Horton v. Caine & Weiner Company, Inc.

District Court, S.D. California·Decided August 15, 2022·No. 3:21-cv-01160·Unknown

Opinion

1 2 3 4 5 6 7 8 9 10 UNITED STATES DISTRICT COURT 11 SOUTHERN DISTRICT OF CALIFORNIA 12 13 RACHEL HORTON, Case No.: 3:21-cv-1160-W (AHG)

14 Plaintiff, ORDER DENYING DEFENDANT 15 v. CAINE & WEINER COMPANY, INC.’S MOTION FOR 16 CAINE & WEINER COMPANY, SUMMARY JUDGMENT [DOC. INC. AND EQUIFAX 17 46] INFORMATION SERVICES LLC, 18 Defendants. 19

20 Pending before the Court is Defendant Caine & Weiner Company, Inc.’s (“C&W”) 21 Motion for Summary Judgment as to all of Plaintiff Rachel Horton’s claims. (Mot. [Doc. 22 46].) In the alternative, Defendant moves for partial summary judgment as to Plaintiff’s 23 California Identity Theft Act (“ITA”) claim and Plaintiff’s California Consumer Credit 24 Reporting Act (“CCRAA”) claim on grounds that they are barred by the statute of 25 limitations. (Id.) Plaintiff Horton opposes both requests. (Opp’n [Doc. 44]; Supp. Opp’n 26 [Doc. 58].) Defendant also moves for judicial notice as to two previous court filings 27 28 1 from another matter. [Doc. 46-3]. And both Parties move to file their summary 2 judgment briefings under seal. [Docs. 56 and 59]. 3 The Court decides the matters on the papers submitted and without oral argument. 4 See Civ. L.R. 7.1(d)(1). For the following reasons, the Court DENIES Defendant’s 5 motion for summary judgment in full, GRANTS Defendant’s request for judicial notice, 6 and GRANTS IN PART AND DENIES IN PART both Parties’ requests to file their 7 briefings under seal. 8 9 I. BACKGROUND 10 Plaintiff Rachel Horton was the victim of identity theft in February 2016. (Compl. 11 [Doc. 1] ¶¶ 25-26.) The fraudster broke into her vehicle, stole her wallet, driver’s 12 license, and social security card, and used that information to open several unauthorized 13 accounts. (Id. ¶¶ 26, 29-30.) One of these accounts was used to rent a vehicle from Fox 14 Rent a Car, Inc. (“Fox”). (Id. ¶¶ 30, 38.) The fraudster damaged the car and caused it to 15 be impounded. (Id. ¶¶ 30-39.) Plaintiff filed a police report, and the perpetrator was 16 eventually caught and convicted. (Id. ¶¶ 35-36.) During this time, Fox commenced 17 collection actions against Plaintiff. (Id. ¶¶ 38-39; Supp. Opp’n at 2.) 18 Fox sent one portion of the debt for collection to National Commercial Services 19 (“NCS”), a third-party collection agency. (Supp. Opp’n at 2.) After learning that NCS 20 reported a $7,404 debt to her credit report, Horton submitted two disputes to the credit 21 bureaus with substantiating documentation. (Id.) Horton then filed suit against NCS 22 regarding this debt collection in May 2020 (“Horton I”). (Id.) Horton and NCS officially 23 resolved this dispute in July 2021. (Id. at 3.) While Fox was not a party to this lawsuit, 24 NCS requested that Fox participate and contribute to the settlement to release Fox from 25 any future liability. (Id.) 26 Meanwhile, Fox sent a second portion of the debt to Defendant C&W for 27 collection. (Compl. ¶ 39; Supp. Opp’n at 3.) This collection concerned the same rental 28 contract and car from Fox. (Mot. at 8.) Defendant C&W then reported a $2,083 debt to 1 Plaintiff Horton’s credit report, prompting Horton to dispute this debt to the relevant 2 credit reporting agencies. (Supp. Opp’n at 3.) Plaintiff then filed the current suit against 3 Defendant C&W for failing to conduct a reasonable investigation regarding her 4 “fraudulent” debt (“Horton II”). (Id.) Plaintiff brought this suit ten days after filing a 5 notice of settlement with NCS and Fox in Horton I. (Mot. at 8.) 