Smith v. Stewart, Zlimen & Jungers, Ltd., No. 19-3124 (8th Cir. 2021)
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In these consolidated cases, the Eighth Circuit affirmed the district court's dismissal of plaintiffs' claims under the Fair Debt Collection Practices Act (FDCPA) against the same debt-collecting law firm, SZJ. Plaintiffs' claims arose out of SZJ's collection activities related to alleged debts that plaintiffs owed to one of SZJ's clients, LVNV Funding.
The court concluded that, because plaintiffs did not plead any additional facts to indicate that SZJ took anything but a good faith legal position in its prayer for relief, the complaints failed to state plausible claims that SZJ made false, deceptive, or misleading representations in violation of 15 U.S.C. 1692e. The court also concluded that, even though SZJ failed to meet its evidentiary burden as set forth in the Amended Standing Order, it was entitled to bring a good faith claim to collect alleged debts and plaintiffs failed to state a plausible claim for relief under 15 U.S.C. 1692f(1).
Court Description: [Kelly, Author, with Benton and Shepherd, Circuit Judges] Civil case - Fair Debt Practices Act. Plaintiffs failed to plead sufficient facts to indicate that defendant took anything but a good faith legal position in its prayer for relief in its collection actions, and plaintiffs' complaints failed to state plausible claims that defendant made false, deceptive, or misleading representations in violation of Section 1692e of the Act; defendant was entitled to bring a good faith claim to collect the alleged debts and plaintiffs failed to state a plausible claim for relief under Section 1692f(1) of the Act.
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