Facts

Vincent Manikan filed suit against Pacific Ridge Neighborhood Homeowners Association, N.N. Jaeschke Inc., Peters & Freedman LLP, and Advanced Attorney Services Inc. in relation to an incident at his property that resulted in him being served with a Notice of Default from Pacific Ridge. Manikan filed for Chapter 13 bankruptcy protection, and roughly one year later, N.N. Jaeschke filed a proof of claim in the bankruptcy case as a collection agent for Pacific Ridge.

PLAINTIFF'S CONTENTIONS: Manikan contended he paid in full, but while he was current with all obligations due and owing to Pacific Ridge, Dakotah Douglas, a contract process server for Advanced Attorney Services, arrived at plaintiff's property. Manikan alleged Douglas forced open his side gate, damaging the gate, and then began forcefully pounding on his kitchen window. Manikan's cousin, allegedly terrified, called the police, and she and Manikan believed Douglas was attempting to break into the house. Manikan alleged Douglas then went to pound on another window that looked into the bedroom of his elderly mother, who was recovering from chemotherapy treatment. After police arrived and the incident was resolved, Manikan was served with a Notice of Default from Peters & Freedman that claimed he owed $2,597.04 to Pacific Ridge. Manikan believed he was current on his payments, and alleged that because he was served with a Notice of Default that said otherwise, he suffered from panic, anxiety, fear, sleeplessness, hopelessness, and despair. Manikan's complaint alleged Peters & Freedman violated the Fair Debt Collection Practices Act by attempting to collect a homeowners association assessment not owed and unlawfully threatening to foreclose on his property.

DEFENDANTS' CONTENTIONS: Peters & Freedman claimed a consumer cannot use a violation of the federal Bankruptcy Code's discharge injunction as a basis to support a FDCPA lawsuit as Manikan did in his complaint.

Result

Manikan and Advanced Attorney Services reached a settlement agreement under the terms of which Advanced Attorney Services agreed to pay $8,000 to settle Manikan's claims. The court denied as moot Advanced Attorney Services' motion for summary judgment, denied Manikan's motion for partial summary judgment, and granted Peters & Freedman's motion for summary judgment.