Satey v. Jpmorgan Chase & Co.

Citation521 F.3d 1087
Decision Date31 March 2008
Docket NumberNo. 06-56370.,06-56370.
PartiesShane SATEY, Plaintiff-Appellant, v. JPMORGAN CHASE & COMPANY, a corporation, d/b/a Chase Bank USA NA, Defendant-Appellee, and Experian Information Solutions, Inc., a corporation, Defendant.
CourtU.S. Court of Appeals — Ninth Circuit

Robert F. Brennan, Esq., Brennan, Wiener & Associates, P.C., La Crescenta, CA, for plaintiff-appellant.

George G. Weickhardt, Ropers, Majeski, Kohn, Bentley, San Francisco, CA, for defendant-appellee.

Appeal from the United States District Court for the Central District of California; Manuel L. Real, District Judge, Presiding. D.C. No. CV-05-07758-R.

Before: B. FLETCHER and N. RANDY SMITH, Circuit Judges, and SAMUEL P. KING,* Senior Judge.

N.R. SMITH, Circuit Judge:

We hold that Appellant Shane Satey's claim against JPMorgan Chase & Company, d/b/a Chase Bank USA NA ("Chase") fails because Chase is not a "claimant" under California Civil Code sections 1798.92, et seq. ("California's Identity Theft Law"). We deny as moot Chase's request for further proceedings on its statement of material facts not in controversy. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

I.

Chase issued a credit card to Appellant Shane Satey on March 17, 2002. Satey used the credit card in April 2002 for purchases totaling a few hundred dollars. On May 19, 2002, Chase received a charge in the amount of $8,666.00 on Satey's credit card account from Jackpot 98 Cent Store in Glendale, California. Chase approved the charge and it thereafter appeared on Satey's credit card statement for the billing period ending on May 29, 2002.

Satey contacted Chase on June 4, 2002 to dispute the charge as fraudulent arid to report that his credit card was missing. Based on Satey's report of credit card fraud, Chase closed the existing account ("original account") and transferred the balance to a new account with a new account number.

That same day, a Chase account representative contacted Jackpot 98 Cent Store and spoke with the merchant. The merchant told the Chase account representative that Satey purchased $8,000, before taxes, worth of clothing and suitcases, and provided at the time of purchase a California driver's license containing the license number and date of birth. The merchant also told the Chase account representative that Jackpot 98 Cent Store obtained a signed credit card slip and an imprint of the card at the time of purchase. The Chase account representative requested that the merchant fax the documentation to Chase for review. Upon review, the Chase account representative determined that Satey's actual date of birth and driver's license number matched the information provided by the merchant.

After this investigation, Chase decided that the charge was legitimate and continued to seek payment from Satey for the amount due including interest and other charges. Satey then notified each of the three major credit bureaus that he was the victim of identity theft, but, unfortunately, referenced only the original account number when doing so. Meanwhile, Satey refused to make any payments to Chase on the disputed charge. As a result of his nonpayment, Satey's account with Chase became delinquent, and Chase reported the delinquency to the credit bureaus.

On March 28, 2003, Satey received a letter from CI Creditors Interchange, Inc. notifying him that Trilogy Capital Management, LLC ("Trilogy") purchased Satey's account from Chase. Trilogy requested that Satey tender payment in the amount of $10,106.11. That letter stated that the collection letter was "For: Chase Bank" but then went on to state that Trilogy had purchased the debt and was responsible for collection.

On December 6, 2004, lawyers for Great Seneca Financial Corporation ("Great Seneca") notified Satey that Great Seneca had purchased Satey's delinquent account.

II.

On October 31, 2005, Satey sued Chase, Great Seneca, and Experian, one of the major credit bureaus, for violations of the Fair Credit Reporting Act ("FCRA"), California's Identity Theft Law, the federal Fair Debt Collection Practices Act ("FDCPA"), and California's Fair Debt Collection Practices Act ("California FDCPA") in the United States District Court for the Central District of California.

