PER CURIAM:
Plaintiffs-Appellants Joan Grant Boyd and Randa Jones commenced this putative class action against J.E Robert Co., Inc. and JER Revenue Services, LLC (jointly, "JER"), and NYCTL 1996-1 Trust, NYCTL 1997-1 Trust, NYCTL 1998-1 Trust, and NYCTL 1999-1 Trust (jointly, the "Trust defendants" and, together with JER, "defendants") alleging that defendants violated the Fair Debt Collection Practices Act, 15 U.S.C § 1692, et seq. ("FDCPA") and New York statutory and common law. Plaintiffs allege that defendants obtained unauthorized attorneys' fees and costs in connection with actions to foreclose liens on plaintiffs' properties arising out of unpaid municipal property taxes and water and sewer charges. The District Court granted summary judgment for defendants on the FDCPA claims on the basis, inter alia, that the liens did not involve a "debt" as defined by the FDCPA. The Court then declined to exercise supplemental jurisdiction over the state law claims.
We hold that liens for mandatory water and sewer charges imposed by New York City as an incident to property ownership, which are treated as akin to property tax liens, are not subject to the FDCPA because they do not involve a "debt" as that term is defined in the statute. We also hold that the District Court properly declined to exercise supplemental jurisdiction over the state law claims.
Accordingly, we
The claims on appeal relate to the foreclosure of liens on two real properties in
In both cases, failure to pay property taxes, water and sewer charges, and other municipal charges gave rise to liens on the Properties securing the unpaid charges.
Plaintiffs' FDCPA claims relate to the attorneys' fees and costs assessed in connection with the foreclosure actions. The authority for the attorneys' fees and costs sought was N.Y. Admin. Code § 11-335, which provides, in relevant part: "A plaintiff in an action to foreclose a tax lien shall recover reasonable attorney's fees for maintaining such action."
In an October 2, 2012 order, the District Court granted summary judgment for defendants on the basis that the FDCPA did not govern the foreclosure actions. Specifically, it held that: (1) the liens in question did not constitute "debt" within the meaning of the FDCPA; and (2) the FDCPA does not apply to the enforcement of security interests against property only.
This timely appeal followed.
We review an order of a district court granting summary judgment de novo. Miller v. Wolpoff & Abramson, L.L.P., 321 F.3d 292, 300 (2d Cir.2003). Summary judgment is appropriate where "the moving party shows that there are no genuine issues of material fact and that the moving party is entitled to judgment as a matter of law." Id.
In order to maintain an FDCPA action, the allegedly unlawful behavior must occur in connection with collection of a "debt." The FDCPA defines "debt" as "any obligation or alleged obligation of a
We have not addressed the question of whether New York City's mandatory water and sewer charges involve "debt" within the meaning of the FDCPA. In Beggs v. Rossi, we held that municipal taxes levied automatically in connection with ownership of personal property do not involve a "transaction" as that term is understood under the FDCPA and, accordingly, are not "debt" for purposes of the FDCPA. 145 F.3d 511, 512 (2d Cir.1998). We now conclude that the New York City water and sewer charges also do not involve "debt" under the FDCPA. Rather, the relationship between plaintiffs and the City with respect to such charges is akin to "taxpayer and taxing authority," and "does not encompass that type of pro tanto exchange which the statutory definition envisages." Beggs, 145 F.3d at 512.
Like property taxes, New York City water and sewer charges are levied, in some amount, as an incident to property ownership in New York. In addition, the actions to foreclose the liens in question were instituted pursuant to New York law governing "tax liens." Further, the city ordinance governing foreclosure of water and sewer liens requires that they be conducted "in the same manner as a lien for [] taxes." N.Y. Pub. Auth. L. § 1045-j(5). In light of the foregoing, the charges at issue are best treated as akin to the municipal property taxes discussed in Beggs and, accordingly, outside the scope of the FDCPA.
We also conclude that, after properly granting summary judgment on the FDCPA claims, the District Court had discretion not to exercise supplemental jurisdiction over the state law claims. See Motorola Credit Corp. v. Uzan, 388 F.3d 39, 56 (2d Cir.2004) (decision whether to exercise supplemental jurisdiction over state law claims is reviewed for "abuse of discretion").
To summarize:
Accordingly, we