Scheffler v. Gurstel Chargo, P.A.

Filing 78

ORDER granting 64 Motion for Summary Judgment (Written Opinion) Signed by Senior Judge David S. Doty on 4/19/2017. (DLO)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
Civil No. 15-4436(DSD/SER)
Troy K. Scheffler,
Plaintiff,
v.

ORDER

Gurstel Chargo, P.A.
Defendant.
Peter J. Nickitas, Esq., 431 South 7th Street, Suite 2446,
Minneapolis, MN 55415, counsel for plaintiff.
Manuel H. Newburger, Esq. and Barron & Newburger, PC, 1212
Guadalupe, Suite 104, Austin, TX 78701 and Amy M. Goltz, Esq.
and Gurstel Chargo, P.A., 6681 Country Club Drive, Golden
Valley, MN 55427, counsel for defendant.
This matter is before the court upon the motion for summary
judgment by defendant Gurstel Chargo P.A. Based on a review of the
file,

record,

and

proceedings

herein,

and

for

the

following

reasons, the court grants the motion.

BACKGROUND
This debt-collection dispute arises out of plaintiff Troy
Scheffler’s

acknowledged

credit

$9,896.90 owed to Discover Bank.
Scheffler Decl. Ex. B.

card

debt

in

the

amount

of

Second Am. Compl. ¶¶ 5-7;

Scheffler is a former debt collector who

has filed many lawsuits in this district alleging violations of the
Fair Debt Collection Practice Act (FDCPA).

Gurstel is a law firm

engaged in debt collection.
On July 31, 2009, Gurstel secured a judgment against Scheffler
on Discover’s behalf.

Second Am. Compl. ¶ 6; Answer ¶ 6.1

In July

2014, Gurstel sent a garnishment summons to Financial One Credit
Union.

Second Am. Compl. ¶ 9; Answer ¶ 9.

the garnishment summons to Scheffler.

Gurstel sent a copy of
Second Am. Compl. ¶ 9;

Answer ¶ 9. In early August 2014, Scheffler mailed Gurstel a cease
letter, and Gurstel acknowledged receipt of the letter. Second Am.
Compl. ¶ 17; Answer ¶ 17.
In early August 2015, Gurstel sent Financial One Credit Union
a garnishment notice.

Second Am. Compl. ¶ 19.

On August 11,

Gurstel sent copies of the garnishment notice to Scheffler with a
cover letter stating the following:
These documents were served upon Financial One Credit
Union on or about August 6, 2015.
If you have any
questions, please contact one of our collections
representatives at 800-514-0791.
Scheffler Decl. Ex. D, at 2 (emphasis in original).

The letter

concludes with the following admonition:
This communication is from a debt collector and is an
attempt to collect a debt. Any information obtained will
be used for that purpose.
Id.

On September 21, 2015, Scheffler called the number on the

1

Neither party provided complete documentation regarding the
underlying debt, judgment, or the parties’ communications. The
court will accept the undisputed facts as true for purposes of this
motion. Allegations which are disputed and unsupported will not be
discussed.
2

letter and spoke to John Thomas, a Gurstel employee.
Decl. Ex. G; Goltz Decl. Ex. 13.

Scheffler

Scheffler claims that he called

only to ask questions about the garnishment notice but that Thomas
“insisted on attempting to collect the debt.”

Second Am. Compl. ¶

28. The call, which the court has listened to several times, tells
a different story.
In

the

call,

See Scheffler Decl. Ex. E; Goltz Decl. Ex. 13.

Scheffler

did

not

ask

any

questions

about

the

garnishment notice beyond asking why Gurstel sent it to him:
Salter:2
Are you calling in regards
garnishment disclosure you received?

to

the,

the

Scheffler: Well yeah I mean I got that. I mean you guys
have on here call if I have any questions.
So, I
[unintelligble]. (Salter interrupts)
Salter:
have?

Alright, so what’s the what’s the question you

Scheffler: Well, I guess why are you guys sending this
stuff to, to I don’t know, I don’t even know why you guys
are bothering really to be honest with you.
Scheffler Decl. Ex. G, at 1-2. Thereafter, Scheffler baited Salter
into discussing possible resolution of the debt:
Salter: What’s your confusion? You have twelve thousand
none hundred and twenty dollar debt that they’re trying
to recover.
Scheffler:
Salter:

Ok, so what am I going to do about that?

Are you able to pay it?

2

The transcript provided by Scheffler indicated that the
Gurstel employee is named John Thomas. The call indicates that his
full name is John Thomas Salter and the court will refer to him as
such.
3

Scheffler:

No.

