IN RE: LVNV Funding, LLC, "Time-Barred" Proof of Claim Fair Debt Collection Practices Act (FDCPA) Litigation

UNITED STATES JUDICIAL PANEL
on
MULTIDISTRICT LITIGATION
IN RE: LVNV FUNDING, LLC, “TIME-BARRED”
PROOF OF CLAIM FAIR DEBT COLLECTION
PRACTICES ACT (FDCPA) LITIGATION MDL No. 2611
ORDER DENYING TRANSFER
Before the Panel: Defendants Resurgent Capital Services, L.P. (Resurgent) and LVNV
Funding, LLC (LVNV) move under 28 U.S.C. § 1407 to centralize pretrial proceedings in this
litigation in the Southern District of Alabama. This litigation currently consists of three actions
pending in the Southern District of Alabama, the Middle District of Florida, and the Southern
District of Georgia, as listed on Schedule A. Plaintiffs in each of these actions allege defendants1
filed a proof of claim in plaintiffs’ respective Chapter 13 bankruptcy proceedings relating to a
consumer debt for which the applicable statute of limitations barred litigation to collect the debt.
Plaintiffs allege that the filing of these proofs of claim violates the federal Fair Debt Collection
Practices Act (FDCPA), 15 U.S.C. § 1692, et seq., or the Florida Consumer Collection Practices Act
(FCCPA), Fla. Stat. § 559.55, et seq.
Plaintiffs in the action pending in the Southern District of Alabama support centralization
in that district. Plaintiffs in the recently-noticed related action pending in the Middle District of
Florida support centralization in the Middle District of Florida. Plaintiff in the action listed on the
motion and pending in the Middle District of Florida initially opposed centralization, but announced
at oral argument that he now also supports centralization in the Middle District of Florida. In
contrast, plaintiffs in the action pending in the Southern District of Georgia oppose centralization.
Alternatively, should the Panel determine that centralization is warranted, they suggest the Southern
District of Georgia as the transferee forum.
On the basis of the papers filed and the hearing session held, we conclude that centralization
will not serve the convenience of the parties and witnesses or further the just and efficient conduct
of this litigation. These actions share some factual questions arising from plaintiffs’ allegations that
defendants filed one or more proofs of claim in their bankruptcy proceedings to collect a consumer
debt when the applicable statute of limitations on the collection of that debt had expired. These
common questions, though, are not sufficiently complex or numerous to warrant the creation of an
MDL. The primary dispute between the parties appears to concern whether the Bankruptcy Code
displaces or “preempts” application of the FDCPA or FCCPA—a predominantly legal question.
“Merely to avoid two federal courts having to decide the same issue is, by itself, usually not
sufficient to justify Section 1407 centralization.” In re Medi-Cal Reimbursement Rate Reduction
The Panel has been notified of a related action pending in the Middle District of Florida.1
Case MDL No. 2611 Document 32 Filed 04/02/15 Page 1 of 3

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Litig., 652 F. Supp. 2d 1378, 1378 (J.P.M.L. 2009). Any inconsistent rulings with respect to this or
other legal issues in these actions can be resolved on appeal, as all the actions are pending in districts
located within the Eleventh Circuit.
Furthermore, there are only four actions at issue here (including the recently-noticed related
action) pending in only three districts, and these actions involve limited overlap among the putative
classes. Thus, to the extent there is any possibility of duplicative discovery or inconsistent pretrial2
rulings, voluntary cooperation and coordination among the parties and the involved courts are
preferable to centralization. See, e.g., In re Eli Lilly & Co. (Cephalexin Monohydrate) Patent Litig.,
446 F. Supp. 242, 244 (J.P.M.L. 1978); see also Manual for Complex Litigation, Fourth, § 20.14
(2004). Indeed, the parties have argued that similar litigation against other debt collectors and
purchasers of debts are being coordinated within the Middle District of Florida and the Southern
District of Georgia. Centralization of this litigation therefore could have the opposite effect than
intended by Section 1407—it could complicate the adjudication of the various actions within each
district or even result in inconsistent pretrial rulings with respect to proofs of claim filed in the same
bankruptcy proceeding.
IT IS THEREFORE ORDERED that the motion for centralization of these actions is denied.
PANEL ON MULTIDISTRICT LITIGATION
__________________________________________
Sarah S. Vance
Chair
Marjorie O. Rendell Charles R. Breyer
Lewis A. Kaplan Ellen Segal Huvelle
R. David Proctor Catherine D. Perry
The complaint in the Middle District of Florida action listed on the motion asserts only an2
FCCPA claim, whereas the recently-noticed Florida action and the Georgia action listed on the
motion allege FDCPA claims and involve putative classes limited to residents or recent residents of
those states. Only the action pending in the Southern District of Alabama creates any overlap, as
plaintiffs in that action allege a putative nationwide class. Given the limited number of actions and
the lack of complex or numerous questions of fact, this limited class overlap, alone, is insufficient
to warrant creation of an MDL.
Case MDL No. 2611 Document 32 Filed 04/02/15 Page 2 of 3

IN RE: LVNV FUNDING, LLC, “TIME-BARRED”
PROOF OF CLAIM FAIR DEBT COLLECTION
PRACTICES ACT (FDCPA) LITIGATION MDL No. 2611
SCHEDULE A
Southern District of Alabama
BROCK, ET AL. v. RESURGENT CAPITAL SERVICES, LP, ET AL.,
C.A. No. 1:14-00324
Middle District of Florida
IDARRAGA v. LVNV FUNDING, LLC, C.A. No. 3:14-01335
Southern District of Georgia
ALIFF, ET AL. v. RESURGENT CAPITAL SERVICES, LP, ET AL.,
C.A. No. 1:14-00198
Case MDL No. 2611 Document 32 Filed 04/02/15 Page 3 of 3