Opinion ID: 3169959
Heading Depth: 2
Heading Rank: 2

Heading: Federal and State Claims

Text: Construed liberally, Kelly’s complaint alleged federal statutory violations, federal constitutional violations pursuant to 42 U.S.C. § 1983, a civil rights conspiracy claim pursuant to 42 U.S.C. § 1985, and various state law claims. As to all defendants, Kelly’s complaint contained three counts—due process, fraud, and intentional infliction of emotional distress. Specifically, Kelly alleged that the defendants violated her procedural and substantive due process rights (Count I). As to procedural due process, the defendants determined Kelly’s state residency and state income tax liability “without affording [her] minimal due process.” As to substantive due process, the ADR initiated “a government action” against Kelly “without legal authority or personal jurisdiction,” and Defendants Baxley and Crumbley failed to protect her rights despite their “affirmative duty under the law to uphold the Constitution.” As for her state law claims, Kelly alleged that all the defendants “willfully and intentionally committed fraud” by making false 4 Case: 15-12124 Date Filed: 01/15/2016 Page: 5 of 17 representations regarding her tax liability and the legality of their actions, and that Defendants Baxley and Crumbly specifically made false representations regarding their ability to assist her (Count IX). Kelly alleged that the defendants willfully and intentionally inflicted emotion distress by “perpetuating an illegal threat against [her] financial ability to pay” her living expenses (Count X). In addition, Kelly alleged seven counts against only the ADR and the “Unknown Agents.” In particular, Kelly alleged that the ADR and the unknown agents: (1) violated the Privileges and Immunities Clause by imposing Alabama law on her in a manner dissimilar to other Tennessee residents (Count II); (2) violated the Fourth Amendment by imposing a tax lien, which prevented her from transferring property, refinancing her home, or using credit to make purchases (Count III); (3) violated the Fair Credit Reporting Act, 15 U.S.C. § 1681s-2, by imposing a tax lien for which they knew there was no legal basis, fraudulently reporting the lien to credit reporting agencies, and making a fraudulent representation as to her tax liability (Count IV); (4) violated the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692e and 1692f, by using false information and threatening to take legal action they could not legally pursue in an attempt to collect an invalid debt (Count V); (5) conspired to violate her civil rights under color of state law, in violation of 18 U.S.C. §§ 241 and 242 (Counts VI and VII); 5 Case: 15-12124 Date Filed: 01/15/2016 Page: 6 of 17 and (6) invaded her privacy in violation of the Fourth and Fourteenth Amendments and Alabama tort law (Count VIII). Kelly sought a preliminary injunction enjoining the ADR from instituting further collection proceedings, a declaratory judgment that the defendants had committed criminal fraud and violated several of Kelly’s constitutional rights, and awards of $200,000 in compensatory damages and $750,000 in punitive damages.