Sears v. Baretta Financial

Filing 23

MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 6/3/15. (eot)

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M EM O R AN D U M O PI I N
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Ho Gln E.
n. e Conr
ad
Chi fU nie St t D it i tJ
e
t d a es s rc udge

De e nt
f nda .

Thi e s i pr en l be o et c to pl i ifDa d B.Sea s m oto f rde a t
s a e s es ty f r he our n antf vi
r ' i n o f ul

j dg n . Fo ter a o sstf rhb lw,h moinwil ega td.
u me t r h e s n e o t eo t e to l b r ne
Backzround

O n J nua y 23,201 Se r f l d t s a ton a ns Ba e t Fi nc a , Ca ior a
a r
4, a s ie hi c i gai t r ta na i l a lf ni

c
omorton,alegi vi ai oft FarDe Cole tonPrciesAc (t
ai l ng oltons he i bt lci a tc
tS
FDCPA',1 U. C.
' 5 S.
)
jj1 1
692- 692p. On Se e r3,201 a trbengg a eda e e i oftmei whiht
ptmbe
4, fe i r nt n xtnson i n c o
a om pls s v c ofpr es ,Se r s r d Ba e t Fi nci lt ough t Se r t r oft
cc
i h er i e
oc s a s e ve
r t a na a hr
he c e a y he

Commonwe 1hofVigi a purua t Vigni Codej8. at
r ni, s nt o r i a
01329. OnOcobe 29,201 t
t r
4,he
Cl k oft Se e a y oft Co m onw ea t i s d a Ce ttc t ofCom pla e, hi wasf l d
er
he cr t r
he m
1h s ue
rii a e
i nc w ch
ie

wih t eo to N o m be l4,
t he ur n ve r 2014.
De pie bengpr l s r ed,Ba et Fi nca f ie t ans rorot nviedefnd t
s t i
opery e v
r ta na il a ld o we
he s
e he
aci n wihi t tmepe i pe m it d by t Fede a Rul ofCi lPr edur . On Aprl1
to t n he i
rod r te
he
r l es
vi oc e
i ,
2015,heClr fl a e r ofde a ta ns Ba e t Fi nc a . Ba e t Fi nc a hasnot
t
e k ied n nty
f ul gai t r ta na i l
r ta na i l
m oved t s asi t ent y ofdef t,orot
o et de he r
aul
herwi appear i any m a
se
ed n
nneri t s cas Sear
n hi e.
s

ha n w mo df rd fulj d me t
so
ve o ea t u g n .

St
andar o R e e
d f vi w

Un e Rul 5 o teF d r l lso Ci l o e u e d fulj d me ti at -tp
d r e 5 f h e ea Rue f viPr c d r , ea t u g n s wo se
pr s . Se J fe s v. i r I , F. p.2d430,433( D.Va.
oce s e e fron Brne. nc.461 Sup
E.
2006) Pro t e r
. ir o nty

o d fulj dg n ,h r mu tb a e tyo d fut S eF d. Ci P. 5a . Afe d fu ts
f ea t u me tte e s e n nr f e a l. e e R. v. 5 () tr ea l i

e tr db t eClr , pat ma mo et ec u t o d fulj d me tu d rRu e5 ( )
nee y h ek a ry y v h o r f r ea t u g n n e l 5 b .
U pon def ul,a loft w e lpl de f t a l ged i t c pl i m a be t ke a t u
a t l he l- ea d ac s le
n he om a nt y
a n s r e.

