Gammon v. GC Services Ltd. PartnershipGammon v. GC Services Ltd. Partnership
MEMORANDUM OPINION AND ORDER
Plaintiff Jeffrey Gammon (“Gammon”) sues defendant GC Services Limited Partnership (“GC Services”) seeking redress for alleged false representations in connection with GC Services’ standard debt collection letter. Gammon alleges that the false representations amount to a violation of the Fair Debt Collection Practices Act,
BACKGROUND
On approximately September 3, 1992, GC Services, a debt collection agency, sent
Your account with Mastercard has been referred to us for immediate attention.
You should know that we are an experienced collection agency. We provided the systems used by a major branch of the federal government and various state governments to collect delinquent taxes.
We have collected millions of accounts from people in similar circumstances. Now we intend to collect your debt. We know what we are doing, and we are very efficient. We have handled every kind of account — and dealt with every kind of excuse.
You must surely know the problems you will face later if you do not pay. Send us your payment in full in the enclosed envelope, which is directed to the post office box we maintain for Mastercard accounts.
Complaint ¶ 5 (emphasis added).
Gammon alleges that the language contained in GC Services’ standard collection letter connotes that GC Services is vouched for by, affiliated with, or acting on behalf of both federal and state government in connection with the collection of Gammon’s debt. Id. ¶ 6. Gammon further alleges that a “least sophisticated consumer” standard must be applied to any statements made by GC Services. Id. While GC Services may indeed provide collection services to federal and state government, and thus the statements may literally be true, Gammon alleges that the least sophisticated consumer would interpret such statements to mean that GC Services is vouched for by or affiliated with federal and state government. Id. ¶ 7. Gammon alleges that GC Services includes the above language in its collection letter in order to imply to debtors that GC Services is vouched for by or affiliated with federal or state government, and that GC Services’ actions violate the FDCPA. Id. ¶¶ 7-8.
PROCEDURAL HISTORY
Based on an initial review of Gammon’s complaint, Judge Shadur — to whom this case was originally assigned
ANALYSIS
The FDCPA expressly provides for class actions. See
(b) Class Actions Maintainable. An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition
(2) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole[.]
Gammon maintains that all of the requirements of
A.
GC Services first charges that Gammon is not an adequate class representative because his deposition testimony reveals that he is uninformed as to the substance and status of the litigation he has initiated. In support of its assertion, GC Services alleges that Gammon incorrectly stated that he had never before been a plaintiff in a lawsuit,
B.
A court may grant class certification pursuant to
Gammon contends, and GC Services does not dispute, that GC Services has acted on grounds generally applicable to the class. Gammon’s claim thus fits neatly into this provision of
In his complaint, Gammon requests injunctive relief, declaratory relief, and statutory damages.
GC Services does not dispute that declaratory judgment is available to the class. In addition, this Court views declaratory judgment as appropriate in this case. As stated in Professor Borchard’s classic treatise, “[t]he two principal criteria guiding the policy in favor of rendering declaratory judgments are (1) when the judgment will serve a useful purpose in clarifying and settling the legal relations in issue, and (2) when it will terminate and afford relief from the uncertainty, insecurity, and controversy giving rise to the proceeding.” E. Borchard, Declaratory Judgments 299 (2d ed. 1941). In the instant case, a declaratory judgment would settle the issue of the legality of GC’s behavior with respect to the entire class. Given that the very purpose of class actions is to promote judicial efficiency and economy, see General Tel. Co. v. Falcon, 457 U.S. 147, 159,
Although GC Services does not dispute the availability of declaratory judgment in this case, it questions the propriety of granting class certification for declaratory judgment on the basis that Gammon could just as easily litigate his claim individually, and, should he prevail, GC Services would be collaterally estopped in subsequent cases from raising the claim that its conduct was not wrongful. Class certification, GC Services asserts, therefore serves no purpose in this case. It is well-settled in the Seventh Circuit, however, that a motion for class certification will not be denied merely because certification is not necessary. Vergara v. Hampton,
Because Gammon requests class certification for both declaratory judgment and monetary relief, this Court must determine whether the non-monetary relief predominates,in order to certify under
Rice v. City of Philadelphia,
Because Gammon has not requested that we consider bifurcating certification for the purposes of determining liability and damages, his motion for class certification stands or falls with our determination of whether the request for declaratory judgment predominates over the request for statutory damages, thus rendering the entire claim appropriate for certification under
GC Services expresses a purported concern that, should this Court certify the class, each class member would forego up to $1,000 in statutory damages available to individual litigants under the FDCPA. As stated above,
CONCLUSION
Gammon’s motion for class certification is granted. Pursuant to
Notes
. Claims under the FDCPA must be brought within one year of the date on which the alleged violation occurred,
. When evaluating a motion for class certification, the Court accepts all well-pleaded facts as true. See Hardin v. Harshbarger,
. This case was reassigned to this Court's calendar on August 17, 1994, based on its relatedness to another case on this Court's docket, pursuant to local General Rule 2.31.
. The Court's own independent review of these criteria also finds the numerosity, commonality and typicality prerequisites to be satisfied by the plaintiff class. First, the proposed class consists of four million individuals, and thus is clearly "so numerous that joinder of all members is impracticable."
. GC Services' claim that Gammon is an inadequate class representative because he could not recall having initiated earlier lawsuits is somewhat weakened by a review of the deposition transcript, in which Gammon merely appears to be confused by the questioner's use of the term "plaintiff.” Def.'s Mem.Opp. Class Cert., App. A at 11.
. GC Services, citing Williams v. Balcor Pension Investors,
. A review of the deposition transcript suggests that Gammon merely is confused by the questioner's use of the legal term "discovery.” Def.’s Mem. Opp. Class Cert, at 26-27. GC Services also alleges that Gammon’s deposition testimony reveals that he may not have participated in responding to discovery and may have falsely verified interrogatory answers. Id. at 7. In support of its assertion, GC Services cites from the deposition transcript the following exchange between Gammon and his attorney:
Q: Did you receive written questions from the defendants in this case and requests for documents?
A: What is that?
Q: I will skip the question.
Id. This exchange is insufficient to support GC Services' assertion that Gammon is not a credible representative.
. The FDCPA also provides for, and Gammon has requested, the award of costs and reasonable attorney's fees.
. Gammon suggests that cy pres distribution of any damage award to the class would be appropriate should he prevail on the merits. GC Services has not disputed the appropriateness of this remedy. Therefore, we decline to address this issue at this stage of the litigation, but merely assume for purposes of this opinion that cy pres distribution of any damage award would provide a suitable remedy should Gammon prevail.
. As noted earlier, Gammon has not sought actual damages on behalf of himself or the proposed class. Long-standing principles of civil procedure demand that the issues of liability and damages be resolved in one litigation, and thus due process may require some form of notice to class members that the class action is pending and that claims for actual damages may be adjudicated as part of it. We find it appropriate, however, to wait until a later stage of the litigation to address issues of notice. Therefore, neither party is foreclosed from arguing as to the proper nature and scope of notice to class members of the opportunity to present claims for actual damages, if any, in this proceeding.