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Judge tosses township jurisdiction challenge in collection cases

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A federal judge has ruled that Marion County collections cases need not be filed in the township where a defendant lives or a contract was signed, a key ruling regarding a practice criticized as “forum shopping.”

On Thursday, Judge William T. Lawrence of the District Court for the Southern District of Indiana dismissed a lawsuit brought by a plaintiff who claimed that an action filed against him in Pike Township violated the Federal Debt Collection Practices Act because he neither lived in the township nor signed a contract there. Township courts in Marion County hear small claims complaints regarding sums of less than $6,000.

“The small claims township courts do not constitute judicial districts,” Lawrence wrote, citing a Circuit Court ruling from Illinois, Newsom v. Friedman, 76 F.3d 813 (7th Cir. 1996). “The venue requirements for filing in small claims court make clear that any township court may hear a claim within the limits of its subject-matter jurisdiction.”

Lawrence dismissed Mark Suesz, individually and on behalf of a class, et al., v. Med-1 Solutions, LLC, 1:12-CV-1517. Med-1 was granted dismissal on its contention that filing in the county where a defendant lived was sufficient. Lawrence wrote the Newsom ruling found that the definition of “judicial district” was unambiguous, and in Indiana, the meaning is the counties that constitute judicial circuits.

“The structure and function of the township small claims courts in Marion County do not fall with the definition of a judicial district. It follows that Med-1 was not required under the FDCPA to file in the township where Suesz lived or signed the contract,” Lawrence ruled. “It was therefore not a violation of FDCPA for Med-1 to file in another township small claims court within Marion County, and Med-1 is entitled to dismissal of the claim against it.”

Suesz also had the opportunity to request a change of venue, Lawrence noted.

Numerous class-action suits have been filed seeking relief under FDCPA for allegations of forum shopping, in which large-volume collections filers concentrated their suits in one of the nine township courts.

Allegations of abuses led to reforms in the courts spurred by an advisory committee formed after Court of Appeals Judge John Baker and Senior Judge Betty Barteau issued a report that recommended an overhaul in the way the courts were structured and reforms in the way they did business. The study and report followed a Wall Street Journal article that focused on forum-shopping.

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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