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Litigation Byte (October Edition)

October 31, 2024

Delivered in digestible, insightful bites, McGlinchey’s Litigation Byte is a monthly roundup of financial services decisions and cases nationwide that impact your business. Subscribe here.

4th Circuit Holds Rental Applicant Lacks Standing to Bring FCRA Claims Over Inaccurate OFAC Reporting      
 

On September 11, 2024, the 4th Circuit held that a named plaintiff in a putative class action failed to establish a concrete injury that could satisfy the injury-in-fact requirement for Article III standing against consumer reporting agency, RentGrow, Inc. Read more.

Separate Actions Against a Residential Tenant in Different Courts Could Constitute Abusive Collection Practices Under the FDCPA

On September 30, 2024, the District Court for the Eastern District of New York denied dismissal of plaintiff-tenant’s claim against her landlord’s counsel for abusive collection practices in violations of the FDCPA, 15 U.S.C. § 1692f, finding that the commencement of more than one suit against the same consumer in different courts could potentially violate the FDCPA prohibition on abusive acts or practices. Read more.

FCRA Claims Fail as Mortgagor Could Not Satisfy His Repayment Obligations by Tendering Another Promise to Pay

On September 19, 2024, the District Court for the Eastern District of New York dismissed claims against the mortgage lender, its mortgage servicer, and credit reporting agencies under the FCRA, 15 U.S.C. § 1681 et seq., New York Uniform Commercial Code § 9-210 et seq., and common law defamation for lack of standing because plaintiff’s self-inflicted injury was a result of his personal choices rather than defendant’s conduct. Read more. 

Ohio Court Rules the Federal Arbitration Act Means What It Says and Finds an Order Compelling Arbitration and Staying a Case to Not Be a Final, Appealable Order

Beard highlights the importance of explicitly identifying the choice of law that will govern an arbitration agreement. Moreover, because the FAA is equally binding on state and federal courts, the Beard decision also outlines ways prevailing parties can ensure the underlying purpose of the FAA is met by quickly moving such cases out of court and into arbitration without the necessity of a long, drawn-out, appeals process. Read more.

No Standing for FDCPA Claims Due to Lack of Injury: Eighth Circuit Vacates Judgment and Orders Dismissal

The United States Court of Appeals for the Eighth Circuit reversed a District Court’s decision granting summary judgment and remanded with instructions to dismiss the case due to lack of standing to assert a claim under the Fair Debt Collection Practices Act (FDCPA). Read more.

Let SCOTUS Decide: Can an Amended Complaint ‘Remove’ Removal Jurisdiction?

On October 7, 2024, the Supreme Court heard arguments to answer two longstanding questions on removal jurisdiction: (1) Whether amending a complaint to eliminate the only federal questions destroys federal subject-matter jurisdiction under 28 U.S.C. § 1331; and (2) whether a post-removal amended complaint precludes a district court from exercising supplemental jurisdiction over state law claims under 28 U.S.C. § 1367. Read more.

Supreme Court to Hear TCPA Class Action on Unsolicited Faxes and Online Fax Services

For the second time in five years, the U.S. Supreme Court will decide a case that arises out of the TCPA ban on the sending of unsolicited faxes. On Friday, October 3, 2024, the Court said it would hear arguments about whether to reopen a class action lawsuit filed by a group of chiropractors, McLaughlin Chiropractic Associates, against medical tech company McKesson Corp. Read more.

McGlinchey’s Consumer Financial Services Litigation Group is a recognized leader among the nation’s most respected financial services institutions. Our litigation practice brings together a skilled team of attorneys who represent every type of consumer financial services company, including national and state-chartered banks, finance companies, mortgage lenders and servicers, credit card issuers, automobile lenders, student lenders, community banks, thrifts, credit unions, and insurance providers. Learn more.