McMillen v. Syndicated Office Systems, Inc. (In Re McMillen)
440 B.R. 907
Bankr. N.D. Ga.2010Background
- Debtor Chad McMillen filed Chapter 13; defendant Central Financial Control filed two duplicate proofs of claim for $550 relating to services at North Fulton Regional Hospital on March 12, 2009.
- Objection to Claim No. 3 filed July 31, 2009 alleged duplicative claims; Claim No. 2 and Claim No. 3 identified with different POC signatories.
- Court denied default judgment due to improper service and noted FDCPA claims cannot be based on filing duplicate proofs of claim; ordered proper service and further briefing.
- Defendant withdrew Claim No. 2 on October 12, 2009 after objection; no funds were paid to Central Financial Control.
- Plaintiff amended complaint asserting defendant failed to withdraw duplicate claim; at a June 24, 2010 conference, counsel could not show a letter requesting withdrawal; court instructed on documenting communications.
- Court grants judgment on the pleadings, holding FDCPA cannot be based on filing a duplicate proof of claim in bankruptcy; claims dismissed with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether filing duplicate proofs of claim can support an FDCPA claim | McMillen argues the duplicate filing violated FDCPA | Central argues FDCPA cannot be based on proofs of claim in bankruptcy | No; FDCPA claim not viable; judgment for defendant |
Key Cases Cited
- Simmons v. Roundup Funding, LLC, 622 F.3d 93 (2d Cir. 2010) (inflated proofs of claim cannot form basis for FDCPA claim in bankruptcy)
- Jacques v. U.S. Bank N.A. (In re Jacques), 416 B.R. 63 (Bankr.E.D.N.Y. 2009) (BK claims process; FDCPA not triggered by proofs of claim against debtor)
- B-Real, LLC v. Chaussee (In re Chaussee), 399 B.R. 225 (Bankr. BAP 2008) (BK proceedings limit FDCPA applicability where actions are part of bankruptcy process)
- In re Pariseau, 395 B.R. 492 (Bankr.M.D. Fla. 2008) (FDCPA considerations in bankruptcy contexts)