Se Ry nv. me o ng F n Newo k, 5 F.d7 8 7 0(t Ci. 0 ) t Tj ed fn a t b
e a Ho c mi s i . t r 2 3 3 7 , 8 4 h r 2 01 (< h ee d n , y
(
hi deful,a t pl nifswelpl de alegai off t.' (nt na ciai o te ;se
s a t dmis aitf
l- ea d l tons acgj' i er l tton mitd) e
)

as Fe R. v. 8b)6 . Ac o dn l ,n ted fut u g n c ne t teE p r p it
lo d. Ci P. ( ( ) c r ig y i h ea lj d me t o tx ,h s p o rae
a
i uiyi wh t e o n t h fc o t ep e dng s p o t ted fut u g n a dtec u e o
nq r s eh r r o t e a e f h la i s u p rs h e a lj d me t n h a s s f
ac i t r n.' Ande s v.Found. orA dva m e t Educ.& Em p' ofA m . ndi ns N o.
ton he ei '
r on
f
nce n .
t
l a ,

99- 508 1 U. App.
1 , 999 S,
LEXI 18633,a * ( h Ci.Aug.1 1 )
S
t 2 4t r
0, 999 .
A lhoug t w el- e ded f c ua a l tonsi a c pl i ta e a ce ed a t u f
t
h he lpl a
a t l lega i n om a n r c pt s r e or

pur e ofdea tj
poss
ful udgme , pa' whodea t doe nota tt alegai a t t a unt
nta ly
t
fuls s dmi he l tons s o he mo
ofdn ges Se Fe R. v.P.8b)6)( ovi ngt tçll alegai - ot rt nonerltng
ma . e d. Ci
( ( pr di ha kan l ton he ha
eai
t t a oun ofda a - i a tedi ar s nsvepl a ngi r quiedandt alegai n i not
o he m t
m ges s dmit f e po i e di s e r
he l to s

de e '. Cons quenl i t co tdee ne t tla lt i esa ihed,imus t n
nid'
)
e ty,f he ur tnni s ha ibiiy s tbls t t he
de e m i t a opra e a ou ofda age . Ryan,253 F. a 780- 1 l s doi t c t
t r ne he ppr i t m nt
m s
3d t
8 . n o ng, he our

ma c
y onduc a e de ir heai unde Rul 55( ( . Thec t yaloma a
t n vi ntay rng r e b)2)
our ma s ke
de e na i ofda a w ihoutahea i a l a t e i a ade t e de i r ba i i t
t nni ton
m ges t
rng s ong s her s n qua e vi nta y s s n he

rcor frt awa d. SeeAndero 1 F. a 507( i t tçn s cr tnc sa
e d o he r
s n, 55 3d t
notng ha i ome icumsa e
i

dititcour e ei adea tj me ma a dda sa c rana efo t pla ngs
src
t ntrng ful udg nt y war mage s e ti bl r m he e di
wihou hol ngahe rng' .
t t di
ai '
)

Di
scuss on
i

1
.

Li lt unde t FD C PA
abiiv
r he

The FDCPA wasena t d t pr t c c um e sf om a i a de e i pr c i esby
c e o o e t ons r r
bus ve nd c ptve a tc
de c l c or ,a t pr e tnon- bus ve deb orc l c or f om c pe ii di a nt ge.
bt ole t s nd o ot c
a i
t ole t s r
om ttve s dva a

Unie Sttsv. tlFi Se vs,nc.98F. 131,135( h Ci.1 . l i t src la lt
td ae Na' n. r .l , 3d
4t r 996) t s ( tit ibiiy
a
saut t tpr hi t f leorde ptver pr s nttonsi colec i ade ,a wel asce t n
tt e ha o bis as
ce i e e e a i n l tng
bt s l
rai

