Beattie v. DM Collections, Inc., Civ. A. No. 90-177 MMS.

• Citation: 754 F. Supp. 383
• Decision Date: 03 January 1991
• Docket Number: Civ. A. No. 90-177 MMS.
• Court: U.S. District Court — District of Delaware
• Parties: Frank R. BEATTIE and Louise A. Beattie, Plaintiffs, v. D.M. COLLECTIONS, INC. and K.M. DeLacy, Defendants.

754 F. Supp. 383

Frank R. BEATTIE and Louise A. Beattie, Plaintiffs, v. D.M. COLLECTIONS, INC. and K.M. DeLacy, Defendants.

Civ. A. No. 90-177 MMS.

United States District Court, D. Delaware.

January 3, 1991.

COPYRIGHT MATERIAL OMITTED

O. Randolph Bragg of UAW-GM Legal Services Plan, Newark, Del., for plaintiffs.

Phebe S. Young of Bayard, Handelman & Murdoch, P.A., Wilmington, Del., for defendants.

OPINION

MURRAY M. SCHWARTZ, Senior District Judge.

This case was brought by plaintiffs Frank and Louise Beattie against defendants D.M. Collections, Inc. and K.M. DeLacy for violations of the Fair Debt Collection Practices Act, 15 U.S.C.A. §§ 1692 et seq. ("FDCPA"). Defendants have moved for summary judgment, and plaintiffs have cross-moved for partial summary judgment on the merits, reserving the issue of damages for trial.¹ The court has jurisdiction pursuant to 15 U.S.C.A. 1692k and 28 U.S. C.A. § 1331.

STANDARD FOR SUMMARY JUDGMENT

Federal Rule of Civil Procedure 56(c) provides that summary judgment "shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law."

When the movant has carried its burden under Rule 56(c), the non-movant "must do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986) (citation omitted) (footnote omitted). A factual dispute between the parties will not defeat a motion for summary judgment unless it is both genuine and material. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 2509-10, 91 L.Ed.2d 202 (1986). A dispute over facts is "material" if, under the substantive law, it would affect the outcome of the suit. Id. at 248, 106 S.Ct. at 2510. A factual dispute is "genuine" if a reasonable jury could return a verdict for the non-movant. Id. The non-moving party must produce more than a mere scintilla of evidence to successfully oppose summary judgment. See Williams v. Borough of West Chester, 891 F.2d 458, 460 (3d Cir.1989). Any inferences to be drawn from the underlying facts must be viewed in the light most favorable to the party opposing summary judgment. Matsushita, 475 U.S. at 587, 106 S.Ct. at 1356 (quoting United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962)).

"The filing of cross-motions for summary judgment does not require the Court to grant summary judgment for either party." Krupa v. New Castle County, 732 F.Supp. 497, 506 (D.Del.1990) (citing Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1391 (Fed.Cir.1987)). This is because each party may base its motion on different legal theories involving different material facts. Id. at 506. Further, different reasonable inferences may be drawn from the same facts. When there are no issues of fact and no conflicting inferences, the court may render summary judgment as a matter of law.

Determination of whether a violation of the FDCPA has occurred involves a two-step process. First, the court must interpret the statute, if necessary. Second, there must be a determination of whether defendants violated the statute as interpreted by the court. See United States v. ABC Sales & Service, Inc., 590 F.Supp. 561, 569-70 (D.Ariz.1984) (memorandum opinion). The first step of the process involves the court in statutory construction. The United States Court of Appeals for the Third Circuit has noted that statutory construction is a question of law, and as such, is "peculiarly appropriate for independent judicial assessment." Dunat v. Hurney, 297 F.2d 744, 746 (3d Cir.1961) (quoting O'Leary v. Brown-Pacific-Maxon, Inc., 340 U.S. 504, 508, 71 S.Ct. 470, 472, 95 L.Ed. 483 (1951)). Accordingly, statutory construction is a proper subject for summary judgment. See generally Americans Disabled for Accessible Public Transportation v. Skinner, 881 F.2d 1184, 1191 n. 6 (3d Cir.1989); Jordan v. Kent Recovery Services, Inc., 731 F.Supp. 652, 656 (D.Del. 1990).

FACTS

The following is an account of the collection activities underlying plaintiffs' claim as they are set forth in the summary judgment record. Other facts concerning the operations and procedures followed by defendants will be discussed where relevant. Defendant Kathleen DeLacy is the president and owner of D.M. Collections, Inc., a debt collection agency specializing in dental and medical accounts. Deposition of Kathleen DeLacy at 7, 10 (Dkt. 21) (cited hereinafter as "DeLacy dep. at ___"). D.M. Collections received assignment of an account by Wilmington Orthopedics Consultants. The information provided by Wilmington Orthopedics on a computer printout included the name of the debtor as Frank Beattie, the debtor's address as 137 W. Ablemorle Ave., Lansdowne, PA 19050, debtor's telephone number as (302) 654-8379, and debtor's age as 74 years old. The computer printout also gave debtor's social security number. DeLacy dep. at Exh. A. Upon receipt of the assignment, D.M. Collections, in accordance with its standard practice, generated and mailed a collection letter to Mr. Frank Beattie at the Lansdowne, Pennsylvania address. That letter was returned with the notation "Return to Sender — Moved Left No Address." DeLacy dep. at 23-24.

