Gordon Rees Scully Mansukhani Westchester Partner Daniel Fix, with the assistance of Associate Hannah Conlon, secured a significant defense victory in the U.S. District Court for the Southern District of New York, obtaining dismissal with prejudice of all claims against the firm’s clients in a federal debt collection and consumer reporting action.
The action arose from the firm’s clients’ legitimate efforts to collect a commercial debt. The plaintiff asserted 12 causes of action, including eight alleged violations of the Fair Debt Collection Practices Act (FDCPA), as well as claims under New York General Business Law § 349 and of defamation, negligence, negligent misrepresentation, and prima facie tort.
The firm’s clients strongly disputed all allegations and therefore GRSM moved to dismiss, arguing that the debt was commercial in nature and therefore was not subject to the FDCPA.
In its decision, the court agreed with the GRSM team and found that the plaintiff failed to plead facts establishing that the alleged obligation arose from a consumer transaction. The court therefore dismissed all of the plaintiff’s FDCPA claims. Significantly, the court also exercised its supplemental jurisdiction and dismissed the plaintiff’s remaining state law claims.
Notably, based on the strengths of GRSM’s arguments for dismissal, the court dismissed the plaintiff’s amended complaint in its entirety and with prejudice and denied the plaintiff’s request for leave to further amend his complaint.