Manzanarez v. Madera Collection Services

District Court, E.D. California·Decided March 22, 2024·No. 1:23-cv-00258·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA ROSENDO MANZANAREZ, individually Case No. 1:23-cv-00258-JLT-EPG and on behalf of all others similarly situated, ORDER SUA SPONTE DISMISSING ACTION FOR LACK OF ARTICLE III STANDING; Plaintiff, DENYING DEFENDANT’S MOTION TO v. (Doc. 8) MADERA COLLECTION SERVICES, Defendant.

Rosendo Manzanrez brings this putative class action lawsuit against Defendant Madera Collection Services for its alleged violations of the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692, et seq., in sending Plaintiff an undated collection of debt letter. Pending is Defendant’s Motion to Dismiss. (Doc. 8.) For the reasons set forth below, the Court sua sponte determines that Plaintiff lacks Article III standing to prosecute this case. Defendant’s motion is therefore DENIED AS MOOT and Plaintiff’s Complaint is DISMISSED WITHOUT PREJDUICE. I. FACTUAL AND PROCEDURAL BACKGROUND This case arises out of an allegedly unpaid debt that Plaintiff owed to Valley Diagnostics for medical services underwent by Plaintiff. (Doc. 1 at ¶¶ 21–22.) After Plaintiff failed to pay its debt, Valley contracted with Madera to collect. (Id. at ¶ 24.) Madera is a collection services agency, (id. at ¶ 25), which at some point in time, sent Plaintiff an undated collection letter regarding the debt that he owed to Valley. (Id. at ¶ 26.) “Despite the fact that the Letter lacks a date, the Letter states” how much Plaintiff owed as of “today” and “now.” (Id. at ¶¶ 28–29.) Due to the undated nature of the letter, Plaintiff alleges that he was “misled as to the status of the subject date,” that “Letters that lack a date make them seem illegitimate,” that Madera’s attempt to “define the subject debt based on a nebulous date was suspicious, misleading, and out of character for a legitimate debt collection,” which “cast a negative shadow over its debt collection practice in general,” and that the undated nature of the letter “caused Plaintiff to be unable to determine whether the time frames provided for responding to the Letter met the statutory requirements” under the FDCPA. (Id. at ¶¶ 30–35.) Additionally, Plaintiff alleges that withholding a date on the letter equated to Madera withholding “a material term from Plaintiff which made it confusing for him to understand the nature of the subject debt.” (Id. at ¶¶ 36, 83.) Plaintiff asserts that Madera’s collection attempts appear “to improperly extort money from Plaintiff and coerce Plaintiff to pay.” (Id. at ¶ 46.) Furthermore, Plaintiff claims that Madera “failed to properly advise Plaintiff as to how interest would or could impact the account moving forward,” and failed to inform Plaintiff that the amount of debt represented in the dunning letter “will increase over time, thus misstating the total amount and the character of the debt allegedly owed.” (Id. at ¶¶ 48–49.) Plaintiff therefore alleges that he “incurred an informational injury as Defendant misstated the balance due by failing to include the fact that interest would continue to accrue from the date of the Letter and forward.” (Id. at ¶ 64.) Due to this alleged confusion, Plaintiff represents that he “was therefore unable to make payment on the debt,” and “would have pursued a different course of action were it not for [ ] Madera’s violations.” (Id. at ¶¶ 71, 84, 85.) Essentially, Plaintiff represents that Madera’s improper, undated dunning letter “caused the non-payment,” resulting in Plaintiff’s “financial and reputational detriment.” (Id. at ¶¶ 88.) On February 20, 2023, Plaintiff filed this lawsuit against Madera on behalf of his putative class of all individuals residing in California that received an undated collection letter from Madera. (Id. at ¶¶ 11(a)–(f).) Arising out of this incident, Plaintiff asserts three causes of action under the FDCPA. (Id. at 17–20.) Defendant filed its pending motion to dismiss for failure to state a claim, (Doc. 8), which the parties fully briefed thereafter. (Docs. 16, 17.) A. Subject-Matter Jurisdiction: Article III Standing “Federal courts are courts of limited jurisdiction,’ possessing ‘only that power authorized by Constitution and statute.’” Gunn v. Minton, 568 U.S. 251, 256 (2013) (quoting Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994)); Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 552 (2005). As such, “[i]t is to be presumed that a cause lies outside this limited jurisdiction. . . and the burden of establishing the contrary rests upon the party asserting jurisdiction.” Kokkonen, 511 U.S. at 377 (internal citations omitted); Advanced Integrative Med. Sci. Inst., PLLC v. Garland, 24 F.4th 1249, 1256 (9th Cir. 2022) (same). It is well-established that Article III “[s]tanding is a constitutional requirement for the exercise of subject matter jurisdiction over disputes in federal court.” Tailford v. Experian Info. Sols., Inc., 26 F.4th 1092, 1099 (9th Cir. 2022) (citing Spokeo v. Robins, 578 U.S. 330, 339 (2016)). Thus, even where the defendant fails to raise or challenge a claim or Complaint for lack of standing, “federal courts have a duty to raise, sua sponte, questions of standing before addressing the merits” of any claim. Iten v. Los Angeles, 81 F.4th 979, 984 (9th Cir. 2023) (citing Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 94 (1998)); Jones v. L.A. Cent. Plaza LLC, 74 F.4th 1053, 1058 (9th Cir. 2023) (“[A] jurisdictional issue such as Article III standing may be raised sua sponte by the court at any time.”) (citation omitted); see also Fed. R. Civ. P. 12(h)(3) (requiring that “the court must dismiss the action” if it “determines at any time that it lacks subject-matter jurisdiction.”). Article III of the Constitution limits the Court’s authority to resolving “Cases” or “Controversies.” U.S. CONST., art. III, § 2. “The doctrine of standing, among others, implements this limit on [the Court’s] authority.” Dep’t of Educ. v. Brown, 600 U.S. 551, 561 (2023) (internal quotation marks and citation omitted). The Supreme Court “has established that the irreducible constitutional minimum of standing contains three elements that a plaintiff must plead and— ultimately—prove.” Id. (internal quotation marks and citation omitted). “First, the plaintiff must have suffered an injury in fact that is both concrete and particularized and actual or imminent, not conjectural or hypothetical.” Id. (internal quotation marks and citation omitted). “Second, the plaintiff’s injury must be fairly traceable to the challenged action of the defendant, meaning that there must be a causal connection between the injury and the conduct complained of.” Id. (internal quotation marks and citation omitted). “Third, it must be likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.” Id. (internal quotation marks and citation omitted). “‘The party invoking federal jurisdiction bears the burden of establishing’ the [three] elements of standing, and ‘each element must be supported in the same way as any other manner on which the plaintiff bears the burden of proof, i.e., with the manner and degree of evidence required at the successive stages of the litigation.’” Meland v. WEBER,

