A reminder first about motions to dismiss and judges needing to accept that everything a plaintiff says in a complaint is true. With that in mind, a District Court judge in Michigan has denied a defendant’s motion to dismiss a Fair Debt Collection Practices Act case, ruling that a repossession agent breached the peace when attempting to recover the plaintiff’s vehicle by moving “forcefully” toward the plaintiff, who had placed himself between the tow truck and his vehicle.
The background: The dispute stems from an early-morning repossession attempt in August 2024. The plaintiff had fallen behind on his auto loan, prompting the lender to hire the defendant to retrieve the car.
- When the agent arrived around 6 a.m., the plaintiff, who was sitting on his porch, approached and objected, telling the agent to leave his property and that he planned to call the police. Despite repeated objections, the agent insisted he had authority to repossess the car and moved forward with the tow.
- The situation escalated when the agent “moved forcefully” into the plaintiff’s space, causing him to step back and “ball up his fists,” according to the complaint.
- The agent allegedly yelled and cursed at the plaintiff before police were called.
- The plaintiff said the repossession was only completed because of the officers’ presence.
The ruling: Judge Hala Y. Jarbou of the District Court for the Western District of Michigan concluded that the plaintiff had alleged sufficient facts to state a claim under the FDCPA and Michigan’s self-help repossession statute, which allows repossession only if it can be done “without breach of the peace.”
- Judge Jarbou declined to define the term precisely but noted that “moving so close to a person that they must take a step back, and then shouting profanities at them, is the sort of conduct that tends to provoke violent reactions.”
- The court found the allegations plausible under any interpretation of “breach of the peace,” particularly because the repossession occurred only with police involvement. The judge cited commentary to the Uniform Commercial Code noting that the use of law enforcement “chills the legitimate exercise of the defaulting party’s rights” and is not permitted in self-help repossessions.
- As the opinion summed up, “the moment that violence became a likely outcome of the interaction” was when the agent advanced toward the plaintiff and began yelling — enough, the court said, to keep the case alive.
