___________________ No. 13- 1151 ( 5: 12- cv- 00400- BO) ___________________ DANA CLARK, on behal f of her sel f and al l ot her s si mi l ar l y si t uat ed; DAVI D CLARK, on behal f of hi msel f and al l ot her s si mi l ar l y si t uat ed
Pl ai nt i f f s - Appel l ant s
v.
ABSOLUTE COLLECTI ON SERVI CE, I NCORPORATED
Def endant Appel l ee ___________________
O R D E R ___________________ The cour t amends i t s opi ni on f i l ed J anuar y 31, 2014, as f ol l ows: On t he cover page, i n t he di sposi t i on sect i on, " Rever sed" i s cor r ect ed t o r ead " Vacat ed. " On page 10, l i ne 10, " REVERSED" i s cor r ect ed t o r ead " VACATED. " For t he Cour t - - By Di r ect i on / s/ Pat r i ci a S. Connor , Cl er k PUBLISHED
UNI TED STATES COURT OF APPEALS FOR THE FOURTH CI RCUI T
No. 13-1151
DANA CLARK, on behal f of her sel f and al l ot her s si mi l ar l y si t uat ed; DAVI D CLARK, on behal f of hi msel f and al l ot her s si mi l ar l y si t uat ed,
Pl ai nt i f f s - Appel l ant s,
v.
ABSOLUTE COLLECTI ON SERVI CE, I NCORPORATED,
Def endant - Appel l ee.
Appeal f r om t he Uni t ed St at es Di st r i ct Cour t f or t he East er n Di st r i ct of Nor t h Car ol i na, at Ral ei gh. Ter r ence W. Boyl e, Di st r i ct J udge. ( 5: 12- cv- 00400- BO)
Ar gued: Oct ober 30, 2013 Deci ded: J anuar y 31, 2014
Bef or e DI AZ and FLOYD, Ci r cui t J udges, and J oseph F. ANDERSON, J r . , Uni t ed St at es Di st r i ct J udge f or t he Di st r i ct of Sout h Car ol i na, si t t i ng by desi gnat i on.
Vacat ed and r emanded by publ i shed per cur i amopi ni on.
ARGUED: Deepak Gupt a, GUPTA BECK, PLLC, Washi ngt on, D. C. , f or Appel l ant s. Sean T. Par t r i ck, YATES, MCLAMB & WEYHER, LLP, Ral ei gh, Nor t h Car ol i na, f or Appel l ee. ON BRIEF: Cr ai g M. Shapi r o, KEOGH LAW, LTD. , Chi cago, I l l i noi s; J oseph A. Bl edsoe, THE BLEDSOE LAW FI RM, Fayet t evi l l e, Nor t h Car ol i na; Gr egor y A. Beck, J onat han E. Tayl or , GUPTA BECK, PLLC, Washi ngt on, D. C. , f or Appel l ant s. J enni f er D. Mal donado, Wi l l i am T. Kesl er , J r . ,
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YATES, MCLAMB & WEYHER, LLP, Ral ei gh, Nor t h Car ol i na, f or Appel l ee.
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PER CURI AM: Thi s case i nvol ves a put at i ve cl ass act i on under t he Fai r Debt Col l ect i on Pr act i ces Act ( FDCPA) , 15 U. S. C. 1692 et seq. Dana Cl ar k and Davi d Cl ar k ( t he Cl ar ks) sued Absol ut e Col l ect i on Ser vi ce, I nc. ( ACS) , 1 on behal f of t hemsel ves and al l ot her s si mi l ar l y si t uat ed, f or i t s act i ons i n at t empt i ng t o col l ect a debt . The Cl ar ks al l eged t hat ACS s col l ect i on not i ce vi ol at ed sect i on 1692g( a) ( 3) of t he FDCPA by st at i ng t hat debt or s onl y coul d di sput e t he val i di t y of t hei r debt i n wr i t i ng. ACS moved t o di smi ss t he Cl ar ks l awsui t , cont endi ng t hat t he col l ect i on not i ce compl i ed wi t h t he FDCPA because sect i on 1692g( a) ( 3) cont ai ns an i nher ent wr i t i ng r equi r ement . The di st r i ct cour t gr ant ed t he mot i on, and t he Cl ar ks appeal ed. For t he r easons set f or t h bel ow, we vacat e t he di st r i ct cour t ' s j udgment and r emand t he case f or f ur t her consi der at i on. I . The Cl ar ks i ncur r ed t wo debt s at a heal t h car e f aci l i t y i n Ral ei gh, Nor t h Car ol i na. When t he Cl ar ks wer e unabl e t o pay, t he heal t h car e f aci l i t y r ef er r ed t he debt s t o ACS, a t hi r d- par t y col l ect or . I n i t s ef f or t s t o col l ect , ACS sent separ at e
1 ACS changed i t s cor por at e name on J une 29, 2012, af t er t hi s case was f i l ed. Al t hough t he def endant now i s cal l ed FKAACS, I nc. , we r ef er t o i t as ACS t hr oughout . 4
col l ect i on not i ces t o t he Cl ar ks at t hei r home i n Ral ei gh. I n bot h col l ect i on not i ces, a di scl osur e st at ement pr ovi ded t hat : ALL PORTI ONS OF THI S CLAI M SHALL BE ASSUMED VALI D UNLESS DI SPUTED I N WRI TI NG WI THI N THI RTY ( 30) DAYS; I N WHI CH CASE, VERI FI CATI ON OF THE DEBT OR A COPY OF THE J UDGMENT WI LL BE PROVI DED TO YOU. I F THE ORI GI NAL CREDI TOR I S DI FFERENT FROM THE ABOVE NAMED CREDI TOR, THE NAME OF THE ORI GI NAL CREDI TOR WI LL BE PROVI DED UPON REQUEST.
