Kaplan v. Assetcare, Inc.

• Decision Date: 14 March 2000
• Docket Number: No. 99-412-CIV.,99-412-CIV.
• Citation: 88 F.Supp.2d 1355
• Court: U.S. District Court — Southern District of Florida
• Parties: Andrew KAPLAN, on behalf of himself and all others similarly situated, Plaintiffs, v. ASSETCARE, INC., Equifax Credit Information Services, Inc., Columbia/HCA Healthcare Corporation, Miami Beach Healthcare Group, Ltd., and Columbia Aventura Hospital & Medical Center, and Does 1 through N, Defendants.

88 F.Supp.2d 1355

Andrew KAPLAN, on behalf of himself and all others similarly situated, Plaintiffs, v. ASSETCARE, INC., Equifax Credit Information Services, Inc., Columbia/HCA Healthcare Corporation, Miami Beach Healthcare Group, Ltd., and Columbia Aventura Hospital & Medical Center, and Does 1 through N, Defendants.

No. 99-412-CIV.

United States District Court, S.D. Florida.

March 14, 2000.

COPYRIGHT MATERIAL OMITTED

Gerald F. Richman, West Palm Beach, FL, Lance A. Raphael, Chicago, IL, for Plaintiffs.

William King Hill, Steel Hector & Davis, Miami, FL, for Columbia/HCA Healthcare Corp., defendant.

William G. Burd, Burd Lozano & Zacherl, L.L.P., Miami, FL, for ERMS, defendant.

Michele Leneve McNichol, Katz Barron Squitero Faust & Berman, Miami, FL, for Assetcare, Inc., Defendant.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS' MOTIONS TO DISMISS

GOLD, District Judge.

THIS CAUSE is before the court upon three Motions to Dismiss filed by the defendants: Defendant Assetcare, Inc.'s Motion to Dismiss Plaintiff's First Amended Class Action Complaint [D.E. 31], Defendants Columbia Healthcare Corp.'s and Miami Beach Healthcare Group, Ltd.'s Motion to Dismiss First Amended Complaint [D.E. 33], and Defendant Equifax's Motion to Dismiss Plaintiff's Second Amended Class Action Complaint [D.E. 64]. Because plaintiffs' Second Amended Complaint merely added Equifax as a defendant, alleging that Equifax was a debt collector and committed the same statutory violations as Assetcare, the remaining defendants were not required to file another answer, and their motions to dismiss the first amended complaint will be considered as filed against the second amended complaint. The defendants seek to dismiss the complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure contending that the plaintiffs have failed to state a claim upon which relief can be granted. In addition, the defendants argue that the plaintiffs' action is barred by the statute of limitations governing such claims and that this court should decline to exercise supplemental jurisdiction over the state claims.

Jurisdiction of this court is invoked pursuant to 28 U.S.C. § 1331, as arising under federal law, and 28 U.S.C. § 1367, supplemental jurisdiction. The Second Amended Complaint contains three counts. Count I alleges violations of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. ("FDCPA") by Assetcare, Inc. ("Assetcare"), Equifax Credit Information Services, Inc. ("Equifax"), and Does 1 through N. Count II, also brought against Assetcare, Equifax, and Does 1 through N, alleges violation of the Florida Consumer Collection Practices Act, Fla. Stat. §§ 559.55 to 559.785 ("FCCPA"). Count III seeks declaratory and other relief for violations of Section 641.315(3) of the Florida Insurance Code against Columbia Aventura Hospital and Medical Center ("Columbia Aventura"), Miami Beach Healthcare Group, Ltd. ("Miami") and Columbia/HCA Health Care Corporation ("Columbia/HCA"). After careful consideration of the arguments of the parties, a review of the record and applicable case law, and being otherwise informed in the matter, the court concludes that defendants' motions should be GRANTED IN PART AND DENIED IN PART. The motions will be denied with respect to Counts I and II of the complaint, and granted with respect to Count III.

I. Factual Background

For purposes of this order, the facts and inferences raised in the Amended Complaint are assumed to be true and are viewed in the light most favorable to the plaintiffs. Those facts are set forth as follows.

Some time before January 21, 1998, the plaintiff, Andrew Kaplan, received medical treatment at Columbia Aventura (¶ 37).¹ The treatment plaintiff received was covered, at least in part, by an HMO health care plan plaintiff held with Sunrise Healthcare, which had a billing arrangement with Columbia Aventura (¶ 37-39). By virtue of that contractual billing arrangement, Sunrise Healthcare owed Columbia Aventura $4,453.67 for the services rendered to plaintiff (¶ 40). Some time before December 9, 1997, Columbia Aventura, Miami, and Columbia/HCA attempted to collect that debt (¶ 45).

