Cruz Ex Rel. Cruz v. International Collection Corp.
673 F.3d 991
| 9th Cir. | 2012Background
- Cruz wrote two bounced checks to Harrah's Reno; Harrah's assigned the claim to ICC for collection.
- ICC sent multiple collection letters asserting Nevada- or California-law charges (interest/fees/treble damages) not permitted by Nevada law.
- Cruz disputed the debt by certified letter on Oct 27, 2006; ICC continued collection efforts.
- Cruz filed FDCPA suit on Feb 19, 2008; Hendrickson is ICC's sole owner/officer and involved in collection actions.
- District court granted Cruz summary judgment Sept 30, 2009 for FDCPA violations; Nevada law governs the debt; later post-judgment motions and substitution of party occurred.
- Amended notice of appeal to challenge post-judgment orders was untimely, leading to dismissal of those appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FDCPA violation by misstatements of interest/fees | Cruz | ICC | Yes; letters falsely claimed interest/fees under Nevada law. |
| Statute of limitations bar | Cruz | ICC | Waived; not argued in opening brief and thus not preserved. |
| Hendrickson personally liable | Hendrickson | Hendrickson not liable personally | Yes; Hendrickson qualifies as a debt collector and personally violated the FDCPA. |
| Bona fide error defense | N/A | Bona fide error defense | Not properly raised below; court declines to resolve. |
| Post-summary judgment appeals jurisdiction | N/A | Timeliness of notices | Lacks jurisdiction; amended notices filed too late; orders dismissed. |
Key Cases Cited
- Fox v. Citicorp Credit Servs., 15 F.3d 1507 (9th Cir. 1994) (individuals may qualify as debt collectors under FDCPA)
- Clark v. Capital Credit & Collection Serv., 460 F.3d 1162 (9th Cir. 2006) (FDCPA requires specific handling of debt collectors' communications)
- Imperial Merch. Servs. v. Hunt, 580 F.3d 893 (9th Cir. 2009) (state-law limitations on interest/fees; California law considerations)
- Imperial Merch. Servs. v. Hunt, 47 Cal.4th 381 (Cal. 2009) (California law on treble damages and fees)
- Lewis v. ACB Business Services, Inc., 135 F.3d 389 (6th Cir. 1998) (settlement offers may fall within FDCPA exceptions)