Smith v. Greystone Alliance, LLC

Dist. Ct. erred in dismissing for lack of jurisdiction plaintiff’s Fair Debt Collection Practices Act claim after finding that defendant’s settlement offer of $1,500 rendered her claim moot because it exceeded any potential recovery she could have obtained. Under Gates, 430 F3d 429, instant dismissal would only be proper if defendant’s offer satisfied plaintiff’s monetary demand, and record showed that plaintiff demanded more than $1,500. Moreover, Dist. Ct. cannot determine merits of plaintiff’s claim and then determine that it lacked jurisdiction where defendant had offered more than what Dist. Ct. believed to be value of claim.