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Home Court filings Carr v. Kabbage, Inc. Motion to Dismiss — Carr v. Kabbage, Inc. d/b/a K Servicing

Court filing

Motion to Dismiss — Carr v. Kabbage, Inc. d/b/a K Servicing

Filed May 31, 2022 in Carr v. Kabbage; one of 11 filings from this case.

Record facts

CourtU.S. District Court for the Northern District of Georgia, Atlanta Division
Filed2022-05-31

U.S. District Court for the Northern District of Georgia, Atlanta Division · No. 1:22-cv-01249-VMC · Doc. 12 · 2022-05-31 · Docket on CourtListener

Full text

UNITED STATES DISTRICT COURT 
NORTHERN DISTRICT OF GEORGIA 
ATLANTA DIVISION 
JASON CARR, VICKI LEMASTER, 
EDWARD FORD SERVICES LLC, 
CARLTON MORGAN, 365 SUN LLC, 
and CANDICE WORTHY, individually 
and on behalf of others similarly 
situated, 
Plaintiffs, 
v. 
KABBAGE, INC., d/b/a KSERVICING, 
Defendant. 
CIVIL ACTION 
NO. 1:22-cv-01249-VMC 
DEFENDANT KABBAGE, INC., d/b/a KSERVICING’S  
MOTION TO DISMISS AND REQUEST FOR ORAL ARGUMENT 
Defendant Kabbage, Inc., d/b/a KServicing (“KServicing”), hereby files this 
Motion to Dismiss Plaintiffs Jason Carr, Vicki LeMaster, Edward Ford Services, 
LLC, Carlton Morgan, 365 Sun LLC, and Candice Worthy’s (collectively 
“Plaintiffs”) Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). 
In support of its Motion, KServicing shows that Plaintiffs’ claims should be 
dismissed in their entirety for failure to state a claim because all of the claims arise 
out of and seek enforcement of the Coronavirus Aid, Relief, and Economic Security 
Act, Pub. L. 116-136 (“CARES Act”), which does not provide for a private right of 
Case 1:22-cv-01249-VMC     Document 12     Filed 05/31/22     Page 1 of 4

action.  Additionally, according to Plaintiffs, the Terms of Service agreement 
governs this dispute.  Accordingly, disputes relating to Plaintiffs’ PPP loans are 
governed by Georgia law pursuant to the Terms of Service agreement and Georgia 
law, mandating dismissal of all claims arising under California, North Carolina, 
Michigan, and Florida statutes.  Finally, all of the deceptive or unfair trade practices 
act claims (including those in Georgia) additionally fail as a matter of law. 
Pursuant to Section III.m. of the Court’s Standing Order, KServicing 
respectfully requests oral argument on its motion to dismiss and arguments set forth 
in its memorandum of law in support. KServicing’s oral argument will focus on 
Plaintiffs’ lack of standing to bring a claim based on purported violation of the 
CARES Act because as no private right of action exists, and Plaintiffs’ failure to 
plead a cognizable claim.  The newly enacted CARES Act, and associated SBA 
regulations, are rapidly evolving and KServicing respectfully submits that oral 
argument may aid the Court in gaining a more fulsome understanding of the issues 
raised in KServicing’s motion, including the reasons for dismissal. 
WHEREFORE, based on the foregoing, KServicing requests that this Court 
grant its request for oral argument, and grant its Motion and dismiss the Complaint 
in its entirety. 
Case 1:22-cv-01249-VMC     Document 12     Filed 05/31/22     Page 2 of 4

Dated: 31st day of  May, 2022 
Respectfully submitted, 
DENTONS US LLP  
/s/ Uchenna Ekuma-Nkama
Uchenna Ekuma-Nkama  
Georgia Bar No. 957861  
Alizé D. Mitchell 
Georgia Bar No. 349963 
303 Peachtree Street, N.E.  
Suite 5300  
Atlanta, GA 30308  
Telephone: (404) 527-4000  
Facsimile: (404) 527-4198  
uchenna.ekuma-nkama@dentons.com 
alize.mitchell@dentons.com 
Drew W. Marrocco  
(pro hac vice forthcoming)  
Virginia Bar No. 38955/D.C. Bar No. 53205 
1900 K Street NW  
Washington, DC 20006  
Telephone: (202) 496-7500  
Facsimile: (202) 496 7756  
drew.marrocco@dentons.com 
Tomasita L. Sherer 
(pro hac vice forthcoming)      
New York Bar No. 3033859            
1221 Avenue of the Americas 
New York, NY 10020 
Telephone: (212) 768-6700 
Facsimile: (212) 768 6800 
tomasita.sherer@dentons.com 
Counsel for Defendant KServicing 
Case 1:22-cv-01249-VMC     Document 12     Filed 05/31/22     Page 3 of 4

UNITED STATES DISTRICT COURT 
NORTHERN DISTRICT OF GEORGIA 
ATLANTA DIVISION 
JASON CARR, VICKI LEMASTER, 
EDWARD FORD SERVICES LLC, 
CARLTON MORGAN, 365 SUN LLC, 
and CANDICE WORTHY, individually 
and on behalf of others similarly 
situated, 
Plaintiffs, 
v. 
KABBAGE, INC., d/b/a KSERVICING, 
Defendant. 
CIVIL ACTION 
NO. 1:22-cv-01249-VMC 
CERTIFICATE OF SERVICE AND COMPLIANCE 
I certify that on May 31, 2022, I have caused the foregoing MOTION TO 
DISMISS to be filed with the Clerk of Court using the CM/ECF system, which 
will automatically send e-mail notification of such filing to all counsel of record. I 
also certify that the foregoing was prepared in accordance with N.D. Ga. L.R. 5.1, 
using Times New Roman font, 14 point. 
DENTONS US LLP  
/s/ Uchenna Ekuma- Nkama  
Uchenna Ekuma-Nkama 
Case 1:22-cv-01249-VMC     Document 12     Filed 05/31/22     Page 4 of 4

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