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CEB Prac. Guide § 2A.56 -- Defenses -- Collateral Estoppel -- Permissive and Compulsory Counter-Claims

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In Walker v. Westlake Fin. Servs., No. 19 C 6921, 2020 U.S. Dist. LEXIS 105794 (N.D. Ill. June 17, 2020), Judge Kendall permitted an FDCPA/TCPA defendant to file a counter-claim on the debt back against the Plaintiff. Walker, however, takes too narrow a view and disregards several relevant facts. Here, Westlake's claim involves "the same parties, contracts, and course of… Read More

In Trupp v. Ally Financial, Inc., Civ. Action No. 17-5404, 2018 WL 2462777 (E.D. Pa. May 31, 2018), Judge Jones allowed a TCPA defendant to file a counter-claim for the debt against the Plaintiff. Plaintiff’s contention that “it is clear [the] federal TCPA claim and the state law breach of contract counterclaim involve completely different legal theories and evidence,” is not… Read More

In Gonzalez v. Chase Bank, USA, Case No.: 3:18-cv-00431-CAB-AGS,  2018 WL 2461490 (S.D. Cal. June 1, 2018), the District Court allowed a TCPA/FDCPA defendant creditor to counter-claim against the Plaintiff for the debt due and owing. The Court is inclined to follow the majority of Ninth Circuit district courts cited above, and finds that supplemental jurisdiction exists over a defendant’s… Read More

In Rahman v. San Diego Accounts Service, Inc, 2017 WL 1387206 (S.D. Cal. 2017), the District Court found that a debt collector could assert "offset" of the balance owing on the debt to the Plaintiff's Rosenthal Act/FDCPA claim. Defendant’s final affirmative defense is one of “offset.” Specifically, “Defendant contends that any recovery by Plaintiff be offset by the amount owed… Read More

In Godinez v. Law Offices of Clark Garen, 2016 WL 4059718, at *1 (C.D.Cal., 2016), Judge Carney dismissed a state law debt collection counter claim filed in response to an FDCPA action because the debt collection claim was permissive, not compulsory. Godinez claims that Defendants violated the FDCPA and the RFDCPA by engaging in unlawful debt collection practices, and Best… Read More

In Black v. Autovest, LLC, 2015 WL 9461484, at *4 (D.Ariz., 2015), Judge Boyle denied a debt collection firm's motion to dismiss an FDCPA claim grounded in collection of post-repossession deficiency -- even though the bank already had a judgment against the FDCPA Plaintiff on the debt owing.  The District Court found the FDCPA action not barred by Rooker-Feldman. Defendants rely… Read More

In Sykes v. Mel S. Harris and Associates LLC, --- F.3d ----, 2015 WL 525904 (2d Cir. 2015), the Court of Appeals for the Second Circuit certified a class against a debt collector who purported to operate a mill that resulted in illegal default judgments in New York City.  These default judgments, in the words of plaintiffs, are the result… Read More

In Robles v. Ally Bank, 2013 WL 28773 (S.D.Cal. 2013), Judge Battaglia found, in an FDCPA harassment case, that a cross-complaint for the debt was permissive and that there was supplemental jurisdiction to hear it.  Judge Battaglia, however, declined to exercise that jurisdiction. Although the Ninth Circuit has not specifically addressed “whether a counterclaim for the underlying debt in an FDCPA… Read More

In Jobe v. Alliance Collection Service, 2012 WL 3985182 (N.D.Miss. 2012), Judge Aycock held that a debt collector’s counter-claim to an FDCPA claim to collect on the debt itself was permissive, rather than compulsory, and declined to exercise jurisdiction over it. Although the Fifth Circuit has not directly addressed the question of whether an action to collect on an underlying… Read More

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