Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_16-cv-00743/USCOURTS-casd-3_16-cv-00743-0/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:1692 Fair Debt Collection Act

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16cv743 BTM(JLB)

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

DANIEL MASSARO,

Plaintiff,

 v.

FAIR COLLECTIONS & 

OUTSOURCING OF NEW 

ENGLAND, INC.,

Defendant.

Case No.: 16cv743 BTM(JLB)

ORDER REMANDING CASE 

FOR LACK OF SUBJECT 

MATTER JURISDICITON

On March 30, 2016, Defendant Fair Collections & Outsourcing Inc. removed 

this action from the Superior Court of California, San Diego County. Defendant

contends that the Court has federal-question jurisdiction because the action “arises 

under the Fair Debt Collection Practices Act (15 U.S.C. § 1692, et seq.) and the 

Fair Credit Reporting Act (15 U.S.C. § 1681, et seq.).” However, upon examination 

of the Complaint, the Court does not agree that it has federal-question jurisdiction 

over this action.

Under the “well-pleaded complaint rule,” federal-question jurisdiction 

extends over “only those cases in which a well-pleaded complaint establishes 

either that federal law creates the cause of action or that the plaintiff’s right to relief 

necessarily depends on resolution of a substantial question of federal law.” 

Franchise Tax Bd. of California v. Construction Laborers Vacation Trust, 463 U.S. 

1, 27-28 (1983). This rule makes a plaintiff the “master of his complaint” and allows 

him to “avoid federal jurisdiction by relying exclusively on state law.” Balcorta v. 

Twentieth Century-Fox Film Corp., 208 F.3d 1102, 1106 (9th Cir. 2000).

Here, Plaintiff claims that Defendant owes him $10,000 in damages because

Case 3:16-cv-00743-BTM-JLB Document 3 Filed 04/05/16 Page 1 of 2
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16cv743 BTM(JLB)

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Defendant has adversely affected his credit: “[Defendant] claims I owe $13,035 

due to lease term I was released from due to lack of ownership improvements. 

This has adversely affected my credit standing and as a result have had to pay 

more in interest rates and rent.” Plaintiff does not refer to the FDCPA or FCRA. 

Nothing in the Complaint indicates that Plaintiff is complaining about abusive, 

deceptive, or unfair debt collection practices.

As for Plaintiff’s claim that Defendant hurt his credit, Plaintiff may bring such 

a claim exclusively under state law. Cal. Civ. Code section 1785.25(a) provides: 

“A persons shall not furnish information on a specific transaction or experience to 

any consumer credit reporting agency if the person knows or should know the 

information is incomplete or inaccurate.” The private right of action to enforce 

section 1785.25(a) is not preempted by the FCRA. Gorman v. Wolpoff & 

Abramson, LLP, 584 F.3d 1147, 1173 (9th Cir. 2009). 

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It does not appear that Plaintiff’s claim arises under the FDCPA or FCRA or 

necessarily depends on the resolution of a substantial question of federal law. 

Therefore, the Court finds that it lacks subject matter over this action and 

REMANDS the case to the Superior Court of California, San Diego County. 

IT IS SO ORDERED.

Dated: April 5, 2016

 

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 The FCRA requires furnishers of information to consumer reporting agencies to provide notice that 

information is disputed by the consumer if the consumer challenges the completeness or accuracy of any such 

information. 15 U.S.C. § 1681s-2(a)(3). The FCRA also imposes duties on furnishers of information who receive 

a notice of dispute from a credit reporting agency to conduct an investigation and take appropriate action based 

upon the results of the investigation. 15 U.S.C. § 1681s-2(b)(1). The Complaint does not allege facts suggesting

a violation of these duties under the FCRA. 

Case 3:16-cv-00743-BTM-JLB Document 3 Filed 04/05/16 Page 2 of 2