Hallmark v. Overton, Russell, Doerr & Donovan, LLP

952 F. Supp. 2d 507, 2013 WL 3282868, 2013 U.S. Dist. LEXIS 90468
CourtDistrict Court, W.D. New York
DecidedJune 27, 2013
DocketNo. 12-CV-1120C
StatusPublished
Cited by1 cases

This text of 952 F. Supp. 2d 507 (Hallmark v. Overton, Russell, Doerr & Donovan, LLP) 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
Hallmark v. Overton, Russell, Doerr & Donovan, LLP, 952 F. Supp. 2d 507, 2013 WL 3282868, 2013 U.S. Dist. LEXIS 90468 (W.D.N.Y. 2013).

Opinion

JOHN T. CURTIN, District Judge.

INTRODUCTION

Plaintiff commenced this action pursuant to the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. (“FDCPA”). Currently pending before the court are defendant’s motions to dismiss for failure to state a claim (Item 10) and for sanctions (Item 11) and plaintiffs motion for leave to amend/correct the complaint (Item 14).

BACKGROUND and FACTS

Plaintiff commenced this action with the filing of a complaint on November 14, 2012 (Item 1). He alleged that he incurred a debt and subsequently defaulted on that debt. Id., ¶¶ 9, 11. In October 2011, defendant began calling the plaintiff in an attempt to collect the debt. Id., ¶ 13. Plaintiff further alleged that, in some of those telephone calls, defendant stated to the plaintiff that plaintiff was not authorized to record the conversation between plaintiff and defendant. Id., ¶ 14. Plaintiff stated that this conduct violates the FDCPA in that the “least sophisticated consumer” would be led to believe that it was illegal to record the conversation. In fact, under New York State law, if both parties are located in New York, there is no requirement that a party to a conversation have the consent of the other party in order to record the conversation. Id., ¶¶ 16-17.

Defendant filed its answer to the complaint on December 14, 2012 (Item 4). Following an initial scheduling conference, the court referred the case to mediation and directed the parties to select a mediator by April 26, 2012 (Item 8). On April 26, 2013, the defendant filed a motion to dismiss for failure to state a claim (Item 10) and a motion for sanctions (Item 11). Defendant argued that plaintiffs interpretation of its statements regarding the recording of telephone conversations was “illogical, bizarre, and idiosyncratic” and that its conduct was neither deceptive, abusive, nor misleading (Item 10, Affidavit in Support, ¶¶ 4, 6). Accordingly, defendant argued that plaintiff failed to state a claim pursuant to the FDCPA as a matter of law. Additionally, defendant sought sanctions pursuant to Fed.R.Civ.P. 11, stating that plaintiffs suit was legally and factually baseless and commenced in bad faith, “solely for purposes of harassment and/or forcing the Defendant to agree to settlement. ...” (Item 11, Memorandum of Law, p. 1).

[509]*509On May 24, 2013, plaintiff filed a memorandum in opposition to the motion for sanctions (Item 13), a memorandum in opposition to the motion to dismiss (item 15), and a motion for leave to amend/correct the complaint (Item 14). Specifically, plaintiff sought to clarify the nature of his claim against the defendant and to withdraw his claim for actual damages.

Defendant filed replies to its motions (Items 20, 21) and an affidavit in opposition to the plaintiffs motion to amend (Item 19). The court heard oral argument on the motions on June 12, 2013. For the reasons that follow, the defendant’s ■ motions are denied and the plaintiffs motion is granted.

DISCUSSION

1. Defendant’s Motion to Dismiss

Defendant seeks dismissal of the complaint pursuant to Rule 12(b)(6). Under the now well-established Twombly standard, a complaint should be dismissed only if it does not contain enough allegations of fact to state a claim for relief that is “plausible on its face.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). The Second Circuit has explained that, after Twombly, the court’s inquiry under Rule 12(b)(6) is guided by two principles. See Harris v. Mills, 572 F.3d 66 (2d Cir.2009) (citing Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)). “First, although ‘a court must accept as true all of the allegations contained in a complaint,’ that ‘tenet’ ‘is inapplicable to legal conclusions,’ and ‘[tjhreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.’ ” Id. (quoting Iqbal, 556 U.S. at 678, 129 S.Ct. 1937). “ ‘Second, only a complaint that states a plausible claim for relief survives a motion to dismiss and ‘[d]etermining whether a complaint states a plausible claim for relief will ... be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.’ ” Id. (quoting Iqbal, 556 U.S. at 663-64, 129 S.Ct. 1937). Thus, “[w]hen there are well-pleaded factual allegations, a court should assume their veracity and ... determine whether they plausibly give rise to an entitlement of relief.” Iqbal, 556 U.S. at 679, 129 S.Ct. 1937.

In considering a motion to dismiss, this court accepts as true the factual allegations set forth in the complaint and draws all reasonable inferences in the plaintiffs favor. See Zinermon v. Burch, 494 U.S. 113, 118, 110 S.Ct. 975, 108 L.Ed.2d 100 (1990); In re NYSE Specialists Secs. Litig., 503 F.3d 89, 91 (2d Cir.2007). Only if the court is satisfied that “the complaint cannot state any set of facts that would entitle the plaintiff to relief’ will it grant dismissal pursuant to Fed.R.Civ.P. 12(b)(6). Hertz Corp. v. City of New York, 1 F.3d 121, 125 (2d Cir.1993). The issue on a motion to dismiss is “not whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claims.” Todd v. Exxon Corp., 275 F.3d 191, 198 (2d Cir.2001) (quoting Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974)).

The FDCPA provides that a “debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.” 15 U.S.C. § 1692e. In determining whether defendant has complied with the requirements of the FDCPA, courts apply an objective standard, measured by how the “least sophisticated consumer” would interpret the debt collector’s conduct. See Jacobson v. Healthcare Fin. Servs., Inc., 516 F.3d 85, 91 (2d Cir.2008); Weiss v. Zwicker & Assocs., 664 F.Supp.2d 214, 216 [510]*510(E.D.N.Y.2009). Under the “least sophisticated consumer” standard, a communication can be deceptive if it is “open to more than one reasonable interpretation, at least one of which is inaccurate.” Clomon v. Jackson, 988 F.2d 1314, 1319 (2d Cir.1993).

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Bluebook (online)
952 F. Supp. 2d 507, 2013 WL 3282868, 2013 U.S. Dist. LEXIS 90468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hallmark-v-overton-russell-doerr-donovan-llp-nywd-2013.