ACA International Names Dykema Case a Top 5 Most Influential Decision for 2021

Dykema, a leading national law firm, is proud to announce that a case that the firm handled, Nettles v. Midland Funding, was recognized as one of “The Most Influential Cases of 2021” by the American Collectors Association (ACA) International in the January/February issue of  Collector Magazine.

Dykema's Ted Seitz, with assistance from colleague Kyle Asher, represented Midland Credit Management in a putative class action case at the U.S. Court of Appeals for the Seventh Circuit. The Seventh Circuit sided with Midland, vacating a trial court's order denying the organization's motion to compel arbitration in a lawsuit filed by a consumer alleging violations of the federal Fair Debt Collection Practices Act (FDCPA), and remanding the case to the lower court with instructions to dismiss for lack of jurisdiction.

In so ruling, the Seventh Circuit concluded that although standing issues were not raised in the trial court, the Court lacked jurisdiction to address the arbitration question because the consumer failed to allege an injury-in-fact from the claimed violations of the FDCPA, 15 U.S.C. § 1692, et seq., and thus failed to plead facts to support her standing to sue under Article III of the Constitution.

As noted by the Seventh Circuit in the opinion, though no one addressed whether the consumer adequately pleaded an actual injury fairly traceable to the alleged statutory violations in trial court, Article III standing is jurisdictional and cannot be waived.