Washington Wiley v. Portfolio Recovery Associates, LLC

CourtDistrict Court, D. Minnesota
DecidedMarch 28, 2022
Docket0:20-cv-00737
StatusUnknown

This text of Washington Wiley v. Portfolio Recovery Associates, LLC (Washington Wiley v. Portfolio Recovery Associates, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Washington Wiley v. Portfolio Recovery Associates, LLC, (mnd 2022).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Sonji Washington Wiley, Case No. 20-cv-00737 (SRN/DTS)

Plaintiff,

v. ORDER Portfolio Recovery Associates, LLC,

Defendant.

Melissa Becker, Case No. 20-cv-00791 (SRN/DTS)

v.

Portfolio Recovery Associates, LLC,

Felicia Yang, Case No. 20-cv-01397 (SRN/DTS)

Dominique Mayfield, Case No. 21-cv-00001 (SRN/DTS)

Defendant. Darren B. Schwiebert, DBS Law LLC, 301 Fourth Avenue South, Suite 280N, Minneapolis, MN 55415, for Plaintiffs.

Avanti Bakane and Benjamin Kinney, Gordon Rees Scully Mansukhani, LLP, 1 North Franklin, Suite 800, Chicago, IL 60606; and Susanne L. Jones, Gordon Rees Scully Mansukhani, LLP, 100 South Fifth Street, Suite 1900, Minneapolis, MN 55402, for Defendant.

SUSAN RICHARD NELSON, United States District Judge This matter is before the Court on two motions filed in four related cases. Plaintiffs Sonji Washington Wiley, Melissa Becker, Felicia Yang, and Dominque Mayfield (collectively, “Plaintiffs”) each move for summary judgment on damages and for attorney’s fees [20-cv-00737, Doc. No. 65; 20-cv-00791, Doc. No. 90; 20-cv-01397, Doc. No. 47; 21-cv-00001, Doc. No. 51]. Based on a review of the files, submissions, and proceedings herein, and for the reasons below, the Court GRANTS Plaintiffs’ Motions for Partial Summary Judgment on Damages and GRANTS IN PART and DENIES IN PART their respective requests for Attorney’s Fees and Costs. I. BACKGROUND The Court incorporates by reference the background information provided in its March 1, 2021 Order in the Wiley, Becker, and Yang actions, and the nearly identical August 9, 2021 Order in the Mayfield action. (See, e.g., Wiley, 20-cv-737 (Mar. 1, 2021 Order [Doc. No. 52]; Mayfield, 21-cv-00001 (Aug. 9, 2021 Order [Doc. No. 47].) 1

1 Where the same document, or essentially identical document, has been filed in the Wiley, Becker, Yang, and Mayfield actions, the Court will cite only to the 20-cv-00737 docket in Wiley, the first-filed case, as a matter of convenience. At various points in 2020, Wiley, Becker, Yang, and Mayfield filed individual lawsuits against Defendant Portfolio Recovery Associates, LLC (“PRA”), under the Fair

Debt Collections Practices Act, (“FDCPA”), 15 U.S.C. § 1692 et seq. All of the cases arise from PRA’s debt collection efforts and related Minnesota state court litigation, in which PRA sued Plaintiffs individually to collect debts that Plaintiffs allegedly owed on several store credit cards. (Mar. 1, 2021 Order at 2–3.) In each state court case, Plaintiffs challenged the propriety of the summons used by PRA to initiate the actions against them. (Id. at 3–4.) They argued that the summons was

defective under Minnesota Rule of Civil Procedure 4.01, which, at all times relevant to the proceedings at issue, provided that a “summons shall . . . give an address within the state where the subscriber may be served in person and by mail.”2 (Id.) PRA’s summons, however, directed Plaintiffs to respond to a person in North Dakota. (Id. at 2–3.) The summons also contained the threat to pursue default judgments against Plaintiffs if they

failed to serve their Answer to the North Dakota address. (Id.) In the state court actions, each of the state courts found that the summons did not comply with Rule 4.01. (Id. at 3– 4.)

