Warren v. Pentagon Federal Credit Union ( 2024 )

1 2 UNITED STATES DISTRICT COURT 3 DISTRICT OF NEVADA 4 * * * 5 Allanna Warren, Case No. 2:24-cv-00928-JAD-DJA 6 Plaintiff, 7 Order v. 8 Pentagon Federal Credit Union or PENFED, 9 Defendant. 10 11 12 Pro se Plaintiff Allanna Warren submitted initiating documents to the Court which include 13 an application to proceed in forma pauperis and a complaint. (ECF Nos. 1, 1-1). Because 14 Plaintiff’s application is complete, the Court grants it and screens Plaintiff’s complaint. Because 15 Plaintiff’s complaint does not identify the legal basis for her claim, the Court dismisses it without 16 prejudice and with leave to amend. 17 I. In forma pauperis application. 18 Plaintiff filed the forms required to proceed in forma pauperis (without paying the filing 19 fee). (ECF No. 1). Plaintiff has shown an inability to prepay fees and costs or give security for 20 them. Accordingly, the application to proceed in forma pauperis will be granted under 28 U.S.C. 21 § 1915(a). The Court will now screen Plaintiff’s complaint. 22 II. Legal standard for screening. 23 Upon granting an application to proceed in forma pauperis, courts additionally screen the 24 complaint under § 1915(e). Federal courts are given the authority to dismiss a case if the action is 25 legally “frivolous or malicious,” fails to state a claim upon which relief may be granted, or seeks 26 monetary relief from a defendant who is immune from such relief. 28 U.S.C. § 1915(e)(2). 27 When a court dismisses a complaint under § 1915, the plaintiff should be given leave to amend 1 complaint that the deficiencies could not be cured by amendment. See Cato v. United States, 70 2 F.3d 1103, 1106 (9th Cir. 1995). 3 Rule 12(b)(6) of the Federal Rules of Civil Procedure provides for dismissal of a 4 complaint for failure to state a claim upon which relief can be granted. Review under Rule 5 12(b)(6) is essentially a ruling on a question of law. See Chappel v. Lab. Corp. of Am., 232 F.3d 6 719, 723 (9th Cir. 2000). A properly pled complaint must provide a short and plain statement of 7 the claim showing that the pleader is entitled to relief. Fed. R. Civ. P. 8(a)(2); Bell Atlantic Corp. 8 v. Twombly, 550 U.S. 544, 555 (2007). Although Rule 8 does not require detailed factual 9 allegations, it demands “more than labels and conclusions” or a “formulaic recitation of the 10 elements of a cause of action.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Papasan v. 11 Allain, 478 U.S. 265, 286 (1986)). The court must accept as true all well-pled factual allegations 12 contained in the complaint, but the same requirement does not apply to legal conclusions. Iqbal, 13 556 U.S. at 679. Mere recitals of the elements of a cause of action, supported only by conclusory 14 allegations, do not suffice. Id. at 678. Where the claims in the complaint have not crossed the 15 line from conceivable to plausible, the complaint should be dismissed. Twombly, 550 U.S. at 570. 16 Allegations of a pro se complaint are held to less stringent standards than formal pleadings 17 drafted by lawyers. Hebbe v. Pliler, 627 F.3d 338, 342 & n.7 (9th Cir. 2010) (finding that liberal 18 construction of pro se pleadings is required after Twombly and Iqbal). 19 Federal courts are courts of limited jurisdiction and possess only that power authorized by 20 the Constitution and statute. See Rasul v. Bush, 542 U.S. 466, 489 (2004). Under 28 U.S.C. 21 § 1331, federal courts have original jurisdiction over “all civil actions arising under the 22 Constitution, laws, or treaties of the United States.” Cases “arise under” federal law either when 23 federal law creates the cause of action or where the vindication of a right under state law 24 necessarily turns on the construction of federal law. Republican Party of Guam v. Gutierrez, 277 25 F.3d 1086, 1088-89 (9th Cir. 2002). Whether federal-question jurisdiction exists is based on the 26 “well-pleaded complaint rule,” which provides that “federal jurisdiction exists only when a 27 federal question is presented on the face of the plaintiff’s properly pleaded complaint.” 