Church v. Harris & Harris, Ltd.
2:24-cv-00517
| D. Nev. | Nov 21, 2024Background
- Plaintiffs are Nevada residents who received collection letters and robocalls from Harris & Harris, Ltd., a third-party debt collector, regarding unpaid fines from misdemeanor citations.
- The communications falsely stated that warrants had been issued for the recipients’ arrest unless they resolved the fines, despite no such warrants being issued.
- Over 12,000 letters and several hundred robocalls were sent after the Las Vegas Justice Court told Harris to stop.
- Plaintiffs allege emotional distress and credit damage, and seek relief individually and for a putative class.
- Plaintiffs bring federal and state law claims, including under the FDCPA, Nevada Deceptive Trade Practices Act, and for negligence.
- Defendant moved to dismiss all claims on the basis that the fines are not "debts" under the relevant statutes and that no duty of care exists under state law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are traffic fines "debts" under FDCPA? | Traffic fines arise from "transactions" due to the necessity of driving; so covered "debts" | FDCPA applies only to consensual consumer transactions, not fines | Not covered; claims dismissed with prejudice |
| Does NDTPA cover debt collection? | (No response) | NDTPA only covers goods/services; no private right of action against agency | Not covered; claims dismissed with prejudice |
| NIED for emotional distress from letters | (No response) | Only applies to bystanders to accidents, not debt collection situations | Not covered; claims dismissed with prejudice |
| Duty of care (Negligence) | Should have duty to communicate accurately about warrants | No duty owed by debt collectors to debtors under Nevada law | Dismissed w/o prejudice; leave to amend negligence |
Key Cases Cited
- Turner v. Cook, 362 F.3d 1219 (9th Cir. 2004) (FDCPA applies only to obligations arising from consensual consumer transactions)
- Grotts v. Zahner, 989 P.2d 415 (Nev. 1999) (NIED claims limited to bystanders to accidents)
- Sanchez ex rel. Sanchez v. Wal-Mart Stores, Inc., 221 P.3d 1276 (Nev. 2012) (elements for pleading negligence in Nevada)