Susan J. Stromberg, on behalf of herself and those similarly situated v. Midland Funding, LLC, et al.

CourtDistrict Court, D. New Jersey
DecidedApril 8, 2026
Docket2:16-cv-09288
StatusUnknown

This text of Susan J. Stromberg, on behalf of herself and those similarly situated v. Midland Funding, LLC, et al. (Susan J. Stromberg, on behalf of herself and those similarly situated v. Midland Funding, LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Susan J. Stromberg, on behalf of herself and those similarly situated v. Midland Funding, LLC, et al., (D.N.J. 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

SUSAN J. STROMBERG, on behalf of herself and those similarly situated, Civil Action No. 16-9288 (ES) (MAH)

Plaintiff,

v. OPINION MIDLAND FUNDING, LLC, et al.,

Defendants.

I. INTRODUCTION Presently before the Court is the motion of Plaintiff Susan Stromberg’s (“Plaintiff” or “Stromberg”) daughter, Heather Dunham (“Dunham”), to substitute herself, as Administrator Ad Prosequendum of Plaintiff’s Estate, as Plaintiff pursuant to Federal Rule of Civil Procedure 25. Mot. to Substitute Party, Jan. 9, 2026, D.E. 221. Defendants Midland Funding LLC and Midland Credit Management (collectively, “Defendants”) oppose the motion. Defs.’ Opp’n, Feb. 23, 2026, D.E. 226. The Undersigned has considered this matter without oral argument. Fed. R. Civ. P. 78; Local Civ. R. 78.1. For the reasons set forth below, Plaintiff’s motion is GRANTED. II. BACKGROUND This Opinion assumes familiarity with the facts and protracted procedural history of this case. However, a summary of the facts and procedural history is useful to provide context for the instant motion. a. Factual Background Plaintiff incurred debt on an account she held at Capital One Bank (“Capital One”). Plaintiff made payments on the account until March 2010, when she defaulted on her debt. Defendants then purchased Plaintiff’s account from Capital One and attempted to collect on the

defaulted debt by sending a collection letter on December 16, 2015. According to Plaintiff, the letter “included settlement offers and ‘pre-approved’ discounts and savings.” Plaintiff claims that Defendants sent the collection letter after applicable statute of limitations for contract obligations had passed. Plaintiff also alleges that the collection letter was boilerplate in form, misrepresented that the debt was enforceable, failed to disclose that the debt collection was time-barred, and failed to warn Plaintiff that her settlement of, or payment towards, the debt could re-start the statute of limitations. Plaintiff claims that she relied on these misrepresentations and omissions in the collection letter, and believed that Midland would initiate litigation to recover the debt. Plaintiff claims that Midland’s practices violated the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq. She also alleges that

Midland routinely attempted to collect debts in this manner. Accordingly, Plaintiff brought suit on behalf of herself and those similarly situated for FDCPA violations, and sought damages, attorney’s fees, and interest. b. Procedural History Plaintiff filed a putative class action against Defendants on December 15, 2016. Compl., D.E. 1. The case was stayed on April 5, 2017, D.E. 11, and reopened on March 15, 2018, D.E. 13, after the Third Circuit Court of Appeals decision in Tatis v. Allied Interstate, LLC, 882 F.3d 422, 425 (3d Cir. 2018) (holding that “a collection letter sent to collect a time-barred debt that makes a ‘settlement offer’ to accept payment ‘in settlement of’ the debt could violate the [FDCPA]”). Plaintiff filed an Amended Complaint on June 25, 2018. D.E. 29. She filed the Second Amended Complaint on April 9, 2019. D.E. 74. On October 13, 2021, Plaintiff moved for class certification. D.E. 154. The Court denied that motion without prejudice on April 18, 2024. D.E. 173.

On January 17, 2025, Plaintiff’s counsel notified the Court by way of letter that Plaintiff had passed away on April 23, 2023. D.E. 187. On January 21, 2025, the Court directed the parties to submit a joint status report to address whether an estate had been created and whether substitution would be pursued. D.E. 188. The parties filed a joint status letter on March 17, 2025. D.E. 189. In that joint letter, Plaintiff’s counsel indicated that he had been unable to contact Stromberg’s next of kin and requested a stay of the case in the interim. Id. Defendants objected to a stay. Id. On April 7, 2025, Plaintiff’s counsel again requested the action be administratively terminated with a right to re-open when Dunham took over Stromberg’s estate. D.E. 196. On May 16, 2025, Defendants submitted a letter arguing that Plaintiff’s counsel had

failed to timely move to substitute party under Rule 25. Letter, D.E. 200. Plaintiff’s counsel responded that the January 17, 2025 letter did not constitute a formal suggestion of death required by Rule 25, and, in any event, Rule 6(b) allows for a party to make a motion beyond the Rule 25’s deadline. Letter, May 20, 2025, D.E. 201. The Undersigned reviewed these letters and referred the parties back to mediation, noting that “if mediation is unsuccessful” the Court would “address the Rule 25 issue by way of motion practice.” Order, May 21, 2025, D.E. 202. By letter filed October 8, 2025, the parties informed the Court that mediation was unsuccessful. Letter, D.E. 209. Defendants stated that they had “requested some clarity as to who would be representing the deceased plaintiff,” and wanted it to be made clear, in writing, that Dunham would ultimately be the estate administrator. Id. Defendants also wanted details regarding the probate/administration proceeding. Defendants, citing Filgueiras v. Midland Funding, LLC, No. 16-3037, 2025 WL 2636416 (D.N.J. Sept. 11, 2025), additionally requested that the present case be dismissed for lack of Article III standing.1 Id. Defendants did not restate

their prior contention that the deadline to move under Rule 25 had passed. Id. On December 19, 2025, the District Court held a status conference and administratively terminated the action pending resolution “of whether a motion to substitute Plaintiff’s next or kin will be filed, or whether counsel will be filing a motion to withdraw.” D.E. 220. Regarding a Rule 25 motion, the Court indicated that “[a]ny such motion shall be filed by no later than Friday, January 9, 2026.” Id. Thereafter, the instant motion to substitute was filed on January 9, 2026. Mot. to Substitute Party, D.E. 221. Defendants opposed, and Plaintiff filed a reply. Defs.’ Opp’n, Feb. 3, 2026, D.E. 226; Pl.’s Reply, Feb. 10, 2025, D.E. 227. III. DISCUSSION Rule 25 states, in pertinent part, that:

If a party dies and the claim is not extinguished, the court may order substitution of the proper party. A motion for substitution may be made by any party or by the decedent’s successor or representative. If the motion is not made within 90 days of service of a statement noting the death, the action by or against the decedent must be dismissed.

A court considering a Rule 25 motion “must consider whether: (1) the motion is timely; (2) the claims pled are extinguished; and (3) the person being substituted is a proper party.” Veliz v. Cintas Corp., No. 03-1180, 2008 WL 2811171, at *1 (N.D. Cal. July 17, 2008). The decision of whether to grant the motion for substitution is within the discretion of the trial court.

1 Defendants did not, and indeed have not, made a formal motion challenging Article III standing or this Court’s subject matter jurisdiction over this action. McKenna v. Pac. Rail Serv., 32 F.3d 820, 836 (3rd Cir. 1994) (citing Fed. R. Civ. P. 25(a)). While a trial court does have the discretion to deny the motion, such a denial, without cause, is rare. See Saylor v. Bastedo, 623 F.2d 230, 237 (2d Cir.

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Susan J. Stromberg, on behalf of herself and those similarly situated v. Midland Funding, LLC, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/susan-j-stromberg-on-behalf-of-herself-and-those-similarly-situated-v-njd-2026.