Salter: Ok. Uhh, are you in a position to where you
wanna try to resolve it?
Scheffler: Well I mean possibly at some point, I mean
what are you saying, what are you offering?
Id. at 2.

Scheffler then complained that Gurstel was improperly

trying to collect on the debt, to which Salter responded, “You
called me right?”

Id. at 5.

When it became clear that the

conversation would not be productive, Salter said “I mean I don’t
wanna go round and round with you.

If your intent is to not

resolve it that’s fine; or if you don’t have the ability to do so
that’s fine.”

Id.

The call concluded soon thereafter.

Id. at 6.

On November 20, 2015, Scheffler commenced this putative class
action in Hennepin County District Court, alleging that Gurstel’s
letter

and

his

conversation

with

Salter

Gurstel timely removed to this court.

violated

the

FDCPA.

On March 1, 2017, Scheffler

filed a second amended complaint alleging violations of 15 U.S.C.
§§ 1692c(c) & 1692e(10).

Gurstel now moves for summary judgment.

DISCUSSION
I.

Standard of Review
“The court shall grant summary judgment if the movant shows

that there is no genuine dispute as to any material fact and the
movant is entitled to judgment as a matter of law.”

Fed. R. Civ.

P. 56(a); see Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986).
4

A fact is material only when its resolution affects the outcome of
the case.
(1986).

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248

A dispute is genuine if the evidence is such that it could

cause a reasonable jury to return a verdict for either party.

Id.

at 252.
On a motion for summary judgment, the court views all evidence
and inferences in a light most favorable to the nonmoving party.
Id. at 255.

The nonmoving party, however, may not rest upon mere

denials or allegations in the pleadings but must set forth specific
facts sufficient to raise a genuine issue for trial.
U.S. at 324.

Celotex, 477

A party asserting that a genuine dispute exists — or

cannot exist — about a material fact must cite “particular parts of
materials in the record.”

Fed. R. Civ. P. 56(c)(1)(A).

If a

plaintiff cannot support each essential element of a claim, the
court must grant summary judgment because a complete failure of
proof regarding an essential element necessarily renders all other
facts immaterial.
II.

Celotex, 477 U.S. at 322-23.

FDCPA
Congress enacted the FDCPA to protect consumers “in response

to abusive, deceptive, and unfair debt collection practices.”
Schmitt v. FMA Alliance, Ltd., 398 F.3d 995, 997 (8th Cir. 2005).
“A

violation

of

the

FDCPA

is

reviewed

utilizing

the

unsophisticated-consumer standard which ... protects the uninformed
or naive consumer, yet also contains an objective element of

5

reasonableness

to

protect

debt

collectors

from

liability

peculiar interpretations of collection [attempts].”

for

Strand v.

Diversified Collection Serv., Inc., 380 F.3d 316, 317–18 (8th Cir.
2004) (citations and internal quotation marks omitted).

“The

unsophisticated consumer test is a practical one, and statements
that are merely susceptible of an ingenious misreading do not
violate the FDCPA.”

Peters v. Gen. Serv. Bureau, Inc., 277 F.3d

1051, 1056 (8th Cir. 2002) (citations and internal quotation marks
omitted).
A.

15 U.S.C. § 1692c(c)

The

FDCPA

prohibits

creditors

from

communicating

with

consumers “with respect to the debt” if the consumer “notifies a
debt collector in writing that the consumer refuses to pay a debt
or that the consumer wishes the debt collector to cease further
communication

with

the

consumer[.]”

15

U.S.C.

§

1692c(c).

Scheffler argues that Gurstel violated § 1692c(c) by sending the
garnishment notice to him with a cover letter inviting him to call
Gurstel with any questions.3

The court disagrees.

As Scheffler well knows given his past involvement in similar
litigation, Gurstel did not violate the FDCPA by sending the

3

In his memorandum of law, Scheffler also references
“superfluous correspondence” that gave him “a directive to contact
one of Gurstel’s collection representatives.” ECF No. 73, at 11.
It is unclear whether he is referencing letters in addition to the
August 11, 2015, letter. Because the court has not been provided
with additional correspondence, it will consider only the August 11
letter.
6

garnishment notice:
A creditor may communicate with a debtor after receiving
a cease letter to notify the consumer that the debt
collector or creditor may invoke specified remedies which
are ordinarily invoked by such debt collector or
creditor. That is exactly what the garnishment letter
was — a notification that Capital One would be attempting
to collect the debt Scheffler owed.
Scheffler v. Messerli & Kramer P.A., 791 F.3d 847, 848 (8th Cir.
2015)

(internal

quotation

and

citation

omitted);

15

U.S.C.

