Nazar v. Wolpoff & Abramson, LLP

530 F. Supp. 2d 1161, 2008 U.S. Dist. LEXIS 345, 2008 WL 43891
CourtDistrict Court, D. Kansas
DecidedJanuary 2, 2008
Docket07-2025-JWL
StatusPublished
Cited by2 cases

This text of 530 F. Supp. 2d 1161 (Nazar v. Wolpoff & Abramson, LLP) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nazar v. Wolpoff & Abramson, LLP, 530 F. Supp. 2d 1161, 2008 U.S. Dist. LEXIS 345, 2008 WL 43891 (D. Kan. 2008).

Opinion

MEMORANDUM AND ORDER

JOHN W. LUNGSTRUM, District Judge.

This lawsuit arises from the debt collection practices of the law firm of Wolpoff & Abramson, LLP. Plaintiffs are three Chapter 7 bankruptcy trustees for three different debtors who had credit card accounts which were the subject of Wolpoff s collection efforts. On November 1, 2007, plaintiffs filed a first amended complaint in this case. This matter is currently before the court on Defendant’s Motion to Strike in Part, and Dismiss in Part, the First Amended Complaint (doc. # 35) as well as plaintiff Nazar’s Motions for Partial Summary Judgment Declaring Wolpoff & Abramson Liable for Violations of the Kansas Consumer Protection Act (docs. # 23 & # 26). For the reasons explained below, Wolpoffs motion is granted and, consequently, plaintiff Nazar’s motions are denied as moot.

PROCEDURAL BACKGROUND

The plaintiffs in this lawsuit are Edward J. Nazar in his capacity as Chapter 7 bankruptcy trustee for debtor Betty Parks, Steven L. Speth in his capacity as Chapter 7 bankruptcy trustee for debtor Audra L. Miller, and Carl B. Davis in his capacity as Chapter 7 bankruptcy trustee for debtor Connie Pontius. On February 15, 2007, the court issued a Memorandum & Order (doc. # 16) compelling arbitration of all three plaintiffs’ claims under the terms of their credit card account agreements with MBNA America Bank, NA. During discovery in the arbitration proceeding, the parties discovered that the underlying credit card agreement with Ms. Parks was actually issued by Discover Bank, not MBNA, and it contained a different arbitration provision. Plaintiff Na-zar moved for reconsideration of the court’s prior order compelling arbitration as to her claims only, and Wolpoff stated that it did not oppose the motion in light of the facts discovered after the court issued its order compelling arbitration. Consequently, on October 3, 2007, the court issued an order (doc. # 21) vacating its prior order as to plaintiff Nazar’s claims against Wolpoff because the applicable arbitration provision only permitted Ms. Parks or Discover Bank, not Wolpoff, to demand arbitration. The court referred further proceedings on plaintiff Nazar’s claims to the Honorable James P. O’Hara, United States Magistrate Judge, for pretrial proceedings.

On October 13, 2007, and October 20, 2007, plaintiff Nazar filed motions for partial summary judgment (docs. #23 & #26) in which he seeks summary judgment relating to prior arbitration proceedings initiated in November of 2003 and January of 2004 by Wolpoff on behalf of *1165 Discover Financial Services, Inc. against Ms. Parks.

On November 1, 2007, plaintiffs filed a first amended complaint (doc. # 31). Wol-poff responded by filing a motion (doc. # 35) to strike in part, and dismiss in part, the first amended complaint. Therein, Wolpoff argues that the amendments with respect to plaintiffs Speth and Davis’s claims should be stricken because the court has stayed litigation on those claims pending arbitration and Wolpoff contends that the first amended complaint violates the stay by continuing to litigate those two plaintiffs’ claims in this court. In the motion, Wolpoff further argues that the court should dismiss plaintiff Nazar’s claims on various legal grounds. And, Wolpoff asks the court to dismiss the new class action count on the ground that no suitable class representative remains.

DISCUSSION

For the reasons explained below, the court will grant Wolpoffs motion to strike as to any amendments to the complaint asserted by plaintiffs Speth and Davis, whose claims are stayed pending completion of arbitration. As to Wolpoffs motion to dismiss, the court will convert the motion to one for summary judgment and will grant summary judgment as to the claims of plaintiff Nazar on the grounds that Counts I and II are an impermissible collateral attack on the underlying arbitration awards, the equitable relief sought by plaintiff Nazar seeks an impermissible advisory ruling, and the class action claim (Count VIII) must be dismissed because it is derivative of plaintiffs’ substantive claims. In light of that ruling, plaintiff Nazar’s motions for summary judgment are denied as moot.

I. Motion to Strike

Wolpoff moves to strike the amendments set forth in plaintiffs first amended complaint insofar as they pertain to the claims of plaintiffs Speth and Davis. Wol-poff points out that the court has compelled arbitration of and stayed their claims, and it argues that any new matter asserted on their behalf in the first amended complaint violates the stay by continuing to litigate their claims in this forum. Rule 12(f) of the Federal Rules of Civil Procedure provides that the court “may strike from a pleading ... any redundant, immaterial, [or] impertinent ... matter.” Fed.R.Civ.P. 12(f). The first amended complaint is redundant insofar as it reasserts the claims originally asserted by plaintiffs Speth and Davis, and it is immaterial and impertinent insofar as it asserts any new material on behalf of Speth and Davis because their claims are stayed pending completion of arbitration. Thus, striking the first amended complaint as to their claims appears to be warranted here. Indeed, plaintiffs Speth and Davis have not filed any response to the motion to strike, and therefore the court considers it unopposed. See D. Kan. Rule 7.4 (“If a respondent fails to file a response within the time required ..., the motion will be considered and decided as an uncontested motion, and ordinarily will be granted without further notice.”). Accordingly, the court will grant Wolpoffs motion to strike the first amended complaint as to the claims of plaintiffs Speth and Davis, which include Counts III-VII.

II. Motion to Dismiss

Plaintiff Nazar’s claims against Wolpoff arise from two arbitration proceedings. In resolving Wolpoffs motion to dismiss, the court begins by noting that plaintiff Nazar attached to his response brief copies of the arbitration claims, responses, and awards from those two arbitration proceedings. With respect to doc *1166 uments that are not referred to in the complaint and/or are not central to a plaintiffs claims, it is well established that the court must convert a motion to dismiss into a motion for summary judgment if it relies upon material from outside the complaint. Burnham v. Humphrey Hospitality Reit Trust, Inc., 403 F.3d 709, 713 (10th Cir.2005). Upon converting the motion to one for summary judgment, the court “must provide the parties with notice so that all factual allegations may be met with countervailing evidence.” Id. The required notice may be actual or constructive. David v. City of Denver, 101 F.3d 1344, 1352 (10th Cir.1996). The submission of evidentiary materials by the mov-ant, the nonmovant, or both of them constitutes sufficient notice. Id.

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Bluebook (online)
530 F. Supp. 2d 1161, 2008 U.S. Dist. LEXIS 345, 2008 WL 43891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nazar-v-wolpoff-abramson-llp-ksd-2008.