Rose Marie Lawless v. T Fin. Servs., LLC

CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 30, 2025
Docket24-3735
StatusUnpublished

This text of Rose Marie Lawless v. T Fin. Servs., LLC (Rose Marie Lawless v. T Fin. Servs., LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose Marie Lawless v. T Fin. Servs., LLC, (6th Cir. 2025).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 25a0054n.06

No. 24-3735

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED Jan 30, 2025 ) ROSE MARIE LAWLESS, KELLY L. STEPHENS, Clerk ) Plaintiff-Appellant, ) ) v. ON APPEAL FROM THE UNITED ) STATES DISTRICT COURT FOR ) T. FINANCIAL SERVICES, LLC, dba THE SOUTHERN DISTRICT OF ) Trinity Financial Services, LLC, OHIO ) OPINION Defendant-Appellee. ) )

Before: CLAY, GIBBONS, and STRANCH, Circuit Judges.

JANE B. STRANCH, Circuit Judge. Rose Marie Lawless sued Trinity Financial

Services, LLC (“Trinity”) for violating several state and federal consumer protections laws. The

district court at summary judgment dismissed Lawless’s federal claims for lack of standing and

declined to exercise jurisdiction over her state claims. Lawless now appeals the decision on the

grounds that she has standing to sue under the Fair Debt Collection Practices Act, 15 U.S.C.

§ 1692, et seq. (the “FDCPA”). For the reasons stated below, we AFFIRM the district court’s

order.

I. BACKGROUND

In May 2003, Rose Marie Lawless took out a second mortgage on her Ohio home to secure

a loan for $28,000 (the “Loan”). Lawless acknowledges that she stopped making payments

altogether in 2013 or 2014. In October 2018, Trinity became the owner of the Loan and filed an

action to foreclose its mortgage in an Ohio Court (“Foreclosure Action”) the following month. No. 24-3735, Lawless v. Trinity Fin. Servs., LLC

However, in December 2019, Trinity’s attorneys failed to appear at trial, and the Foreclosure

Action was dismissed without prejudice. By that time, Lawless had paid her attorneys $6,685.00

to defend against the Foreclosure Action and incurred another $6,715.00 in outstanding attorney’s

fees and costs. Lawless also suffered from severe stress, exacerbating her diabetes, which was

further worsened by the embarrassment she felt from receiving daily telephone calls, text

messages, and letters from third parties aware of the Foreclosure Action expressing interest in

buying her home.

While the Foreclosure Action was pending, Lawless filed the instant action asserting claims

under several federal and state consumer protection laws including the FDCPA. Lawless alleges

that Trinity violated these laws by filing and pursuing the Foreclosure Action and by failing to

respond to certain letters her attorneys sent requesting information regarding her mortgage. On

July 18, 2024, the district court granted Trinity’s motion for summary judgment, dismissing

Lawless’s federal claims for lack of standing and declining to continue exercising supplemental

jurisdiction over her state law claims. Lawless timely appealed that order on the grounds that the

district court improperly dismissed her FDCPA claim for failure to demonstrate an injury in fact.

II. ANALYSIS

Standing determinations are reviewed de novo. Shearson v. Holder, 725 F.3d 588, 592

(6th Cir. 2013) (citing Pedreira v. Ky. Baptist Homes for Children, Inc., 579 F.3d 722, 728 (6th

Cir. 2009)). To establish standing, a plaintiff must show (1) that she has suffered an injury in fact;

(2) that her injury was caused by the defendant’s conduct; and (3) that it is likely that the injury

will be redressed by a favorable court decision. Nikolao v. Lyon, 875 F.3d 310, 315–16 (6th Cir.

2017) (citing Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–61 (1992)). Because standing doctrine

comes from Article III’s case-or-controversy requirement, it is jurisdictional and must be

-2- No. 24-3735, Lawless v. Trinity Fin. Servs., LLC

addressed. Kanuszewski v. Mich. Dep’t of Health & Hum. Servs., 927 F.3d 396, 405 (6th Cir.

