Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-06963/USCOURTS-cand-3_06-cv-06963-9/pdf.json

Nature of Suit Code: 371
Nature of Suit: Truth in Lending
Cause of Action: 15:1601 Truth in Lending

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United States District Court

For the Northern District of California

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

DOROTHY GUILLORY and FELISE

GUILLORY,

Plaintiffs,

 v.

WFS FINANCIAL, INC. et al,

Defendants. /

No. C 06-06963 JSW

TENTATIVE RULING AND

QUESTIONS

TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD, PLEASE TAKE

NOTICE OF THE FOLLOWING TENTATIVE RULING AND QUESTIONS FOR THE

HEARING SCHEDULED ON JULY 13, 2007 AT 9:00 A.M.:

The Court has reviewed the parties’ papers and, thus, does not wish to hear the parties

reargue matters addressed in those pleadings. If the parties intend to rely on authorities not

cited in their briefs, they are ORDERED to notify the Court and opposing counsel of these

authorities reasonably in advance of the hearing and to make copies available at the hearing. If

the parties submit such additional authorities, they are ORDERED to submit the citations to the

authorities only, without argument or additional briefing. Cf. N.D. Civil Local Rule 7-3(d). 

The parties will be given the opportunity at oral argument to explain their reliance on such

authority.

The Court tentatively GRANTS Defendant Nelson & Kennard (“N & K”)’s motion to

dismiss without leave to amend; tentatively GRANTS IN PART AND DENIES IN PART

Action Auto Recovery (“Action Auto”)’s motion to dismiss; and tentatively GRANTS WFS

Financial, Inc. (“WFS”)’s motion to dismiss with leave to amend.

Case 3:06-cv-06963-JSW Document 68 Filed 07/12/07 Page 1 of 3
United States District Court

For the Northern District of California

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The parties shall each have 25 minutes to address the following questions:

Nelson & Kennard Motion to Dismiss

1. Is there any factual support for the contention that N & K performed any act in the

collection of the subject debt beside the filing of a pleading in a civil action? Do

Plaintiffs maintain that N & K reported false and derogatory information concerning the

repossession to credit reporting agencies? Where are those specific acts alleged to have

been performed by N & K only, and the facts to support those allegations, found in the

First Amended Complaint? 

2. On what basis do Plaintiffs maintain that N & K was an assignee of WFS and therefore

subject to the California Rees-Levering Act? See Cal. Civ. Code § 2983.5(a). 

3. Do the parties have anything further they wish to address on this motion?

Action Auto Recovery Motion to Dismiss

1. How can the Court, at this procedural stage, find that as a matter of law, Action Auto did

not take or threaten to take “any nonjudicial action to effect dispossession of

disablement of property if ... there is no present right to possession of the property

claimed as collateral through an enforceable security interest”? 15 U.S.C. §

1692f(6)(A). Because there has been no discovery, how can the Court find at this time

that Action Auto does not fall within this limited exception to the general rule that

repossession agencies do not fall within the definition of “debt collector” and are

therefore usually exempt from the Fair Debt Collection Practices Act?

2. On what basis do Plaintiffs maintain that Action Auto was an assignee of WFS and

therefore subject to the California Rees-Levering Act? See Cal. Civ. Code § 2983.5(a). 

3. Do the parties have anything further they wish to address on this motion?

WFS Financial, Inc.’s Motion to Dismiss

1. WFS Financial contends and the First Amended Complaint alleges that the loan

documents reflected the correct 10% interest rate. (Motion at 4, FAC at ¶ 9.) The only

loan document before the Court is attached to WFS’s state court filing and reflects the

incorrect 14% rate. Is there a document memorializing the parties’ agreement with the

10% rate, either initially or at the alleged novation? (The Court will consider the

contract. See Hal Roach Studios, Inc. v. Richmond & Feiner Co., Inc., 896 F.2d 1542,

1555 n.19 (9th Cir. 1989).) 

2. The only contract before this Court indicates that the (allegedly mistaken) 14% interest

rate was documented by the parties on August 23, 2002 and in her complaint, Dorothy

Guillory indicates that she learned in December of 2003 that WFS was billing at a

higher monthly rate than previously agreed upon. (Guillory Request Judicial Notice;

FAC at ¶ 13.) Why is either delayed discovery or equitable tolling appropriate here to

save Plaintiffs’ Truth in Lending Act claim from the one-year statute of limitations?

3. Should the Court grant WFS’s motion to dismiss the second claim for relief against them

for violation of FDCPA with leave to amend to assert that the debt collection efforts

were conducted under the name Wachovia Dealer Services? Would such an amendment

place WFS under the purview of the Act?

Case 3:06-cv-06963-JSW Document 68 Filed 07/12/07 Page 2 of 3
United States District Court

For the Northern District of California

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4. How do Plaintiffs intend to make out a claim for trespass to chattel where the subject

property was dispossessed?

5. Do the parties have anything further they wish to address on this motion?

For All Parties

Lastly, there is currently a court-sponsored mediation set for July 30, 2007 at 9:30 a.m. 

The Court is not inclined to issue a final ruling on these pending motions, until after

completion of the mediation. What can the Court do to advance the parties towards

amicable resolution of this dispute? 

IT IS SO ORDERED.

Dated: July 12, 2007 

JEFFREY S. WHITE

UNITED STATES DISTRICT JUDGE

Case 3:06-cv-06963-JSW Document 68 Filed 07/12/07 Page 3 of 3