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7th Circuit splits over Marion County Small Claims debt collection suit

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Are Marion County Township courts “judicial districts” under the Fair Debt Collection Practices Act, thus allowing a man to sue a debt collector for bringing an action in an inconvenient township court? Depends on who you ask on the 7th Circuit Court of Appeals, as the majority ruled in favor of the debt collector Thursday.

Judges Joel Flaum, Ann Claire Williams and Richard Posner decided Mark Suesz, individually and on behalf of a class v. Med-1 Solutions LLC, 13-1821. Med-1 Solutions bought the medical debt of Hendricks County resident Mark Suesz that stemmed from treatment in Lawrence Township in Marion County. The company filed a collection action in Marion County Small Claims Court in Pike Township, on the other side of Marion County. Suesz then filed this lawsuit, seeking damages under the Fair Debt Collection Practices Act, which requires debt collectors to bring suit in the judicial district where the contract was signed or where the consumer resides.

U.S. Judge William Lawrence tossed Suesz’s lawsuit in March after finding the small claims courts were not judicial districts for the purposes of the Act.  Flaum and Williams agreed, relying on Newsom v. Friedman, 76 F.3d 813 (7th Cir. 1996). Using a similar approach as in Newsom, the majority looked at the makeup of courts in Indiana and what should be considered judicial districts here.

“[T]he township courts fall short of constituting freestanding judicial districts for several reasons. First, they fall short under our definition, because the limitations on their authority are not coterminous with township boundaries. We find it especially significant that the statute permits debt collectors to file actions anywhere in the county, rather than limiting the township courts’ reach to township borders. This filing flexibility suggests that the proper judicial district is Marion County as a whole, rather than the individual townships,” Flaum wrote.

“It is also noteworthy that the Marion County Superior Court lacks a small claims docket—which every other superior court in Indiana has. This suggests that the township courts, superior court, and circuit court are meant to function as a symbiotic whole, with the township courts obviating the need for a superior court small claims docket.”

Posner wrote a 10-page dissent, believing Newsom is unsound and needs to be overruled. He pointed out that the majority interpreted the relevant portion of the Act in a vacuum instead of against the background of debt collectors seeking to file actions in the courts that are inconvenient to debtors or where judges are unsympathetic to debtors.

“What’s true is that a debt collector is free to choose a court system (federal, county, city, or township, depending on jurisdictional requirements) in which to file. But once it makes its choice, section 1692i requires it to pick the most convenient court within the system’s territorial limits. That would be Lawrence Township court in this case,” Posner wrote.
 

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  1. Just an aside, but regardless of the outcome, I 'm proud of Judge William Hughes. He was the original magistrate on the Home place issue. He ruled for Home Place, and was primaried by Brainard for it. Their tool Poindexter failed to unseat Hughes, who won support for his honesty and courage throughout the county, and he was reelected Judge of Hamilton County's Superior Court. You can still stand for something and survive. Thanks, Judge Hughes!

  2. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  3. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  4. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  5. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

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