J . A. 11, 12.
The Cl ar ks sued ACS i n t he Uni t ed St at es Di st r i ct Cour t f or t he East er n Di st r i ct of Nor t h Car ol i na, at Ral ei gh, al l egi ng t hat i t s col l ect i on not i ce f ai l ed t o compl y wi t h t he FDCPA. 15 U. S. C. 1692 et seq. The Cl ar ks asser t ed t hat ACS vi ol at ed t hei r r i ght t o chal l enge t hei r debt or al l y under sect i on 1692g( a) ( 3) of t he FDCPA because t he col l ect i on not i ce st at ed t hat t he debt woul d be assumed val i d unl ess di sput ed i n wr i t i ng. They al so cont ended t hat ACS s i mposi t i on of a wr i t i ng r equi r ement amount ed t o t he use of f al se r epr esent at i on or decept i ve means t o col l ect or at t empt t o col l ect any debt , i n vi ol at i on of sect i on 1692e( 10) of t he FDCPA. ACS moved t o di smi ss t he compl ai nt pur suant t o Rul e 12( b) ( 6) of t he Feder al Rul es of Ci vi l Pr ocedur e, ar gui ng t hat sect i on 1692g( a) ( 3) cont ai ns an i nher ent wr i t i ng r equi r ement and t hat t he Cl ar ks, t her ef or e, f ai l ed t o st at e a cl ai m upon whi ch r el i ef coul d be gr ant ed. The di st r i ct cour t agr eed, di smi ssi ng 5
t he compl ai nt . I n i t s r easoni ng, t he di st r i ct cour t st at ed t hat per mi t t i ng an or al di sput e of t he val i di t y of a debt under sect i on 1692g( a) ( 3) woul d l eave consumer s wi t h f ewer pr ot ect i ons and i n a pot ent i al l y f ar mor e conf usi ng st at i on t han i f a wr i t i ng i s r equi r ed. J . A. 26. I I . We r evi ew de novo t he di st r i ct cour t s deci si on t o gr ant t he mot i on t o di smi ss. Gi ar r at ano v. J ohnson, 521 F. 3d 298, 302 ( 4t h Ci r . 2008) . We al so r evi ew de novo quest i ons of st at ut or y const r uct i on. St one v. I nst r ument at i on Lab. Co. , 591 F. 3d 239, 242- 43 ( 4t h Ci r . 2009) . A. As i n al l st at ut or y const r uct i on cases, our i nqui r y begi ns wi t h t he l anguage of t he st at ut e. See Lami e v. U. S. Tr . , 540 U. S. 526, 534 ( 2004) . [ W] hen t he st at ut e s l anguage i s pl ai n, t he sol e f unct i on of t he cour t sat l east wher e t he di sposi t i on r equi r ed by t he t ext i s not absur di s t o enf or ce i t accor di ng t o i t s t er ms. I d. ( i nt er nal quot at i on mar ks omi t t ed) . Congr ess enact ed t he FDCPA wi t h t he goal of el i mi nat i ng abusi ve, decept i ve, and unf ai r debt col l ect i on pr act i ces. 15 U. S. C. 1692. Among i t s saf eguar ds agai nst abuse and decept i on, t he FDCPA r equi r es a debt col l ect or t o send wr i t t en not i ce t o consumer debt or s wi t h whom i t communi cat es i n 6
connect i on wi t h t he col l ect i on of a debt . 15 U. S. C. 1692g. Sect i on 1692g( a) pr ovi des t hat t he wr i t t en not i ce must cont ai n:
( 1) t he amount of t he debt ; ( 2) t he name of t he cr edi t or t o whomt he debt i s owed; ( 3) a st at ement t hat unl ess t he consumer , wi t hi n t hi r t y days af t er r ecei pt of t he not i ce, di sput es t he val i di t y of t he debt , or any por t i on t her eof , t he debt wi l l be assumed t o be val i d by t he debt col l ect or ;
