Humphrey, Ian v. Navient Solutions, Inc.

District Court, W.D. Wisconsin·Decided July 20, 2020·No. 3:16-cv-00370·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WISCONSIN

IAN HUMPHREY,

Plaintiff, OPINION and ORDER v.

NAVIENT SOLUTIONS, INC., 16-cv-370-jdp

Defendant.

Plaintiff Ian Humphrey sued defendant Navient Solutions, Inc. under the Fair Credit Reporting Act for failing to conduct a reasonable investigation of disputed information on his credit report, namely, that his student loans were past due. A jury found in Humphrey’s favor, awarding him $180,000 in compensatory damages and $120,000 in punitive damages. The court granted Navient’s motion under Federal Rule of Civil Procedure 50 to set aside the award of punitive damages because Humphrey did not meet the relevant legal standard. Dkt. 215. Judgment was then entered on the award for compensatory damages. Dkt. 216. Three motions are now before the court: (1) Navient’s motion for a new trial, or, in the alternative, for a remittitur, on the ground that the compensatory damages award was excessive, Dkt. 219; (2) Humphrey’s motion for attorney fees, Dkt. 218; and (3) Humphrey’s bill of costs, Dkt. 217. For the reasons explained below, the court will deny Navient’s motion and award $55,410 in fees and $1,074.32 in costs to Humphrey. BACKGROUND The relevant facts are set forth in the order granting Navient’s Rule 50 motion on punitive damages and in the court of appeals’s decision, so the court provides only a brief overview here.

Navient serviced Humphrey’s student loans from 2010 to 2014, when Humphrey received a discharge for being disabled. Humphrey’s claim is that Navient violated the Fair Credit Reporting Act, § 1681s-2(b)(1)(A), by failing to reasonably investigate notices it received in 2014 and 2015 from credit reporting agencies that Humphrey was disputing the accuracy of his credit reports. The court of appeals concluded that the credit reports were inaccurate because Navient was reporting some accounts as “past due” in 2012 and 2013, even though Humphrey’s disability application was pending then, and a pending application required suspension of collection activity. The court of appeals also concluded that reasonable

jury could find that Navient could have corrected the error if it had conducted a reasonable investigation of the disputes. After a trial, the jury found in Humphrey’s favor.

ANALYSIS A. Motion for remittitur or a new trial Navient doesn’t challenge the jury’s finding that Navient violated Humphrey’s rights under the FCRA. But Navient says that the $180,000 award of compensatory damages was excessive, so it is entitled to a new trial unless Humphrey accepts a remittitur of $25,714.20, which is one seventh of the award. When considering an objection to a damages award, the

court considers two factors: whether the jury’s verdict is rationally related to the evidence and whether the award is roughly comparable to awards made in similar cases. Green v. Howser, 942 F.3d 772, 780–81 (7th Cir. 2019). 1. Evidence of Humphrey’s damages Humphrey says that the jury’s compensatory damages award is justified by two types

of harm: (1) pain and suffering from being unable to treat a painful wisdom tooth; and (2) emotional distress from Navient’s failure to properly investigate or correct the errors on his credit report. a. Wisdom tooth Humphrey says that the errors on his credit report prevented him from obtaining credit to pay for surgery on his wisdom tooth. As a result, Humphrey endured pain for months. Eventually, the tooth started “driving [Humphrey] crazy.” Dkt. 206, Trial Trans., at 26:12– 13. The pain became so severe that Humphrey “developed bizarre behaviors like smacking

myself—pounding on my own head because it just felt like if I put pressure on myself somehow, that it would distract me from the pain.” Id. at 26:14–17. When Humphrey read on the internet that he could die from a tooth infection, he became distressed and “didn’t want to live anymore.” Id. at 26:23–27:1. Navient doesn’t contend that Humphrey’s pain and suffering from his wisdom tooth couldn’t support a compensatory damages award of $180,000. Navient also doesn’t contend that Humphrey’s pain and suffering wasn’t reasonably foreseeable. So those issues are waived. Instead, Navient says that the evidence doesn’t support a finding that its conduct caused the

harm for three reasons: (1) Humphrey didn’t actually submit a credit application for his wisdom tooth; (2) Humphrey’s ex-girlfriend, Amanda Craven, testified that Humphrey didn’t get treatment because he couldn’t get a “referral”; and (3) there were other reasons that Humphrey could have been denied credit, such as low income.1 The court isn’t persuaded by any of these reasons. As for the first reason, it is true that Humphrey testified that he didn’t submit a credit application. But Humphrey also testified that he decided not to because of a conversation with

the potential creditor, who told him “it’s not even worth it” because Humphrey had so many delinquencies from student loan debt. Id. at 24:1–20.2 Navient doesn’t contend that Humphrey’s conduct was unreasonable, and it doesn’t cite any authority for the view that the causal chain is broken as a matter of law under the circumstances of this case. It is the defendant’s burden to show that the jury’s damages award is excessive, see E.E.O.C. v. Ilona of Hungary, Inc., 108 F.3d 1569, 1581 (7th Cir. 1997), so the court won’t set aside the award on this ground. As for Craven’s testimony, she seemed uncertain. She said that Humphrey wasn’t able

to get a referral, but she also said that there were “a whole bunch of complications with the insurance,” without explaining what she meant. Dkt. 206, Trial Trans., 87:1–4. In any event, Humphrey was in a better position than Craven to explain what happened, and the jury was entitled to credit his testimony over Craven’s. As for other potential barriers to Humphrey getting credit, he wasn’t required to prove that his delinquencies with Navient were the only reason he wasn’t able to get credit. Navient doesn’t object to the jury instructions, which stated that Navient’s conduct had to be a

1 Navient lists more reasons in its reply brief, but those arguments are forfeited because Navient didn’t raise them in its opening brief. See Harper v. Vigilant Ins. Co., 433 F.3d 521, 528 (7th Cir. 2005).

2 Navient doesn’t object Humphrey’s testimony on the ground that it is hearsay, so that issue is forfeited. “substantial factor” in causing the harm. Dkt. 199, at 5. Humphrey’s evidence is sufficient to satisfy that standard. b. Emotional distress Humphrey points to several types of emotional distress that he suffered because of

Navient’s conduct. Some of these issues seem to be more related to the litigation rather than to Navient’s failure to investigate and correct the mistakes on his credit report. For example, Humphrey says that he was forced to move out of his mother’s house and that he broke up with Craven. But the only evidence he cites in support of those problems is Craven’s testimony. As for the tension with Humphrey’s mother, Craven said that Humphrey’s mother “couldn’t handle him anymore” because they “would fight about this lawsuit.” Dkt. 206, Trial Trans., at 91:6–10. And Craven also said that she and Humphrey broke up because of the lawsuit. Id. at 88:8–23. Humphrey doesn’t dispute Navient’s contention that emotional distress from a

lawsuit isn’t compensable. See Stoleson v.

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