Walton v. Franklin Collection Agency, Inc.

190 F.R.D. 404, 2000 U.S. Dist. LEXIS 443, 2000 WL 52740
CourtDistrict Court, N.D. Mississippi
DecidedJanuary 11, 2000
DocketNo. 1:98CV288-D-D
StatusPublished
Cited by11 cases

This text of 190 F.R.D. 404 (Walton v. Franklin Collection Agency, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walton v. Franklin Collection Agency, Inc., 190 F.R.D. 404, 2000 U.S. Dist. LEXIS 443, 2000 WL 52740 (N.D. Miss. 2000).

Opinion

OPINION

DAVIDSON, District Judge.

The Plaintiffs instituted this action alleging, inter alia, that the Defendant violated the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692a-1692o (1994), by seeking and obtaining awards of attorney’s fees for services actually rendered by non-attorneys during debt collection proceedings throughout the State of Mississippi.

Presently before the court is the Plaintiffs’ Motion for Class Certification pursuant to Rule 23 of the Federal Rules of Civil Procedure.1 Upon due consideration, the court finds the Plaintiffs’ motion well-taken and shall certify the proffered class subject to certain modifications as set forth below.

Factual Background2

The Plaintiffs are individuals who incurred small debts which their respective creditors assigned to the Defendant for collection. The Defendant, after its initial attempts to obtain payment of the debts were unsuccessful, forwarded the debts to its in-house “litigation department” for collection. This department, staffed by non-lawyers, reviewed the Plaintiffs’ files and drafted judicial complaints to be filed against the debtors in the appropriate Mississippi Justice Court. The complaints were then forwarded to the Defendant’s retained attorney who simply executed the complaints.

In each instance, the complaints made a demand for attorney’s fees. The Justice Court, as part of the judgment rendered against the debtor, routinely granted the Defendant’s request for an award of attorney’s fees. The Plaintiffs in this action allege that the attorney’s fee awards that the Defendant sought and obtained from the Justice Court had no relationship whatsoever to the services rendered by the Defendant’s retained attorney. The Plaintiffs further allege that the Defendant, rather than paying its retained attorney the full amount of the awarded attorney’s fee, retained at least part of the fee as compensation. The Plaintiffs claim that the Defendant’s common practice of engaging in such conduct violates the Fair Debt Practices Collection Act, 15 U.S.C. §§ 1692a-1692o (1994), and constitutes fraud and abuse of process.

Discussion

A Federal Rule of Civil Procedure 23(a)

The Plaintiffs must meet the prerequisites set out in Rule 23(a), in addition to satisfying either Rule 23(b)(1), (2), or (3), in [408]*408order to maintain this suit as a class action. Fed.R.Civ.P. 23; See Applewhite v. Reichhold Chems., Inc., 67 F.3d 571, 573 (5th Cir.1995) (holding that burden of proof is on party seeking class certification); Moore Video Distribs., Inc. v. Quest Entertainment, Inc., 823 F.Supp. 1332, 1338 (S.D.Miss.1993) (“[PJlaintiff must make a prima facie showing in its pleading that it satisfies rule 23.”). While the court has wide discretion in deciding whether to certify a class action, the court should not do so unless satisfied, after “rigorous analysis,” that all prerequisites have been met. Applewhite, 67 F.3d at 573.

To qualify as a class action, the proposed class must initially meet all four requirements of subdivision (a) of Rule 23, commonly referred to as “numerosity,” “commonality,” “typicality,” and “adequacy of representation.” Rule 23(a) provides:

One or more members of a class may sue or be sued as representative parties on behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.

Fed.R.Civ.P. 23(a). The Plaintiffs contend that they meet the prerequisites under Rule 23(a). The court agrees.

1. Numerosity

To be certified, a proposed class must be “so numerous that joinder of all members is impracticable.” Fed.R.Civ.P. 23(a)(1). Practicability of individual joinder is the main focus of this requirement, but a court may also consider other factors including the number of claimants and the nature of the action. See Watson, et al. v. Shell Oil Co., 979 F.2d 1014, 1022 (5th Cir.1992) (noting that numerosity requirement imposes no mechanical rules).

The Plaintiffs have submitted exhibits demonstrating that, in only two of Mississippi’s eighty-two counties, over eighty potential class members exist. Faced with these numbers and the fact that the Defendant probably sued people all over the state3, it is obvious that the Plaintiffs have met the numerosity prerequisite. Moore Video Distribs., Inc., 823 F.Supp. at 1338 (noting that potential classes numbering over forty are usually certified; asserting class of seventy is sufficient to satisfy Rule 23(a)).

Numbering at least eighty and potentially numbering in the hundreds, this class is clearly so numerous that joinder of all members would be impracticable. Therefore, the court finds that the Plaintiffs have met the numerosity requirement.

2. Commonality

The second requirement that must be met as a prerequisite to class certification is that of commonality. Specifically, the court must be able to identify “questions of law or fact common to the class.” Fed.R.Civ.P. 23(a)(2).

The Fifth Circuit has held that the threshold of commonality is not a high one. Applewhite, 67 F.3d at 573; Moore Video Distribs., Inc., 823 F.Supp. at 1339 (“The rule requires only that resolution of the common questions affect all or a substantial number of the class members.”). However, class certification requires that class members have at least two issues in common. Apple-white, 67 F.3d at 573.

In this action, the Plaintiffs seek relief on behalf of the pm-ported class pursuant to the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692a-1692o (1994), and under such common law theories as fraud and abuse of process.

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Bluebook (online)
190 F.R.D. 404, 2000 U.S. Dist. LEXIS 443, 2000 WL 52740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walton-v-franklin-collection-agency-inc-msnd-2000.