Jung v. Accredited Management Solutions, LLC

CourtDistrict Court, S.D. Texas
DecidedAugust 6, 2020
Docket4:20-cv-00487
StatusUnknown

This text of Jung v. Accredited Management Solutions, LLC (Jung v. Accredited Management Solutions, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jung v. Accredited Management Solutions, LLC, (S.D. Tex. 2020).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION

SANDRA JUNG , § § Plaintiff, § § v. § CIVIL ACTION H-20-0487 § ACCREDITED MANAGEMENT SOLUTIONS § LLC, § § Defendant. §

MEMORANDUM OPINION AND ORDER Pending before the court is Sandra Jung’s motion for entry of final default judgment against defendant Accredited Management Solutions LLC (“Accredited Management”). Dkt. 11. After reviewing the relevant pleadings and applicable law, the court is of the opinion that the motion should be GRANTED in part and DENIED in part. I. BACKGROUND This case involves Accredited Management’s attempts to collect a consumer debt from Jung that allegedly originated with a payday loan. Dkt. 1 at 3. Jung alleges that Accredited Management’s principal purpose is the collection of debts owed to third parties. Id. at 2. It is unclear when or if the loan originator transferred its rights to Accredited Management. On December 17, 2019, Jung alleges that a male debt collector called her “to collect an alleged consumer debt originating with a payday loan account.” Id. at 3. During the call, the male debt collector “threatened to file a lawsuit against [Jung] if she did not make a payment [in the amount of 60% of the alleged debt] to [Accredited Management] within the following twenty-four (24) hours.” Id. On or around January 22, 2020, Jung alleges that Accredited Management’s collector, Michelle Kelly left her a voicemail regarding the debt: Sandra Jung, this is Michelle Kelly with Accredited Management Solutions. I do need to speak to you or legal representation regarding a legal complaint filed against you and your social ending in 9742. Our office has made several attempts to reach out to you to rectify this matter outside of court. Please respond to my call within 24 hours at 866-901-0868, extension 202. Please be available at this 2004 Live Oak Street, Houston, Texas on Wednesday, January 29th between the hours of 8 AM and 10 AM to sign for your court documentation. We wish you the best of luck. Id. at 4-5. On or around January 27, 2020, Kelly allegedly left another voicemail for Jung:: Sandra Jung, this is Michelle Kelly with Accredited Management Solutions. I do need to speak to you or legal representation regarding a legal complaint filed against you and your social ending in 9742. You do need to return my call at 866-901-0868, extension 202. Id. at 5. Jung alleges that phone number “866-901-0868” belongs to Accredited Management. Id. at 2-3. She also alleges that if she owed any debt, then the statute of limitations has passed. Id. at 5. Accredited Management has not taken legal action against Jung. Id. at 4. On February 13, 2020, Jung filed suit against Accredited Management for violation of the Fair Debt Collection Practices Act 15 U.S.C. § 1692, et seq. (“FDCPA”) and the Texas Debt Collection Act Tex. Fin. Code Ann. § 392, et al. (“TDCA”). Dkt. 1 at 1. Jung seeks statutory damages, costs, attorneys’ fees, and injunctive relief. Id. at 6-7. On February 18, 2020, Jung served Accredited Management with the complaint. Dkt. 7. On April 15, 2020, she filed a motion for an entry of final default judgment after Accredited Management failed to appear or answer her complaint. Dkt. 9. However, because Jung’s service was insufficient, her motion was denied without prejudice. Dkt. 10. On June 6, 2020, Jung filed a renewed motion for an entry of a default judgment against Accredited Management. Dkt. 11. II. LEGAL STANDARD Pursuant to Rule 55 of the Federal Rules of Civil Procedure, entry of default judgment is

appropriate “when a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise.” Fed. R. Civ. P. 55(a). Under Rule 5.5 of the Local Rules of the Southern District of Texas, a motion for default judgment must be served upon defendant via certified mail, return receipt requested. S.D. TEX. L.R. 5.5. The Federal Rules of Civil Procedure disfavor default judgments, preferring to resolve disputes according to their merits. Lindsey, et al. v. Prive Corp., et al., 161 F.3d. 886, 893 (5th Cir. 1998). When determining whether to enter default judgment, courts should consider if it has personal jurisdiction over the parties. See, e.g., Bludworth Bond Shipyard, Inc. v. M/V Caribbean Wind, 841 F.2d 646, 649 (5th Cir.1988). Moreover, the court should consider “whether

material issues of fact are at issue, whether the grounds for default are clearly established, whether the default was caused by a good faith mistake or excusable neglect, the harshness of a default judgment, and whether the court would think itself obliged to set aside the default on the defendant’s motion.” Id. “A default judgment is unassailable on the merits but only so far as it is supported by well- pleaded allegations, assumed to be true.” Nishimatsu Constr. Co. v. Hous. Nat'l Bank, 515 F.2d 1200, 1206 (5th Cir.1975) (citing Thomson v. Wooster, 114 U.S. 104, 113, 5 S.Ct. 788 (1885)). Put another way, “a defendant’s default does not in itself warrant the court in entering a default judgment. Id. Instead, there must be “a sufficient basis in the pleadings for the judgment entered.” Id. In the context of default judgement, the meaning of a well-pleaded or sufficient allegation is drawn from the case law on Rule 8, which sets forth the standards governing the sufficiency of a complaint. Wooten v. McDonald Transit Assocs., Inc., 788 F.3d 490, 498 (5th Cir. 2015). Federal Rule of Civil Procedure 8(a)(2) requires only that the pleading contain “a short and

plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). The purpose of this requirement is “to ‘give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.’” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99 (1957)). The factual allegations in the complaint need only “be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).” Id. (footnote and citations omitted). “[D]etailed factual allegations” are not required, but the pleading must present “more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937 (2009). III. ANALYSIS

Free access — add to your briefcase to read the full text and ask questions with AI

Related

James v. Frame
6 F.3d 307 (Fifth Circuit, 1993)
Forbush v. J C Penney Company
98 F.3d 817 (Fifth Circuit, 1996)
TIG Insurance v. Aon Re, Inc.
521 F.3d 351 (Fifth Circuit, 2008)
Thomson v. Wooster
114 U.S. 104 (Supreme Court, 1885)
Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
James Miller v. BAC Home Loans Servicing, L
726 F.3d 717 (Fifth Circuit, 2013)
Hartman v. Great Seneca Financial Corp.
569 F.3d 606 (Sixth Circuit, 2009)
Wiener v. Bloomfield
901 F. Supp. 771 (S.D. New York, 1995)
Land Rover U.K., Ltd. v. Hinojosa
210 S.W.3d 604 (Texas Supreme Court, 2006)
Arthur Andersen & Co. v. Perry Equipment Corp.
945 S.W.2d 812 (Texas Supreme Court, 1997)
Foti v. NCO Financial Systems, Inc.
424 F. Supp. 2d 643 (S.D. New York, 2006)
David Thompson v. Bank of America N.A., et
783 F.3d 1022 (Fifth Circuit, 2015)
Rolando Serna v. Law Office of Joseph Onwuteaka, e
614 F. App'x 146 (Fifth Circuit, 2015)
Eddie Wooten v. McDonald Transit Assoc, Inc.
788 F.3d 490 (Fifth Circuit, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
Jung v. Accredited Management Solutions, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jung-v-accredited-management-solutions-llc-txsd-2020.