Loretta Reyna v. Frederick Debt Management LLC
2:23-cv-08456-CBM-PVC
C.D. Cal.Aug 15, 2024Background
- Loretta Reyna sued Frederick Debt Management, LLC for violations of the Fair Debt Collection Practices Act (FDCPA), specifically 15 U.S.C. §§ 1692g and 1692e.
- Plaintiff served Defendant with the summons and complaint; Defendant failed to respond or appear.
- The Clerk entered default against Defendant after no response.
- Plaintiff moved for default judgment, seeking statutory damages, actual damages, and attorneys’ fees/costs.
- No evidence was presented of actual damages or multiple FDCPA violations.
- The court assessed statutory damages based on a single violation of disclosure requirements under § 1692g.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Violation of FDCPA § 1692g disclosure reqs | Defendant failed required disclosures | No appearance/argument | Default judgment granted for $350 statutory damages |
| Entitlement to maximum statutory damages | Maximum ($1,000) allowed due to violation | No appearance/argument | Amount reduced to $350 based on single, non-willful violation |
| Violation of FDCPA § 1692e for misleading conduct | Failure to disclose also violates §1692e | No appearance/argument | No claim stated—no facts supporting §1692e claim |
| Actual damages claimed | Claimed but offered no evidence | No appearance/argument | No actual damages awarded—no supporting evidence |
Key Cases Cited
- Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986) (sets out factors for granting default judgment)
- Televideo Sys., Inc. v. Heidenthal, 826 F.2d 915 (9th Cir. 1987) (proof required for damages in default judgment)
- PepsiCo, Inc. v. Cal. Sec. Cans, 238 F. Supp. 2d 1172 (C.D. Cal. 2002) (policy favoring decision on merit does not preclude default judgment when defendant fails to appear)