Colorado Capital v. Owens

[David A. Szwak]

Colorado Capital v. Owens,
227 F.R.D. 181, E.D.N.Y., March 16, 2005

Background: Issuing bank brought action against debtor to collect credit card debt, and debtor filed third party claims against debt collectors.

Holdings: On motion to dismiss debtor's claims, the District Court, Seybert, J., held that:
(1) under New York and New Hampshire law, creditor was not vicariously liable for actions of debt collectors it hired as independent contractors;
(2) allegation that issuing bank's negligence in hiring debt collectors to collect his credit card debt caused him to suffer emotional distress was sufficient to plead proximate cause, as element of his negligence claim;
(3) amended Fair Debt Collection Practices Act (FDCPA) complaint against collection agency did not relate back to original complaint naming “any debt collection firm named at a later dateâ€