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Divided 7th Circuit revives Marion County Small Claims suit

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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.”
 

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  1. Ah yes... Echoes of 1963 as a ghostly George Wallace makes his stand at the Schoolhouse door. We now know about the stand of personal belief over service to all constituents at the Carter County Clerk door. The results are the same, bigotry unable to follow the directions of the courts and the courts win. Interesting to watch the personal belief take a back seat rather than resign from a perception of local power to make the statement.

  2. An oath of office, does it override the conscience? That is the defense of overall soldier who violates higher laws, isnt it? "I was just following orders" and "I swore an oath of loyalty to der Fuhrer" etc. So this is an interesting case of swearing a false oath and then knowing that it was wrong and doing the right thing. Maybe they should chop her head off too like the "king's good servant-- but God's first" like St Thomas More. ...... We wont hold our breath waiting for the aclu or other "civil liberterians" to come to her defense since they are all arrayed on the gay side, to a man or should I say to a man and womyn?

  3. Perhaps we should also convene a panel of independent anthropological experts to study the issues surrounding this little-known branch of human sacrifice?

  4. I'm going to court the beginning of Oct. 2015 to establish visitation and request my daughters visits while she is in jail. I raised my grandchild for the first two and half years. She was born out of wedlock and the father and his adopted mother wantwd her aborted, they went as far as sueing my daughter for abortion money back 5mo. After my grandchild was born. Now because of depression and drug abuse my daughter lost custody 2 and a half years ago. Everyting went wrong in court when i went for custody my lawyer was thrown out and a replacment could only stay 45 min. The judge would not allow a postponement. So the father won. Now he is aleinating me and my daughter. No matter the amount of time spent getting help for my daughter and her doing better he runs her in the ground to the point of suicide because he wants her to be in a relationship with him. It is a sick game of using my grandchild as a pawn to make my daughter suffer for not wanting to be with him. I became the intervener in the case when my daughter first got into trouble. Because of this they gave me her visitation. Im hoping to get it again there is questions of abuse on his part and I want to make sure my grandchild is doing alright. I really dont understand how the parents have rights to walk in and do whatever they want when the refuse to stand up and raise the child at first . Why should it take two and a half years to decide you want to raise your child.The father used me so he could finish college get a job and stop paying support by getting custody. Support he was paying my daughter that I never saw.

  5. Pence said when he ordered the investigation that Indiana residents should be troubled by the allegations after the video went viral. Planned Parenthood has asked the government s top health scientists at the National Institutes of Health to convene a panel of independent experts to study the issues surrounding the little-known branch of medicine.

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