§ 1692c(c); see Scheffler Decl. Ex. G, at 5 (“Scheffler:

Well I

don’t mind the notification of a bank garnishment.
per law.

You have to do that ....”).

That’s, that’s

Nor did Gurstel violate the

FDCPA by inviting Scheffler to call the number provided if he had
any questions.

See Lindley v. TRS Recovery Assocs., Inc., No. 12-

109, 2012 WL 6201175, at *5 (S.D. Tex. Dec. 12, 2012) (“[T]he
letter’s invitation for Lindley to call if he needed any assistance
did not transform this informative letter into an effort to collect
the debt.”).

The court is unpersuaded by Scheffler’s argument -

made during the hearing on this matter - that Gurstel “subliminally
commanded” him to call the number provided by putting it in bold
type.
Scheffler’s

telephone

conversation

with

Salter,

which

Scheffler initiated, is likewise insufficient to constitute an
FDCPA violation.

Salter handled the call appropriately and only

asked Scheffler about resolving the debt after Scheffler said “Ok,
so what am I going to do about that [referring to the debt]?”

7

Scheffler Decl. Ex. G, at 2.

When reviewed as a whole, the call

was an unsubtle and ultimately unsuccessful attempt to provoke
Salter into committing an FDCPA violation. At no time did Gurstel,
either in writing or in the telephone call, demand payment on the
debt or otherwise violate the FDCPA as alleged.

Indeed, rather

than pressuring Scheffler to pay the debt, Salter simply said, “If
your intent is to not resolve it that’s fine; or if you don’t have
the ability to do so that’s fine.”

Id. at 5.

Even if construed as an effort to collect on the debt,
Scheffler’s conduct and words constituted a waiver of his cease
letter.

See Backlund v. Messerli & Kramer, P.A., 964 F. Supp. 2d

1010, 1015-16 (D. Minn. 2010) (quoting Clark v. Capital Credit
Collections Servs., Inc., 460 F.3d 1162, 1168 (9th Cir. 2006))
(adopting the view that “a debtor may waive the rights created by
a cease communications directive” if the waiver is “knowing and
voluntary” and “the least sophisticated debtor would understand
that he or she was waiving his or her rights under § 1692c(c)”).
Scheffler initiated the phone call to Gurstel, responded vaguely
when asked what questions he had about the garnishment notice, and
steered the conversation to possible resolution of the debt.

His

waiver was thus knowing and voluntary, just as it would be were he
an unsophisticated debtor.
B.

15 U.S.C. § 1692e(10)

Section 1692e(10) prohibits debt collectors from using “any

8

false or deceptive means to collect or attempt to collect any debt
or to obtain information concerning a customer.”

Scheffler agues

that Gurstel violated § 1692e(10) by falsely indicating that he
could call the number on the letter to discuss the garnishment
notice with a lawyer.

Scheffler’s argument is unavailing.

The

letter does not state that the number provided will be answered by
an attorney prepared to answer questions solely about garnishment.
Rather, the letter expressly notified Scheffler that he could
contact a “collection representative” by calling the number.

And

he in fact spoke with a collection representative when he called.
As a result, there is nothing deceptive about the information
provided

in

the

letter.

It

certainly

was

not

deceiving

to

Scheffler, whose experience in debt collection and FDCPA litigation
belies his grievance, but neither would it be deceiving to an
unsophisticated consumer.
The fact that the letter also includes a so-called miniMiranda warning4 does nothing to change the court’s conclusion.
Although the warning may not have been necessary given the purely
informative nature of the letter, it did not transform the letter
into a debt-collection effort. See Lewis v. ACB Bus. Servs., Inc.,
135 F.3d 389, 399 (6th Cir. 1998) (“[T]he mere fact that the letter

4

This is a warning in which debt collectors identify
themselves as such and disclose that they are communicating with
the consumer to collect a debt.
Zortman v. J.C. Christensen &
Assocs., Inc., 870 F. Supp. 2d 694, 700 (D. Minn. 2012).
9

states at the bottom that it ‘is an attempt to collect a debt’ does
not transform the letter into an unlawful demand for payment.”).
Finally, as already discussed, the call itself was not a debtcollection effort in violation of the FDCPA.

As a result, Gurstel

is entitled to summary judgment.

CONCLUSION
Accordingly, based on the above, IT IS HEREBY ORDERED that:
1.

The motion for summary judgment [ECF No. 64] is granted;

2.

The case is dismissed with prejudice.

and

LET JUDGMENT BE ENTERED ACCORDINGLY.

Dated: April 19, 2017
s/David S. Doty
David S. Doty, Judge
United States District Court

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