Small Claims Courts are Not Judicial Districts Subject to Section 1692i of FDCPA

Brad Council

The matter of Mark Suesz v. Med-1 Solutions, LLC, came before the United States District Court, S.D. Indiana, Indianapolis Division on March 21, 2013 whereby the court concluded that the Indiana judicial structure provides that the Circuit Courts are considered “judicial districts” for purposes of the required venue provisions in the Fair Debt Collection Practices Act, 15 U.S.C. § 1692i, but township small claims courts are not.

Plaintiff Suesz brought a putative class action suit against Med-1 claiming that Med-1 filed in the wrong judicial district in violation of the Federal Debt Collection Practices Act (FDCPA).  The FDCPA in 15 U.S.C.§ 1692i states that the action to collect a debt must be brought “only in the judicial district or similar legal entity in which such consumer signed the contract sued upon; or in which such consumer resides at the commencement of the action.”  The key issue in this matter is that of judicial district.  While Med-1 contends bringing the action in Marion County albeit not in the small claims court where the debtor lives, is the correct venue, Suesz believes that the district scope should be narrowed to a township small claims court.