178 F. Supp. 3d 272
E.D. Pa.2016Background
- Rivera purchased a 2006 BMW X3 under a Retail Installment Sales Contract (RISC) and later defaulted.
- Dealer Funded, LLC (DFL) retained repossession firms Consolidated Asset Recovery Systems (CARS) and Collateral Adjustment Corporation (CAC); CAC repossessed Rivera’s vehicle from her residence in Sept. 2015.
- After Rivera retrieved the vehicle from a lot, she alleged personal property was missing, the car was trashed, and it was damaged by improper towing.
- Rivera sued CAC, CARS, and DFL asserting FDCPA, UCC and MVSFA, FCEUA/UTPCPL, and negligence claims; CAC moved to dismiss Counts I–III and to strike portions of the prayer for relief.
- The court: denied CAC’s contention that Rivera had to attach the RISC to plead her claims; dismissed Count I (FDCPA) and Count II (UCC/MVSFA) without prejudice for failure to state a claim, struck portions of the prayer, and allowed 14 days to amend.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether repossession agency is a “debt collector” under the FDCPA and whether Rivera stated an FDCPA claim | Rivera alleged CAC violated FDCPA provisions (including §1692d and §1692f(6)) by repossessing and damaging the car | CAC argued repossession agencies are not debt collectors for most FDCPA provisions; alternatively, no §1692f(6) violation because Rivera admitted default and CAC had right to possession | Court: repossession agencies are subject to §1692f(6) only; Rivera admitted default so no plausible §1692f(6)(A) claim and pleaded no facts supporting (B) or (C); Count I dismissed without prejudice with 14 days to amend |
| Whether Rivera must attach the RISC to plead her claims | Rivera alleged existence, parties, and default of the RISC and stated she could not locate the contract | CAC contended the RISC was a necessary writing and the complaint should be dismissed for failure to attach it | Court: under Fed. R. Civ. P. 8(a) plaintiff need not attach or verbatim plead the contract if facts give notice; dismissal for failure to attach denied |
| Whether alleged vehicle damage constitutes a breach of the peace under UCC §9609 (repossession without judicial process) or MVSFA | Rivera alleged damage from improper towing constituted a breach of the peace and statutory violations under the UCC/MVSFA | CAC argued Rivera failed to allege any conduct at the scene of repossession indicating a breach of the peace (force, trespass, confrontation, law enforcement) | Court: breach-of-the-peace analysis focuses on conduct at or near seizure; damage after removal not shown to be a breach under Pennsylvania law; Count II dismissed without prejudice; negligence claim remains available |
| Whether portions of Rivera’s prayer for relief are recoverable against CAC and should be stricken | Rivera sought statutory damages, UCC remedies, UTPCPL/FCEUA relief, attorneys’ fees, and other relief | CAC sought to strike unrecoverable or inapplicable remedies (UTPCPL/FCEUA references, FDCPA statutory damages, UCC damages, attorney fees) | Court: by agreement struck references to UTPCPL/FCEUA and Section G as to CAC; struck Sections B (FDCPA statutory damages), D (attorney fees), and E (UCC damages) without prejudice and allowed Rivera 14 days to amend |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading must state a plausible claim beyond mere possibility)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (two-step plausibility/Iqbal/Twombly framework for Rule 12(b)(6))
- Piper v. Portnoff Law Assocs., Ltd., 396 F.3d 227 (3d Cir. 2005) (repossession businesses fall under §1692f(6) but not the FDCPA generally)
- Stroh v. Director, OWCP, 810 F.2d 61 (3d Cir. 1987) (discussing §1692a(6) scope for enforcement-of-security-interests businesses)
- Chapa v. Traciers & Assocs., 267 S.W.3d 386 (Tex. Ct. App. 2008) (repossession from public street without objection is not a breach of the peace)
- Jordan v. Citizens & S. Nat’l Bank of S., 298 S.E.2d 213 (S.C. 1982) (breach-of-the-peace focuses on conduct at or near seizure)