HICA Education Loan Corporation v. Paczkowski
Filing
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ORDER that the Court GRANTS Plaintiff's motion for summary judgment. (Doc. 25 .) The Clerk of Court is directed to enter judgment accordingly. Signed by Judge G Murray Snow on 6/6/2016. (KMG)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE DISTRICT OF ARIZONA
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HICA Education Loan Corporation,
Plaintiff,
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ORDER
v.
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No. CV-14-01513-PHX-GMS
Sylvia Paczkowski,
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Defendant.
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Pending before the Court is Plaintiff HICA Education Loan Corporation’s motion
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for summary judgment. (Doc. 25.) For the following reasons, the Court grants the
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motion.
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BACKGROUND
Between August 1988 and May 1991, Defendant Sylvia Paczkowski signed four
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promissory notes (“loans”) with Plaintiff’s predecessor totaling over $30,000. Plaintiff’s
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Statement of Facts1 (“PSOF”) ¶¶ 1–4, Exs. A, C–E; Defendant’s Response (Doc. 30) at 1.
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In November 2003, the loans were assigned to Plaintiff. PSOF ¶ 5. On or about April
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2013, Defendant ceased making payments on her loans. Id. ¶ 6. Over the next year,
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Plaintiff sent Defendant numerous demands for payment, which Defendant did not
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answer. Id. ¶ 7, Exs. G, H, I.
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Sometime before March 2014, Defendant applied to the Department of Education
(“DOE”) for a complete discharge of her outstanding loan amount due to her alleged
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Defendant did not submit her own statement of facts nor any declarations or
affidavits in support of her response to Plaintiff’s motion for summary judgment.
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permanent and total disability. Id. ¶ 10. The DOE sent Defendant’s application to the
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Federal Occupational Health Service (“FOH”) for review, which, on March 11, 2014,
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found Defendant not disabled and denied her application. Id., Ex. K. In April 2014,
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Defendant submitted additional medical records and requested a second review by the
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FOH; the FOH denied her application. Id. ¶ 11, Ex. L. In June 2015, the FOH reviewed
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and denied Defendant’s application for a third time. Id. ¶ 12, Ex. M. Finally, in August
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2015, after Defendant failed to sign and return five medical release forms, Plaintiff
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informed her that her application for cancellation of her loans due to permanent and total
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disability were denied. Id. ¶¶ 13–15, Exs. N–P.
DISCUSSION
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I.
Legal Standard
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Summary judgment is appropriate if the evidence, viewed in the light most
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favorable to the nonmoving party, demonstrates “that there is no genuine dispute as to
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any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ.
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P. 56(a). Substantive law determines which facts are material and “[o]nly disputes over
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facts that might affect the outcome of the suit under the governing law will properly
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preclude the entry of summary judgment.” Anderson v. Liberty Lobby, Inc., 477 U.S.
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242, 248 (1986). “A fact issue is genuine ‘if the evidence is such that a reasonable jury
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could return a verdict for the nonmoving party.’” Villiarimo v. Aloha Island Air, Inc.,
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281 F.3d 1054, 1061 (9th Cir. 2002) (quoting Anderson, 477 U.S. at 248). Thus, the
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nonmoving party must show that the genuine factual issues “‘can be resolved only by a
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finder of fact because they may reasonably be resolved in favor of either party.’” Cal.
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Architectural Bldg. Prods., Inc. v. Franciscan Ceramics, Inc., 818 F.2d 1466, 1468 (9th
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Cir. 1987) (quoting Anderson, 477 U.S. at 250).
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Although “[t]he evidence of [the non-moving party] is to be believed, and all
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justifiable inferences are to be drawn in [its] favor,” the non-moving party “must do more
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than simply show that there is some metaphysical doubt as to the material facts.”
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Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986). The
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nonmoving party cannot avoid summary judgment by relying solely on conclusory
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allegations unsupported by facts. See Taylor v. List, 880 F.2d 1040, 1045 (9th Cir. 1989).
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“A party asserting that a fact cannot be or is genuinely disputed must support the
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assertion by: (A) citing to particular parts of materials in the record . . . or other materials;
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or (B) showing that the materials cited do not establish the absence or presence of a
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genuine dispute, or that an adverse party cannot produce admissible evidence to support
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the fact.” Fed. R. Civ. P. 56(c). “A trial court can only consider admissible evidence in
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ruling on a motion for summary judgment,” and evidence must be authenticated before it
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can be considered. Orr v. Bank of Am., 285 F.3d 764, 773–74 (9th Cir. 2002).
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II.
Analysis
Plaintiff seeks summary judgment on its breach of contract claim. A breach of
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contract occurs when there is: (1) a valid contract; (2) a breach of the terms of that
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contract; and (3) damages. See Snyder v. HSBC Bank, USA, N.A., 873 F. Supp. 2d 1139,
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1149 (D. Ariz. 2012).
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Defendant does not contest the validity of the contracts, i.e., promissory notes,
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underlying the four loans at issue in this case. Defendant also does not contest that her
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termination of loan payments constitutes breach of those contracts. Nevertheless,
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Defendant argues that she is permanently and totally disabled, and as such she is “entitled
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to an exemption from payment of these obligations.” (Doc. 15 at 2.) Defendant
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essentially argues that her breach is excused. The Defendant, however, acting within the
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HEAL statutory framework which governs her loan obligations, already applied to the
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DOE for cancellation of her outstanding loan amounts on account of her alleged
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permanent disability; the FOH denied those applications. As such, her continuing failure
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to satisfy her outstanding loan payments damages Plaintiff.
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In her response to Plaintiff’s motion for summary judgment, Defendant only
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presented conclusory statements regarding her alleged permanent and total disability.
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Defendant described her symptoms and listed the alleged findings of multiple doctors
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who treated or examined her over the years; yet, she attached no declarations, affidavits,
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or other admissible evidence supporting her symptoms or those doctors’ findings. See
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Taylor, 880 F.2d at 1045; Orr, 285 F.3d at 773–74. Here, the only admissible evidence
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are the FOH letters Plaintiff attached that repeatedly denied Defendant’s previous claims
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to the DOE of permanent and total disability. Accordingly, on this undisputed record, the
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Defendant presents no viable excuse for her breach of contract; thus, the facts support
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Plaintiff’s motion.
CONCLUSION
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IT IS THEREFORE ORDERED that the Court GRANTS Plaintiff’s motion for
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summary judgment.2 (Doc. 25.) The Clerk of Court is directed to enter judgment
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accordingly.
Dated this 6th day of June, 2016.
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Honorable G. Murray Snow
United States District Judge
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Pursuant to A.R.S. § 12-341.01, Plaintiffs are entitled to the award of reasonable
costs and attorney fees. The Court shall grant such an award upon Plaintiff’s compliance
with LRCiv. 54.2.
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