Michael v. New Century Financial Services

65 F. Supp. 3d 797, 2014 U.S. Dist. LEXIS 117390, 2014 WL 4099010
CourtDistrict Court, N.D. California
DecidedAugust 20, 2014
DocketCase No. 13-CV-03892-BLF
StatusPublished
Cited by3 cases

This text of 65 F. Supp. 3d 797 (Michael v. New Century Financial Services) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael v. New Century Financial Services, 65 F. Supp. 3d 797, 2014 U.S. Dist. LEXIS 117390, 2014 WL 4099010 (N.D. Cal. 2014).

Opinion

[Re: ECF 17]

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION

BETH LABSON FREEMAN, United States District Judge

Defendants New Century Financial Services (“New Century”) and Pressler and Pressler LLP (“Pressler”) move to dismiss Plaintiff Alazar Michael’s (“Michael” or “Plaintiff’) First Amended Complaint (“FAC”). Plaintiff brings suit against Defendants alleging violations of federal and state debt collection and consumer protection statutes, arising out of a levy placed on a bank account owned by Plaintiff in order to collect on a 2001 default judgment entered against Plaintiff in New Jersey state court. Defendants move to dismiss for two reasons: (1) that the Court lacks personal jurisdiction over Defendants, pursuant to Federal Rule of Civil Procedure 12(b)(2); and (2) that the FAC fails to state a claim upon which relief can be granted, pursuant to Rule 12(b)(6).

Having reviewed the briefing and oral argument of the parties, and the governing case law, the Court GRANTS Defendants’ Motion to Dismiss pursuant to Rule 12(b)(2), finding that this Court lacks either general or specific personal jurisdiction over Defendants.

I. BACKGROUND

A. Procedural History

Plaintiff filed his FAC against Defendants on September 25, 2013. (ECF 7) On December 10, 2013, Defendants filed the instant Motion to Dismiss (ECF 17), along with a Request for Judicial Notice (“Defs.’ RJN”). (ECF 18) Plaintiff filed his Opposition to the Motion to Dismiss on January 17, 2014 (ECF 23), along with his own Request for Judicial Notice (“Pl.’s RJN”). (ECF 26) Defendants replied on February 14, 2014 (ECF 27), and concurrently filed with their Reply objections to the Plaintiffs RJN. (ECF 28)

The case was reassigned to the undersigned judge on April 17, 2014, and oral argument was heard on July 17, 2014.

B. Factual Allegations in the FAC

The facts below are taken from the FAC and are presumed by the Court, for purposes of this Motion, tó be true.

[802]*802Plaintiff is an individual who resides in San Jose, California. (FAC, ECF 7 ¶ 3) New Century is a New Jersey corporation with its principal place of business in Whippany, New Jersey. (Id. ¶ 5) Pres-sler is a New Jersey limited liability company with its principal place of business in Parsippany, New Jersey. (Id. ¶ 7)

In 2001, New Century filed an action in New Jersey state court against Plaintiff (FAC ¶¶ 1, 10), and obtained a default judgment against him. (Id. ¶ 14) Though New Century provided the state court with a proof of service, Plaintiff states that he was never served with a copy of the summons and the complaint (id. ¶ 12), alleging that the proof of service stated an address at which Michael did not live (id.), and listed Michael as a white male, though Michael “is Eritrean, has dark skin and cannot reasonably be mistaken for a white male.” (Id. ¶ 13)

From 1996 through 2009, Michael resided in the African nation of Eritrea (FAC ¶ 12), returning to New Jersey only once, in 2006. (Id.) In 2009, Michael moved briefly to Chino Hills, California, in order to begin a graduate program at the University of Phoenix. (Id. ¶ 15) While in Chino Hills, Michael opened a bank account with Bank of America. (Id. ¶ 16) Michael returned to Eritrea after a month, and in 2010, while still residing in Eritrea, attempted to pay for his university coursework with funds from his Bank of America account. (Id. ¶ 17) Defendants removed approximately $2,900 from this account. (Id.) Michael “had no knowledge” of New Century’s prior action against him before this levy. (Id. ¶ 19)

In 2012, Michael moved from Eritrea to Hayward, California; soon thereafter, he moved from Hayward to San Jose. (FAC ¶ 20) In September 2012, Michael opened a bank account with JP Morgan Chase Bank (“Chase”) (id. ¶21), and in' early 2013 received a letter from Chase informing him that the bank had received a garnishment to enforce a judgment against him in the amount of $10,048.53. (Id. ¶ 22) Chase placed a hold on his account in the amount of $327.03, and in March 2013 paid this amount to the officer of the Bergen County, New Jersey court (id. ¶¶ 22-23), as well as charged a $125 “legal processing fee” to Michael, leaving his bank account with a zero balance. (Id. ¶ 24)

Defendants did not domesticate, or register, the New Jersey default judgment in California, which Plaintiff alleges contravenes California’s Sister State Money-Judgments Act. See Cal.Code Civ. P. § 1913. Plaintiffs FAC alleges three causes of action, arising under: (1) the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq.; (2) California’s Ro-senthal Fair Debt Collection Practices Act, Cal. Civ.Code § 1788; and (3) California’s Unfair Competition Law, Cal. Bus. & Prof. Code § 17200. Plaintiff seeks damages, including emotional distress damages, attorneys’ fees and costs, and injunctive relief. (FAC at p. 8-9)

Defendants move this Court to dismiss, arguing, among other theories, that this Court lacks personal jurisdiction over them. The Court agrees, and therefore declines to reach the other arguments made by Defendants in their Motion to Dismiss.

II. LEGAL STANDARD

A. Rule 12(b)(2)

Once a defendant brings a challenge to the court’s jurisdiction under Rule 12(b)(2), the plaintiff bears the burden of establishing personal jurisdiction. See, e.g., Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800-01 (9th Cir.2004); see also Scott v. Breeland, 792 F.2d 925, 927 (9th Cir.1986) (stating that a [803]*803plaintiff must “come forward with facts, by affidavit or otherwise, supporting personal jurisdiction”).

When, as is the case here, the Motion is based on written materials and not an evidentiary hearing, Plaintiff “need only make a prima facie showing of jurisdictional facts.” Schwarzenegger, 374 F.3d 797, 800. “Uncontroverted allegations in the complaint must be taken as true,” id,., but Plaintiff cannot “simply rest on the bare allegations of its complaint.” Amba Mktg. Sys., Inc. v. Jobar Int’l, Inc., 551 F.2d 784, 787 (9th Cir.1977). Conflicts between facts contained within declarations or affidavits are resolved in the Plaintiffs favor. Mattel, Inc. v. Greiner & Hausser GmbH, 354 F.3d 857, 861-62 (9th Cir.2003).

In the absence of a specific statutory provision conferring jurisdiction, federal courts apply the personal jurisdiction laws of the state in which they sit. California’s long-arm jurisdictional statute is “coextensive with federal due process requirements.” Panavision Int’l, L.P. v. Toeppen,

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Bluebook (online)
65 F. Supp. 3d 797, 2014 U.S. Dist. LEXIS 117390, 2014 WL 4099010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-v-new-century-financial-services-cand-2014.