Kelly v. United Payment Center Inc.

CourtDistrict Court, D. Minnesota
DecidedSeptember 27, 2023
Docket0:22-cv-01799
StatusUnknown

This text of Kelly v. United Payment Center Inc. (Kelly v. United Payment Center Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly v. United Payment Center Inc., (mnd 2023).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Brian Kelly, File No. 22-cv-1799 (ECT/DLM)

Plaintiff,

v. OPINION AND ORDER

United Payment Center Inc., Defendant.

Peter F. Barry, The Barry Law Office, Ltd, Minneapolis, MN, and Joshua Brandon Swigart, Swigart Law Group, APC, San Diego, CA, for Plaintiff Brian Kelly.

Daniel Patrick Brees, David A. Schooler, and Suzanne L. Jones, Gordon Rees Scully Mansukhani, LLP, Minneapolis, MN, for Defendant United Payment Center Inc.

In this consumer debt-collection case, Plaintiff Brian Kelly accepted an offer of judgment from Defendant United Payment Center. United’s offer included a $10,000 payment to Mr. Kelly “together with his reasonable attorneys’ fees and costs to be determined by the court[.]” Offer of Judgment [ECF No. 53-1] at 1–2. Mr. Kelly has filed a motion seeking attorneys’ fees in the amount of $120,093.00 and costs of $7,207.66.1 United does not argue that Mr. Kelly’s motion should be denied outright. It argues that Mr. Kelly’s fee request should be reduced for a variety of reasons. It does not challenge

1 The analysis that follows accounts for and corrects a minor math error in Mr. Kelly’s motion. In his motion, Mr. Kelly claims to seek $127,240.66 of fees and costs (consisting of $98,100 for The Barry Law Office, $21,933 for the Swigart Law Group, and costs of $7,207.66). Motion [ECF No. 55]. But if my math is correct, the amount reflected in Mr. Swigart’s declaration is $60 higher. Swigart Decl. ¶¶ 12, Exs. A–C (reflecting $21,993 of fees). This order uses the higher number as the starting point. Mr. Kelly’s costs request. The fighting issue, then, concerns the amount of fees to be awarded. The short story is that Mr. Kelly’s requested fees deserve reduction for some of the reasons United has identified but not others. He will be awarded fees in the amount of

$78,782.50, along with his requested costs. Plaintiff’s factual allegations. United is a debt collector. Am. Compl. [ECF No. 16] ¶¶ 10, 13. It “operates under the pseudonym ‘Bradford Law Office’ using various spoofed phone numbers to communicate with Minnesota consumers.” Id. ¶ 15. United is not licensed to collect debts in Minnesota. Id. ¶ 16. “Sometime around 2005,” Mr. Kelly

“incurred . . . a personal auto loan with Citi Bank[.]” Id. ¶ 17. On June 29, 2022, United telephoned Mr. Kelly to collect this debt. See id. ¶¶ 23–67. In one call, a United representative named “Mary” reached Mr. Kelly’s mother at her residence. Id. ¶¶ 23–33; see also N. Kelly Decl. [ECF No. 43] ¶¶ 4–13. The United representative “said that she was from ‘Process Service Dispatch’” and said that Mr. Kelly “had a one-week window to

resolve” the debt. Am. Compl. ¶ 31. After being told that Mr. Kelly did not live at his mother’s residence, the representative asked Mr. Kelly’s mother for Mr. Kelly’s telephone number. Id. ¶¶ 27–28. Mr. Kelly’s mother refused to provide it. Id. ¶ 28. According to Mr. Kelly’s mother, the United representative “was very aggressive during the course of this collection call” and Mr. Kelly’s mother “was intimidated by [the representative’s] tone

and demeanor.” N. Kelly Decl. ¶ 14. That same day, a United representative left a voice message for Mr. Kelly “indicating that they were calling from ‘Process Service Dispatch[.]’” B. Kelly Decl. [ECF No. 42] ¶ 26. The message indicated that United had placed a lien on Mr. Kelly’s residence. Id. ¶ 27. Again that day, after he “had received a call from his mother indicating she had received a collection [call] from [United], and [United] had also left a voicemail for [Mr. Kelly],” Mr. Kelly telephoned United. Am. Compl. ¶¶ 42, 43. A United receptionist answered Mr. Kelly’s call by introducing the

