Howard v. GC Services CA1/2

CourtCalifornia Court of Appeal
DecidedSeptember 3, 2015
DocketA140351
StatusUnpublished

This text of Howard v. GC Services CA1/2 (Howard v. GC Services CA1/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard v. GC Services CA1/2, (Cal. Ct. App. 2015).

Opinion

Filed 9/3/15 Howard v. GC Services CA1/2 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION 2

RICHARD HOWARD, Plaintiff and Appellant, A140351 v. GC SERVICES, INC., (Contra Costa County Super. Ct. No. C11-01552) Defendant and Respondent.

INTRODUCTION Plaintiff Richard Howard sued Defendant GC Services, Inc., an entity that provides debt collection services for Los Angeles County, alleging that defendant had sent him a letter that falsely stated plaintiff owed Los Angeles County Superior Court unadjudicated bail in connection with a red-light camera citation and demanded payment. Plaintiff alleged that various representations in the letter were false and misleading and did not reflect the policies of the Los Angeles Superior Court. Plaintiff appeals from the trial court’s order denying his motion to certify a class of all California residents who had received letters from the defendant containing similar representations. The trial court ruled that plaintiff failed to meet his burden of demonstrating that common issues predominated, that his claims were typical of the class, and that his attorney was adequate to serve as class counsel. We affirm.

1 FACTUAL AND PROCEDURAL BACKGROUND A. Defendant’s Role in Los Angeles’ Traffic Enforcement Camera System In 2007 and 2008, the County of Los Angeles contracted with a third-party vendor to operate automated traffic enforcement cameras. These cameras photographed vehicles committing red-light violations. The third-party vendor obtained information regarding the vehicle that ran the red light and its registered owner from the California Department of Motor Vehicles (DMV). The responsible law enforcement agency used this information to send out a notice of traffic violation and notice to appear to the registered owner’s address. If the court date listed in the notice to appear passed without the driver appearing in court or paying or contesting the traffic fine, the law enforcement agency would label the account as delinquent with Los Angeles County Superior Court (LACSC). LACSC then assessed a $250 delinquency fee to the account, sent the driver a notice of delinquency letter, and referred the account to collections. Defendant is the County of Los Angeles’ collection agency. In 2006, it contracted with the county to “develop a comprehensive court/county collection program to improve enforcement of court collections.” Under this contract, the County would refer certain accounts—including “[t]raffic citations where a [driver] fails to appear before being sentenced”—to defendant for collection. Upon receiving information from the County, defendant was required to send “Delinquency Letters” to debtors upon receiving the information from the County. The contract required that the letter identify the defendant, “[i]nform the debtor of the origin of the debt and the current amount owed;” “[a]dvise of the consequences of continued non-compliance, such as wage garnishment, and property seizures”; and “[e]xplain that a debtor with an Infraction/Misdemeanor with Unadjudicated Bail . . . who wishes to dispute the debt must schedule a court appearance.” B. Plaintiff’s Allegations Plaintiff filed this action on July 7, 2011. The fourth amended class action complaint, the operative complaint for our purposes, was filed on September 17, 2012.

2 On July 12, 2010, plaintiff received a single page letter from defendant that is the focus of this lawsuit. This letter, attached to the fourth amended complaint as Exhibit A, has the words “balance due statement” in bold, capitalized print near the top of the page, and purports to be from GC Services Limited Partnership Collection Agency Division. The letter asserts that plaintiff owes LACSC $680.00 and that this amount “may include multiple citations.” It advises plaintiff that his “failure to respond to previous notifications may result in the Los Angeles Superior Court obtaining a civil money judgment against you” and that the “State of California’s Department of Motor Vehicles is assisting us in locating you.” The letter then states: “You should take this opportunity to contact us immediately . . . . By contacting us at this time to resolve your unpaid bail, you will avoid further methods of collection which may include pursuing a civil money judgment” which would result in “garnishing your wages or other sources of income”; “attaching your bank account”; “filing a lien which will attach to all real property you now own or later acquire in California”; and “all other lawful processes.” Plaintiff alleged that he had never received any prior notification about any citation. He called defendant at the phone number listed in the letter, and a representative informed plaintiff that he had been “cited for running a red light which was captured by camera in Southern California” and the camera had “identified the vehicle and its license plate number.” Plaintiff, a resident of Concord, California, told the representative that he had not been in Southern California since 1999, had never received a traffic citation there, and did not own (and never had owned) a car matching the description of the car which allegedly ran the red light. Plaintiff next contacted the DMV and inquired about the citation. He told the DMV representative that he had never received a citation, a notice to appear in court, or any judgment from a court. He further stated that his ability to register his vehicle had not been made contingent on the payment of any citation and no “points” had been placed on his driving record. Plaintiff alleges that the “DMV could not resolve the issue.” On July 20, 2010, plaintiff, through his attorney, sent defendant a certified letter. Plaintiff’s letter (which was not on attorney letterhead and appeared to be signed by him)

3 stated that he had been the victim of identity theft around the time of the alleged red light violation and that “various vehicles were purchased with [his] identifying information.” Plaintiff stated he had since been “vindicated by litigation.” He wrote that he had never owned the car that allegedly ran the red light, had never received a traffic citation in Southern California, and had not been in Southern California since 1999. Plaintiff never received a response to his letter. According to defendant, however, it closed plaintiff’s account and stopped attempting to collect it as a result of plaintiff’s letter. Plaintiff’s Fourth Amended Complaint alleges five causes of action: (1) negligence; (2) negligent misrepresentation; (3) fraud; (4) declaratory relief; and (5) unfair business practices under the Unfair Competition Law (UCL). Each cause of action generally alleged that the representations in defendant’s letter—namely that the DMV was assisting defendant in locating individuals and that there would be various consequences if the recipient did not respond—were false based on LACSC’s policies, and that defendant knew, or should have known, of the falsity of the representations. Plaintiff alleged that where a citation was based on a red-light camera, LACSC “does not deem itself as having jurisdiction and does not allow default judgments, liens, garnishment, levies or other such activity, nor does it report such citations to the DMV either. It appears such may be true in all such cases.” Plaintiff alleged he suffered damage because he was “compelled to contact Defendants, the DMV and an attorney about these matter [sic] and had to pay an attorney for assistance in drafting a letter regarding these baseless accusations.

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Bluebook (online)
Howard v. GC Services CA1/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-v-gc-services-ca12-calctapp-2015.