White v. Ally Financial Inc.

969 F. Supp. 2d 451, 2013 WL 164156, 2013 U.S. Dist. LEXIS 5667
CourtDistrict Court, S.D. West Virginia
DecidedJanuary 15, 2013
DocketCivil Action No. 2:12-cv-00384
StatusPublished
Cited by43 cases

This text of 969 F. Supp. 2d 451 (White v. Ally Financial Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Ally Financial Inc., 969 F. Supp. 2d 451, 2013 WL 164156, 2013 U.S. Dist. LEXIS 5667 (S.D.W. Va. 2013).

Opinion

memorandum: opinion AND ORDER

JOSEPH R. GOODWIN, District Judge.

Pending before the court are defendant West Asset Management’s Motion to Dismiss for Lack of Subject Matter Jurisdiction [Docket 24] and Motion to Stay [Docket 26]. These motions have been fully briefed by both parties and the matters are ripe for review. As discussed below, this court HOLDS today that an offer of judgment under Federal Rule of Civil Procedure 68 that affords a named plaintiff in a putative class action complete relief and is made prior to a motion for class certification does not moot the putative class action, as long as the motion for class certification is ultimately timely filed. The United States Supreme Court has held that a named plaintiff has an interest in obtaining a final decision on class certification, separate and distinct from his or her interest in obtaining a final decision on the merits, and sufficient for a federal court to maintain jurisdiction over the case. If such an interest exists, then it must exist at the time the named plaintiff files his or her class action complaint.

Accordingly, the defendant’s Motion to Dismiss for Lack of Subject Matter Jurisdiction [Docket 24] is DENIED. Moreover, because the court FINDS that the factors set forth in Landis v. North Am. Co., 299 U.S. 248, 57 S.Ct. 163, 81 L.Ed. 153 (1936) do not weigh in favor of granting a stay, the defendant’s Motion to Stay [Docket 26] is also DENIED.

1. Background and Procedural History1

This action arises out of the defendants’ allegedly unlawful debt collection practices. In November 2006, Jessie Dale White (the “decedent”) purchased a vehicle, financed through GMAC, Inc., now Ally Financial, Inc. (“Ally”). The decedent passed away on September 3, 2008, and his wife, the plaintiff Sadie White, was appointed Administratrix of the Estate of Jessie D. White. Because the decedent was the sole accountholder for the loan on the vehicle, any debt would be owed solely by his estate. After the decedent’s death, defendant Ally allegedly repossessed the vehicle and sold it, resulting in a deficiency balance of $7,200.45. Subsequently, Ally hired defendant West Asset Management, Inc. (‘West”) to collect the debt. From July through December 2009, when Ally recalled the account, West allegedly placed 21 calls and sent 2 letters contacting the plaintiff directly.

On February 25, 2010, the plaintiff filed her original Complaint in the Circuit Court of Boone County, West Virginia. On January 11, 2012, the plaintiff filed her Second Amended Complaint, naming Ally and West as defendants and including for the first time class allegations against both defendants.2 The Second Amended Complaint sets forth four class action counts: (1) violation of the West Virginia Consumer Credit and Protection Act (“WVCCPA”); (2) negligent and reckless misconduct; (3) the tort of outrage; and (4) unjust enrichment. In the class action [455]*455counts, the plaintiff essentially alleges that both defendants contacted her, and all others similarly situated, directly rather than submitting claims for debts in the probate estates as required by law. The complaint also set forth a fifth individual count, alleging violations of the WVCCPA when the defendants- communicated directly with the plaintiff regarding her husband’s debt while she was represented by counsel. The defendants subsequently removed the case to this court.

On May 21, 2012, defendant West made an offer of judgment pursuant to Rule 68 of the Federal Rules of Civil Procedure. West offered the plaintiff the maximum amount of statutory penalties available under the WVCCPA, plus attorneys’ fees and costs. No recovery was offered for the plaintiffs claim for actual damages under the WVCCPA or for her other state law claims. The Rule 68 offer also failed to address the class claims. The plaintiff moved to strike the offer of judgment [Docket 15]. In its response, defendant West argued that the Rule 68 offer provided the plaintiff complete relief on her individual claims, and therefore the putative class action was moot. In the court’s July 20, 2012 Memorandum Opinion and Order [Docket 21], I denied the plaintiffs motion to strike. I also found that the case was not moot because the offer failed to provide complete relief on the plaintiffs individual claims, but declined to address whether the putative class action would be moot if. the offer did provide complete relief.

Now, the question that I declined to address previously has been raised again by defendant West in the instant motion to dismiss. In addition, defendant West has also filed a motion to stay this court’s decision on its motion to dismiss, arguing that the United States Supreme Court has granted certiorari in a case that will affect this court’s ruling on that motion. See Symczyk v. Genesis Healthcare Corp., 656 F.3d 189 (3d Cir.2011), cert. granted, — U.S. -, 133 S.Ct. 26, 183 L.Ed.2d 674 (2012) (No. 11-1059).

II. The Defendant’s Motion to Dismiss for Lack of Subject Matter Jurisdiction

The sole legal issue involved in the instant motion to dismiss is whether the defendant’s Rule 68 offer of judgment for complete relief to the named plaintiff, before a motion for class certification has been filed, has the effect of rendering the putative class action against the defendant moot.3 I HOLD today that such a case is not moot because if the named plaintiff has an interest in obtaining a final decision on the issue of class certification, as the Supreme Court has held, then such an interest would exist when the class complaint is filed.

The defendant argues that the plaintiffs ease is moot because the defendant made an offer of judgment that satisfies the [456]*456plaintiffs entire demand. (Mem. of Law in Supp. of Mot. to Dismiss for Lack of Subject Matter Jurisdiction [Docket 25], at 9). The plaintiff argues in response that an offer of judgment prior to the plaintiff moving for class certification does not moot the putative class action, as long as the motion for class certification is ultimately timely filed. (Pl.’s Resp. in Opp’n to West’s Mot. to Dismiss [Docket 31], at 3).

Neither the United States Supreme Court nor the Fourth Circuit has issued any opinion directly addressing this particular scenario. Based on the applicable Supreme Court guidance, however, I believe that an offer of judgment under Federal Rule of Civil Procedure 68 that affords a named plaintiff in a putative class action complete relief and is made prior to a motion for class certification does not moot the putative class action. Accordingly, the defendant’s motion to dismiss is DENIED.

A. Legal Standard — Motion to Dismiss for Lack of Subject Matter Jurisdiction

A motion to dismiss for lack of subject matter jurisdiction can be raised in two ways — upon the face of the complaint or upon the validity of the facts stated therein. Adams v.

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969 F. Supp. 2d 451, 2013 WL 164156, 2013 U.S. Dist. LEXIS 5667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-ally-financial-inc-wvsd-2013.