James K. Bredar, United States District Judge.
Stacey J. Hawkins ("Plaintiff") filed an action against Robert N. Kilberg, P.A., a Maryland law firm ("Kilberg" or "Defendant"),
Now pending before the Court is Defendant's Motion to Dismiss Count III (the MCPA count) pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. (ECF No. 16.) The issues have been briefed (ECF Nos. 16-1, 18 & 19), and no hearing is required, Local Rule 105.6 (D.
Plaintiff alleges that Defendant, a purported debt collector within the meaning of the FDCPA
Plaintiff filed a three-count action on October 19, 2015, claiming that Defendant violated certain provisions of the FDCPA (Count I) and the MCDCA (Count II) and that, by violating the MCDCA, Defendant further committed an unfair/deceptive trade practice pursuant to the MCPA (Count III). On December 1, 2015, Defendant filed the pending Motion to Dismiss Count III. (ECF No. 16.) Plaintiff filed a response in opposition (ECF No. 18), and Defendant replied (ECF No. 19). Defendant's Motion to Dismiss is now ripe for decision.
A complaint must contain "sufficient factual matter, accepted as true, to
The MCDCA generally prohibits debt collectors from disclosing "to a person other than the debtor or his spouse" information that "affects the debtor's reputation ... with knowledge that the other person does not have a legitimate business need for the information." Md. Code Ann., Com. Law § 14-202(5). Any disclosure in contravention of this provision may expose the debt collector to civil liability. Com. Law § 14-203. Moreover, a violation of the MCDCA is a per se violation of the MCPA. See Md. Code Ann., Com. Law § 13-301 ("Unfair or deceptive trade practices include any ... [v]iolation of a provision of ... the Maryland Consumer Debt Collection Act[.]"). Plaintiff avers that Defendant violated the MCDCA through its phone calls to her place of employment; accordingly, Plaintiff believes that Defendant violated the MCPA.
In its pending Motion, Defendant does not seek dismissal of Plaintiff's MCDCA claim (or, for that matter, her analogous FDCPA claim). Defendant does, however, seek dismissal of Plaintiff's MCPA claim (Count III) pursuant to an exemption provision in the statute, Com. Law § 13-104(1). That provision states that the MCPA does not apply to the "professional services" of certain enumerated practitioners, including lawyers. Defendant is a law firm ostensibly engaged in professional debt-collection services (including litigation) on behalf of its client, RMI. Thus, the exemption provision would seem to shield Defendant from liability under the MCPA.
Eager to preserve her MCPA claim with its fee-shifting potential,
But the May citation reveals the fatal defect in Plaintiff's argument: statutes relating to the same subject matter are harmonized as far as possible. The Court has no authority to override an explicit exemption built into the MCPA so as to more neatly integrate that statute with another law. Indeed, were the Court to adopt Plaintiff's position, it would violate a more fundamental precept of statutory construction: "unless there is some ambiguity in the language of a statute, a court's analysis must end with the statute's plain language." Hillman v. I.R.S., 263 F.3d 338, 342 (4th Cir.2001); see also United States v. Murphy, 35 F.3d 143, 145 (4th Cir.1994) ("Courts are not free to read into the language what is not there, but rather should apply the statute as written."). The Court cannot and need not speculate as to why the General Assembly of Maryland saw fit to expose lawyers to liability for actual damages under the MCDCA without also making them liable for attorney's fees under the MCPA — but the latter statute plainly "does not apply" to the "professional services of a ... lawyer." Md. Code Ann., Com. Law § 13-104(1).
A wealth of case law reinforces the Court's interpretation of the statute.
Plaintiff's remaining arguments do not revive her MCPA claim. She devotes almost a full page of her memorandum to a discussion of the legislative history of the FDCPA and Congress's decision, in 1986, to eliminate the attorney exemption under that statute. (ECF No. 18 at 7-8.) Of course, the legislative history of a federal statute has no bearing on the correct interpretation of an unrelated Maryland law. Plaintiff also frets that exempting attorney debt collectors from MCPA liability might "create a potential loophole in the MCDCA's enforcement mechanism which could potentially result in an increase in unscrupulous debt collection conduct by law firms." (Id. at 8.) Given that the exemption provision has been in place since 1974, and given that this Court is hardly the first to affirm that lawyers — including those specializing in debt collection, see Puffinberger, 2014 WL 120596, at *9 — are shielded from MCPA liability, Plaintiff's fears seem greatly exaggerated. In any event, if Plaintiff believes that the policy goals underlying the MCDCA could be better effectuated through broader application of the MCPA's fee-shifting provision, nothing prevents her from raising that concern with her local legislator. But it is simply not the province of a federal court to intervene on matters of state statutory law where the state's lawmaking body has chosen not to do so.
Accordingly, the Court will dismiss Count III with prejudice, and this case will proceed to discovery on Counts I and II.
For the foregoing reasons, an Order shall enter GRANTING Defendant's Motion to Dismiss Count III (ECF No. 16).
Scull is distinguishable on its facts, as that case dealt with health care practitioners rather than lawyers and relied on extrastatutory sources not applicable in this case. More importantly, however, the reasoning of Scull is compatible with the Court's reasoning here. Billing practices are plainly ancillary to the primary services of a medical practitioner. Conversely, debt-collection services are the bread-and-butter of many law firms. Particularly where, as here, those debt-collection services encompass litigation, there is little doubt that such services fit squarely within the exemption under the MCPA.