Subsequently, Satey voluntarily dismissed his claims against Great Seneca and settled with Experian. Chase's counsel and Satey's counsel executed a stipulation for dismissal of the FCRA, FDCPA, and California FDCPA claims. The record is unclear whether that document was ever filed, though it appears that it was not. However, in the pretrial report, Satey's counsel represented to the district court that those claims had been dismissed and both the district court and counsel proceeded as if the claims had been dismissed. Satey also requested in the pretrial report that the district court consider whether it had jurisdiction over the remaining state law claim.

The factual bases for Satey's claim under California's Identity Theft Law included improper credit reporting, improper investigation, and improper sale of the disputed account by Chase. On or about July 19, 2006, Chase brought a motion for summary judgment on Satey's claim arising under California's Identity Theft Law. Chase argued that Satey's claim under California's Identity Theft law failed because (1) it was preempted by the federal FDCPA and (2) Chase was not a "claimant" under California's Identity Theft Law. The district court heard argument regarding Chase's motion on August 28, 2006, and granted Chase's motion from the bench after a short hearing, ruling that the FDCPA preempted Satey's claims under California's Identity Theft Law.

III.

We review de novo whether the district court had subject matter jurisdiction. Hoeck v. City of Portland, 57 F.3d 781, 784 (9th Cir.1995). We review the district court's decision to exercise supplemental jurisdiction for an abuse of discretion. Foster v. Wilson, 504 F.3d 1046 1051 (9th Cir.2007) (citing 28 U.S.C. § 1367(c)(3)).

"Summary judgment, a final order over which we take jurisdiction pursuant to 28 U.S.C. § 1291, is reviewed de novo, drawing all reasonable inferences supported by the evidence in favor of the non-moving party." Bodett v. CoxCom, Inc., 366 F.3d 736, 742 (9th Cir.2004) (citation and internal quotation marks omitted). "We may affirm the district court on any basis supported by the record." E. & J. Gallo Winery v. EnCana Corp., 503 F.3d 1027, 1049 (9th Cir.2007) (internal brackets, citation, and quotation marks omitted).

IV.
A. The District Court Properly Exercised Jurisdiction

"The decision whether to continue to exercise supplemental jurisdiction over state law claims after all federal claims have been dismissed lies within the district court's discretion." Foster, 504 F.3d at 1051. The fact that Satey may have later sought dismissal of his federal claims does not divest the district court of its power to exercise supplemental jurisdiction unless those claims were absolutely devoid of merit or obviously frivolous. See Gilder v. PGA Tour, Inc., 936 F.2d 417, 421 (9th Cir.1991). Satey's federal claims were neither devoid of merit nor obviously frivolous even though they were not pursued.

In Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 351, 108 S.Ct. 614, 98 L.Ed.2d 720 (1988), the Supreme Court observed that "pendent jurisdiction doctrine is designed to enable courts to handle cases involving state-law claims in the way that will best accommodate the values of economy, convenience, fairness, and comity[.]" Id. at 351, 108 S.Ct. 614. "[I]n the usual case in which all federal-law claims are eliminated before trial, the balance of factors to be considered under the pendent jurisdiction doctrine — judicial economy, convenience, fairness, and comity — will point toward declining to exercise jurisdiction over the remaining state-law claims." Id. However, dismissal of the remaining state law claims is not "mandatory." Id. at 350 n.7, 108 S.Ct. 614.

There is no dispute that the district court's initial exercise of supplemental jurisdiction over Satey's state law claims was entirely proper. See 28 U.S.C. § 1367(a). The parties dispute whether the district court abused its discretion by retaining supplemental jurisdiction over the remaining state law claim in light of Satey's stated intention to dismiss the remaining federal claims.

