Saechao v. Prime Recovery LLC

CourtDistrict Court, E.D. California
DecidedMay 26, 2020
Docket2:19-cv-01723
StatusUnknown

This text of Saechao v. Prime Recovery LLC (Saechao v. Prime Recovery 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
Saechao v. Prime Recovery LLC, (E.D. Cal. 2020).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 MEY SAECHAO, No. 2:19-cv-1723 KJM DB 12 Plaintiff, 13 v. FINDINGS AND RECOMMENDATIONS 14 PRIME RECOVERY LLC a/k/a PRIME RECOVERY SOLUTIONS, 15 16 Defendant. 17 18 This matter came before the undersigned on December 13, 2019, pursuant to Local Rule 19 302(c)(19), for hearing of plaintiff’s motion for default judgment. (ECF No. 12.) Attorney Majdi 20 Hijazin appeared telephonically on behalf of the plaintiff. No appearance was made on behalf of 21 the defendant. At that time, oral argument was heard and the motion was taken under submission. 22 Having considered all written materials submitted with respect to the motion, and after 23 hearing oral argument, the undersigned recommends that the motion for default judgment be 24 granted as explained below. 25 BACKGROUND 26 Plaintiff commenced this action on August 30, 2019, by filing a complaint and paying the 27 required filing fee. (ECF No. 1.) Therein, plaintiffs allege that defendant Prime Recovery LLC 28 a\k\a Prime Recovery Solutions, (“Prime Recovery”), called plaintiff—a consumer and 1 Sacramento resident—“on no less than 10 occasions” in an effort to collect a debt beginning in 2 April of 2019. (Compl. (ECF No. 1) at 2-3.1) Defendant’s calls included threats of a court 3 judgment, wage garnishment, and arrest. (Id.) Defendant also contacted plaintiff’s employer and 4 co-workers. (Id.) Defendant’s calls continued into July of 2019. (Id.) The complaint alleges that 5 defendant’s conduct violated the Fair Debt Collections Practices Act, (“FDCPA”), and 6 California’s Rosenthal Fair Debt Collections Practices Act, (“RFDCPA”). (Id. at 5-14.) The 7 complaint seeks damages, costs, attorney’s fees, and injunctive relief. (Id. at 14-15.) 8 On September 11, 2019, plaintiff filed proof of service on defendant. (ECF No. 6.) On 9 October 25, 2019, plaintiff filed a request for entry of defendant’s default. (ECF No. 7.) The 10 Clerk of the Court entered defendant’s default on October 28, 2019. (ECF No. 8.) 11 On November 15, 2019, plaintiff filed the pending motion for default judgment. (ECF 12 No. 10.) The motion for default judgment seeks statutory damages, costs, and attorney’s fees. 13 (Id. at 3-4.) The matter came before the undersigned on December 13, 2019, for hearing. (ECF 14 No. 12.) Despite being served with notice of the motion and hearing there was no appearance on 15 behalf of the defendant and defendant did not file an opposition to the motion for default 16 judgement. (ECF No. 10 at 5.) 17 LEGAL STANDARD 18 Federal Rule of Civil Procedure 55(b)(2) governs applications to the court for default 19 judgment. Upon entry of default, the complaint’s factual allegations regarding liability are taken 20 as true, while allegations regarding the amount of damages must be proven. Dundee Cement Co. 21 v. Howard Pipe & Concrete Prods., 722 F.2d 1319, 1323 (7th Cir. 1983) (citing Pope v. United 22 States, 323 U.S. 1 (1944); Geddes v. United Fin. Group, 559 F.2d 557 (9th Cir. 1977)); see also 23 DirectTV v. Huynh, 503 F.3d 847, 851 (9th Cir. 2007); TeleVideo Sys., Inc. v. Heidenthal, 826 24 F.2d 915, 917-18 (9th Cir. 1987). 25 Where damages are liquidated, i.e., capable of ascertainment from definite figures 26 contained in documentary evidence or in detailed affidavits, judgment by default may be entered 27 1 Page number citations such as this one are to the page number reflected on the court’s CM/ECF 28 system and not to page numbers assigned by the parties. 1 without a damages hearing. Dundee, 722 F.2d at 1323. Unliquidated and punitive damages, 2 however, require “proving up” at an evidentiary hearing or through other means. Dundee, 722 3 F.2d at 1323-24; see also James v. Frame, 6 F.3d 307, 310-11 (5th Cir. 1993). 4 Granting or denying default judgment is within the court’s sound discretion. Draper v. 5 Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986); Aldabe v. Aldabe, 616 F.2d. 1089, 1092 (9th Cir. 6 1980). The court is free to consider a variety of factors in exercising its discretion. Eitel v. 7 McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). Among the factors that may be considered by 8 the court are 9 (1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiff’s substantive claim, (3) the sufficiency of the complaint, (4) 10 the sum of money at stake in the action; (5) the possibility of a dispute concerning material facts; (6) whether the default was due to 11 excusable neglect, and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits. 12 13 Eitel, 782 F.2d at 1471-72 (citing 6 Moore’s Federal Practice ¶ 55-05[2], at 55-24 to 55-26). 14 ANALYSIS 15 A. Appropriateness of the Entry of Default Judgment under the Eitel Factors 16 Plaintiff’s motion for default judgement seeks judgement on the complaint’s claims that 17 the defendant’s conduct violated the FDCPA and RFDCPA. (Pl.’s MDJ (ECF No. 10) at 2-4.) 18 The factual allegations of plaintiff’s complaint are taken as true pursuant to the entry of default 19 against the defendant. 20 1. Factor One: Possibility of Prejudice to Plaintiff 21 The first Eitel factor considers whether plaintiff would suffer prejudice if default 22 judgment is not entered. When a defendant has failed to appear and defend the claims, a plaintiff 23 will be without recourse and suffer prejudice unless default judgment is entered. Vogel v. Rite 24 Aid Corp., 992 F.Supp.2d 998, 1007 (C.D. Cal. 2014) (granting a default judgement for a 25 disabled plaintiff suing under the ADA and Unruh Act, relying upon this rationale). 26 Here, the defendant has failed to appear and defend against plaintiff’s claims. Absent 27 entry of default judgement, plaintiff would likely be without recourse against the defendant. 28 //// 1 Because plaintiff will suffer prejudice if plaintiff is without recourse, this factor weighs in favor 2 of entry of default judgment. 3 2. Factors Two and Three: The Merits of Plaintiff’s Substantive Claims and the 4 Sufficiency of the Complaint 5 The second and third factors are (1) the merits of plaintiff’s substantive claim, and (2) the 6 sufficiency of the complaint. Eitel, 782 F.2d at 1471-72. Thus, the second and third Eitel factors 7 require plaintiff to state a claim on which plaintiff can recover. PepsiCo, Inc. v. California 8 Security Cans, 238 F.Supp.2d, 1172, 1175 (2002); see Danning v. Lavine, 572 F.2d 1386, 1388 9 (9th Cir. 1978). Given the close relationship between the two inquiries, factors two and three are 10 considered together. 11 As mentioned above, plaintiff seek default judgment on claims that the defendant violated 12 the FDCPA and RFDCPA. “The FDCPA was enacted as a broad remedial statute designed to 13 ‘eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors 14 who refrain from using abusive debt collection practices are not competitively disadvantaged, and 15 to promote consistent State action to protect consumers against debt collection abuses.’” 16 Gonzales v.

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Bluebook (online)
Saechao v. Prime Recovery LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saechao-v-prime-recovery-llc-caed-2020.