Opinion

Mullins v. Monarch Recovery Management, Inc.

Court
District Court, W.D. North Carolina
Filed
Sep 22, 2022
Cited by
0 cases
Authority
More cited than 24.9%

to establish injury in fact plaintiff’s allegations must be sufficient to show she suffered a concrete harm

How later courts described this case

  • to establish injury in fact plaintiff’s allegations must be sufficient to show she suffered a concrete harm
  • “Standing to sue is a doctrine rooted in the traditional understanding of a case or controversy.”
  • recognizing the court’s “duty to construe removal jurisdiction strictly and resolve doubts in favor of remand”

Written by the judges who cited it.

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF NORTH CAROLINA

STATESVILLE DIVISION

CIVIL ACTION NO. 5:21-CV-00120-KDB-DSC

NICKIE MULLINS,

Plaintiff,

v. ORDER

MONARCH RECOVERY

MANAGEMENT, INC.,

Defendant.

THIS MATTER is before the Court on its own motion. In this action Plaintiff alleges that

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

“FDCPA”), the North Carolina Debt Collection Act, N.C.G.S. § 75-50, et seq. (the “NCDCA”),

the North Carolina Collection Agency Act, N.C.G.S. § 58-70, et seq., and the North Carolina

Unfair and Deceptive Trade Practices Act, N.C.G.S. § 75-1.1, et seq. when it used a third party

mail vendor to prepare and mail three debt collection letters to her between June and October 2020.

Plaintiff initially filed her putative class action in North Carolina’s Caldwell County Superior

Court, and Defendant timely removed the case to this Court under 28 U.S.C. §§ 1331 and 1441(b)

based on the alleged federal statutory violation. However, the notice of removal does not discuss

or state any facts establishing that the parties have met the Court’s Article III standing

requirements. See Doc. No. 1. Indeed, Plaintiff moved to remand this action to state court on March

8, 2022, on the grounds of lack of standing, but then withdrew that motion. See Doc. Nos. 14-16.

Even where, as is apparently the circumstance here, the parties agree to have their dispute

decided in federal court, the Court has an independent obligation to hear only those cases within

its limited jurisdiction. In any case removed from state court, “[i]f at any time before final judgment

it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.” 28

U.S.C. § 1447(c). “[I]t is the defendant who carries the burden of alleging in his notice of removal

and, if challenged, demonstrating the court’s jurisdiction over the matter.” Strawn v. AT & T

Mobility LLC, 530 F.3d 293, 296 (4th Cir. 2008). “[R]emoval statutes must be construed narrowly,

and any doubt about the propriety of removal should be resolved in favor of remanding the case to

state court.” Barbour v. Int’l Union, 640 F.3d 599, 615 (4th Cir. 2011); see also Palisades

Collections LLC v. Shorts, 552 F.3d 327, 336 (4th Cir. 2008) (recognizing the court’s “duty to

construe removal jurisdiction strictly and resolve doubts in favor of remand”).

Federal courts are limited by Article III of the United States Constitution to deciding actual

“cases” or “controversies.” U.S. Const. art. III § 2. If a plaintiff lacks standing, then there is no

case or controversy, and the court lacks subject-matter jurisdiction over their claims. Spokeo, Inc.

v. Robins, 578 U.S. 330, 338 (2016) (“Standing to sue is a doctrine rooted in the traditional

understanding of a case or controversy.”). “Article III standing requires a concrete injury even in

the context of a statutory violation.” Id. at 341; TransUnion LLC v. Ramirez, 141 S. Ct. 2190, 2204

(2021) (to establish injury in fact plaintiff’s allegations must be sufficient to show she suffered a

concrete harm).

Recently, in at least five cases in North Carolina federal courts involving nearly identical

factual allegations and legal claims and the same plaintiff’s counsel as this case, the courts found,

pursuant to Spokeo and TransUnion, that the parties failed to establish an allegation of concrete

harm and thus lacked the Article III standing necessary to support federal subject matter

jurisdiction. See Brown v. Alltran Fin., LP, No. 1:21-CV-595, 2022 WL 377001, at *1 (M.D.N.C.

Feb. 8, 2022); Asbury v. Credit Corp Sols., Inc., No. 1:21-CV-650, 2022 WL 377011, at *1

(M.D.N.C. Feb. 8, 2022); Hatchett v. Fin. Bus. & Consumer Sols., Inc., No. 1:21-CV-622, 2022

WL 377002, at *1 (M.D.N.C. Feb. 8, 2022); Ghazaly v. First Nat'l Collection Bureau, Inc., No.

5:21-CV-362-FL, 2022 WL 2610431, at *1 (E.D.N.C. July 8, 2022); Dunn v. Enhanced Recovery

Co., LLC, No. 21-CV-665, 2022 WL 2483577, at *3 (M.D.N.C. July 6, 2022). Based on this

substantial and persuasive authority, the Court questions why this action should not similarly be

remanded to state court based on a lack of standing.

Accordingly, the parties are ordered to, on or before October 7, 2022, either stipulate to the

remand of this action back to the North Carolina Caldwell County Superior court or show cause

why the parties have Article II standing sufficient to support federal subject matter jurisdiction.

In the absence of a timely stipulation or a showing of good cause, the Court will remand this action

to state court for the reasons fully stated in the authorities cited above.

SO ORDERED ADJUDGED AND DECREED.

Signed: September 22,

Kenneth D. Bell Cy,

United States District Judge i f

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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