We hold that the district court did not abuse its discretion by retaining supplemental jurisdiction over the remaining state law claim. See 28 U.S.C. § 1367(c); Acri v. Varian Assoc., Inc., 114 F.3d 999, 1000 (9th Cir.1997) (en banc) (recognizing discretionary nature of 28 U.S.C. § 1367(c) and observing that "a federal district court with power to hear state law claims has discretion to keep, or decline to keep, them under the conditions set out in § 1367(c)"). Judicial economy and convenience to the parties were better accommodated by retaining the state law claim at that juncture, and the district court did not abuse its discretion by so doing. See Carnegie-Mellon Univ., 484 U.S. at 350-51, 108 S.Ct. 614.

B. Chase is Entitled to Summary Judgment on Satey's Claim Under California's Identity Theft Law

Chase challenges Satey's claim under California's Identity Theft law on two distinct bases. Chase contends that the FDCPA preempts Satey's claim under California's Identity Theft Law. Chase also argues that it is not a "claimant" under California's Identity Theft Law, and thus Satey's claim against Chase fails as a matter of law. Since we conclude that Chase is not a "claimant" under California's Identity Theft Law, we express no opinion on whether the FDCPA preempt's Satey's claim against Chase under California's Identity Theft Law.

California's Identity Theft Law allows a "victim of identity theft" to bring an action for damages, civil penalties, and injunctive relief against a "claimant to establish that the person is a victim of...

To continue reading

Request your trial
158 cases
  • Center for Bio. Div. V. Marina Point Dev.
    • United States
    • U.S. Court of Appeals — Ninth Circuit
    • August 6, 2008
    ...19, 2007. STANDARD OF REVIEW We review issues of the district court's subject matter jurisdiction de novo. See Satey v. JPMorgan Chase & Co., 521 F.3d 1087, 1090 (9th Cir.2008). We also review de novo the question of whether the Center's notice under the CWA was adequate. See Natural Res. D......
  • Center for Biological Div. V. Marina Point Dev.
    • United States
    • U.S. Court of Appeals — Ninth Circuit
    • August 6, 2008
    ...19, 2007. STANDARD OF REVIEW We review issues of the district court's subject matter jurisdiction de novo. See Satey v. JPMorgan Chase & Co., 521 F.3d 1087, 1090 (9th Cir.2008). We also review de novo the question of whether the Center's notice under the CWA was adequate. See Natural Res. D......
  • Perez v. Wells Fargo Bank, N.A.
    • United States
    • U.S. District Court — Eastern District of California
    • March 8, 2013
    ...to be considered ... will point toward declining to exercise jurisdiction over the remaining state-law claims.” Satey v. JPMorgan Chase & Co., 521 F.3d 1087, 1091 (9th Cir.2008) (quoting Cohill, 484 U.S. at 351, 108 S.Ct. 614, 98 L.Ed.2d 720).b. Federal Question Jurisdiction “The district c......
  • Perez v. Wells Fargo Bank, N.A.
    • United States
    • U.S. District Court — Northern District of California
    • March 8, 2013
    ...to be considered ... will point toward declining to exercise jurisdiction over the remaining state-law claims." Satey v. JPMorgan Chase & Co., 521 F.3d 1087, 1091 (9th Cir 2008) (quoting Cohill, 484 U.S. at 351, 108 S.Ct. 614, 98 L.Ed.2d 720). b. Federal Question Jurisdiction "The district ......
  • Request a trial to view additional results
1 books & journal articles
  • Case summaries.
    • United States
    • Environmental Law Vol. 40 No. 3, June 2010
    • June 22, 2010
    ...Bergt v. Ret. Plan for Pilots Employed by MarkAir, Inc., 293 F.3d 1139, 1142 (9th Cir. 2002)). (414) Satey v. JPMorgan Chase & Co., 521 F.3d 1087, 1091 (9th Cir. 2008) (internal quotation marks omitted) (citing E. & J. Gallo Winery v. EnCana Corp., 503 F.3d 1027, 1049 (9th Cir. (415......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT