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Justia Daily Opinion Summaries

US Court of Appeals for the Sixth Circuit
February 27, 2020

Table of Contents

VanderKodde v. Mary Jane M. Elliott, P.C.

Civil Procedure, Consumer Law

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US Court of Appeals for the Sixth Circuit Opinions

VanderKodde v. Mary Jane M. Elliott, P.C.

Dockets: 19-1091, 19-1127, 19-1128

Opinion Date: February 26, 2020

Judge: Richard Allen Griffin

Areas of Law: Civil Procedure, Consumer Law

Defendants bought consumer debts. Collection proceedings in Michigan state court suit resulted in a judgment against each plaintiff. The defendants employed Michigan’s simplified post-judgment garnishment procedure. None of the debtors timely objected. The rate of post-judgment interest “is calculated on the entire amount of the money judgment, including attorney fees and other costs,” using a complex formula. The Michigan Department of Treasury’s website lists every judgment interest rate calculated using this method. During the 11-year period at issue, it reached a peak of 4.033% and a valley of 0.687%. The plaintiffs’ debts were, instead, subjected to a rate of 13%, the maximum interest rate allowed for a judgment “rendered on a written instrument evidencing indebtedness with a specified [or variable] interest rate” although the underlying default judgments specify that they are “not based on a note or other written evidence of indebtedness,” and none of the judgments include any supporting written instrument. The plaintiffs alleged that using the 13% rate was improper and filed a federal suit under the Fair Debt Collection Practices Act, 15 U.S.C. 1692, and the Michigan Collection Practices Act. The Sixth Circuit reversed the dismissal of the debtors’ suit. The suit “is not the rare one" subject to the Rooker-Feldman doctrine, under which federal courts are prohibited from reviewing appeals of state-court decisions. The plaintiffs' injuries stemmed from the defendant’s conduct, not the state-court judgment.

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