ILNews

Divided 7th Circuit revives Marion County Small Claims suit

Back to TopCommentsE-mailPrintBookmark and Share

More than eight months after Judge Richard Posner argued in a dissent that Newsom v. Friedman needs to be overruled, the 7th Circuit Court of Appeals did just that in an en banc decision involving Marion County’s Township courts.

Posner and Judge David Hamilton authored the majority opinion in Mark Suesz v. Med-1 Solutions LLC, 13-1821, in which the court decided the correct interpretation of “judicial district or similar legal entity” under Section 1692i of the Fair Debt Collection Practices Act is the smallest geographic area that is relevant for determining venue in the court system where the case is filed. For Marion County Small Claims courts, the smallest area is the township.

This is opposite of what the 7th Circuit decided in Newsom, 76 F.3d 813 (7th Cir. 1996), in which a panel adopted a test based on details of court administration rather than on the applicable venue rules. The Circuit Court in Suesz not only reversed the court’s previous ruling which held that small claims cases could be brought in any Marion County Township Court, but it also overruled Newsom.

Med-1 Solutions filed a collection lawsuit against Mark Suesz in Pike Township, seeking to recover medical debt Suesz incurred from treatment in Lawrence Township. Suesz does not live in Pike Township. Suesz sued, seeking damages under the FDCPA, which requires debt collectors to bring the suit in the judicial district where the contract was signed or where the consumer resides.  District Court Judge William Lawerence, citing Newsom, tossed Suesz’s lawsuit in March 2013.

“[I]n Newsom we relied on what was said to be the plain language of the statute, though the language is not plain at all when applied to the Marion County township courts,” Posner and Hamilton wrote in Mark Suesz v. Med-1 Solutions LLC, 13-1821. Wednesday they adopted an approach that focuses on the state court venue rules faced by parties and lawyers, and the relevant geographic unit for applying those rules.

“This interpretation of the statutory term discourages abusive forum-shopping by debt collectors rather than enabling it,” the majority writes. They remanded for further proceedings on class certification and the merits of Suesz’s claim. The majority declined Med-1 Solutions request that Newsom be overruled only on a prospective basis.  

Judge Diane Sykes concurred with Posner and Hamilton’s opinion, including the decision to overrule Newsom, but she noted she shares some of the concerns expressed by Judge Joel Flaum in his dissent, to which Judge Michael Kanne joined. They do not believe Newsom should be overturned.

“But instead of deferring to the state’s definition of its districts, the majority replaces congressional silence in §1692i with a purposive definition of judicial district that is of the majority’s own design. In doing so, the court federalizes the term “judicial district” for the purposes of the FDCPA. I decline to join this decision because I believe the court’s rule seizes upon a general congressional purpose behind the FDCPA – protecting debtors from abusive collection practices – to craft a rule more exacting than Congress intended. A high-level statutory purpose is simply an insufficient justification for this stringent new rule,” Flaum wrote.

Kane also wrote a separate dissent, “While I am of the opinion that the judicial circuits themselves, and not any specific court within them, are the relevant ‘judicial districts’ in Indiana, I find Judge Flaum’s reasoned approach and his adherence to our Newsom decision much more persuasive than put forward by the majority.”
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. November, 2014, I was charged with OWI/Endangering a person. I was not given a Breathalyzer test and the arresting officer did not believe that alcohol was in any way involved. I was self-overmedicated with prescription medications. I was taken to local hospital for blood draw to be sent to State Tox Lab. My attorney gave me a cookie-cutter plea which amounts to an ALCOHOL-related charge. Totally unacceptable!! HOW can I get my TOX report from the state lab???

  2. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

  3. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  4. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  5. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

ADVERTISEMENT