Guidry v. Clare

442 F. Supp. 2d 282, 2006 U.S. Dist. LEXIS 56447, 2006 WL 2347391
CourtDistrict Court, E.D. Virginia
DecidedAugust 10, 2006
Docket1:05CV1497
StatusPublished
Cited by44 cases

This text of 442 F. Supp. 2d 282 (Guidry v. Clare) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guidry v. Clare, 442 F. Supp. 2d 282, 2006 U.S. Dist. LEXIS 56447, 2006 WL 2347391 (E.D. Va. 2006).

Opinion

*286 MEMORANDUM OPINION

ELLIS, District Judge.

The matter comes before the Court on defendants various motions for sanctions, attorney’s fees, and costs pursuant to Rule 11, Fed.R.Civ.P. and § 1692k(a)(3) of the Fair Debt Collection Practices Act. 1 Defendants allege that this suit was initiated in bad faith and for the purpose of harassment; accordingly, they seek an award of $26,595.50 to compensate them for the attorney’s fees and costs incurred in conjunction with this lawsuit. 2 Additionally, defendant Clare seeks reimbursement for the fees and costs she incurred in connection with a prior lawsuit in which plaintiff sued her, alleging materially identical claims. 3

For her part, plaintiff argues that no award of fees or costs is appropriate, as she had a reasonable and good faith basis for asserting the claims pled in both lawsuits, despite the fact that all were ultimately dismissed. A brief overview of the relevant facts and procedural history is instructive to frame the question presented.

I.

This case arises out of a $62.50 check written by plaintiff Kristie Guidry (“Gui-dry”) to defendant Cheer Dynasty (“Cheer”), a Virginia limited liability company that provides cheerleading training and classes. When Guidry’s check was returned for insufficient funds, Clare, on behalf of her employer, Cheer, sought to secure payment from Guidry. As a result of Clare’s efforts, Guidry sued Clare in federal district court, alleging that Clare committed seven different violations of the Fair Debt Collection Practices Act. Guidry also asserted state law claims alleging (i) intentional infliction of emotional distress; (ii) malicious prosecution; and (iii) false imprisonment.

Specifically, the record reflects the following facts 4 : On March 15, 2004, Guidry wrote check number 1144 from the Royalty Chimney Account in the amount of $62.50 payable to Cheer for cheerleading classes for Guidry’s daughter, Alesha. Clare, who is employed as Cheer’s office manager, deposited the check on Cheer’s behalf. On March 23, 2004, Wachovia Bank returned check number 1144 to Cheer for insufficient funds. After check number 1144 was returned, Clare contacted Guidry and asked her to make good on the returned check. Guidry did not respond.

On May 24, 2004, Sal Rigoroso, on behalf of Shannon Auto Sales, filed an unrelated felony bad check criminal complaint against Guidry for passing a bad check in *287 excess of $200. In response to this filing, Magistrate Judge David James Fox of Prince William County issued an arrest warrant for Guidry. This warrant commanded the officer executing the warrant to take Guidry into custody and left the officer no discretion in this regard.

On June 9, 2004, Cheer’s attorney, David B. Wilks, sent Guidry a letter on Cheer’s behalf asking her again to pay her debt to Cheer. The text of the letter identified Cheer as the creditor and stated that “[pjursuant to 15 U.S.C. § 1692(e)(ll), please take notice that the purpose of this letter is an attempt to collect a debt .... ” Guidry did not respond. On October 25, 2004, American Recovery Agency (“ARA”), a debt recovery firm, sent Guidry a letter on Cheer’s behalf asking Guidry to pay her debt to Cheer. This letter identified Cheer as the creditor in three places and identified the date and amount of the returned check. Additionally, the letter stated explicitly that it was being sent in an effort to collect the debt Guidry owed Cheer.

In late December 2004, Clare and Gui-dry had a telephone conversation during which Clare requested that Guidry pay her debt immediately. The parties disagree over (i) who initiated the call and (ii) when this call took place. According to Guidry, Clare initiated the call during “the last week of December.” During the course of the call, Guidry falsely informed Clare that she believed she had already made good on her check. Guidry claims that Clare never identified (i) the debt to which she was referring and (ii) the creditor on whose behalf Clare was calling.

After Clare confirmed that Guidry had not in fact paid her debt to Cheer, Clare telephoned Guidry a second time, on January 1, 2005. Clare informed Guidry that unless she paid her outstanding debt within 72 hours, she would seek a warrant for Guidry’s arrest. When Guidry failed to pay the debt owed to Cheer by the deadline, Clare filed a criminal complaint for misdemeanor larceny by check, in violation of Virginia Code § 18.2-181.

In response to Clare’s complaint, Magistrate Judge David Burket, Jr. of Prince William County issued an arrest warrant for Guidry. In contrast to the Shannon Auto Sales felony warrant that had previously issued for Guidry’s arrest, the misdemeanor warrant left to the discretion of the officer executing the warrant whether to arrest plaintiff, or alternatively, to serve her with a summons to appear. As it happens, both the felony arrest warrant relating to Shannon Auto Sales’ complaint and the misdemeanor arrest warrant relating to Clare’s complaint were forwarded to Officer A.W. Dearborn at approximately the same time. Thereafter, at approximately 7:50 p.m. on January 9, 2005, Officer Dearborn executed the Shannon Auto Sales felony arrest warrant against Guidry and Guidry was taken into custody. After plaintiff was already in custody on the felony arrest warrant, at 7:53 p.m. on January 9, Officer Dearborn exercised his discretion to arrest Guidry on the misdemeanor arrest warrant as well.

Upon arrival at the police precinct, Gui-dry was first processed and fingerprinted in connection with the misdemeanor arrest warrant. After finishing the intake process for the misdemeanor warrant, Guidry was then processed and fingerprinted in connection with the felony arrest warrant. After the fingerprinting and processing procedure was completed with respect to the Shannon Auto Sales felony arrest warrant, Guidry was released on her own recognizance at 8:09 p.m. At no time during this 19 minute detention was plaintiff in custody independent of her Shannon Auto Sales felony arrest. Clare’s role in Gui-dry’s arrest was limited to the filing of the *288 misdemeanor complaint that led to the issuance of the misdemeanor arrest warrant. Clare was unaware that Guidry had an outstanding felony arrest warrant against her.

Trial was held on both the misdemeanor and the felony bad check charges on February 16, 2005, in General District Court in Prince William County. Both the misdemeanor and the felony bad check charges against Guidry were nolle prossed. That same day, Guidry paid Cheer the face amount of check 1144, $62.50, plus the $30.00 bank service charge incurred by Cheer when the check was returned for insufficient funds.

Guidry initially filed suit in federal court against Clare on April 12, 2005, but the complaint in that case was dismissed without prejudice on November 23, 2005, after Guidry failed to effect timely service on Clare within the 120 day time limitation imposed by Rule 4(m), Fed.R.Civ.P. See Guidry v.

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442 F. Supp. 2d 282, 2006 U.S. Dist. LEXIS 56447, 2006 WL 2347391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guidry-v-clare-vaed-2006.