1 district courts have original jurisdiction over civil actions in diversity cases “where the matter in 2 controversy exceeds the sum or value of $75,000” and where the matter is between “citizens of 3 different states.” Generally speaking, diversity jurisdiction exists only where there is “complete 4 diversity” among the parties; each of the plaintiffs must be a citizen of a different state than each 5 of the defendants. Caterpillar Inc. v. Lewis, 519 U.S. 61, 68 (1996). 6 III. Screening Plaintiff’s complaint. 7 Plaintiff sues Pentagon Federal Credit Union, a Virginia company, for damages and 8 injunctive relief. Plaintiff does not identify the claims she brings, but alleges that she took out a 9 loan from Defendant in 2023. Later, Plaintiff employed Cambridge Credit Counseling to help her 10 negotiate her loan payments with Defendant. Cambridge sent Defendant a letter in October of 11 2023, explaining Plaintiff’s situation and proposing a solution. 12 Plaintiff alleges that Defendant rejected the proposal, but did not inform either Plaintiff or 13 Cambridge about the rejection. Later, Defendant informed Plaintiff via email that she had missed 14 a payment. When Plaintiff called Defendant, she learned that Defendant had rejected 15 Cambridge’s proposal. Defendant put a delinquency on Plaintiff’s credit, which severely 16 impacted her credit score. Plaintiff requests injunctive relief in the form of Defendant removing 17 the delinquency it reported to credit reporting agencies. Plaintiff requests $80,000 in past and 18 future damages. 19 However, Plaintiff does not assert any specific claims or the legal basis for them. 1 And 20 the Court is not aware of any statutory or common law requirement that lenders respond to 21 negotiations from credit counseling agencies. The Court thus dismisses Plaintiff’s complaint 22 without prejudice and with leave to amend. In any amended complaint, Plaintiff must identify the 23 legal basis for her claims. 24 25 1 For example, the Fair Credit Reporting Act imposes certain duties on credit reporting agencies like TransUnion, Equifax, and Experian and entities that supply information about a consumer’s 26 debts to those credit reporting agencies (also known as “furnishers”). See 15 U.S.C. § 1681, et 27 seq.; see Gross v. CitiMortgage, Inc., 33 F.4th 1246, 1250-51 (9th Cir. 2022). But Plaintiff does not allege any claims arising under the Fair Credit Reporting Act or facts that would suggest that 1 IT IS THEREFORE ORDERED that Plaintiff’s application to proceed in forma 2 pauperis (ECF No. 1) is granted. 3 IT IS FURTHER ORDERED that the Clerk of Court is kindly directed to file Plaintiff’s 4 complaint (ECF No. 1-1) on the docket but shall not issue summons. The Clerk of Court is also 5 kindly directed to send a copy of this order to Plaintiff. 6 IT IS FURTHER ORDERED that Plaintiff’s complaint (ECF No. 1-1) is dismissed 7 without prejudice for failure to state a claim upon which relief can be granted, with leave to 8 amend. Plaintiff will have until July 22, 2024 to file an amended complaint if the noted 9 deficiencies can be corrected. If Plaintiff chooses to amend the complaint, Plaintiff is informed 10 that the Court cannot refer to a prior pleading (i.e., the original complaint) to make the amended 11 complaint complete. This is because, generally, an amended complaint supersedes the original 12 complaint. Local Rule 15-1(a) requires that an amended complaint be complete without reference 13 to any prior pleading. Once a plaintiff files an amended complaint, the original complaint no 14 longer serves any function in the case. Therefore, in an amended complaint, as in an original 15 complaint, each claim and the involvement of each Defendant must be sufficiently alleged. 16 Failure to comply with this order will result in the recommended dismissal of this case. 17 18 DATED: June 21, 2024 19 DANIEL J. ALBREGTS 20 UNITED STATES MAGISTRATE JUDGE 21 22 23 24 25 26 27