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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. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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