business as “‘Bradford and Associates.’” Id. ¶ 45. The receptionist connected Mr. Kelly to a representative identified as “‘Anthony Rubio.’” Id. ¶ 47. Mr. Kelly and Mr. Rubio discussed the nature of the alleged debt, and Mr. Kelly expressed his view that the debt had been settled. Id. ¶¶ 48–59. Mr. Rubio represented that United “had a judgment against [Mr. Kelly]” in the amount of $10,400 and implied that he “was a lawyer capable of

obtaining such a judgment.” Id. ¶¶ 51, 58. Mr. Kelly was upset and intimidated by these communications and “was required to take time off of work to handle, assess, and work out the financial risks that [United] threatened, and to determine a course of action in response to those threats.” B. Kelly Decl. ¶ 42. Plaintiff’s claims and requested relief. In his Amended Complaint, Mr. Kelly

asserted federal statutory, Minnesota statutory, and Minnesota common-law claims. He alleged “numerous and multiple violations” of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692, et seq., Am. Compl. ¶¶ 150–152, and the Driver’s Privacy Protection Act (“DPPA”), 18 U.S.C. §§ 2721–25, see id. ¶¶ 179–181. He alleged a violation of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681, et seq. Id. ¶¶ 182–

195. He sought relief under Minn. Stat. § 481.02, claiming that United engaged in the unauthorized practice of law. Id. ¶¶ 174–178. And he asserted claims under Minnesota common law for fraud, id. ¶¶ 156–167, and invasion of privacy, id. ¶¶ 196–203. Each claim depended on one or more of several overlapping factual theories. For example, Mr. Kelly alleged that the two June 29, 2022, telephone calls were unlawful for a variety of reasons related to the alleged debt’s un-collectability and the manner in which United’s agents conducted the calls. See, e.g., id. ¶¶ 62–66. He alleged that United was not

authorized to collect debts in Minnesota. See, e.g., id. ¶¶ 74–84. He alleged that United held itself out as a law firm when it was not. See, e.g., id. ¶¶ 95–105. And Mr. Kelly alleged that United improperly accessed his personal information to enable it to pursue its debt collection activities against him. See, e.g., id. ¶¶ 106–139. For relief, Mr. Kelly sought actual, statutory, and punitive damages, and attorneys’ fees and costs. See id. at

34–35. Procedural history. Mr. Kelly filed this case in July 2022. See Compl. [ECF No. 1]. Since then, several events have occurred that, for this motion’s purposes, deserve mention. Soon after answering Mr. Kelly’s original Complaint on October 17, 2022, United filed a notice of hearing on a motion for partial judgment on the pleadings. ECF

No. 14. On November 7, evidently in response to United’s notice, Mr. Kelly filed his Amended Complaint. ECF No. 16. The Amended Complaint differed from the original in two noteworthy respects: (1) it dropped a claim under a California statute—the Rosenthal Fair Debt Collection Practices Act, Cal. Civ. Code §§ 1788–1788.33—that Mr. Kelly had asserted in the original Complaint, and (2) it added a claim for punitive damages under

Minn. Stat. § 549.20. United did not follow through with its motion for partial judgment on the pleadings. It did, however, file a partial motion to dismiss contending that the Amended Complaint’s claim for punitive damages was improper under Minn. Stat. § 549.20. ECF No. 21. That motion was heard January 9, 2023, and the motion was denied from the bench. See ECF No. 36 at 16–18. On April 25, 2023, Mr. Kelly filed a motion for partial summary judgment as to liability with respect to six of the Amended Complaint’s eight claims. See ECF No. 41. On May 8, United moved to continue Mr.

Kelly’s summary-judgment motion pursuant to Federal Rule of Civil Procedure

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