GACHETT v. JHPDE FINANCE I, LLC

CourtDistrict Court, D. New Jersey
DecidedJune 30, 2023
Docket2:19-cv-13865
StatusUnknown

This text of GACHETT v. JHPDE FINANCE I, LLC (GACHETT v. JHPDE FINANCE I, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GACHETT v. JHPDE FINANCE I, LLC, (D.N.J. 2023).

Opinion

Not for Publication

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

TIFFANY ALEXIS JONES, on behalf of herself and those similarly situated,

Plaintiff, Civil Action No. 19-13865 (ES) (CLW)

v. OPINION

JHPDE FINANCE I, LLC, et al.,

Defendants.

SALAS, DISTRICT JUDGE

Plaintiff Tiffany Alexis Jones, on behalf of herself and those similarly situated, brings this putative class action against Defendants JHPDE Finance I, LLC (“JHPDE”); Federated Law Group, PLLC (“Federated”); Douglas C. Jacobsen; and Bryan Manno (collectively, “Defendants”) for violations of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq. (D.E. No. 114 (“Second Amended Complaint” or “SAC”)). Before the Court is Defendants’ motion to dismiss the Second Amended Complaint under Federal Rule of Civil Procedure 12(b)(1) for lack of standing. (D.E. Nos. 120 & 120-1 (“Mov. Br.”)). Having considered the parties’ submissions, the Court decides this matter without oral argument. See Fed. R. Civ. P. 78(b); L. Civ. R. 78.1(b). For the reasons set forth below, Defendants’ motion is GRANTED and Plaintiff’s Second Amended Complaint is dismissed without prejudice. I. BACKGROUND A. Factual Background JHPDE is a debt buyer and Jacobsen is its chief executive officer. (SAC ¶¶ 6 & 8). Federated is a collection agency and Manno is its managing member. (Id. ¶¶ 7 & 9). On an unspecified date, Plaintiff incurred a debt arising from one or more transactions for personal, family, or household purposes that became past-due. (Id. ¶¶ 20 & 23). JHPDE purchased the debt and transferred it to Federated for collection. (Id. ¶ 27). On July 6, 2018, “Defendants” mailed a collection letter to Plaintiff. (Id. ¶ 32). Plaintiff alleges that the letter was computer-generated by merging electronically-stored information with a form template and mailed to consumers

throughout New Jersey, such as Plaintiff, from whom Defendants were attempting to collect a debt. (Id. ¶ 42). Plaintiff attaches the letter to the Second Amended Complaint, in which the balance is listed as $3,535.32. (D.E. No. 114-1 (“Collection Letter”)). The Collection Letter is on Federated’s letterhead. (Id.). The current creditor is listed as “[JHPDE]”; and the original creditor is listed as “Citibank N.A.” (Id.). The Collection Letter provides that Plaintiff’s account “has been sold to our client, [JHPDE].” (Id.). Plaintiff alleges that Defendants violated the FDCPA when it sent Plaintiff, and others similarly situated, the Collection Letter because JHPDE was not licensed to do so under the New

Jersey Consumer Finance Licensing Act, N.J.S.A. § 17:11C-3. (SAC ¶ 2). Further, Plaintiff alleges that the Collection Letter violated the FDCPA because it “failed to correctly identify the current creditor to whom the Debt is owed since the creditor is not [JHPDE].” (Id. ¶ 41). Plaintiff does not allege who the correct current creditor is. B. Procedural History Plaintiff initiated this action on June 15, 2019. (D.E. No. 1). In November 2019, the parties engaged in settlement discussions, which ultimately proved unsuccessful. (See D.E. No. 17). On July 19, 2021, Plaintiff filed an amended complaint, which Defendants moved to dismiss for lack of standing on September 1, 2021. (D.E. Nos. 62 & 77). Defendants’ motion was terminated on February 15, 2022, pending resolution of discovery issues. (D.E. No. 95). On August 15, 2022, Plaintiff filed the Second Amended Complaint, in which she brings a single count against Defendants for violating the FDCPA. (SAC ¶¶ 43 & 57–68). On November 14, 2022, the parties attended mediation, which was unsuccessful. (D.E. No. 121). That same

day, Defendants filed the instant motion to dismiss the Second Amended Complaint for lack of standing, which has been fully briefed. (See generally Mov. Br.; see also D.E. Nos. 127 (“Opp. Br.”) & 128 (“Reply”)). On May 10, 2023, Plaintiff submitted a notice of supplemental authority in further support of her opposition to the instant motion to dismiss, in which she cites the Third Circuit’s recent decision in Deutsch v. D&A Servs. LLC, No. 22-1042, 2023 WL 2987568 (3d Cir. Apr. 18, 2023). (D.E. No. 132 (“Pl. Supp. Br.”)). On May 26, 2023, Defendants filed a response to Plaintiff’s notice of supplemental authority. (D.E. No. 133 (“Def. Supp. Br.”)). II. LEGAL STANDARD

A motion to dismiss based on lack of standing may be brought under Rule 12(b)(1) because standing is jurisdictional. Ballentine v. United States, 486 F.3d 806, 810 (3d Cir. 2007). A motion to dismiss under 12(b)(1) may either (i) “attack the complaint on its face” or (ii) “attack the existence of subject matter jurisdiction in fact.” Mortensen v. First Fed. Sav. & Loan Ass’n, 549 F.2d 884, 891 (3d Cir. 1977). On a facial attack, such as the instant matter, the court considers only the allegations in the complaint—viewing them in the light most favorable to the plaintiff— as well as documents referenced in the complaint and attached thereto. In re Schering Plough Corp. Intron/Temodar Consumer Class Action, 678 F.3d 235, 243 (3d Cir. 2012); see also U.S. ex rel. Atkinson v. Pa. Shipbuilding Co., 473 F.3d 506, 514 (3d Cir. 2007). Article III of the United States Constitution limits the jurisdiction of federal courts to actual “cases” or “controversies.” U.S. Const., art. III, § 2. To establish Article III standing, a plaintiff must demonstrate (i) an “injury in fact”; (ii) a “causal connection between the injury and the conduct complained of”; and (iii) a likelihood “that the injury will be redressed by a favorable decision.” Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–61 (1992). “The plaintiff, as the party

invoking federal jurisdiction, bears the burden of establishing these elements.” Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016), as revised (May 24, 2016). To allege an injury in fact, “a plaintiff must claim the invasion of a concrete and particularized legally protected interest resulting in harm that is actual or imminent, not conjectural or hypothetical.” In re Nickelodeon Consumer Priv. Litig., 827 F.3d 262, 272 (3d. Cir. 2016) (cleaned up). A harm is particularized if it affects the plaintiff “in a personal and individual way.” Spokeo, 578 U.S. at 339 (quoting Lujan, 504 U.S. at 560 n.1). “A ‘concrete’ injury must be ‘de facto’; that is, it must actually exist.” Id. at 340. “Article III standing requires a concrete injury even in the context of a statutory

violation.” Id. at 341. A plaintiff may not allege a “bare” statutory violation, “divorced from any concrete harm, and satisfy the injury-in-fact requirement of Article III.” Id. “Only those plaintiffs who have been concretely harmed by a defendant’s statutory violation may sue that private defendant over that violation in federal court.” TransUnion LLC v. Ramirez, 141 S. Ct. 2190, 2205 (2021) (emphasis in original).

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GACHETT v. JHPDE FINANCE I, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gachett-v-jhpde-finance-i-llc-njd-2023.