiffs have failed to allege facts sufficient to demonstrate that the defendant’s collection efforts violated the FDCPA. “The FDCPA was passed to protect consumers from deceptive or harassing actions taken by debt collectors.” Kropelnicki v. Siegel,

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Bluebook (online)
986 F. Supp. 2d 251, 2013 WL 6241272, 2013 U.S. Dist. LEXIS 170407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eades-v-kennedy-pc-law-offices-nywd-2013.