a i de c lci prci s' McLe v.Ra 488F.App' 677,682( hCi. 2) l
busve bt ole ton a tce .'
an
v,
x
4t r 201 . n
or rt esa ihavi ai oft FDCPA,hepli ifmus pr ( )t tt dee nti a
de o tbls olton he
t antf t ove: 1 ha he fnda s
Sde colecor'a dei dbyt FDCPA;()t tt pli ifha be nt o j c ofc lci
f bt l t ' s fne
he
2 ha he antf s e he b e t ole ton
a i t aii fom ac ume deb ; nd( t tt defnda ha e
ctviy rsng r
ons r t a 3) ha he e nt s ngage i a aci or
d n n ton
omisonpr bie byt FDCPA. Rug av.W as M ut, 9F.Supp.2d,642,647( D.
s i ohi td he
gi
h. .71
E. Va.
201 . ( ca et FDCPA i asrc labiiysaut, c ume ne onl pr onevilto
0) t us he
Be
s titi lt tt e a ons r ed y ove
oain
t ti rla lt ' GrntFltherv.McMule & Dnzv. A.964F.Supp.2d51 5 (
o rgge ibiiy. a - ec
'
ln
r P. ,
4, 21 D.

M d.201 .
3)
Ac r ng t t c
co di o he ompli ,Ba eta Fi ncilç e a l colecsorat mpt t c lc ,
a nt r t na a d gul ry l t
r
te s o ole t
diec l ori r c l de sow e ordue o a s r e t be ow e ordue a t r' a t ,i a
r ty ndi e ty, bt
d
r s e td o
d
no he , nd, hus s
'

k c l t 'f pup os oft FDCPA. Se 1 U. C.j1
û olecor'or
debt
es he
e 5 S. 692a() I Ocobe of201
6. n t r
3,
Ba eta Fi nc a atem pt d t colec on acons e d t ti c ai ed Se sowed i t a ount
r t na i l t
e o l t
um r ebt ha t l m
ar
n he m

of$28, 97. Spec fc l on ora utOct r30,201 Ba et Fi nc a s ntSea sa lte
646.
ii aly,
bo
obe
3, r ta na i l e
r el r

t t ssye a aC TI
ha wa t ld s S GATI NOTI ' Co l Ex. 1ss b e tl eicu e
LI
ON
CE.
' mp . B. t u j c i n l d d
n
S
S
BARETTA FW ANCI vs DAVI SEARS'a ç eNo.
AL .
D
' nd d
cas
KL0000044l1 ' J= Thelte
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etr
s a e t tSe r ha i ed pr vi a t m pt t r s ve t m a t ra t ta l w s tm ay be t
t t d ha a s d gnor
e ous te s o e ol he te nd ha a ui
hc

ne se û euli i aj me 'a ns Se r . 1 l as sae t taj
xt tp,t s tng n udg nt' gai t a s d. t lo ttd ha udgme ma be
r
nt y
c l c e tuoug wage ga ihm e ,l vy on ba a c
ole t d l
h
m s nt e
nk c ount , le on r lorpe s
s or i ns ea
r onalpr pe t
o r y,
3

a ong ot rm e hods The l te i t uc e Sea st c a tBa e t Fi nc a w ihi t n da or
m
he
t
.
e t r nsr t d
r o ont c r ta na i l t n e ys
ltga i w oul be c m e ed.
ii ton
d
om nc

Ba et Fi nc a hasnotfl s ta ns Se r . Se r al gest tt sa e nt i t
r ta na i l
ied ui gai t a s
a s le ha he t t me s n he
l te r r ng ltga i n wer f s ,t tBa r ta Fi nc alkne t tt y w e e f s a t tm e
e t r ega di ii to
e al e ha r e t na i
w ha he
r al e t he i
t l t e w a s nt a t tt s a e e sw e e m a w ih t i e i ofm i l a ng Sea s
he e t r s e , nd ha he t t m nt r
de t he nt nton
s e di
r.

