Palmer v. American Express

District Court, E.D. Michigan·Decided May 8, 2025·No. 4:24-cv-12393·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

BRANDON TYRONE PALMER,

Plaintiff, Case No. 4:24-cv-12393 v. District Judge F. Kay Behm Magistrate Judge Anthony P. Patti AMERICAN EXPRESS,

Defendant. ___________________________________/

MAGISTRATE JUDGE’S REPORT AND RECOMMENDATION TO GRANT DEFENDANT’S MOTION (ECF No. 38) TO DISMISS PLAINTIFF’S THIRD AMENDED COMPLAINT (ECF No. 35)

I. RECOMMENDATION: The Court should GRANT Defendant’s motion (ECF No. 38) to dismiss Plaintiff’s third amended complaint (ECF No. 35) and dismiss this matter with prejudice. II. REPORT:

It appears that Brandon Tyrone Palmer has filed three other lawsuits before this Court.1 This report and recommendation concerns only Case No. 4:24-cv-

1 See, e.g., Palmer v. Bokani Property Management Group, Case No. 2:23-cv- 12961-MFL-EAS (E.D. Mich. May 22, 2024) (dismissing complaint for failure to comply with the Court’s February 1 order); Palmer v. Security Credit Union, Case No. 2:24-cv-12575-GAD-APP (E.D. Mich. Mar. 11, 2025) (granting in forma pauperis application and dismissing case under 28 U.S.C. § 1915(e)(2)); and, Palmer v. Crosscountry Mortgage, 2:24-cv-13457-RJW-CI (E.D. Mich. Jan. 8, 2025) (granting in forma pauperis application and dismissing without prejudice for failure to state a claim for relief). 12393-FKB-APP (E.D. Mich.), which Plaintiff initiated on September 11, 2024 solely against Defendant American Express.

A. The Court construes Plaintiff’s January 30, 2025 third amended complaint (ECF No. 35) as the operative pleading.

This is a Consumer Credit Protection Act (CCPA) case. See 15 U.S.C. §§ 1601-1693r.2 Plaintiff initiated this fee-paid matter, alleging that he “has a right to credit pursuant to” 15 U.S.C. § 1602. (ECF No. 1, PageID.5.) On September 19, 2024, he filed a first amended complaint (FAC), though there were few appreciable differences from the prior version. (Compare ECF No. 1, PageID.5-6, 11; with ECF No. 8, PageID.40-41, 46.) Following the Court’s December 2024 order, which, inter alia, granted

Defendant’s motion to set aside Clerk’s entry of default (see ECF No. 31, PageID.163-166), Plaintiff filed a second amended complaint (SAC) (ECF No. 34) and a third amended complaint (TAC) (ECF No. 35). (See also ECF No. 37.) It

appears the only difference between the SAC and the TAC is the latter’s addition

2 The Consumer Credit Protection Act (CCPA), 15 U.S.C. §§ 1601-1693r, is comprised of statutes related to: (1) consumer credit cost disclosure (§§ 1601- 1667f), also known as the Truth in Lending Act; (2) restrictions on garnishment (§§ 1671-1677); (2a) credit repair organizations (§§ 1679-1679j); (3) credit reporting agencies (§§ 1681-1681x); (4) equal credit opportunity (§§ 1691-1691f), i.e., the Equal Credit Opportunity Act; (5) debt collection practices (§§ 1692- 1692p); and, (6) electronic fund transfers (§§ 1693-1693r). of Exhibit H. (See ECF No. 35, PageID.232-233.) (See also ECF No. 42 [Addendum to Complaint].)

B. Pending Motion Judge Behm has referred this case to me for pretrial matters. (ECF No. 29.) Currently pending before the Court is Defendant American Express’s February 7,

2025 motion (ECF No. 38) to dismiss Plaintiff’s January 30, 2025 TAC (ECF No. 35). (See also ECF No. 39 [Certificate of Service], ECF No. 42 [Addendum to Complaint].) Plaintiff’s response was due on March 18, 2025. (ECF No. 40.) On February 11, 2025, Plaintiff filed what has since been characterized as a

response (ECF No. 41), and Defendant filed a reply on February 25, 2025 (ECF No. 43). (See also ECF No. 53.) Thus, this matter is now ready for decision.3 C. Fed. R. Civ. P. 12

Defendant’s motion to dismiss is based upon Fed. R. Civ. P. 12(b)(6). (ECF No. 38, PageID.240, 258-259.) When deciding a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the Court must “construe the complaint in the light most favorable to plaintiff and accept all allegations as true.” Keys v.

Humana, Inc., 684 F.3d 605, 608 (6th Cir. 2012). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim

3 Also pending before the Court is Defendant’s April 21, 2025 motion for sanctions (ECF No. 54), as to which Plaintiff’s response is due on May 16, 2025 (ECF No. 55). The sanctions motion will be addressed under separate cover. to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal quotation omitted); see also Bell Atl. Corp. v. Twombly, 550 U.S. 544,

555 (2007) (concluding that a plausible claim need not contain “detailed factual allegations,” but it must contain more than “labels and conclusions” or “a formulaic recitation of the elements of a cause of action”). Facial plausibility is

established “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. “The plausibility of an inference depends on a host of considerations, including common sense and the strength of competing

explanations for the defendant’s conduct.” 16630 Southfield Ltd., P’Ship v. Flagstar Bank, F.S.B., 727 F.3d 502, 503 (6th Cir. 2013). Furthermore, the Court holds pro se complaints to “less stringent standards

than formal pleadings drafted by lawyers.” Haines v. Kerner, 404 U.S. 519, 520 (1972). However, even in pleadings drafted by pro se parties, ‘“courts should not have to guess at the nature of the claim asserted.”’ Frengler v. Gen. Motors, 482 F. App’x 975, 976-77 (6th Cir. 2012) (quoting Wells v. Brown, 891 F.2d 591, 594

(6th Cir. 1989)). Moreover, “courts may not rewrite a complaint to include claims that were never presented . . . nor may courts construct the Plaintiff’s legal arguments for him. Neither may the Court ‘conjure up unpled allegations[.]’” Rogers v. Detroit Police Dept., 595 F.Supp.2d 757, 766 (E.D. Mich. 2009) (Ludington, J., adopting report and recommendation of Binder, M.J.).4

D. Discussion 1. Factual allegations It appears Plaintiff’s FICO score was 530 on June 5, 2024. (ECF No. 35,

PageID.215.)5 A few days later, on June 9, 2024, American Express wrote to Plaintiff to let him know that it could not approve his application at that time. (Id.) Plaintiff wrote to Defendant’s Chief Financial Officer (CFO) on July 17, 2024, labeled a “notice of claim to interest,” and on July 26, 2024, labeled an

“opportunity to cure.” (ECF No. 35, PageID.210-211, 216, 219-220.)6 In a letter dated July 29, 2024, American Express wrote to Plaintiff, explaining that its decision “remains unchanged.” (ECF No.

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