NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC

CourtDistrict Court, D. New Jersey
DecidedAugust 30, 2021
Docket2:20-cv-20190
StatusUnknown

This text of NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC (NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC, (D.N.J. 2021).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

TODD M. NORTH, individually and on behalf of all others similarly situated,

Plaintiff, Case No. 2:20-cv-20190 (BRM) (JSA)

v. OPINION

PORTFOLIO RECOVERY ASSOCIATES, LLC; and JOHN DOES 1 to 10,

Defendants.

MARTINOTTI, DISTRICT JUDGE Before this Court is Plaintiff Todd M. North’s (“Plaintiff”) Second Motion to Remand this action to the Superior Court of New Jersey, Law Division, Essex County. (ECF No. 2.) Defendants Portfolio Recovery Associates, LLC and John Does 1 to 10 (collectively, “Defendants”) opposed (ECF No. 5), Plaintiff replied (ECF No. 6), and Defendants filed a sur-reply (ECF No. 7). Having reviewed the parties’ submissions filed in connection with the Motion and having declined to hold oral argument pursuant to Federal Rule of Civil Procedure 78(b), for the reasons set forth below and for good cause shown, Plaintiff’s Motion to Remand is DENIED. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY1 The Court previously summarized the facts underlying this dispute in a May 6, 2020 Opinion granting Plaintiff’s first motion to remand. (See 2:19-cv-17972-BRM-JAD, ECF No. 18.) The Court therefore includes an abbreviated statement of the factual and procedural history to the

extent such background is relevant to the instant motion. This case arises from Defendants’ attempts to collect a debt owed by Plaintiff. (See ECF No. 1-1.) On August 6, 2019, Plaintiff filed a putative class-action Complaint in the Superior Court of New Jersey, Law Division, Essex County asserting three claims against Defendants for violations of the New Jersey Consumer Fraud Act, N.J. Stat. Ann. § 56:8, et seq. (the “CFA”), the New Jersey Consumer Finance Licensing Act, N.J. Stat. Ann. § 17:11C, et seq. (the “Licensing Act”), and for unjust enrichment. (Id. ¶¶ 55–83.) Plaintiff defines the class and subclass as: Class: All natural persons with addresses in the State of New Jersey who are listed as the borrower or purchaser in an account assigned to Portfolio Recovery Associates, LLC, or any of its sister or parent entities, at any time prior to the date the respective entity obtained a license to engage in business as a “sales finance company” or a “consumer lender” pursuant to the CFLA, at N.J.S.A. 17:11C-3.

Subclass: All members of the Class who paid any money or from whom Portfolio Recovery Associates, LLC, or any of its sister or parent entities, directly or indirectly through its agents, collected any money on the assigned account.

(Id. ¶ 41.)

On September 13, 2019, Defendants first removed the action to federal court on grounds of diversity jurisdiction pursuant to 28 U.S.C. § 1332, which provides federal courts with

1 “For purposes of the pending motion [to remand], the Court accepts as true the version of events set forth in Plaintiff[’s] Complaint.” Portillo v. Nat’l Freight, Inc., 169 F. Supp. 3d 585, 590 n.3 (D.N.J. 2016) (citing Schmidt v. Skolas, 770 F.3d 241, 249 (3d Cir. 2014)). jurisdiction over “all civil actions where the matter in controversy exceeds the sum or value of $75,000 . . . and is between . . . citizens of different States.” (2:19-cv-17972-BRM-JAD, ECF No. 1-2 ¶ 8.) On October 2, 2019, Plaintiff moved to remand the action to state court. (2:19-cv-17972- BRM-JAD, ECF No. 5.) On May 6, 2020, the Court granted Plaintiff’s motion to remand, citing

the amount in controversy requirement had not been satisfied. (2:19-cv-17972-BRM-JAD, ECF No. 18 at 5, “the Court is not persuaded Portfolio Recovery has met its burden of showing the amount in controversy to be greater than the $75,000.00, which also is required by § 1332.”) On December 22, 2020, Defendants, for the second time, removed this action to federal court, now alleging this Court has jurisdiction pursuant to the Class Action Fairness Act of 2005 (“CAFA”), 28 U.S.C. § 1332(d)(11) and arguing, inter alia, (1) CAFA’s jurisdictional requirements have been satisfied; and (2) removal is timely. (ECF No. 1 at 3–6.) On January 21, 2021, Plaintiff filed a Motion to Remand arguing, inter alia, (1) Defendants’ Notice of Removal is untimely as it was filed more than thirty days after it was aware the Court had CAFA jurisdiction; and (2) this Court lacks jurisdiction over this matter pursuant to the Rooker-Feldman doctrine.

(ECF No. 2-1 at 12–19.) On February 16, 2021, Defendants filed an opposition to the Motion to Remand. (ECF No. 5.) On February 22, 2021, Plaintiff filed a reply in support of the Motion to Remand. (ECF No. 6.) On February 26, 2021, Defendants filed a Motion for Leave to File a Sur- Reply in Opposition to the Motion to Remand (ECF No. 7), which, on March 30, 2021, the Court granted (ECF No. 11). II. LEGAL STANDARD “Federal courts are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute.” Kokkoken v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). A defendant may remove any civil action over which a federal court would have original jurisdiction. 28 U.S.C. § 1441(a); City of Chi. v. Int’l Coll. of Surgeons, 522 U.S. 156, 163 (1997) (“The propriety of removal . . . depends on whether the case originally could have been filed in federal court.”); Penn v. Wal-Mart Stores, 116 F. Supp. 2d 557, 561 (D.N.J. 2000). Original jurisdiction exists where a plaintiff’s well-pleaded complaint presents a federal question under 28

U.S.C. § 1331 or there is diversity of citizenship under 28 U.S.C. § 1332. See Caterpillar Inc. v. Williams, 482 U.S. 386, 392 (1987). Diversity jurisdiction, in turn, exists where “the matter in controversy [for each plaintiff] exceeds the sum or value of $75,000” and all plaintiffs are “citizens of different States” than all defendants, i.e., there is complete diversity. 28 U.S.C. § 1332(a); see also Swiger v. Allegheny Energy, Inc., 540 F.3d 179, 181–82 (3d Cir. 2008). As a result of these requirements, however, “many” early class actions could not be litigated in federal courts, “even if those actions implicated matters of national importance affecting millions of parties from many different states.” Kaufman v. Allstate N.J. Ins. Co., 561 F.3d 144, 148 (3d Cir. 2009). Congress therefore enacted CAFA in 2005, authorizing “[f]ederal court consideration of interstate cases of national importance” under a less stringent jurisdictional

threshold than § 1332(a). Standard Fire Ins. Co. v. Knowles, 568 U.S. 588, 595 (2013); see also Farina v. Nokia Inc., 625 F.3d 97, 110 (3d Cir. 2010).

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NORTH v. PORTFOLIO RECOVERY ASSOCIATES, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-v-portfolio-recovery-associates-llc-njd-2021.