Scroggin v. Credit Bureau of Jonesboro, Inc.

973 F. Supp. 2d 961, 2013 WL 5306675, 2013 U.S. Dist. LEXIS 134855
CourtDistrict Court, E.D. Arkansas
DecidedSeptember 20, 2013
DocketCase No. 3:12-cv-00128-SWW
StatusPublished
Cited by5 cases

This text of 973 F. Supp. 2d 961 (Scroggin v. Credit Bureau of Jonesboro, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scroggin v. Credit Bureau of Jonesboro, Inc., 973 F. Supp. 2d 961, 2013 WL 5306675, 2013 U.S. Dist. LEXIS 134855 (E.D. Ark. 2013).

Opinion

OPINION AND ORDER

SUSAN WEBBER WRIGHT, District Judge.

Brandon Scroggin brought this action against Credit Bureau of Jonesboro, Inc. (CBJ), alleging, inter alia, that CBJ violated the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq., and the Arkansas Fair Debt Collection Practices Act (AFDCPA), Ark.Code Ann. § 17-24-501 et seq., in its attempts to collect a debt for medical services allegedly owed by Scroggin. Following the conclusion of discovery, CBJ filed a motion to dismiss and for order of civility based on comments Scroggin posted on certain websites. CBJ argued that Scroggin’s posts demonstrated that he was not using the law’s procedures for legitimate purposes but rather for entertainment and harassment purposes. Although Scroggin’s posts were troubling, the Court denied CBJ’s motion to dismiss and for order of civility and stated that it would not prohibit Scroggin from commenting on this action given the existence of valid First Amendment concerns.1 However, the Court informed Scroggin that with the exception of references to offers of settlement, Scroggin’s posts and any future similar posts identified by CBJ would be admitted into evidence under Fed.R.Evid. 801(d)(2).

The matter proceeded to a jury trial in Jonesboro, Arkansas on the morning of July 15, 2013.2 The following day, the jury delivered a verdict finding, inter alia, that [967]*967CBJ twice violated the FDCPA and the AFDCPA when CBJ contacted Scroggin after it received a written cease and desist letter (C & D letter) from Scroggin and communicated to a third party that Scrog-gin owed a past-due debt.3 However, the jury did not award Scroggin any actual or statutory damages for CBJ’s violations of the FDCPA and AFDCPA. The Court entered judgment in accordance with the jury verdict on July 18, 2013.4

Now before the Court is CBJ’s motion for attorney’s fees and costs pursuant to 15 U.S.C. § 1692k(a)(3) and Ark.Code Ann. § IT — 24—512(a)(3)(B) or, alternatively, pursuant to the Court’s inherent power on grounds that Scroggin brought this action in bad faith and for the purpose of harassment [doc. #58]. Scroggin has responded in opposition to CBJ’s motion. For the reasons that follow, the Court grants in part and denies in part CBJ’s motion for attorney’s fees and costs.5

I.

The FDCPA provides that the court may award to the defendant attorney’s fees and costs “on a finding by the court that an action ... was brought in bad faith and for the purpose of harassment,” 15 U.S.C. § 1692k(a)(3) (emphasis added), while the AFDCPA provides that the court may award to the defendant attorney’s fees and costs “if the court finds that an action ... was brought in bad faith or for the purpose of harassment.” Ark. Code Ann. § 17-24-512(a)(3)(B) (emphasis added). The Court has carefully considered the matter and finds that CBJ has affirmatively shown that Scroggin brought this action in bad faith and for the purpose of harassment.6

“[B]ad faith” is defined as “[dishonesty of belief or purpose.” Grand Canyon Skywalk Development, LLC v. ‘Sa’ Nyu Wa Inc., 715 F.3d 1196, 1201 (9th Cir.2013) (quoting Black’s Law Dictionary 159 (9th ed. 2009)). See also Arkansas Model Jury Instructions — Civil § 403 (2013) (“Bad faith” means “conduct that is dishonest, oppressive, or carried out with a state of mind characterized by hatred, ill [968]*968will, or a spirit of revenge”); State Auto Property and Cas. Ins. Co. v. Swaim, 338 Ark. 49, 56, 991 S.W.2d 555, 559 (1999) (same). “Harassment” is defined as “ ‘words, conduct, or action (usu. repeated or persistent) that, being directed at a specific person, annoys, alarms, or causes substantial emotional distress in that person and serves no legitimate purpose.’ ” Adams v. Ford Motor Co., 653 F.3d 299, 307 (3rd Cir.2011) (quoting Black’s Law Dictionary 784 (9th ed. 2009)). See also Webster’s New Collegiate Dictionary 522 (ed. 1977) (to “harass” is to “exhaust,” “fatigue,” or “annoy persistently”).

Scroggin posted numerous comments regarding this action on various websites — including www.creditinfocenter. com, www.debtorboards.com, and www. insidearm.com — under the posting handles “Coltfan1972” and “Todd Bean” and he sent emails regarding this action to CBJ’s counsel. Along with his emails, the Court admitted into evidence over 6,500 of Sroggin’s posts (with references to settlement redacted) pursuant to Fed.R.Evid. 801(d)(2) as statements by a party opponent. In addition, CBJ has attached to its motion for attorney’s fees and costs certain of Scroggin’s posts from the website www. insidearm.com that it states it learned about after trial. Scroggin’s posts and emails as set forth below (with misspellings and grammatical errors left intact) fully support a finding that Scroggin brought this action in bad faith and for the purpose of harassment.7

Prior to filing this action, Scroggin stated that he wanted to maximize the retaliation to CBJ, do some damage, and hopefully goad or force CBJ to an actual trial:

However, since the last agency just folded, bent over and grabbed their ankles and said do with us as you please, I’ve decided to “step my game up” and let’s try to send a little clearer message that these violations will not be tolerated. I mean how much dadgum emotional distress is a person supposed to endure. So, since I will obviously whip the dog out of them and defeat is not even a remote option (if you don’t believe me just ask me), it’s just a matter of how bad and for how much at this point. I [969]*969want to maximize the retaliation, do some damage and hopefully goad and/or force them to an actual trial.

As part of his scheme to damage CBJ, Scroggin “set up” CBJ into violating the FDCPA and AFDCPA by sending a purposely ambiguous C & D letter to CBJ that contained not only a refusal to pay but also Scroggin’s explanation of why he didn’t think he owed the debt in question. The C & D letter, dated March 26, 2012, provided:

In response to the letter you sent me that has dated February 27, 2012, and the account number from you of 2249932. I refuse to pay this debt because I don’t think I owe that because I was only there [at St. Bernard’s Medical Center] for an hour and then left after I started feeling better.

Scroggin’s efforts to set up CBJ succeeded as his ambiguous C & D letter had the effect of prompting CBJ to make contact with him to explain why he owed the debt. In this respect, Scroggin, who described CBJ’s voice mail that was listened to by friend Kirby Wilson as “an early Christmas present,” stated as follows:

[I]f you send them a refusal to pay letter it acts as a C & D.

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973 F. Supp. 2d 961, 2013 WL 5306675, 2013 U.S. Dist. LEXIS 134855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scroggin-v-credit-bureau-of-jonesboro-inc-ared-2013.