Major v. Halliday Watkins & Mann, P.C.

CourtDistrict Court, D. Minnesota
DecidedDecember 27, 2024
Docket0:24-cv-01897
StatusUnknown

This text of Major v. Halliday Watkins & Mann, P.C. (Major v. Halliday Watkins & Mann, P.C.) 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.

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Major v. Halliday Watkins & Mann, P.C., (mnd 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Nicholas R. Major, File No. 24-cv-01897 (ECT/DJF)

Plaintiff,

v. OPINION AND ORDER

Halliday Watkins & Mann, P.C.,

Defendant. _______________________________________________________________________ Carl E. Christensen, Christopher Wilcox, and Ryan Supple, Christensen Sampsel PLLC, Minneapolis, MN, for Plaintiff Nicholas R. Major.

Jared M. Goerlitz, Goerlitz Law, PLLC, St. Paul, MN, for Defendant Halliday Watkins & Mann, P.C.

Plaintiff Nicholas Major brought this FDCPA case in May 2024. He sued two defendants—Connexus Credit Union and Halliday Watkins & Mann—alleging both engaged in unlawful debt-collection practices. The case didn’t last the summer. On July 30, Mr. Major voluntarily dismissed his claims against Connexus and accepted a $3,000 offer of judgment from Halliday Watkins. Now, pursuant to the FDCPA’s fee-shifting provision, Mr. Major seeks to recover the full amount of his claimed attorneys’ fees—$46,163.50—from just Halliday Watkins. For several reasons that will be discussed, this request is unreasonable. Though there is room to fairly debate the best outcome, my answer is to award Mr. Major attorneys’ fees in the substantially reduced amount of $11,566.63. Plaintiff’s factual allegations. Mr. Major’s father, Dennis, owned a home in Howard Lake, Minnesota. Compl. [ECF No. 1] at 3 ¶ 12; id. at 5 ¶ 18.1 Dennis took out two loans against the home, one in 2004 and the other in 2007, both secured by mortgages.

Id. at 5 ¶¶ 18, 21. After Dennis allegedly fell behind on the 2007 loan, the mortgage’s assignee, Connexus Credit Union, served Dennis with a complaint in 2011. Id. at 11 ¶¶ 56, 58. Connexus, however, never filed the complaint in a Minnesota state district court. Id. at 11 ¶ 57. By operation of a Minnesota Rule of Civil Procedure, Connexus’s failure to file the complaint meant that the action was “deemed dismissed with prejudice.” Minn. R.

Civ. P. 5.04(a); Compl. at 13 ¶ 68.2 Dennis died in 2020, and Mr. Major inherited the home. Compl. at 7 ¶ 31; id. at 7–8 ¶ 35. According to Mr. Major, nothing remains owed on either the 2004 or 2007 loan. This is because Mr. Major paid what he thought was the remaining balance on the 2004 loan in June 2022. Id. at 8 ¶ 38; id. at 9 ¶¶ 44, 47.3 And, in Mr. Major’s understanding of the law, Connexus’s failure to timely file the 2011

1 The Complaint numbers its paragraphs inconsistently. It goes from 1 to 128, and then restarts the count at 65. See Compl. at 23. To avoid confusion, all citations to the Complaint will mark the page number followed by the paragraph number.

2 In Minnesota state courts, a civil action is commenced by service, not filing. Minn. R. Civ. P. 3.01. The “deemed dismissed” aspect of Minn. R. Civ. P. 5.04(a) took effect July 1, 2013, after Connexus served Dennis with the complaint. See Gams v. Houghton, 884 N.W.2d 611, 614 (Minn. 2016). For actions pending when the deemed-dismissed rule was adopted, the Minnesota Supreme Court “provided a 1-year grace period.” Id. Connexus never filed the complaint, meaning it did not meet this extended deadline. Compl. at 13 ¶ 69. 3 The Complaint’s allegations regarding the 2004 loan are not consistent. Though the Complaint alleges that Mr. Major paid the 2004 loan’s remaining balance, Compl. at 8 ¶ 38; id. at 9 ¶¶ 44, 47, it also alleges “[o]n information and belief” that Dennis may have used the 2007 loan proceeds to pay the remaining balance on the 2004 loan, id. at 6 ¶ 24. complaint with a court means he owes nothing on the 2007 loan. Id. at 13 ¶ 69. Connexus and Halliday Watkins nonetheless sent Mr. Major letters between May and November 2023 attempting to collect on the 2007 loan. Id. at 9–10 ¶¶ 50–52; id. at 13–14 ¶¶ 73–76; id. at

