Trull v. Lason Systems, Inc.

982 F. Supp. 600, 1997 U.S. Dist. LEXIS 17740, 1997 WL 697434
CourtDistrict Court, N.D. Illinois
DecidedNovember 4, 1997
Docket97 C 855
StatusPublished
Cited by14 cases

This text of 982 F. Supp. 600 (Trull v. Lason Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trull v. Lason Systems, Inc., 982 F. Supp. 600, 1997 U.S. Dist. LEXIS 17740, 1997 WL 697434 (N.D. Ill. 1997).

Opinion

MEMORANDUM OPINION AND ORDER

CASTILLO, District Judge.

Plaintiff Lisa Trull originally filed this putative class action against two defendants, Lason Systems, Inc) and Arrow Services Bureau, alleging numerous Fair Debt Collection Practices Act (“FDCPA” or “Act”) violations. On the heels of Trull’s motion for class certification, defendant Lason moved for summary judgment, contending that it cannot be hable under the FDCPA because it is not a “debt collector” covered by the Act. While these motions were pending, defendant Arrow Services was dismissed from the ease, leaving Lason as the sole defendant. Consequently, whether this case proceeds further depends on whether Lason meets the FDCPA’s definition of “debt collector.” Because we answer that question in the negative, we grant the defendant’s motion for summary judgment and deny Trull’s motion for class certification as moot.

RELEVANT FACTS 1

On January 19, 1996, Arrow Services Bureau sent Trull a letter attempting to collect a debt she owed to Retailers National Bank/Marshall Fields (“Fields”). Complt. ¶¶2,3. The letter advised Trull that Fields had retained “this office” to collect her outstanding obligation and requested full payment; the letter also disclosed Trull’s rights to dispute the debt and demand verification. Id. Ex. A. Arrow’s name, return address and phone number were printed at the top of the page. Id. At the bottom of the letter, Arrow listed a “contact,” Marty Pryor. Id.

On February 9, 1996, Trull received a second collection letter. Id. ¶ 2. It arrived in an envelop embossed with the words “Priority-Gram” and a statement that the letter was “electronically transmitted by Lason Systems for priority postal delivery.” Id. Ex. B. Inside, the letter’s author explained that “I have been authorized” by Fields to present a settlement offer; if Trull paid 50% of her outstanding balance, Fields would consider the debt settled. Id. If Trull did not act within 30 days, the offer expired and the full amount would again be due. Id. The *602 letter was signed by Marty Pryor, and Arrow’s name, address, and telephone number were typed below the signature. Id. In the upper right-hand corner appeared the words “Lason Systems Inc. Priority-Gram TM”; printed across from this was an address, which matched Arrow’s at the bottom. Id. This correspondence was the first Trull had seen bearing Lason’s name. Id. ¶4. Ten days later, Trull got another letter from Arrow, asking for “a cheek of some kind on this account.” Id. Ex. C. Marty Pryor again signed the letter, and Arrow’s name, address and phone number appeared in the upper right-hand corner. Id. Like the January 19 letter, this communication made no reference to Lason.

The letters Trull received do not explain Lason’s significance or its relationship to Arrow. The parties’ submissions, however, reveal that Lason is an integrated outsourcing services provider that helps companies manage records, control documents, and disseminate business communications. Defs Facts ¶5. Most relevant to this suit is Lason’s business communications service, which facilitates customers’ large scale distribution of statements, reports, and letters to consumers and other target audiences. Id. ¶ 9. Although this sector of Lason’s business provides customized processing services for collection agencies, Lason’s customers span a wide range of industries. Id. Banks, brokerage firms, finance companies, government agencies, insurance companies, utilities, and educational groups also take advantage of Lason’s business communications services, including the “Priority-Gram” product that Arrow used in connection with Trull’s February 9 letter. Id. ¶¶ 10, 16. Companies purchase these services from Lason through an Agreement for Professional Services. Id.

In 1992, Arrow and Lason signed such an Agreement, which provided that Lason would accept electronic transmissions from Arrow daily, produce laser printed collection letters on white stationery with envelopes, and furnish for an additional fee color stock paper and the Priority-Gram product. 2 Id.; Defs Mot. S.J. Ex. A. Lason billed Arrow at a flat monthly rate, covering first class postage, forms, and all data processing. Def. Mot. S.J. Ex. A.

The parties focus intently on Lason’s involvement in shaping its collection agency customers’ letters, specifically, Arrow’s. La-son states that it merely prints and mails letters for its customers, including collection agencies, and denies that it writes, conceives, edits (beyond proofreading) or approves the communications. Defs Facts ¶¶ 11, 14. These form letters, Lason states, are designed and written by its customers, in this case, Arrow. Id. ¶¶ 11-14. Brian Cutler, Arrow’s Vice President of Operations, described Lason and Arrow’s respective roles in the process. He testified that Arrow initially typed approximately 45 form letters and faxed them to Lason. Cutler Dep. at 30. Lason then entered the text into its computer, sent proofs for Arrow’s approval, and assigned a code number to each form letter. Id. Nesbitt Dep. at 34. Information that Arrow varied from letter to letter was put into “fields” that Lason would update after receiving the information from Arrow via modem. Defs Facts ¶ 12. After receiving Arrow’s information, Lason machine-stuffed the letters, affixed postage, and brought them to the post office for delivery. Def.’s Facts ¶ 13. Cutler testified that Lason did not draft any of the collection letters that it printed for Arrow, and denied that Lason advised Arrow about the content or use of its' collection letters. Cutler Dep. at 43-44.

Trull, however, disputes this characterization, claiming Lason is intimately involved in developing all of its collection agency customers’ form letters. PL’s Add’l Facts ¶¶ 37-38. Trull cites to language in a prospectus that Lason’s parent company submitted to the Securities Exchange Commission in 1996, which states: “The format and wording of many of the collection letters distributed by the Company, including its Priority-Gram, *603 are developed by the Company.” Id. app. B at 42. Trull also emphasizes that Lason goes beyond mailing and printing form letters. For example, Lason offers collection agencies a change of address processing system (“NCOA”), as well as phone and zip code updating systems, to ensure that the collection agencies’ mailing and contáct information is as accurate as possible. Id. ¶49.

Trull claims that Lason’s promotional materials and other public statements further confirm its involvement in the debt collection process. In particular, Trull highlights materials stating that Lason strives to become a “strategic partner” with its clients. Pl.’s Add’l Facts ¶53. Lason also promotes its pre-designed Priority-Gram as a communication intended to provide “high visual impact” so that the customer’s “message will be read and acted upon,” “adding value” to the customer’s business and resulting in increased profits. Id. ¶ 44, app. D.

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Bluebook (online)
982 F. Supp. 600, 1997 U.S. Dist. LEXIS 17740, 1997 WL 697434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trull-v-lason-systems-inc-ilnd-1997.