The next collection attempt on the part of D.M. Collections consisted of an August 21, 1989 telephone call placed by Ms. Anne Francia, an employee of defendant, to the telephone number listed on the computer printout, wherein Ms. Francia left a message to return her call. DeLacy dep. at Exh. F; Deposition of Anne Francia at 12-13 (Dkt. 21) (cited hereinafter as "Francia dep. at ___"). A "Mr. Beattie" returned the call on August 22, 1989 and stated that illness currently prevented him from working and that he hoped to return to work within a month. DeLacy dep. at Exh. F; Francia dep. at 14. Francia told Mr. Beattie that she would "get back to him." Francia dep. at 14.

On August 24, 1989, the same individual, identified as "Mr. Beattie," with whom Francia has previously spoken telephoned Francia. The individual requested the address listed on the account. Upon being informed that the address listed was the Lansdowne address, Mr. Beattie informed Francia that the Lansdowne address was the former address of his son, Frank R. Beattie, and indicated that the correct debtor was his son. Francia dep. at 15. Mr. Beattie stated that he was not aware of his son's current address or telephone number, but provided Francia with the telephone number of his son's wife, plaintiff Louise A. Beattie, at her place of employment. Id.

On September 5, 1989, Francia reached Louise Beattie by telephone at her place of employment. Francia dep. at 17; Deposition of Louise A. Beattie at 3 (Dkt. 21) (cited hereinafter as "L. Beattie dep. at ___"). When informed of the debt, Louise Beattie indicated some puzzlement because she did not recognize the doctor's name and because she assumed her husband's medical insurance paid all such bills. Francia dep. at 17; L. Beattie dep. at 4. Louise Beattie stated that she would investigate the matter with her husband and contact Francia afterward. Francia dep. at 17; L. Beattie dep. at 4-5. Louise Beattie telephoned Francia later that same afternoon and informed her that the debt did not belong to her husband.

According to both Francia and defendant DeLacy, DeLacy then spoke with Louise Beattie.² DeLacy testified that Louise Beattie provided her with plaintiff Frank R. Beattie's social security number. DeLacy compared this with the numbers provided by Wilmington Orthopedics and learned that the number did not match. DeLacy gave Louise Beattie the address on the printout, which Mrs. Beattie identified as her former address. Louise Beattie informed DeLacy that the debt must belong to her father-in-law. DeLacy dep. at 30. DeLacy informed Louise Beattie that she would verify the information with Wilmington Orthopedics. DeLacy dep. at 30-31. DeLacy then contacted Wilmington Orthopedics and verified the information. DeLacy dep. at 31. She also made a notation in the file that plaintiffs Frank R. and Louise Beattie should not be contacted until the matter was clarified. DeLacy dep. at 34 & Exh. F.

On September 6, 1989, plaintiff Frank R. Beattie went to Wilmington Orthopedics to clarify the matter. Wilmington Orthopedics verified to Frank R. Beattie that he was not in fact the debtor. Deposition of Frank R. Beattie at 8-9 (Dkt. 21) (cited hereinafter as "F. Beattie dep. at ___"). At Frank R. Beattie's request, an employee of Wilmington Orthopedics telephoned DeLacy and explained that plaintiff was not the debtor. F. Beattie dep. at 10; DeLacy dep. at 34. The employee then turned the telephone over to Frank R. Beattie, who proceeded to berate DeLacy. F. Beattie dep. at 9, 12; DeLacy dep. at 31. DeLacy put a notation in the file that the plaintiffs were not to be contacted again regarding this debt. DeLacy dep. at Exh. F. Defendants D.M. Collections and DeLacy did not contact plaintiffs after September 6, 1989. At the request of plaintiffs' former attorney, DeLacy sent the attorney a written statement dated September 25, 1989 to the effect that collection efforts from plaintiffs had ceased. Complaint at Exh. A (Dkt. 1).

Plaintiffs have never discussed the incident with Frank R. Beattie's father, Frank Beattie. F. Beattie dep. at 17.

DISCUSSION

The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act, 15 U.S.C.A. §§ 1692 et seq. ("FDCPA" or "the Act"), is intended "to eliminate abusive debt collection practices by debt collectors and to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged...." 15 U.S.C.A. § 1692(e). The...