Thorne v. Accounts Receivable Management, Inc.

282 F.R.D. 684, 2012 U.S. Dist. LEXIS 107727, 2012 WL 3090039
CourtDistrict Court, S.D. Florida
DecidedJune 28, 2012
DocketNo. 11-22290-Civ
StatusPublished
Cited by2 cases

This text of 282 F.R.D. 684 (Thorne v. Accounts Receivable Management, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thorne v. Accounts Receivable Management, Inc., 282 F.R.D. 684, 2012 U.S. Dist. LEXIS 107727, 2012 WL 3090039 (S.D. Fla. 2012).

Opinion

ORDER ON PLAINTIFF’S MOTION FOR CLASS CERTIFICATION

ROBERT N. SCOLA, JR., District Judge.

THIS MATTER is before the Court on the Plaintiffs Motion for Class Certification (ECF No. 35). The Motion came before the Court for a hearing on May 17, 2012, at which the parties presented oral argument. The Court has reviewed the Motion, the record, the relevant legal authorities, and the arguments of the parties. For reasons stated more fully below, the Motion (ECF No. 35) is DENIED.

I. FACTUAL BACKGROUND

In her First Amended Complaint (ECF No. 32), Plaintiff Tiffany Thorne (“Thorne”) alleges that the Defendant, Accounts Receivable Management, Inc. (“ARM”), violated the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. (“FDCPA”), when it allegedly left a prerecorded voice message on her residential telephone line on or around November 12, 2010, in an effort to collect an alleged debt Thorne incurred for personal, family, or household purposes to Westchester Healthcare Network. Thorne alleges that the message stated as follows:

This message is being left during business hours for Thorne Tiffany N. Please return ou[r] call at 888-548-8829 between the hours of 8 a.m. and 9 p.m. Monday [through] Thursday, Friday 8 a.m. until 5 p.m., Saturday 8 a.m. until 12 noon. Thank you.

Am. Compl. 3 ¶ 13, ECF No. 32. Thorne alleges on information and belief that ARM left similar or identical messages on other occasions. The Amended Complaint raises two counts against ARM: (1) failure to disclose status as a debt collector in violation of 15 U.S.C. § 1692e(ll); and (2) failure to make a meaningful disclosure of identity in violation of 15 U.S.C. § 1692d(6).

The Amended Complaint also alleges that ARM uses uniform telephone messages to collect debts from other persons. Thorne moved to certify a class on February 1, 2012, proposing a class that consists of:

[688]*688a) all Florida residents for whom Defendant left a telephone message in which it failed to disclose that the communication was from a debt collector, its name or the purpose of the call;
b) in an attempt to collect a debt incurred for personal, family, or household purposes;
c) then due Westchester Healthcare Network, believed to be a fictitious name for Westchester General Hospital;
d) during the one-year period prior to filing of the complaint in this matter [June 23, 2011] through the date of class certification.

See Am. Compl. 5 ¶ 23; Motion 1-2 ¶ 1, ECF No. 36. Thorne’s proposed class definition does not include one subclass for alleged Section 1692e(ll) violations and another subclass for alleged Section 1692d(6) violations. Rather, Thorne’s proposed class definition includes putative class members who suffered violations of both Section 1692e(ll) and Section 1692d(6). ARM argues that this proposed class should not be certified.

II. LEGAL STANDARD: FDCPA

The FDCPA was established by Congress “to eliminate abusive debt collection practices” and “to protect consumers against debt collection abuses.” 15 U.S.C. § 1692(e). The Act provides a civil cause of action against any debt collector who fails to comply with its requirements, including §§ 1692e(ll) and 1692d(6). See 15 U.S.C. § 1692k(a). A debt collector can be held liable for an individual plaintiffs actual damages, statutory damages up to $1,000, costs, and reasonable attorney’s fees. 15 U.S.C. § 1692k(a)(l)-(3). Section 1692d(6), regarding harassment or abuse, prohibits debt collectors from “the placement of telephone calls without meaningful disclosure of the caller’s identity.” 15 U.S.C. § 1692d(6). Section 1692e(ll) obligates a debt collector to point out that it is “attempting to collect a debt and that any information obtained will be used for that purpose,” and must identify itself as a debt collector. 15 U.S.C. § 1692e(ll). The Eleventh Circuit evaluates FDCPA claims under the “least sophisticated consumer” standard. Ponce v. BCA Fin. Services, Inc., 467 Fed.Appx. 806, 808 (11th Cir.2012); see also Jeter v. Credit Bureau, Inc., 760 F.2d 1168, 1175 (11th Cir.1985) (adopting “least sophisticated consumer” standard from Federal Trade Commission Act cases for eases under FDCPA).

III. ANALYSIS AND CONTROLLING AUTHORITY: STANDING ISSUES

ARM argues that Thorne lacks standing to pursue her FDCPA claims because: (i) Thorne’s “claim is moot”; (ii) there is “no evidence of a positive net worth for Defendants”; and (iii) “Plaintiff only seeks statutory damages for her and the class.” Def.’s Resp. 4-6, ECF No. 39.

ARM argues that Thorne’s claim was rendered moot by ARM’s written settlement offer, which offered her $1,001.00 plus reasonable attorney’s fees and court costs to resolve her claims. See Def.’s Ex. A, ECF No. 39-1. Under Federal Rule of Civil Procedure 68, a defendant can “serve on an opposing party an offer to allow judgment on specified terms, with the costs then accrued.” Fed.R.Civ.P. 68(a). When a plaintiff is tendered an offer of judgment for the maximum allowable relief, it moots an FDCPA claim, even when that offer is not accepted. Lynch v. First Nat. Collection Bureau, Inc., No. 11-60798-CIV, 2011 WL 2457903, at *1 (S.D.Fla. Jun. 17, 2011) (Cohn, J.); see also Moore v. Hecker, 250 F.R.D. 682, 683 (S.D.Fla.2008) (Cohn, J.) (stating same); Mackenzie v. Kindred Hosps. E., LLC, 276 F.Supp.2d 1211, 1218-19 (M.D.Fla.2003) (finding dismissal of FLSA claim as moot appropriate after plaintiff was tendered and rejected Rule 68 offer for amount exceeding that which plaintiff could have received at trial). “The plain purpose of Rule 68 is to encourage settlement and avoid litigation.” Util. Automation 2000, Inc. v. Choctawhatchee Elec. Coop., Inc., 298 F.3d 1238, 1240 (11th Cir.2002) (quoting Marek v. Estate of Chesny, 473 U.S. 1, 5, 105 S.Ct. 3012, 87 L.Ed.2d 1 (1985)). Thus, “Rule 68 allows a defendant to make a firm, non-negotiable offer of judgment.” Id.

A Rule 68 offer of judgment, however, is distinguishable from a mere offer of settlement, as an offer of judgment requires that actual judgment be allowed. See, e.g.,

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Bluebook (online)
282 F.R.D. 684, 2012 U.S. Dist. LEXIS 107727, 2012 WL 3090039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thorne-v-accounts-receivable-management-inc-flsd-2012.