Anderson v. Eastern Asset Services LLC
3:19-cv-00778
N.D. Tex.May 16, 2019Background
- Plaintiff Greg L. Anderson sued debt collector Eastern Asset Services, LLC (EAS) under the Fair Debt Collection Practices Act (FDCPA) after EAS allegedly called Anderson’s son and then told Anderson he could go to jail for fraud if he did not pay an ACE Loan debt.
- Complaint alleges violations of 15 U.S.C. §§ 1692b(2), 1692c(b) (third‑party disclosure), 1692d (harassment), and 1692e (false representations).
- Anderson paid $65 after the call; EAS later sent DocuSign documents proposing $400 monthly payments.
- EAS was served but did not answer; the Clerk entered default and Anderson moved for default judgment.
- The court applied the three‑part default‑judgment framework (procedural sufficiency, merits of pleaded claims, and damages) and found default judgment procedurally warranted.
- The court granted judgment on the disclosure and false‑representation claims, denied the §1692d harassment claim, awarded $1,000 statutory damages plus $3,599.70 (attorneys’ fees and costs) for a total of $4,599.70.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is procedurally warranted | EAS failed to respond to complaint or motion; default entered | (No response) | Default judgment procedurally warranted (Lindsey factors satisfied) |
| Whether EAS violated FDCPA by disclosing debt to a third party (§§1692b(2), 1692c(b)) | EAS called Anderson’s son and discussed the debt and alleged fraud | (No response) | Violation found; allegations deemed admitted |
| Whether EAS’s statements constituted harassment (§1692d) | Disclosure to son was intended to harass/pressure Anderson | (No response) | Claim under §1692d denied for insufficient pleaded legal support |
| Whether EAS falsely represented legal status and threatened arrest (§1692e(2)(A),(4),(7),(10)) | EAS told Anderson he could go to jail for fraud though it had no authority to arrest or prosecute | (No response) | Violation found; false representation/implication of arrest actionable |
Key Cases Cited
- Sun Bank of Ocala v. Pelican Homestead & Sav. Ass'n, 874 F.2d 274 (5th Cir. 1989) (default judgments are drastic remedies not favored)
- Ganther v. Ingle, 75 F.3d 207 (5th Cir. 1996) (default does not automatically entitle plaintiff to judgment)
- United States v. 1998 Freightliner VIN #1FUYCZYB3WP886986, 548 F. Supp. 2d 381 (W.D. Tex. 2008) (default judgment within district court’s discretion)
- Mason v. Lister, 562 F.2d 343 (5th Cir. 1977) (district court discretion in entering default judgment)
- Lindsey v. Prive Corp., 161 F.3d 886 (5th Cir. 1998) (factors for procedural inquiry into default judgment)
- Nishimatsu Constr. Co. v. Houston Nat’l Bank, 515 F.2d 1200 (5th Cir. 1975) (defendant’s default admits well‑pleaded facts but not legal conclusions)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading must raise right to relief above speculative level)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standards for legal conclusions vs. factual allegations)
- United Artists Corp. v. Freeman, 605 F.2d 854 (5th Cir. 1979) (damages typically require hearing unless calculable)
- James v. Frame, 6 F.3d 307 (5th Cir. 1993) (mathematically determinable damages may be awarded without hearing)
- Johnson v. Eaton, 80 F.3d 148 (5th Cir. 1996) (attorney’s fees under FDCPA require successful action enforcing liability)