Wood v. Capital One Services, LLC

Gareth Wood (plaintiff) had an account with Capital One Bank (defendant) serviced by Capital One Services, LLC (Services) (defendant). After becoming delinquent in the amount of $1,731.35, the account was referred to NCO Financial Systems, Inc. (NCO) (defendant) for collection. Wood received correspondence from NCO informing him of NCO’s involvement and making disclosures pursuant to the Federal Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq. Wood also received a “Pre-Legal Notice” (Notice) from Services advising Wood of the potential consequences of a lawsuit but stating that no decision had been made yet to sue. Wood sued the defendants in federal court, seeking class certification, for violations of the FDCPA and New York law on the grounds that the notice deceptively suggested suit was imminent and failed to include required disclosures. Wood served 25 interrogatories and 43 document demands on Services, which answered the interrogatories, produced 1,500 pages of documents, and submitted to a deposition of a Federal Rule of Civil Procedure (FRCP) 30(b)(6) witness. NCO responded to Wood’s discovery requests by producing 400 pages of emails and designating a Rule 30(b)(6) witness. Later, Wood moved to compel additional discovery to support his allegation that the notice was sent on NCO’s behalf. From NCO, Wood requested searches of 11 email accounts using 13 search terms. From Services, Wood requested searches of (1) 41 email accounts using 19 search terms and (2) three files on two hard drives. The defendants moved for a protective order allowing them to disregard Wood’s e-mail search requests. Services averred that production would cost more than $5 million. NCO also cited excessive financial burden.