Judge: Elaine W. Mandel, Case: 23SMCV01534, Date: 2024-09-11 Tentative Ruling

Case Number: 23SMCV01534    Hearing Date: September 11, 2024    Dept: P

Tentative Ruling

American Express National Bank v. Alexander Afari Case No. 23SMCV01534

Hearing Date: September 11, 2024

Defendant Afari’s Motion for Summary Judgment or in the Alternative Summary Adjudication   

American Express brings a claim for common counts and accounts stated against defendant Afari for failure to pay an outstanding balance. Afari moves for summary judgment and, in the alternative summary adjudication, arguing there exists no triable issue of fact.

Afari argues the account-stated claim fails because the claim is not brought under a contractual basis, contravening the recently-enacted CCP §425.30 prohibiting such practices by debt buyers. This argument fails for two reasons. First, Code of Civil Procedure section 425.30 provides an individual cannot bring a claim for account stated in an action to collect consumer debt. Code Civ. Proc. §425.30, becoming effective January 1, 2024.

The statue does not apply to the claim here because the debt was incurred no later than June 2022, before the statute went into effect. Code Civ. Proc. § 425.30(b). By the terms of the statute, this debt does not fall within the time frame covered.

Second, the transactions are not “consumer debt” because Afari applied for a business credit card and characterized the debt as a business debt. Afari Decl. pp. 7:10,12-13 -9:4-7. Thus, the claim would not be barred under CCP § 425.30.

Finally, Afari alleges American Express is a debt buyer, as required under Civil Code Sections 1788.52 and 1788.58. In opposition, American Express states it is the original and current creditor of the debt, not a purchaser of the debt.

For the foregoing reasons, there is a question of material fact, and issues as to the applicability of the statute. Summary judgment and adjudication is DENIED.