Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_15-cv-02530/USCOURTS-casd-3_15-cv-02530-0/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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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

BRENT ZEISS,

Plaintiff,

CASE NO. 15cv2530-LAB (DHB)

ORDER ON DEFENDANT’S MOTION

TO DISMISS OR FOR SUMMARY

JUDGMENT

vs.

CREDENCE RESOURCE

MANAGEMENT, LLC,

Defendant.

Brent Zeiss alleges that Credence Resource Management, LLC illegally reported his

AT&T account as past due on his credit report. (Docket no. 4 at ¶ 12.) He alleges that he’s 

informed, possesses knowledge, and believes thereon that Plaintiff does not

owe the aforementioned past-due balance, and/or Defendant failed to notify

Plaintiff that Defendant would report derogatory information of Plaintiff’s credit

report.

(Id.) And he alleges that he “paid the alleged debt in full.” (Id. at ¶ 13.) He claims that this

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

Rosenthal Fair Debt Collection Practices Act, Cal. Civ. Code § 1788, et seq. (RFDCPA), and

the California Consumer Credit Reporting Agencies Act, Cal. Civ. Code § 1785.25

(CCCRAA). 

Credence has moved for dismissal or in the alternative for summary judgment. 

(Docket no. 7.) It argues that dismissal is proper because: (1) contrary to his allegations,

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and as evidenced by an AT&T account statement that Credence attaches to its motion,

Zeiss hasn’t paid the debt in full; (2) Credence reasonably relied on information from AT&T

wireless; and (3) Credence maintained procedures to ensure accuracy, so it’s protected by

the bona fide error defense. (Id.)

I. Discussion

A. Motion to Dismiss

A 12(b)(6) motion to dismiss for failure to state a claim challenges the legal sufficiency

of a complaint. Fed. R. Civ. P. 12(b)(6). The Court must accept all factual allegations as

true and construe them in the light most favorable to the non-moving party. Cedars Sinai

Med. Ctr. v. Nat'l League of Postmasters of U.S., 497 F.3d 972, 975 (9th Cir. 2007). To

defeat Credence’s motion to dismiss, Zeiss’ factual allegations need not be detailed, but they

must be sufficient to “raise a right to relief above the speculative level . . . .” Bell Atl. Corp.

v. Twombly, 550 U.S. 544, 555 (2007). That is, “[s]ome threshold of plausibility must be

crossed at the outset” before a case can go forward. Id. at 558 (quotation omitted). 

The Court doesn’t rely on Credence’s AT&T account statement in deciding the motion

to dismiss. While Zeiss alleged that he had an AT&T account, he didn’t refer to the

statement. Thus, it’s not “evidence on which the complaint necessarily relies.” Daniels-Hall

v. Nat’l Educ. Ass’n, 629 F.3d 992, 998 (9th Cir. 2010) (internal quotation marks omitted). 

The motion to dismiss turns on whether Zeiss’ “paid in full” allegation is sufficient, without

more, to state a cognizable legal claim. Credence suggests that Zeiss needs to allege the

date of payment or submit some evidence that payment occurred. (Docket no. 7 at 2.) The

Court finds no support for this argument. Zeiss’ allegations are sufficient to survive

Credence’s motion to dismiss.

B. Motion for Summary Judgment

“[A] party may file a motion for summary judgment at any time until 30 days after the

close of all discovery.” Fed. R. Civ. P. 56(b). Summary judgment is appropriate where the

evidence shows “there is no genuine dispute as to any material fact and the movant is

entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). All reasonable inferences

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from the evidence are drawn in favor of the nonmoving party. See Anderson v. Liberty

Lobby, Inc., 477 U.S. 242, 242 (1986). “If a nonmovant shows by affidavit or declaration

that, for specified reasons, it cannot present facts essential to justify its opposition, the court

may . . . defer considering the motion or deny it.” See Fed. R. Civ. P. 56(d).

Credence supports its motion for summary judgment with the AT&T account

statement and a declaration from its president. (Docket no. 7-2.) Zeiss doesn’t offer

evidence in opposition. Instead he contends that he should be given an opportunity to

conduct discovery. (Docket no. 8 at 11.) Zeiss has failed to submit an affidavit or

declaration as required by Rule 56(d). The Court nonetheless considers his request for

additional discovery and grants it. See Godshall v. Indep. Commc'ns, Inc., 2011 WL

5980922, at *4 (E.D. Pa. Nov. 30, 2011). This is a simple case and discovery shouldn’t take

long. If Zeiss can’t produce evidence that he paid the debt in full, or otherwise rebut

Credence’s evidence, summary judgment may be granted.

II. Cautionary Note

Although Credence’s evidence can't be considered a this stage of the case, the Court

observes that Zeiss’ counsel has both an obligation to investigate his clients' allegations and

an obligation not to plead a claim that he learns is without factual or legal support. Fed. R.

Civ. P. 11(b). If counsel is aware of facts that bar Zeiss’ claims—such as failure to pay the

AT&T account in full—and pursues the claim without a non-frivolous argument that the claim

is nevertheless viable, “counsel treads on perilous ground.” Medrano v. Caliber Homes

Loans, Inc., 2014 WL 7236925, at *8 (C.D. Cal. Dec. 19, 2014).

III. Conclusion

The motion to dismiss or in the alternative for summary judgment (Docket no. 7) is

DENIED. 

IT IS SO ORDERED.

DATED: May 9, 2016

HONORABLE LARRY ALAN BURNS

United States District Judge

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