6 Plaintiff alleges three claims in this current action against Defendant C&W: (1) 7 violation of the Fair Credit Reporting Act (“FCRA”); (2) violation of the California 8 Consumer Credit Reporting Agencies Act (“CCRAA”); and (3) violation of California’s 9 Identity Theft Act (“ITA”). (Compl. ¶¶ 94-106.) 10 Now Defendant C&W moves for summary judgment as to all three claims on 11 grounds that the settlement agreement from Horton’s first lawsuit against NCS (Horton I) 12 released these new claims against C&W. (Mot. at 8.) In the alternative, Defendant 13 moves for partial summary judgment as to the second and third claims on grounds that 14 they are time-barred. (Id. at 5.) Plaintiff opposes both requests. 15 16 II. JUDICIAL NOTICE 17 Defendant C&W requests judicial notice of two documents: the complaint from 18 Horton I (Ex. F), and the notice of settlement from Horton I (Ex. I) [Doc. 46-3]. Plaintiff 19 does not oppose this request. “[A] court may take judicial notice of the existence of 20 another court’s opinion or of the filing of pleadings in related proceedings; the Court may 21 not, however, accept as true the facts found or alleged in such documents.” Peel v. 22 BrooksAmerica Mortg. Corp., 788 F.Supp.2d 1149, 1158 (C.D. Cal. 2011) (citations 23 omitted). Accordingly, the Court takes judicial notice of the existence of these filings. 24 25 III. LEGAL STANDARD 26 Summary judgment is appropriate when “there is no genuine dispute as to any 27 material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 28 56(a). A fact is material when, under the governing substantive law, it could affect the 1 outcome of the case. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). The 2 essential inquiry for the Court is “whether the evidence presents a sufficient disagreement 3 to require submission to a jury or whether it is so one-sided that one party must prevail as 4 a matter of law.” Id. at 251-52. A motion for summary judgment is designed to “prevent 5 vexation and delay, improve the machinery of justice, promote the expeditious 6 disposition of cases, and avoid unnecessary trials when no genuine issues of fact have 7 been raised.” 10A Charles Alan Wright & Arthur R. Miller, Federal Practice and 8 Procedure § 2712 (4th ed. 2022). 9 A party seeking summary judgment always bears the initial burden of establishing 10 the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 11 323 (1986). The moving party can satisfy this burden in two ways: (1) by presenting 12 evidence that negates an essential element of the nonmoving party’s case; or (2) by 13 demonstrating that the nonmoving party failed to make a showing sufficient to establish 14 an element essential to that party’s case on which that party will bear the burden of proof 15 at trial. Id. at 322-23. “Disputes over irrelevant or unnecessary facts will not preclude a 16 grant of summary judgment.” T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass’n, 809 17 F.2d 626, 630 (9th Cir. 1987) (citation omitted). 18 If the moving party meets this initial burden, the nonmoving party cannot avoid 19 summary judgment merely by demonstrating “that there is some metaphysical doubt as to 20 the material facts.” In re Citric Acid Litig., 191 F.3d 1090, 1094 (9th Cir. 1999) (citing 21 Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). 22 Rather, the nonmoving party must “go beyond the pleadings and by her own affidavits, or 23 by ‘the depositions, answers to interrogatories, and admissions on file,’ designate 24 ‘specific facts showing that there is a genuine issue for trial.’” Ford Motor Credit Co. v. 25 Daugherty, 270 Fed. App’x. 500, 501 (9th Cir. 2008) (citing Celotex, 477 U.S. at 324) 26 (emphasis added).

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Horton v. Caine & Weiner Company, Inc., (S.D. Cal. 2022).

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