Thecou tc udest tt a lga i i t c
r oncl
ha he le tons n he ompli esabls t Ba et Fi nc a
a nt t ih hat r ta na i l
vi a e t FD CPA . The FDCPA f bi t us ofta f s ,de ptve orm i l a ng
ol t d he
or ds he e d ny al e ce i ,
s e di

r e e aton o m e ns'i de c l c i a pr de anon- xha tve ls ofpr bied
epr s nt i r a ' n bt ole ton, nd ovi s
e usi it
ohi t

conduc. 1 U. C.j169 Suc c
t 5 S.
2e. h onduc i l sSlj t e tt tkea a tont tc nno
t ncude éthe hra o a ny ci ha a t
lgal betke ort ti noti e dt betke ' 1 U. C.j 1 ( . Thi pa tc ar
e ly a n ha s ntnde o a n.' 5 S.
692e5)
s riul
sdini vi ae Si ( )ade orwoul ras bl beivet tt noi )t eae s lga
e o s oltd tf 1 bt
d e ona y le ha he tcel hr tnl) e l
aci a ( t de c lct doesnoti e t tkel alacin. Na 'Fi Sevs.l .98
ton; nd 2) he bt ole or
ntnd o a eg to ' tl n. r . nc,
'
F.d a 1
3 t 35. W hehe acommuni a i vi aest spr son i de e mi d fom t va a of
t r
c ton olt hi ovii s t r ne r he nt ge
t tlas s sia e cons r' l a 1 . e as Rus el v. ol eCole ton Se vss
he te t ophitc t d
ume . d. t 36,s e lo
'
s l Abs ut
lci
r .

l ,763F. 385,3 (t Ci. 4)
nc.
3d
94 4h r 201 .
I t s c e, he l te s ntby Ba e t Fi nc a c e ry t e t ned l gala ton. N o onl
n hi as t e t r e
r ta na i l l a l hr a e
e
ci
t y

wa telte sylda a( TI
s h etr t e s C GATI NOTI ' t t es be t ieT
LI
ON
CE'wi h u j c ln I
h
BARETTA
FI
NANCI vs DAVI SEARS, i s ci aly sae t tltga i woul be c
AL .
D
' t pe ûc l tt d ha ii ton
'
d
omm e e i
nc d f
Se r di notc a tt c pa w ihi t n da . Upo r di t l te , he hypot tca l s
as d
ont c he om ny t n e ys
n ea ng he e t r t
he i l ea t

s sia e co um e undoubt dl wo d i e pr tt lte ast e t ni l ga a ton. Se
ophitc t d ns r
e y ul nt r e he et r hr a e ng e l c i
e.

e. , tlFi Sevs.l ,98F. a 1 37( di t tc lci notc t e tne lga
g.Na ' n. r . nc.
3d t 36- hol ng ha ole ton ies hrae d e l
aci whe et no i e i c t d t tt de t ' a ountwoul be r f r e t a a tnwy)
ton r he tc s ndi a e ha he b ors cc
d e e r d o n to
.
The a l ga i i t c pl i f t resabls t Ba e t Fi nc a ha no i e i of
le tons n he om a nt urhe t i h hat r ta na i l d
nt nton
t ki l ga a ton. Sea sa l est tB a e' Fi nc a ha no fl d s ta i thi , ha t
a ng e l c i
r leg ha r ta na i l s t ie ui ga ns m t t he
t
4

compa f lel r pr s nt di t lte t tiwoul fl s t a t tBa et Fi nc a kne t t
ny a s y e e e e n he et r ha t
d ie ui, nd ha r ta na i l w ha
t r pr e t tonswer f s a t tmet l te wa m aied. Fo t er a ons t co t
he e es n a i
e ale t he i he e tr s l
r hes e s , he ur

concud t tSeasha aesa ihedavi ai ofj 1 ( .
l es ha r s tbls
olton
692e5)
I1.

Request R em edi
ed
es

H a ng c l d t tSe shas e t bls d a vi a i oft FD CPA , he co t us
vi onc ude ha ar
s a i he
ol ton he
t
ur m t
det r i t r i t w hi h he i e il d. Se r s cii ly s e t r cove s a ut y da a ,
e m ne he elef o
c
s ntte
a s pe tca l e ks o e
r t t or m ges
a t r y' f e ,a co tcos s
to ne s e s nd ur t .