15 ¶ 83; id. Exs. 2, 3, 4, 5. These letters and related communications prompted Mr. Major to retain counsel and then to file this case. See Major Decl. [ECF No. 36] ¶¶ 33–35. Plaintiff’s claims and requested relief. Mr. Major filed this case in May 2024. See Compl. at 30. He asserted FDCPA claims against Connexus and Halliday Watkins. Id. at 23–29 ¶¶ 65–104.4 Mr. Major alleged the letters and perhaps other communications he

received from Connexus and Halliday Watkins falsely represented the amount or legal status of a debt, id. at 24 ¶¶ 71–72; id. at 27–28 ¶ 94, that Connexus and Halliday Watkins falsely represented that nonpayment of the 2007 loan would result in the seizure or sale of property, id. at 25 ¶ 76; id. at 28 ¶ 95, that Connexus and Halliday Watkins’s letters were deceptive and threatened unlawful action, id. at 25 ¶ 78; id. at 28 ¶ 96, that “the natural

consequence of” Connexus and Halliday Watkins’s actions “was to harass, oppress, or abuse [Mr.] Major in connection with the collection of” a debt that was not owed, id. at 25 ¶ 79; id. at 28 ¶ 97, and that Connexus and Halliday Watkins’s actions amounted to “unfair or unconscionable means to collect or attempt to collect any debt,” id. at 26 ¶ 82; id. at 28–

4 Mr. Major alleged that Halliday Watkins’s letters violated federal regulations implementing the Truth in Lending Act, 15 U.S.C. § 1639f(a). Compl. at 24–25 ¶¶ 73–75. In Mr. Major’s understanding, the Truth in Lending Act forbade Halliday Watkins from demanding late fees and interest because the lender failed to provide him with periodic statements of amounts owed on the 2007 loan. See id. The alleged Truth in Lending Act violations serve as a basis for the FDCPA claims. Mr. Major asserts no independent claim under the Truth in Lending Act. 29 ¶ 100. As a result, Mr. Major claimed to have “incurred time, costs, and attorneys’ fees” and suffered emotional distress. Id. at 26 ¶¶ 84–85; id. at 29 ¶¶ 102–03. For relief, Mr. Major sought actual and statutory damages, “an award of costs of litigation and reasonable

attorney’s fees,” and “such other and further relief as to [sic] the Court deems just and equitable.” Id. at 29–30 (following “WHEREFORE” clause). Procedural history. As far as the court’s docket shows, not much happened in this case. After obtaining Mr. Major’s assent to extend its responsive-pleading deadline, Connexus filed a Rule 12(b)(6) motion on July 11, 2024. ECF Nos. 11, 14, 19. Before his

deadline to respond to the motion, Mr. Major filed a notice voluntarily dismissing Connexus without prejudice pursuant to Fed. R. Civ. P. 41(a)(1)(A)(i). ECF No. 28. Halliday Watkins charted a different course. It answered the Complaint on July 11, ECF No. 18, and that same day served a $3,000 offer of judgment under Fed. R. Civ. P. 68, ECF No. 29-2. The offer excluded “any amount of money Plaintiff may be entitled as an award

of costs of litigation and reasonable attorney’s fees pursuant to 15 U.S.C. § 1692k(a)(3), which would be determined by the Court.” Id. Mr. Major accepted the offer on July 30. ECF No. 29. The parties filed no report under Fed. R. Civ. P. 26(f), and there was no scheduling conference under Fed. R. Civ. P. 16. See ECF No. 31. Settlement history between Mr. Major and Halliday Watkins. Mr. Major and

Halliday Watkins discussed settlement during July 2024, and these discussions are relevant to Mr.

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