None of the defendants or their representatives informed plaintiff of any deductible or co-payment obligation, and he has met his deductible and co-payment obligations under the HMO agreement (¶ 41-42). Plaintiff subsequently received a letter dated December 9, 1997, from Columbia Aventura in which it attempted to collect money from him for the medical services purportedly covered by his HMO, specifically $4,453.67 (¶ 46-47). Columbia Aventura, Miami, and/or Columbia/HCA sent an account for collection to Assetcare, a debt collection service (¶ 49; 6). Plaintiff received letters from Assetcare demanding payment, in excess of plaintiff's co-pay or deductible, for medical services Columbia Aventura rendered to plaintiff, dated January 21, 1998, March 23, 1998, May 15, 1998, and June 29, 1998 (¶ 50-54). Plaintiff also received a letter from Equifax attempting to collect the same alleged debt, dated September 25, 1998 (¶ 55).

Plaintiff's alleges that defendants' attempts to collect money for the services violated Section 641.315(3) of the Florida Insurance Code, which states:

No provider of services or any representative of such provider shall collect or attempt to collect from an HMO subscriber any money for services covered by an HMO and no provider or representative of such provider may maintain any action at law against a subscriber of an HMO to collect money owed to such provider by an HMO.

Fla. Stat. § 641.315(3). That violation, in turn, is alleged to be the basis for violations of the FDCPA and FCCPA.

II. Standard for Dismissal Under Rule 12(b)(6)

Rule 12(b)(6) of the Federal Rules of Civil Procedure provides that dismissal of a claim is appropriate "only if it is clear that no relief could be granted under any set of facts that could be proved consistent with the allegations." Blackston v. Alabama, 30 F.3d 117, 120 (11th Cir.1994) (quoting Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 2232, 81 L.Ed.2d 59 (1984)). On a motion to dismiss, the Court must accept as true all facts alleged and draw all inferences therefrom in the light most favorable to the non-moving party. See Hunnings v. Texaco, Inc., 29 F.3d 1480, 1483 (11th Cir.1994). A very low sufficiency threshold is necessary for a complaint, or counterclaim, to survive a motion to dismiss. See Ancata v. Prison Health Servs., Inc., 769 F.2d 700, 703 (11th Cir.1985) (citation omitted). Moreover, a complaint should not be dismissed for failure to state a claim upon which relief can be granted "unless it appears beyond doubt that the plaintiff can prove no set of facts in support of [its] claim which would entitle [it] to relief." M/V Sea Lion v. Reyes, 23 F.3d 345, 347 (11th Cir.1994) (citation omitted). However, a plaintiff must do more than merely "label" its claims. See Blumel v. Mylander, 919 F.Supp. 423, 425 (M.D.Fla.1996). Dismissal is appropriate only when no construction of the factual allegations of a complaint will support the cause of action. See Marshall County Bd. of Educ. v. Marshall County Gas Dist., 992 F.2d 1171, 1174 (11th Cir.1993) (citation omitted).

III. Discussion and Analysis

A. Count 1

Count I of the Second Amended Class Action Complaint alleges violations of the FDCPA against Assetcare and Equifax. The purpose of the FDCPA is to "eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses." 15 U.S.C. § 1692(e). Plaintiffs allege that the following sections of the FDCPA have been violated:

§ 1692e. False or misleading representations

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

* * * * * *

(2) The false representation of —

(A) the character, amount, or legal status of any debt;

* * * * * *

(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.

* * * * * *

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

* * * * * *

§ 1692f. Unfair practices

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount ... unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

15 U.S.C. §§ 1692e and 1692f. If a consumer debt collector violates the FDCPA, the debt collector may be subject to civil liability. 15 U.S.C. § 1692k. Pursuant to the FDCPA, the debt collector could be held liable for damages actually sustained by the injured person, additional statutory damages, and costs and attorney's fees incurred. Id. The Eleventh Circuit judges whether a debt collector's practices are false, deceptive, or misleading from the point of view of the "least sophisticated consumer." See Jeter v. Credit Bureau, Inc., 760 F.2d 1168, 1175 (11th Cir.1985).

1. Statute of Limitations

As a preliminary matter, the court finds that Defendant Assetcare's assertion that the claim is time-barred under the FDCPA is without merit. Section 1692k(d) provides that actions to enforce liability under the FDCPA must be commenced within one year from the date on which the violation occurs. The complaint alleges that plaintiff received dunning letters from Assetcare dated January 21, 1998, March 23, 1998, May 15, 1998, June 5, 1998,...