( 4) a st at ement t hat i f t he consumer not i f i es t he debt col l ect or i n wr i t i ng wi t hi n t he t hi r t y- day per i od t hat t he debt , or any por t i on t her eof , i s di sput ed, t he debt col l ect or wi l l obt ai n ver i f i cat i on of t he debt or a copy of a j udgment agai nst t he consumer and a copy of such ver i f i cat i on or j udgment wi l l be mai l ed t o t he consumer by t he debt col l ect or ; and
( 5) a st at ement t hat , upon t he consumer s wr i t t en r equest wi t hi n t he t hi r t y- day per i od, t he debt col l ect or wi l l pr ovi de t he consumer wi t h t he name and addr ess of t he or i gi nal cr edi t or , i f di f f er ent f r omt he cur r ent cr edi t or .
15 U. S. C. 1692g( a) ( 1) ( 5) . Pur suant t o sect i on 1692g( b) , i f a consumer not i f i es t he debt col l ect or i n wr i t i ng t hat t he debt i s di sput ed, t he debt col l ect or must cease col l ect i on of t he debt , or any di sput ed por t i on t her eof , unt i l t he debt col l ect or obt ai ns ver i f i cat i on of t he debt . . . and a copy of such ver i f i cat i on . . . i s mai l ed t o t he consumer by t he debt col l ect or . 15 U. S. C. 1692g( b) . 7
On appeal , t he Cl ar ks ask whet her sect i on 1692g( a) ( 3) per mi t s consumer s t o di sput e t he val i di t y of a debt or al l y, or whet her i t i mposes a wr i t i ng r equi r ement . Thi s i s a mat t er of f i r st i mpr essi on f or t hi s Cour t . The Thi r d Ci r cui t has hel d t hat sect i on 1692g( a) ( 3) must be r ead t o i ncl ude a wr i t i ng r equi r ement , f i ndi ng any ot her r eadi ng cont r ar y t o t he pur poses of t he FDCPA. See Gr azi ano v. Har r i son, 950 F. 2d 107 ( 3d Ci r . 1991) . I n cont r ast , t he Second and Ni nt h Ci r cui t s have f ound t hat t he pl ai n t ext of sect i on 1692g( a) ( 3) per mi t s or al di sput es, and t hat such a r eadi ng r esul t s i n a l ogi cal , bi f ur cat ed scheme of consumer r i ght s. See Hooks v. For man, Hol t , El i ades & Ravi n, LLC, 717 F. 3d 282 ( 2d Ci r . 2013) ; Camacho v. Br i dgepor t Fi n. I nc. , 430 F. 3d 1078 ( 9t h Ci r . 2005) . I n l i ne wi t h t he Second and Ni nt h Ci r cui t s, we f i nd t hat t he FDCPA cl ear l y def i nes communi cat i ons bet ween a debt col l ect or and consumer s. Sect i ons 1692g( a) ( 4) , 1692g( a) ( 5) , and 1692g( b) expl i ci t l y r equi r e wr i t t en communi cat i on, wher eas sect i on 1692g( a) ( 3) pl ai nl y does not . 2 ACS asks t hat we di sr egar d t he st at ut or y t ext t o r ead i nt o i t wor ds t hat ar e not t her e. We decl i ne t o do so. [ W] her e Congr ess i ncl udes
2 We al so not e t hat t he t er m di sput e, as commonl y used, cont empl at es or al communi cat i on. See, e. g. , Random House Webst er s Unabr i dged Di ct i onar y 569 ( 2d ed. 2001) ( t o ar gue or debat e about ; di scuss) . 8
par t i cul ar l anguage i n one sect i on of a st at ut e but omi t s i t i n anot her sect i on of t he same Act , i t i s gener al l y pr esumed t hat Congr ess act s i nt ent i onal l y and pur posel y i n t he di spar at e i ncl usi on or excl usi on. Russel l o v. Uni t ed St at es, 464 U. S. 16, 23 ( 1983) ( i nt er nal quot at i on mar ks omi t t ed) . B. Accept i ng t hat sect i on 1692g( a) ( 3) does not cont ai n an expl i ci t wr i t i ng r equi r ement , ACS ar gues t hat i t must be r ead as i mposi ng