Savino v. Computer Credit, Inc.

173 F.R.D. 346, 38 Fed. R. Serv. 3d 872, 1997 U.S. Dist. LEXIS 8191, 1997 WL 314917
District Court, E.D. New York·Decided June 7, 1997·No. No. CV 95-4446 (ADS)·Published·Cited by 39 cases

Opinion

SPATT, District Judge.

This action arises from the claims of the plaintiff, Frank Savino (“Savino” or the “plaintiff’), on behalf of putative class, that the defendant, Computer Credit, Inc. (“CCI” or the “defendant”), has acted in violation of the Fair Debt Collection Practices Act (“FDCPA” or the “Act”), 15 U.S.C. § 1692, et seq., in its capacity as a collection agency, by mailing letters which contain language contrary to the statute’s requirements. According to Savino, CCI has mailed these unlawful letters to 300,000 people within New York State. Presently before the Court is the plaintiffs motion for class certification.

I. Background

The plaintiff is a resident of Hauppauge, New York. The defendant is a debt collection agency with its principal place of business in Winston-Salem, North Carolina. According to the original complaint, dated October 22, 1995, the plaintiff received a letter from the defendant dated August 28, 1995, the purpose of which was to collect an alleged debt of $153.00 owed to North Shore Hospital. In this pleading Savino alleged that this August 28, 1995 letter was the “first and only letter” that he received with respect to the debt. Compl. ¶ 8 (emphasis in original). The complaint continued by claiming that this letter failed to advise the plaintiff of “his right to validate and dispute the alleged debt” within 30 days and that CCI applied “false, deceptive and misleading means in connection with the collection” of the alleged debt, all in violation of the FDCPA. Compl. ¶¶ 9, 10. In addition, Savino asserts that he is acting [349]*349on behalf of a class of similarly situated consumers whose rights have been violated.

By notice of motion dated August 12,1996, the plaintiff moved for leave to file an amended complaint. According to the moving papers, after this action was commenced, plaintiffs counsel was advised that his client had been sent a prior letter by CCI dated August 14, 1995 with regard to the aforementioned debt. Based on this representation, and the recently issued decision from the Second Circuit, Russell v. Equifax A.R.S., 74 F.3d 30 (2d Cir.1996), the plaintiff decided that it would be appropriate to file an amended complaint. Initially Savino attempted to obtain the defendant’s consent to file the amended pleading. CCI refused. Accordingly, the plaintiff filed the appropriate motion pursuant to Fed.R.Civ.P. 15(a).

The only substantive difference between the original and proposed amended complaint was that in addition to asserting that the August 28, 1995 letter was the first correspondence received, Savino alleged that, “[u]pon information and belief, CCI mailed an earlier letter to Savino, dated August 14, 1995, which was the first communication by CCI to Savino, or at least, CCI’s first letter to Savino.” Am. Compl. ¶ 10. The proposed amended complaint continued by claiming that while this letter did contain the required 30 day debt validation notice, it nevertheless violated the FDCPA “by containing language that overshadows, contradicts or is otherwise inconsistent with Savino’s right to a 30 day statutory period in which to validate and [sic] dispute the alleged debt....” Am. Compl. ¶ 11.

By order dated September 18, 1996, this Court referred the motion for leave to file an amended complaint to United States Magistrate Judge Arlene R. Lindsay to render a decision. A report and recommendation would be necessary only if the decision was dispositive as to any claim or issue in the action.

By memorandum order dated November 7, 1996, Judge Lindsay granted the plaintiffs motion and the proposed amended complaint was deemed filed. The defendant did not file any objections to this order. On November 13, 1996, at a conference before Judge Lindsay, the plaintiff discontinued his claim based on the August 28,1995 letter.

On February 20, 1997 at his deposition, Savino admitted that he received the August 14, 1995 letter. The following day, the plaintiff moved for leave to file a second amended complaint deleting the initial denial that he never received the August 14, 1995 letter, alleging instead that he “received a letter from the Defendant dated August 14, 1995 for the purpose of collecting an alleged debt of $153.00 incurred by Savino with North Shore Hospital. This was the first letter Plaintiff Savino received from the Defendant with respect to the alleged debt.” Sec. Am. Compl. ¶ 17 (emphasis in original). The second amended complaint does not contain any reference to the August 28, 1995 letter, instead alleging that the August 14, 1995 letter violated his rights pursuant to the FDCPA.

By order dated February 21, 1997, Judge Lindsay granted the plaintiffs motion for leave to file the second amended complaint. CCI filed its objections on March 7, 1997. On March 26, 1997, the defendant’s motion and plaintiffs cross motion for partial summary judgment or in the alternative for a stay of the defendant’s motion were filed.

By Memorandum of Decision and Order dated April 11, 1997, this Court affirmed Judge Lindsay’s order granting the plaintiffs motion to file a second amended complaint, denied the defendant’s motion for summary judgment and granted the plaintiffs motion for partial summary judgment as to liability. In reaching this conclusion, the Court determined that the August 14, 1995 letter sent to the plaintiff “insist[ing] on immediate payment” “overshadowed or contradicted” the mandatory 30 day debt validation notice which requires that consumers be advised that they have 30 days within which to contest the alleged obligation, in violation of Second Circuit case law. See Russell v. Equifax A.R.S., 74 F.3d 30 (2d Cir.1996) (setting forth the applicable standard). On May 8, 1997, CCI filed a notice of appeal of the Court’s decision and order.

Presently before the Court is the plaintiffs motion for class certification pursuant to [350]*350Fed.R.Civ.P. 23. The proposed class is composed of:

All persons with addresses in New York State to whom CCI sent a communication in the form of the August 14, 1995 letter sent to Class Plaintiff Frank Savino in an attempt to collect a debt incurred for person, family or household purposes, as reflected by Defendant’s records, on or after August 14, 1995.

II. Discussion

A. The notice of appeal

At the outset, the Court must address the fact that on May 8, 1997, the defendant filed a notice of appeal with respect to the Court’s April 11, 1997 decision denying CCI’s motion for summary judgment and granting Savino’s motion for partial summary judgment with respect to liability. Recently, in the case of United States v. Rodgers, 101 F.3d 247 (2d Cir.1996), the Second Circuit recognized that in general:

the jurisdiction of the federal courts of appeals is limited to appeals from final decisions of the district courts.

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Savino v. Computer Credit, Inc., 173 F.R.D. 346, 38 Fed. R. Serv. 3d 872, 1997 U.S. Dist. LEXIS 8191, 1997 WL 314917 (E.D.N.Y. 1997).

173 F.R.D. 346 (Savino v. Computer Credit, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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