Lindsay v. Patenaude & Felix

CourtCalifornia Court of Appeal
DecidedDecember 11, 2024
DocketD082750
StatusPublished

This text of Lindsay v. Patenaude & Felix (Lindsay v. Patenaude & Felix) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lindsay v. Patenaude & Felix, (Cal. Ct. App. 2024).

Opinion

Filed 11/27/24; Certified for Publication 12/11/24 (order attached)

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

ALEKSIA LINDSAY, D082750

Plaintiff and Appellant,

v. (Super. Ct. No. CIVSB2134283) PATENAUDE & FELIX APC et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of San Bernardino County, David S. Cohn, Judge. Reversed. Jubilee Legal, Daniel Abraham; Law Office of Monica Hartsock and Monica Hartsock for Plaintiff and Appellant. Sessions, Israel & Shartle and James K. Schultz for Defendants and Respondents. Aleksia Lindsay filed an amended class action complaint (the complaint) alleging unfair debt collection practices against Patenaude & Felix, APC (Patenaude) and Transworld Systems Inc. (Transworld). Relying on Code of Civil Procedure section 425.16 (the anti-SLAPP law),1 the trial court struck the complaint. So doing, it ruled that section 425.17, subdivision (b) (the public interest exception to the anti-SLAPP law) did not exempt the complaint from application of the anti-SLAPP law. Lindsay contends this was error. We agree. Hence we reverse. I. Background A. Statutory Framework We begin with a brief introduction to the anti-SLAPP law and the public interest exception to it. 1. The Anti-SLAPP Law In 1992 the Legislature enacted the anti-SLAPP law to help weed out, in early stages of litigation, meritless causes of action brought primarily to chill plaintiffs’ valid exercise of certain constitutional rights. (Club Members for an Honest Election v. Sierra Club (2008) 45 Cal.4th 309, 315 (Club Members); Exline v. Gillmor (2021) 67 Cal.App.5th 129, 137 (Exline); § 425.16, subd. (a).) The mechanism it created to achieve this objective has since come to be known as an anti-SLAPP special motion to strike. (Club Members, at p. 315; Exline, at p. 137; cf. § 425.16, subd. (a) [authorizing “a special motion to strike”].) The filing of an anti-SLAPP special motion to strike triggers a two-step process. (Club Members, supra, 45 Cal.4th at p. 315; see also Geragos v. Abelyan (2023) 88 Cal.App.5th 1005, 1021–1022 (Geragos).) First, the defendant must carry the burden of making a prima facie showing that a cause of action alleged in the complaint arises from an act of that defendant that is “in furtherance of [its] right of petition or free speech under the

1 All unspecified statutory references are to the Code of Civil Procedure. SLAPP is an acronym for strategic lawsuit against public participation. 2 United States Constitution or the California Constitution in connection with a public issue” (protected activity). (§ 425.16, subd. (b)(1); see also Club Members, at p. 315; Geragos, at pp. 1021–1022.) Second, if the defendant succeeds in carrying this burden, then the plaintiff must establish “a probability that [she] will prevail on the claims.” (§ 425.16, subd. (b)(1); see also Club Members, at p. 315; Geragos, at pp. 1021–1022.) 2. The Public Interest Exception In 2003, the Legislature enacted section 425.17 to curb what it referred to as “disturbing abuse” of the anti-SLAPP law. (§ 425.17, subd. (a); accord, Club Members, supra, 45 Cal.4th at p. 315.) Section 425.17 introduced exceptions to the anti-SLAPP law. Among them was the public interest exception, set forth in subdivision (b) of section 425.17, which provides that: “Section 425.16 does not apply to any action brought solely in the public interest or on behalf of the general public if all of the following conditions exist: [¶] (1) The plaintiff does not seek any relief greater than or different from the relief sought for the general public or a class of which the plaintiff is a member. A claim for attorney’s fees, costs, or penalties does not constitute greater or different relief for purposes of this subdivision. [¶] (2) The action, if successful, would enforce an important right affecting the public interest, and would confer a significant benefit, whether pecuniary or nonpecuniary, on the general public or a large class of persons. [¶] (3) Private enforcement is necessary and places a disproportionate financial burden on the plaintiff in relation to the plaintiff’s stake in the matter.” (§ 425.17, subd. (b)(1)–(3).) With these aspects of the anti-SLAPP law and public interest exception in mind, we now turn to the origins of this case.

3 B. Lindsay’s Student Loans, Patenaude and Transworld’s Collection Practices, and Their Lawsuits Against Lindsay2 Some years ago, Lindsay undertook $60,000 in student loans and fell behind on payments. After she defaulted, she received demands for payment on behalf of two entities—NCSLT Trust 2007-1 and NCSLT Trust 2007-2— that claimed to have acquired the loans. When she requested further information, Transworld (acting for the trusts) supplied her with data that was incomplete and inaccurate. Then it directed Patenaude to initiate two debt collection lawsuits against Lindsay. Unbeknownst to Lindsay at the time, Transworld and Patenaude had an extensive history of engaging in unfair, deceptive, unethical, and abusive loan collection practices. Such practices included: “[f]iling numerous lawsuits without the intent or ability to prove the claims, if contested”; falsifying evidence to support such claims; and engaging in the unauthorized practice of law. Also unbeknownst to Lindsay at that time, conduct of this sort had resulted in the U.S. Consumer Financial Protection Bureau (CFPB), the Connecticut Department of Banking, and the Attorneys General of New York and Massachusetts taking action against Transworld. After becoming aware of this information, Lindsay requested leave to file a cross-complaint in one or both of the cases that Transworld and Patenaude had initiated against her. But, before the trial court in that case could rule on her request, Transworld and Patenaude caused their lawsuits against her to be dismissed. Then, after the dismissals, “Transworld sent yet another demand for payment for the same alleged debt.”

2 Each statement appearing in section I(B) of this opinion is drawn from Lindsay’s amended class action complaint. We express no view as to the truth or accuracy of any such statement. 4 C. Lindsay’s Lawsuit Against Transworld and Patenaude, and the Anti-SLAPP Special Motion to Strike The same month she received the post-dismissal demand for payment, Lindsay filed a class action complaint naming Patenaude as a defendant. Thereafter, she filed an amended class action complaint, naming Transworld as a defendant, too. In the amended class action complaint, Lindsay alleged at some length the loan collection practices summarized above. She also alleged that such practices constituted violations of Title 15 section 1692, et seq. (the federal Fair Debt Collection Practices Act or FDCPA), of Civil Code section 1788 et seq. (the Rosenthal Fair Debt Collection Practices Act), and of Business & Professions Code section 17200 (the Unfair Competition Law or UCL). On

behalf of a putative class of plaintiffs that included herself,3 she prayed for actual damages, punitive damages, declaratory relief, injunctive relief, statutory penalties, attorneys’ fees, and costs. Transworld responded by filing an anti-SLAPP special motion to strike (the motion) and a demurrer. Patenaude joined, and Lindsay opposed the motion and the demurrer. In her brief in opposition to the motion, Lindsay stated, in keeping with the allegations of the complaint, that: “Defendants have no evidence that they own any of the accounts on which they collect, but [they] claim to have purchased these accounts, large portfolios of private student loan debt. If challenged on their right to collect, [they] will quietly dismiss the lawsuit but continue their

3 The plaintiff class that Lindsay alleged consisted of persons as to whom Transworld had engaged Patenaude and others “to communicate . . .

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Bluebook (online)
Lindsay v. Patenaude & Felix, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindsay-v-patenaude-felix-calctapp-2024.