Professional Collection Consultants v. Lujan

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Lujan had a Chase credit card account, governed by an agreement with a provision stating “federal law and the law of Delaware” govern the agreement and a provision for attorney’s fees. When Lujan’s account had an unpaid balance in 2007, Chase assigned its claim to interim assignees. In 2011, PCC filed suit, alleging a debt of $8,831.90. PCC Vice President Shields verified the complaint. Lujan cross-complained against PCC, Shields, and interim assignees seeking damages under the Fair Debt Collection Practices Act, 15 U.S. C. 1692, and the Rosenthal Fair Debt Collection Practices. The court granted Lujan summary judgment as to PCC, applying Delaware’s three-year statute of limitations. On the cross-complaint, the court granted the other defendants summary judgment, finding that none met the statutory definition of a debt collector. The judgment is silent om statutory damages, leaving Lujan with only “attorney fees and costs" as provided by statute. The court awarded Lujan $140,550.51 in fees against PCC but denied the other defendants fees because the cross-complaint was not an action “on a contract” under Civil Code 1717. The appeals court affirmed Lujan’s summary judgment against PCC, Lujan’s award of attorney’s fees, and the interim assignees’ summary judgment and denial of fees. The court reversed summary judgment in favor of Shields and PCC’s attorney. View "Professional Collection Consultants v. Lujan" on Justia Law