La Caria v. Northstar Location Services, LLC

District Court, D. Nevada·Decided January 11, 2021·No. 2:18-cv-00317·Unknown

Opinion

NICOLE DIANE LA CARIA, ) ) Plaintiff, ) Case No.: 2:18-cv-00317-GMN-DJA vs. ) ) ORDER NORTHSTAR LOCATION SERVICES, LLC, ) ) Defendant. ) )

Pending before the Court is the Unopposed Motion for Preliminary Approval of Class Settlement, (ECF No. 74), filed by Plaintiff Nicole Diane La Caria (“Plaintiff”). Also pending before the Court is Plaintiff’s Motion for Partial Summary Judgment, (ECF No. 55). Defendant Northstar Location Services, LLC (“NLS”) filed a Response, (ECF No. 65), and Plaintiff filed a Reply, (ECF No. 66). Also pending before the Court is Defendant’s Motion for Certification of Interlocutory Appeal and for Stay of Proceedings, (ECF No. 69). Plaintiff did not file a response. For the reasons discussed below, Plaintiff’s Unopposed Motion for Preliminary Approval of Class Settlement is GRANTED. Plaintiff’s Motion for Partial Summary Judgment and Defendant’s Motion for Certification of Interlocutory Appeal and for Stay of Proceedings are DENIED as moot. This case arises out of Defendant’s alleged failure—as a debt collector—to comply with the notification requirements enumerated in the Fair Debt Collection Practice Act (“FDCPA”). Plaintiff filed this class action lawsuit against NLS alleging that its initial communication, a scripted telephonic voicemail, failed to notify the class members that “the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose,” in violation of 15 U.S.C. §§ 1692e(10) and e(11) of the Fair Debt Collection Practices Act (“FDCPA”). (Unopposed Mot. for Preliminary Approval 3:17–22, ECF No. 74). NLS is a debt collection organization established in 2001 that provides, among other services, first and third-party collections, customer care programs, and location services to clientele nationwide. (NLS’s Mot. Deny Class (“NLS Mot.”) at 3, ECF No. 44). According to Plaintiff, NLS relies on a form collection letter to convey the required § 1692e(11) disclosures. (Form Collection Letter, Ex. 1 to Compl., ECF No. 1-1). To contact a debtor regarding an outstanding debt, NLS employees call consumers and if they do not answer, it is NLS’s policy to leave the following scripted message: “We have an important message from Northstar Location Services. This is a call from a debt collector. Please call [Department Phone #].” (Fourth Amended Notice of Depo., Ex. 1 to Pl.’s Mot. Partial Summ. J., ECF No. 55-1). This communication, however, does not include the following statutorily-required notice: “[NLS is] attempting to collect a debt and that any information obtained will be used for that purpose.” See 15 U.S.C. § 1692e(11). On the same day NLS leaves a voicemail message for the debtor, NLS also electronically sends form collection letters, which provide the requisite § 1692e(11) disclosures, to NLS’s third-party letter vendor, Matrix Image Solutions (“Matrix”). (See Matrix Service Contract, Ex. 2 to Pl.’s Mot., ECF No. 45-3). Matrix then mails the form collection letters to the debtors the next day. (Id.); (Pl.’s Mot. Class Certification (“Pl.’s Mot.”) at 3, ECF No. 45). Nevertheless, it is Matrix’s practice to timestamp the letters with the date the letters were electronically transferred from NLS to Matrix, rather than the date the letters are actually mailed. (Basta Dep. 17:16–21, Ex. 5 to Pl.’s Resp., ECF No. 47-5). Thus, Plaintiff alleges the

allegedly non-compliant voicemail message is the initial communication left for the debtor. (Pl.’s Resp. at 2, ECF No. 47). Plaintiff further contends that all of NLS’s collection activities are notated in a detailed collection log NLS maintains for each debtor. (Id. at 4). When a debt collector leaves the above scripted voicemail message, he or she notes, “LEFT MESSAGE W/ MACHINE” along with the date, time, and phone number called. (See NLS Collection Log, Ex. 6 to Pl.’s Resp., ECF No. 47-6); (Leising Dep. 40:6–19, Ex. 3 to Pl.’s Resp., ECF No. 47-3). When NLS sends a collection letter to Matrix for mailing, NLS’s case management system documents “LT1 NOTICE SENT VIA MATRIX” along with the date and time the letter was sent to Matrix. (See NLS Collection Log, Ex. 6 to Pl.’s Resp.); (Leising Dep. 21:2–8, Ex. 3 to Pl.’s Resp.). Matrix does not notify NLS of the date the letter is actually mailed to the debtor. (Basta Dep. 27:22– 24, Ex. 5 to Pl.’s Resp.). NLS is able to perform electronic searches of its collection logs to identify the number of accounts that received a voicemail on the same day NLS electronically transferred the consumer’s information to Matrix. (Pl.’s Resp. at 4). According to NLS, this potentially happened on 197 accounts. (NLS Resp. Interrog., Ex. 7 to Pl.’s Resp., ECF No. 47- 7). Navient is one of NLS’s clients that engages NLS to collect delinquent student loan debt. (Pl.’s Resp. at 8). In 2005, Plaintiff obtained a student loan, but after experiencing financial hardship, she was unable to make the necessary loan payments. (Id.). On December 26, 2017, Navient sent Plaintiff’s account to NLS for collection. (Id.); (NLS Collection Log, Ex.6 to Pl.’s Resp). About seven hours after receiving Plaintiff’s account, NLS called Plaintiff’s cell phone and left the following message: “Yes, very important message from Northstar Location Services. This is a call from a professional debt collector, please call back at [phone number]. Thank you.” (Id.). On December 27, 2017, Matrix printed and mailed

NLS’s initial collection letter to Plaintiff; however, the letter is dated December 26, 2017. (Basta Dep. 17:5–9, Ex. 5 to Pl.’s Resp.). Plaintiff therefore contends NLS’s voicemail message was placed with Plaintiff a day before the collection letter was sent. (Pl.’s Resp. at 9). On February 21, 2018, Plaintiff filed her Complaint, (ECF No. 1), alleging violations of the FDCPA as part of a putative class action on behalf of herself and similarly situated persons. On May 28, 2020, the Court granted Plaintiff’s Motion to Certify Class, (ECF No. 45), defining the class as: (i) all Nevada residents to whom NLS sent a letter in the form of Exhibit 1attached to the Complaint (ii) which was not returned as undeliverable (iii) in an attempt to collect a debt incurred for personal, family, or household purposes as shown by Defendants or the creditors’ records (iv) who [were] left a voicemail message from NLS on the same day that Exhibit 1 was dated (v) and were not notified during the call that “the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose” (vi) during the one year prior to the filing of this lawsuit.

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La Caria v. Northstar Location Services, LLC, (D. Nev. 2021).

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