United States District Court, E.D. New York
For the Plaintiff: Alan J Sasson, Esq., Of Counsel, Law Office of Alan J. Sasson, P.C., Brooklyn, NY.
For the Plaintiff: Mark H. Rephen, Esq., Of Counsel, M. Harvey Rephen & Associate, New York, NY. For the Defendant: Mark D. Wellman, Esq., Of Counsel, Jones Hirsch Connors Miller & Bull, New York, NY.
MEMORANDUM OF DECISION AND ORDER
ARTHUR D. SPATT, United States District Judge.
On February 26, 2013, the Plaintiff Arvinder Sodhi (the " Plaintiff" ) brought this
action against the Defendant Mercedes Benz Financial Services, USA, LLC (the " Defendant" ) alleging that Mercedes Benz (1) violated the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 (" FDCPA" ); (2) breached a Settlement Agreement executed by the parties; and (3) negligently reported the Plaintiff to certain credit bureaus. Presently pending before the Court are (1) the Plaintiff's motion to amend the complaint pursuant to Federal Rules of Civil Procedure (" Fed. R. Civ. P." ) 15(a)(2) and (2) the Defendant's motion to dismiss the complaint pursuant to Fed.R.Civ.P. 12(b)(6) on the basis of the Settlement Agreement.
For the following reasons, the Plaintiff's motion to amend is denied as futile and the Defendant's motion to dismiss the original complaint is granted.
The Plaintiff, a resident of the State of New York, resides at 1776 Cedar Swamp Road in Glen Head, New York. The Defendant is a limited liability company incorporated in Michigan.
By agreement dated April 26, 2007, the Plaintiff entered into a motor vehicle lease agreement as a guarantor for the financing of his parents' lease of a 2007 Mercedes-Benz GL450 vehicle. The Defendant furnished the credit financing for the lease. At some point, the account on the lease allegedly went into default.
Thereafter, the Defendant's collection agent, American Coradius International, LLC (" AIC" ) took steps to collect the alleged guarantor debt owed by the Plaintiff. In August 2012, the Plaintiff allegedly threatened to commence a lawsuit against the Defendant for FDCPA violations. On September 14, 2012, the Plaintiff and the Defendant entered into a Settlement Agreement and Mutual Release Agreement (the " Settlement Agreement" ) regarding the alleged debt. As part of the Settlement Agreement, the Defendant agreed to remit a settlement payment to the Plaintiff and to direct three major credit reporting agencies to remove the Defendant's tradeline on the Plaintiff's personal credit report. The Plaintiff, in turn, agreed to release and forever discharge the Defendant from:
All known or unknown claims, counterclaims, cross-claims, charges, complaints, demands, damages, costs, expenses (including attorney fees and costs actually incurred), compensation or liabilities of any nature whatsoever, in law or in equity, arising from the acts and/or omissions that were asserted or could have been asserted in the ...