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Gordon & Rees Partner Stacy Moon Obtains Dismissal of State Claims Brought Against a Debt Collector

Gordon Rees Scully Mansukhani attorney Stacy L. Moon obtained rule 12 dismissal of state claims brought by an individual against a debt collector and obtained a stay of the remainder of the case until the Eleventh Circuit issues a decision in a matter that may materially affect the potential liability in the remaining claim for violation of the Fair Debt Collection Practices Act ("FDCPA"). The lawsuit, originally filed in state court in Alabama, sought damages for violation of the FDCPA, as well as invasion of privacy and negligent, wanton, and/or intentional hiring and supervision of incompetent debt collectors. The debt collector removed the case to Federal Court, moved to dismiss the state law claims, and moved to stay the FDCPA claim.

In the motion to dismiss the state-based claims, the debt collector argued the plaintiff had failed to state a claim for the invasion of privacy and that state-law did not recognize the claim for negligent, wanton, and/or intentional hiring and supervision, based on alleged violations of the FDCPA. The debt collector also argued that requiring the parties to litigate the FDCPA claim while waiting for the Eleventh Circuit ruling wasted the parties’ and the court’s resources. The District Court agreed.