Manzanarez v. Madera Collection Services, (E.D. Cal. 2024).

Manzanarez v. Madera Collection Services (Manzanarez v. Madera Collection Services) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Lujan v. National Wildlife Federation
497 U.S. 871 (Supreme Court, 1990)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Wilderness Society, Inc. v. Rey
622 F.3d 1251 (Ninth Circuit, 2010)
Exxon Mobil Corp. v. Allapattah Services, Inc.
545 U.S. 546 (Supreme Court, 2005)
Gunn v. Minton
133 S. Ct. 1059 (Supreme Court, 2013)
Clapper v. Amnesty International USA
133 S. Ct. 1138 (Supreme Court, 2013)
Steel Co. v. Citizens for a Better Environment
523 U.S. 83 (Supreme Court, 1998)
David Tourgeman v. Collins Financial Services
755 F.3d 1109 (Ninth Circuit, 2014)
Spokeo, Inc. v. Robins
578 U.S. 330 (Supreme Court, 2016)
Sarmad Syed v. M-I, LLC
853 F.3d 492 (Ninth Circuit, 2017)
Stephanie Daniel v. National Park Service
891 F.3d 762 (Ninth Circuit, 2018)
Vicky Nguyen v. Endologix, Inc.
962 F.3d 405 (Ninth Circuit, 2020)
Creighton Meland v. Shirley Weber
2 F.4th 838 (Ninth Circuit, 2021)
TransUnion LLC v. Ramirez
594 U.S. 413 (Supreme Court, 2021)
Jeffrey Barke v. Eric Banks
25 F.4th 714 (Ninth Circuit, 2022)
George Jones v. L.A. Central Plaza, LLC
74 F.4th 1053 (Ninth Circuit, 2023)
Howard Iten v. County of Los Angeles
81 F.4th 979 (Ninth Circuit, 2023)