(PS) Robinson v. Carmax Auto Finance, LLC

CourtDistrict Court, E.D. California
DecidedMay 8, 2025
Docket2:24-cv-02795
StatusUnknown

This text of (PS) Robinson v. Carmax Auto Finance, LLC ((PS) Robinson v. Carmax Auto Finance, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
(PS) Robinson v. Carmax Auto Finance, LLC, (E.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 ANTHONY ROBINSON, JR., Case No. 2:24-cv-2795-DJC-CSK 12 Plaintiff, FINDINGS AND RECOMMENDATIONS 13 v. 14 CARMAX AUTO FINANCE, LLC, et al., (ECF Nos. 1, 2) 15 Defendants. 16 17 Plaintiff Anthony Robinson, Jr. is representing himself in this action and seeks 18 leave to proceed in forma pauperis (“IFP”) pursuant to 28 U.S.C. § 1915.1 (ECF No. 2.) 19 For the reasons that follow, the Court recommends Plaintiff’s IFP application be denied, 20 and the Complaint be dismissed with leave to amend. 21 I. MOTION TO PROCEED IN FORMA PAUPERIS 22 28 U.S.C. § 1915(a) provides that the court may authorize the commencement, 23 prosecution or defense of any suit without prepayment of fees or security “by a person 24 who submits an affidavit stating the person is “unable to pay such fees or give security 25 therefor.” This affidavit is to include, among other things, a statement of all assets the 26 person possesses. Id. The IFP statute does not itself define what constitutes insufficient 27 1 This matter proceeds before the undersigned pursuant to 28 U.S.C. § 636, Fed. R. 28 Civ. P. 72, and Local Rule 302(c). 1 assets. See Escobedo v. Applebees, 787 F.3d 1226, 1234 (9th Cir. 2015). In Escobedo, 2 the Ninth Circuit stated that an affidavit in support of an IFP application is sufficient 3 where it alleges that the affiant cannot pay court costs and still afford the necessities of 4 life. Id. “One need not be absolutely destitute to obtain benefits of the in forma pauperis 5 statute.” Id. Nonetheless, a party seeking IFP status must allege poverty “with some 6 particularity, definiteness and certainty.” Id. According to the United States Department 7 of Health and Human Services, the current poverty guideline for a household of one (not 8 residing in Alaska or Hawaii) is $15,650.00. See U.S. Dpt. Health & Human Service 9 (available at https://aspe.hhs.gov/poverty-guidelines). 10 Here, Plaintiff’s IFP application does not make the financial showing required by 11 28 U.S.C. § 1915(a). Plaintiff’s affidavit indicates he has a monthly gross income of 12 $3,000, i.e., $36,000 annually, with a monthly net income of $2,737.50. See ECF No. 2 13 at 1, ¶ 2. Plaintiff states he has $75 in liquid assets and has monthly expenses of 14 approximately $800.2 Id. at 2, ¶¶ 4, 6. Thus, Plaintiff’s gross household income is close 15 to double the 2025 poverty guideline. Further, and more importantly, Plaintiff’s gross 16 income-to-expense ratio leaves him, on average, with approximately $2,200 per month 17 in expendable income. Given this, the Court cannot find Plaintiff unable to pay. See 18 Escobedo, 787 F.3d at 1234. While the Court is sympathetic to Plaintiff’s situation, he is 19 not indigent and numerous litigants in this court have significant monthly expenditures. 20 Thus, the Court recommends Plaintiff’s IFP motion be denied. See Tripati v. Rison, 847 21 F.2d 548 (9th Cir. 1988) (absent consent of all parties, magistrate judge lacks authority 22 to issue dispositive order denying in forma pauperis status). 23 II. SCREENING REQUIREMENT 24 Even if the Court were to grant Plaintiff’s IFP application, Plaintiff’s Complaint 25 warrants dismissal pursuant to 28 U.S.C. § 1915(e)’s required pre-answer screening. 26

27 2 Plaintiff indicates he has other debts and financial obligations but does not provide additional information regarding the amounts. See ECF No. 2 at 2, ¶ 8. Accordingly, the 28 Court did not consider these debts in its calculations. 1 Pursuant to 28 U.S.C. § 1915(e), the court must screen every in forma pauperis 2 proceeding, and must order dismissal of the case if it is “frivolous or malicious,” “fails to 3 state a claim on which relief may be granted,” or “seeks monetary relief against a 4 defendant who is immune from such relief.” 28 U.S.C. § 1915(e)(2)(B); Lopez v. Smith, 5 203 F.3d 1122, 1126-27 (2000) (en banc). A claim is legally frivolous when it lacks an 6 arguable basis either in law or in fact. Neitzke v. Williams, 490 U.S. 319, 325 (1989). In 7 reviewing a complaint under this standard, the court accepts as true the factual 8 allegations contained in the complaint, unless they are clearly baseless or fanciful, and 9 construes those allegations in the light most favorable to the plaintiff. See id. at 326-27; 10 Von Saher v. Norton Simon Museum of Art at Pasadena, 592 F.3d 954, 960 (9th Cir. 11 2010), cert. denied, 564 U.S. 1037 (2011). 12 Pleadings by self-represented litigants are liberally construed. Hebbe v. Pliler, 627 13 F.3d 338, 342 & n.7 (9th Cir. 2010) (liberal construction appropriate even post-Iqbal). 14 However, the court need not accept as true conclusory allegations, unreasonable 15 inferences, or unwarranted deductions of fact. Western Mining Council v. Watt, 643 F.2d 16 618, 624 (9th Cir. 1981). A formulaic recitation of the elements of a cause of action does 17 not suffice to state a claim. Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555-57 (2007); 18 Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 19 To state a claim on which relief may be granted, the plaintiff must allege enough 20 facts “to state a claim to relief that is plausible on its face.” Twombly, 550 U.S. at 570. “A 21 claim has facial plausibility when the plaintiff pleads factual content that allows the court 22 to draw the reasonable inference that the defendant is liable for the misconduct alleged.” 23 Iqbal, 556 U.S. at 678. A pro se litigant is entitled to notice of the deficiencies in the 24 complaint and an opportunity to amend unless the complaint’s deficiencies could not be 25 cured by amendment. See Lopez, 203 F.3d at 1130-31; Cahill v. Liberty Mut. Ins. Co., 80 26 F.3d 336, 339 (9th Cir. 1996). 27 The Court is required to deny an IFP application when the complaint fails to state 28 a claim. 28 U.S.C. § 1915(e)(2). Because the Court finds the Complaint fails to state a 1 claim, as set forth below, Plaintiff’s IFP application should also be denied on this basis. 2 Although the Court finds that the Complaint should be dismissed, it recommends that 3 leave to amend be granted. See Lopez, 203 F.3d at 1127-28. 4 III. THE COMPLAINT 5 Plaintiff brings this action against Defendants CarMax Auto Finance, LLC, Bill 6 Nash (CEO), Enrique Mayor-Mora (CFO), and Tom Folliard (Chairman of the Board). 7 Compl. at 1-2 (ECF No. 1). Plaintiff alleges that on August 11, 2022, Plaintiff purchased 8 a car from Defendant CarMax Auto Finance and entered into a “Retail Installment Sales 9 Contract” with Defendant CarMax Auto Finance to finance the vehicle. Id. at 2.

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Bluebook (online)
(PS) Robinson v. Carmax Auto Finance, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ps-robinson-v-carmax-auto-finance-llc-caed-2025.