2 In 2021, the Minnesota Legislature amended Rule 4.01, removing the requirement that the plaintiff provide a Minnesota address for mail and personal service. Minn. R. Civ. P. 4.01 (2021). The Advisory Committee comments state that the prior requirements “suited the needs of a different time, and that no compelling reason exists to require a Minnesota address to commence litigation.” Id., Adv. Cmte. Comments, 2021 Amendments. Plaintiffs then commenced these federal lawsuits, alleging that because the summons violated Rule 4.01, PRA violated several provisions of the FDCPA, including 15

U.S.C. § 1692e(2), (5), (10), and 1692f(1), which generally prohibit debt collectors from using false, deceptive, or misleading representations or unfair means to collect debts. (Id. at 4.) The parties engaged in dispositive motion practice, with PRA ultimately moving for judgment on the pleadings, asserting that Plaintiffs had not plausibly alleged standing and that the summons did not violate the FDCPA as a matter of law. Plaintiffs moved for partial summary judgment, arguing there was no disputed issue of material fact as to PRA’s

liability under the FDCPA based on its defective summons and threat of default judgment based on the faulty summons. (Id.) The Court rejected Defendant’s arguments and ruled in Plaintiffs’ favor, finding that PRA’s threat to obtain a default judgment based on its defective summons constituted a “threat to take an[] action that cannot legally be taken” under § 1692(e)(5). (Id. at 8–12.) Accordingly, the Court denied PRA’s motion and

granted Plaintiffs’ motions. (Id. at 8, 12.) The Court then permitted discovery on the issue of actual damages, and to the extent the parties were unable to resolve any disagreements on the issue, directed them to submit the matter to the Court. (Wiley, May 14, 2021 Order [Doc. No. 60].) Because the parties were unable to reach a consensus, now, Plaintiffs each move for summary judgment on

actual and statutory damages, and request costs and attorney’s fees. PRA opposes the motions. The parties presented oral argument on these issues before the undersigned judge on November 10, 2021. II. DISCUSSION A. Plaintiffs’ Requested Relief The FDCPA provides that a prevailing individual plaintiff is entitled to three types of relief: (1) actual damages; (2) statutory damages not to exceed $1,000; and (3) the costs

of the action, together with a reasonable attorney’s fee as determined by the court. 15 U.S.C. §§ 1692k(a)(1)-(3). Plaintiffs here seek all three forms of relief. First, as a form of actual damages, Wiley, Becker, and Yang seek the recovery of the attorney’s fees and costs incurred in the state court litigation.3 Specifically, these three Plaintiffs request the following amounts in

actual damages: Wiley $22,120 Becker $43,320 Yang $13,960 (Wiley, Schwiebert Decl. [Doc. No. 69] ¶ 15, Ex. E (Wiley State Ct. Billing Stmt.); Becker,

Schwiebert Decl. [Doc. No. 94] ¶ 15, Ex. G (Becker State Ct. Billing Stmt.); Yang, Schwiebert Decl. [Doc. No. 51] ¶ 15, Ex. I (Yang State Ct. Billing Stmt.) Second, each of the Plaintiffs request statutory damages in the maximum amount of $1,000. (Pls.’ Mem. [Doc. No. 68] at 8–11, 23–24.)

3 Plaintiff Mayfield does not seek actual damages from PRA. (Pls.’ Mem. [Doc. No. 68] at 5 n.3; Mayfield, Schwiebert Decl. [Doc. No. 55] ¶ 12.) Finally, with respect to the instant FDCPA action, Plaintiffs seek attorney’s fees and costs in the following amounts:

Wiley $39,493.59 ($38,960 in fees4, $533.59 in costs) Becker $43,571.63 ($42,760 in fees, and $811.63 in costs) Yang $31,805.87 ($31,280 in fees, and $525.87 in costs) Mayfield $30,870 (no costs) (See Pls.’ Mem. at 17; Wiley, Schwiebert Decl. [Doc. No. 69] ¶ 19 & Ex. F (Wiley FDCPA Billing Stmt.; Wiley, Supp’l Schwiebert Decl. [Doc. No. 85] ¶ 3; Becker, Schwiebert Decl.

[Doc. No. 94] ¶ 19 & Ex. H (Becker FDCPA Billing Stmt.); Yang, Schwiebert Decl. [Doc. No. 51] ¶ 19 & Ex. J (Yang FDCPA Billing Stmt.); Mayfield, Schwiebert Decl. [Doc. No. 55] ¶ 19 & Ex. J (Mayfield FDCPA Billing Stmt.).)

4 As noted in the Supplemental Schwiebert Declaration filed in each of the cases, Plaintiffs also request attorney’s fees for counsel’s work performed in response to PRA’s opposition to the instant motions.

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