Under1 U. C.j1 2k()2) a i vi li e il t rcove saut yfdn esa
5 S. 69 a ( , n ndi dua s ntted o e r tt or l mag s
t cour ma al butnote e ng $1000.' l de e mi ng a appr it a oun of
he
t y low,
xc edi
, ' n t r ni n
opra e m t
d
amage , hecour mus c i ranu be off t r ,i l ng t fe
st
t t onsde
m r ac o s ncudi he r quenc a pe sse e of
y nd rit nc

t de c l cor snonc
he bt ole t '
omplanc t natr ofs h nonc
i e,he tle uc
ompla
ince, nd t extntt whi ht
a he e o c he

no ompla wa i e ina. 1 U. C.j1
nc ince s ntnto l 5 S. 692k( ( )
b)1 .
Appl ng t s f c or , heco tc ude t tSe r i e il d t $1000. i saut y
yi he e a t s t
ur oncl s ha a s s ntte o , 00 n t t or
da a s Alhough la lt ars sfo a sngl lte , healega i i t c
m ge . t
i biiy ie r m i e etr t l tons n he ompli e t bls
ant sa ih
t tBa e' Fi i ' nonc
ha r ta nancals
t
ompla ewa dei r t a i e i ,a t tt lte was
inc s lbe a e nd ntntonal nd ha he e tr

dr fedi at e t ni m a r Ac or ngl Ba e t Fi i wilbeo de e t pa $1000.
a t n hz a e ng nne . c di y, r ta nancal l r r d o y , 00
i s a ut y da age .
n t t or m s
l a ton t da a , he c tm a a r k he c t oft a ton,t e he w ih a
n ddii o m ges t our y wa d i os s he c i og t r t
t

r s nabl atm e sfe. 1 U. C.j1
ea o e to y' e ' 5 S. 692k()3 . Se r ha s mit anatda tfom hi
'
a( ) as s ub ted fi vi r
s
ator y, i ha d L. r e r Es , hi h i c t st tSe r ha i ur e a t ne sf e i t
t ne R c r G e nbe g, q. w c ndi a e ha a s s nc r d tor y' e s n he

amountof$128 0 The a fdavi as i c t st tSea sha i ured c t i t a
, 0.0.
fi t lo ndi a e ha r s nc r oss n he mountof
$460.0, c i udet c t as ocit wihtlngt i t ntaci n. Thec t i t tt
0 whih ncl he oss s aed t ii he nsa to
our fnds ha he
am ountoft c a m e a t ne s f e i r a ona e a t tt r co d s
he l i d tor y' e s s e s bl , nd ha he e r upporsaw a di c t i
t
r ng os s n

t ea u t e uetdb S a s Ac o dn l ,h j d me wi icu ea a r o atr y'
h mo n rq se y e r . c r ig y te u g nt l n l d n wa d f tone s
l
f e a cossi t muountof$1740.
e s nd t n he
, 00.
C oncl on
usi

F rt ra o sae ,h c u t l g a tSe r ' to f rd fulj g n a ans
o he e s ns ttd te o r wil rn as mo in o ea tud me t g i t
B a e t Fi nci l J
r ta na a . udgm e w ilbe e e e i f vorofSe sa aga ns Bar ta Fi nc a i t
nt l
nt r d n a
ar nd i t e t na i l n he

a
mountof$2, 00,whih co it of$1, 00 i saut y dn
740.
c nsss
000. n t t or mage a $1740. i
s nd , 00 n
a t r y' f e a cos s
t o ne s e s nd t .
The Cl r i diec e t s nd c r ii d c e oft sm e or ndu opi on a t
e k s r t d o e e tf e opi s hi m a m
ni nd he

ac ompa ngor t t de e nta alc
c
nyi
der o he f nda nd l ouns lofr or
e
ec d.

sx-sR: i 5 z d yo u e 2 5
l Ths W a rl n , 01 .
-

Chi Unied St esD i t ctJ
ef t
at
sri udge

6