Sexton v. Poulsen & Skousen P.C.

372 F. Supp. 3d 1307
CourtDistrict Court, D. Utah
DecidedMarch 19, 2019
DocketCase No. 2:17-cv-01008-JNP-BCW
StatusPublished
Cited by15 cases

This text of 372 F. Supp. 3d 1307 (Sexton v. Poulsen & Skousen P.C.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sexton v. Poulsen & Skousen P.C., 372 F. Supp. 3d 1307 (D. Utah 2019).

Opinion

ANALYSIS

I. THE DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT

The defendants assert that they are entitled to summary judgment on the two claims asserted against them.5 The court *1314first addresses the defendants' arguments regarding the FDCPA claim. It then turns to the UCSPA claim.

A. The FDCPA Claim

Congress passed the FDCPA "to eliminate abusive debt collection practices by debt collectors." 15 U.S.C. § 1692(e). "Because the FDCPA ... is a remedial statute, it should be construed liberally in favor of the consumer." Johnson v. Riddle , 305 F.3d 1107, 1117 (10th Cir. 2002).

Sexton asserts that the defendants violated three provisions of the FDCPA. First, he argues that they engaged in "conduct the natural consequence of which is to harass, oppress, or abuse [him] in connection with the collection of a debt." § 1692d. Second, Sexton contends that the defendants used "false, deceptive, or misleading representation[s] or means in connection with the collection of [a] debt." § 1692e. Third, he alleges that the defendants used "unfair or unconscionable means to collect or attempt to collect [a] debt." § 1692f.

The defendants argue that they cannot be held liable under the FDCPA for a variety of reasons. The court addresses each argument separately.

1) The Definition of "Debt"

First, the defendants argue that they cannot be held liable for violations of the FDCPA because they were not attempting to collect a "debt" as that term is defined under the Act. Under the FDCPA, "[t]he term 'debt' means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment." 15 U.S.C. § 1692a(5). The defendants assert that the default judgment of $ 3,764.90 for "treble damages," attorney fees, and court costs, together with $ 46.10 in daily damages until Sexton removed his mobile home, does not constitute a consumer debt that falls within this definition. Poulsen, in particular, admits that Sexton had continued to pay his rent and contends that he was merely pursuing an eviction action based upon a rule violation. Poulsen asserts that "[n]o rent, no money, and no financial agreements were sought to be enforced during those transactions leading to Evergreen obtaining a judgment."

This contention is patently false. The complaint sought "treble damages assessed pursuant to Utah Code Annotated, Section 78B-6-811 beginning March 23, 2017 at the rate of $ 46.10 per day," which is roughly the triple daily rent for the *1315mobile home lot. The affidavit in support of the motion for default judgment also stated that Sexton "owes for treble damages assessed pursuant to Utah Code Annotated, Section 78B-6-811... at the rate of $ 46.10 per day totaling $ 2,719.90 treble damages from March 23, 2017 to May 25, 2017." Utah Code § 78B-6-811(2) states that if a lessee defaults in an unlawful detainer action, the court shall "assess the damages resulting to the plaintiff." In particular, a landlord may recover treble damages for "amounts due under the [lease] contract, if the alleged unlawful detainer is after default in the payment of amounts due under the contract." § 78B-6-811(2) - (3). Because this statute permits treble damages for the harm suffered by the landlord in cases where the tenant has defaulted on rent payments, and because Poulsen clearly calculated the treble damages amount awarded in the default judgment from the rent due under the lease, the lion's share of the default judgment is attributable to Poulsen's representations that Sexton owed unpaid rent.6 Rent qualifies as an obligation "of a consumer to pay money arising out of a transaction ... primarily for personal, family, or household purposes" within the meaning of the FDCPA. See 15 U.S.C. § 1692a(5).

Poulsen's argument that the default judgment does not constitute consumer debt because Sexton had in reality satisfied his rent obligations rings hollow. The definition of "debt" includes "any obligation or alleged obligation of a consumer to pay money." Id. (emphasis added). The fact that an alleged obligation is unfounded will not exempt a debt collector from liability.7 The court concludes, therefore, that the default judgment at issue in this case qualifies as a "debt" under the FDCPA.

2) The Definition of "Debt Collector"

The defendants also argue that they do not qualify as debt collectors under the FDCPA. The term "debt collector" includes any person "who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another." 15 U.S.C. § 1692a(6). But the Act explicitly excludes from this definition, "any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties." § 1692a(6)(C). Both Reitz and Hitesman (the constable defendants) and Poulsen argue that they are exempt from liability under this definition because they are officers of the State of Utah attempting to collect a debt within *1316the scope of their official duties. The constable defendants also argue that they are entitled to the benefit of an exclusion from the definition of "debt collector" for "any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt." § 1692a(6)(D). The court first addresses the constable defendants' arguments. The court then turns to Poulsen's argument.

i. The Constable Defendants

The court agrees that constables are officers of the State of Utah. "To qualify as a constable, a person shall be certified as a special function peace officer in the state." UTAH CODE § 17-25a-2(1). Constables are appointed by either a city or county, and their position may be revoked at any time for cause or if the constable's peace officer certification is ever suspended or revoked. § 17-25a-1. A constable may execute the orders of a judge or writs issued by the clerk of the court by seizing and disposing of property, entering a home by force and removing a tenant, or serving a warrant of arrest.

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Bluebook (online)
372 F. Supp. 3d 1307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sexton-v-poulsen-skousen-pc-utd-2019.