an i nher ent wr i t i ng r equi r ement or el se t he pr ocedur e woul d be i nconsi st ent wi t h t he ot her debt di sput e mechani sms under sect i on 1692g. I n ACS s vi ew, al l owi ng or al di sput es under sect i on 1692g( a) ( 3) ser ves onl y t o conf use consumer s. ACS al so poi nt s out t hat a wr i t i ng r equi r ement pr eser ves t he cor e pr ot ect i ons of sect i ons 1692g( a) ( 3) t hr ough 1692g( b) , and al l ot her r i ght s consumer s have under ot her sect i ons of t he FDCPA. Wi t hout i t , ACS ar gues, consumer s may be l ed t o bel i eve t hat an or al di sput e t r i gger s t he f ur t her pr ot ect i ons of sect i ons 1692g( a) ( 4) , 1692g( a) ( 5) , and 1692g( b) when, i n f act , t hose pr ot ect i ons ar e wai ved i f not i nvoked i n wr i t i ng. Appel l ee s Br . at 21. We f i nd ACS s ar gument s unavai l i ng f or sever al r easons. Fi r st , l i ke t he Second and Ni nt h Ci r cui t s, we ar e not per suaded t hat t he pl ai n l anguage of sect i on 1692g( a) ( 3) l eads t o absur d r esul t s, whi ch woul d have per mi t t ed a sear ch f or meani ng beyond 9
t he st at ut or y t ext . See Lami e, 540 U. S. at 534. As wr i t t en, sect i on 1692g( a) ( 3) t r i gger s st at ut or y pr ot ect i ons f or consumer s i ndependent of t he l at er sect i ons 1692g( a) ( 4) , 1692g( a) ( 5) , and 1692g( b) . For one, once a consumer di sput es a debt or al l y under sect i on 1692g( a) ( 3) , a debt col l ect or cannot communi cat e t hat consumer s cr edi t i nf or mat i on t o ot her s wi t hout di scl osi ng t he di sput e. 15 U. S. C. 1692e( 8) ; see Hooks, 717 F. 3d at 285; Camacho, 430 F. 3d at 1082. Al so, i f a consumer owes mul t i pl e debt s and makes a payment , a debt col l ect or cannot appl y t hat payment t o a debt t hat has been di sput ed or al l y. See 15 U. S. C. 1692( h) ; Hooks, 717 F. 3d at 28586; Camacho, 430 F. 3d at 1082. Because we concl ude t hat t he pl ai n l anguage of sect i on 1692g( a) ( 3) does not l ead t o absur d r esul t s, we decl i ne t o i nser t addi t i onal l anguage. Second, under wel l - est abl i shed pr i nci pl es of st at ut or y const r uct i on, t hi s Cour t must gi ve ef f ect , i f possi bl e, t o ever y cl ause and wor d of a st at ut e. Uni t ed St at es v. Menasche, 348 U. S. 528, 538- 39 ( 1955) ( i nt er nal quot at i on mar ks omi t t ed) . I f possi bl e, a cour t shoul d avoi d an i nt er pr et at i on t hat r ender s any cl ause, sent ence, or wor d . . . super f l uous, voi d, or i nsi gni f i cant . Duncan v. Wal ker , 533 U. S. 167, 174 ( 2001) . Rel yi ng on t he wr i t i ng r equi r ement s i n sect i ons 1692g( a) ( 4) , 1692g( a) ( 5) , and 1692g( b) t o gi ve ef f ect t o sect i on 1692g( a) ( 3) 10
woul d vi ol at e t hese pr i nci pl es, l eavi ng sect i on 1692g( a) ( 3) wi t h no i ndependent meani ng. As a r esul t , we f i nd t hat sect i on 1692g( a) ( 3) per mi t s consumer s t o di sput e t he val i di t y of a debt or al l y, and i t does not i mpose a wr i t i ng r equi r ement . I I I . Accor di ngl y, we vacat e t he j udgment of t he di st r i ct cour t t hat di smi ssed t he pl ai nt i f f ' s compl ai nt and r emand f or f ur t her pr oceedi ngs consi st ent wi t h t hi s opi ni on. VACATED AND REMANDED