Akil, al v. Carrington Mortgage Services
2:12-cv-01225
E.D. Cal.Oct 25, 2012Background
- Karim Akil and Amy Schloemann filed a complaint against Carrington Mortgage Services, Deutsche Bank National Trust Company, Atlantic & Pacific Foreclosure Services, and others (DOES 1–25) in the Eastern District of California.
- Plaintiffs’ Second Amended Complaint asserts claims under the Fair Debt Collection Practices Act (FDCPA).
- Defendants moved to dismiss under Rule 12(b)(6) for failure to state a plausible FDCPA claim.
- The court applied the standard that a complaint must plead facts showing a plausible claim, not merely legal conclusions.
- The court granted the motion, dismissing the SAC with prejudice but allowed amendment within ten days.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendants are debt collectors under the FDCPA | Deutsche and Carrington fall within the FDCPA’s debt collector definition. | Defendants are not debt collectors; they are creditors/assignees with no FDCPA liability. | Defendants not clearly pleaded as debt collectors; no plausible FDCPA claim stated. |
| Whether the SAC plausibly pleads a FDCPA claim against the defendants | Allegations show false debt status and improper collection efforts by defendants. | Allegations are conclusory and insufficient to state a viable FDCPA claim. | SAC insufficiently pled; claim dismissed. |
| Whether the complaint should be dismissed with or without prejudice and allowed to amend | Plaintiffs should be allowed to amend to cure deficiencies. | Dismissal is appropriate; but leave to amend should be limited to cure defects. | Dismissal with leave to amend; ten days to file a Third Amended Complaint. |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (pleading must state facial plausibility; avoid mere conclusory statements)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (plausibility standard; labels/conclusions alone insufficient)
- Cafasso ex rel. v. Gen. Dynamics C4 Sys., 637 F.3d 1047 (9th Cir. 2011) (establishing pleading standard for Rule 12(b)(6) in Ninth Circuit)
- Rowe v. Educ. Credit Mgmt. Corp., 559 F.3d 1028 (9th Cir. 2009) (creditors may be subject to FDCPA only to facilitate collection in default)