2019) (citing Nikolao, 875 F.3d at 315). At summary judgment, a plaintiff must establish each of

the above elements “by affidavit or other evidence specific facts.” Clapper v. Amnesty Int’l USA,

568 U.S. 398, 411–12 (2013) (internal quotation marks and citation omitted).

On appeal, Lawless argues that the district court erred when it determined that she lacked

standing to bring her FDCPA claim because the “[c]osts, attorney’s fees, and emotional harm

incurred while defending against a foreclosure action are not the sorts of injuries that confer

standing on a plaintiff seeking to recover damages against a mortgage company under the federal

and state consumer laws relied upon in this case.” R. 45, PageID 1355.

On this point, Lawless is correct. The FDCPA is an “extraordinarily broad statute”

intended to protect consumers from unscrupulous debt collection practices wherever they might

be found—including unscrupulous practices involving litigation. Stratton v. Portfolio Recovery

Assocs., LLC, 770 F.3d 443, 449–50 (6th Cir. 2014) (quoting Frey v. Gangwish, 970 F.2d 1516,

1521 (6th Cir. 1992)). Where a plaintiff like Lawless seeks to recover for attorney’s fees incurred

in separate foreclosure proceedings, we have squarely held that those fees “constitute a concrete,

particularized injury.” Hurst v. Caliber Home Loans, Inc., 44 F.4th 418, 423–24 (6th Cir. 2022);

see also Bouye v. Bruce, 61 F.4th 485, 490 (6th Cir. 2023) (applying Hurst to an FDCPA claim).

Several district courts in this circuit have also held that personal humiliation, embarrassment,

mental anguish, and emotional distress are all cognizable injuries under the FDCPA. See Buchholz

v. Meyer Njus Tanick, PA, 946 F.3d 855, 863 (6th Cir. 2020) (collecting cases involving FDCPA

claims). At summary judgment, Lawless presented invoices for the several thousands of dollars

in attorney’s fees she incurred defending against the Foreclosure Action and testimony laying out

-3- No. 24-3735, Lawless v. Trinity Fin. Servs., LLC

the emotional toll that the Foreclosure Action precipitated. The district court should have

considered these injuries on their merits.

But an injury in fact is only the first requirement for standing, and, while the district court

stopped its analysis there, this court has an independent duty to determine whether standing exists.

Kanuszewski, 927 F.3d at 405. To satisfy the second standing requirement, a plaintiff must show

“a fairly traceable connection between the plaintiff’s injury and the complained-of conduct of the

defendant.” Buchholz, 946 F.3d at 866 (quoting Steel Co. v. Citizens for a Better Env’t, 523 U.S.

83, 103 (1998)). “[I]f the plaintiff caused h[er] own injury, [s]he cannot draw a connection

between that injury and the defendant’s challenged conduct.” Id.

Relying primarily on Buchholz, Trinity argues that the attorneys’ fees that Lawless incurred

are not fairly traceable to her FDCPA claims because Trinity was entitled to bring the Foreclosure

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Related

Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Vicki Frey v. Richard J. Gangwish II
970 F.2d 1516 (Sixth Circuit, 1992)
Clapper v. Amnesty International USA
133 S. Ct. 1138 (Supreme Court, 2013)
Julia Shearson v. Eric Holder, Jr.
725 F.3d 588 (Sixth Circuit, 2013)
Steel Co. v. Citizens for a Better Environment
523 U.S. 83 (Supreme Court, 1998)
Stratton v. Portfolio Recovery Associates, LLC
770 F.3d 443 (Sixth Circuit, 2014)
Tara Nikolao v. Nick Lyon
875 F.3d 310 (Sixth Circuit, 2017)
Gustav Buchholz v. Meyer Njus Tanick, PA
946 F.3d 855 (Sixth Circuit, 2020)
Cynthia Hurst v. Caliber Home Loans, Inc.
44 F.4th 418 (Sixth Circuit, 2022)

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Bluebook (online)
Rose Marie Lawless v. T Fin. Servs., LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-marie-lawless-v-t-fin-servs-llc-ca6-2025.