Kirk v. Gobel

622 F. Supp. 2d 1039, 2009 U.S. Dist. LEXIS 46689, 2009 WL 1576749
CourtDistrict Court, E.D. Washington
DecidedJune 3, 2009
DocketCV-08-0344-EFS
StatusPublished

This text of 622 F. Supp. 2d 1039 (Kirk v. Gobel) is published on Counsel Stack Legal Research, covering District Court, E.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirk v. Gobel, 622 F. Supp. 2d 1039, 2009 U.S. Dist. LEXIS 46689, 2009 WL 1576749 (E.D. Wash. 2009).

Opinion

ORDER RULING ON CROSS SUMMARY JUDGMENT MOTIONS, MOTION TO STRIKE, AND 56(f) MOTION TO CONTINUE

EDWARD F. SHEA, District Judge.

A hearing occurred in the above-captioned matter on May 26, 2009. Plaintiff Ron Kirk was present and represented by Michael Kinkley and Alan L. McNeil. Carl Hueber appeared on behalf of Defendants Terry and Jane Doe Gobel — Mr. Gobel was present. Before the Court were four motions. First, Defendants ask the Court to enter summary judgment in their favor on Plaintiffs Fair Debt Collections Practices Act (FDCPA) and Washington Consumer Protection Act (WCPA) claims. (Ct. Rec. 9.) Plaintiff opposes their motion and also filed a motion for summary judgment (Ct. Rec. 27) and a motion to continue (Ct. Rec. 19) Defendants’ motion in part. Plaintiffs summary judgment motion asks the Court to find that Mr. Gobel violated the FDCPA by making misrepresentations and using unfair practices to recover attorney fees and unregistered process server costs in a state court action. 1 Defendants oppose Plaintiffs motions, contending that Plaintiffs claims are barred by the Rooker-Feldman doctrine and res judicata and that no FDCPA violation occurred because the attorney fees and collection costs were legally awarded by the state court under the contracts. Defendants also filed a motion to strike paragraph 7 of Laura Miller’s Affidavit. (Ct. Rec. JJ.)

After reviewing the submitted materials and relevant authority and hearing oral argument, the Court is fully informed. For the reasons given below, the Court 1) denies Plaintiffs Rule 56(f) continuance request because discovery regarding the attorney fees calculation and underlying *1042 contracts is unnecessary, 2) denies Defendants’ motion to strike paragraph 7 of Ms. Miller’s Affidavit, and 3) grants and denies in part both summary judgment motions, ruling a) neither Rooker-Feldman nor res judicata apply, b) Mr. Gobel is a debt collector, c) Mr. Gobel did not violate the FDCPA or WCPA by asserting RCW 4.84.250 as an alternative grounds for attorney fees in the state court complaint or equity as an alternative grounds for attorney fees in either the complaint or the motion for default judgment, d) Mr. Gobel did violate the FDCPA by seeking attorney fees under RCW 4.84.250 in the motion for default judgment and recovery for unregistered process server costs in the complaint and motion for default judgment, and e) Mr. Gobel may pursue the bona fide error affirmative defense.

A. Undisputed Facts 2

Mr. Kirk hired Independent Services Corp. (ISC) to provide in-home health care and signed two contracts- — a Basic Service Agreement and a Client Registration and Home Plan — on January 18, 2005. (Ct. Rec. 17-2: Runcorn Aff. ¶ 2.) The Basic Service Agreement provided in part:

Collection of Payment for Services. In the event it becomes necessary to collect any amounts from services rendered under this agreement, client agrees to pay all costs of fees/colleetion, including any attorneys fees.

Id. ex. A. The Client Registration and Home Plan provided in part:

IF EITHER PARTY MUST RETAIN AN ATTORNEY TO ENFORCE ANY RIGHTS OR RESPONSIBILITIES ARISING UNDER THIS AGREEMENT, IT IS AGREED THAT ATTORNEY FEES AND COURT COST WILL BE AWARDED TO THE PREVAILING PARTY. VENUE FOR ANY LITIGATION ARISING FROM THIS AGREEMENT SHALL BE IN SPOKANE COUNTY. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF WASHINGTON.

Id. ex. B.

ISC believed Mr. Kirk to be in default and retained Mr. Gobel, an attorney who advertises that he regularly does collection work against consumers, to pursue collection. Id. ¶ 4; Ct. Rec. 32: McNeil Aff. On December 22, 2006, Mr. Gobel filed a summons and complaint in Spokane County District Court on ISC’s behalf against Mr. Kirk seeking payment of the alleged outstanding contractual obligation. (Ct. Rec. 13: Gobel Aff. exs. B & C.) The complaint drafted by Mr. Gobel included the following recovery request:

5. For the collection costs and reasonable collection attorney fees under contract and/or RCW 4.84 in damage cases under $10,000; equitable attorney’s fees under Miotke v. Spokane, 101 Wash.2d 307, 338 [678 P.2d 803] (1984).

Id. ex. C.

Mr. Gobel contracted William B. Gillingham, Jr. to serve the summons and complaint on Mr. Kirk. Mr. Gillingham was not registered as a process server as required by Washington law and therefore a process server registration number was not listed on the affidavit of service, which was prepared by Mr. Gobel’s office, as required by RCW 18.180.030(1). (Ct. Rec. 18: Bundy Aff.; Ct. Rec. 22 pp. 5-6 & 22.)

Mr. Kirk did not appear in the matter. Mr. Gobel, on ISC’s behalf, filed a Motion and Affidavit for Order of Default and Default Judgment in which he sought $670.25 in attorney fees and $70.00 for service fees. (Ct. Rec. 22 pp. 17-20.) The motion stated:

*1043 Authority for reasonable attorney fees: Per the contract and fee provision and/or for collection costs and reasonable collection attorney fees under RCW 4.84 in damage cases under $10,000; or attorney fees according to local rule in case of Defendants’ default; equitable attorney’s fees under Miotke v. Spokane, 101 Wash.2d 307, 338 [678 P.2d 803] (1984).

(Ct. Rec. 22 p. 19.) Without viewing the ISC contracts, the state court entered default against Mr. Kirk and awarded ISC the requested relief, including process server costs and attorney fees. Id.

Mr. Gobel then filed for supplemental proceedings to aid in collecting on the judgment — a process he regularly engages in for each ISC case in which a default judgment is obtained. (Ct. Rec. 31: Miller Aff.) Mr. Gobel hired Mr. Gillingham to serve the supplemental proceeding materials; again, Mr. Gillingham was not a registered process server at this time as statutorily required. (Ct. Rec. 18.)

On November 10, 2008, Mr. Kirk filed this lawsuit alleging that Mr. Gobel violated the FDCPA, 15 U.S.C. § 1692e et seq., and Washington Consumer Protect Act, RCW 19.86 et seq.,

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Bluebook (online)
622 F. Supp. 2d 1039, 2009 U.S. Dist. LEXIS 46689, 2009 WL 1576749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirk-v-gobel-waed-2009.