District Court (Cal.) Permits Assertion of “Set-off” As Affirmative Defense to Rosenthal Act Claim

In Norton v. Lvnv Funding, No. 18-cv-05051-DMR, 2020 U.S. Dist. LEXIS 88809, at *1-2 (N.D. Cal. May 19, 2020), Magistrate Judge Ryu permitted amendment to allow assertion of an affirmative defense of “set-off”.

Plaintiff Sonya Norton filed this putative class action against Defendants LVNV Funding, LLC (“LVNV”) and Law Office of Harris & Zide (“H&Z”) alleging violations of the federal Fair Debt Collection Practices Act (“FDCPA“), 15 U.S.C. § 1692 et seq., and California’s Fair Debt Collection Practices Act (“Rosenthal Act“), California Civil Code § 1788 et seq. Norton also seeks injunctive relief under California’s Unfair Competition Law (“UCL“), California Business and Professions Code § 17200 et seq. LVNV now moves for leave to file an amended answer to add “setoff” as an affirmative defense. [Docket Nos. 82 (“Mot.”); 85 (“Reply”).] Norton timely opposed. [Docket No. 84 (“Opp.”).] The court finds the motion suitable for determination without oral argument pursuant to Civil Local Rule 7-1(b).  For the reasons stated below, LVNV’s motion is granted.