FDCPA – Creditor Debtor – Class Certification

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7^th Circuit Court of Appeals

Case Name: Scott McMahon v. LVNV Funding, LLC

Case No: 15-8018

Officials: WOOD, Chief Judge, and FLAUM and SYKES, Circuit Judges.

Practice Area: FDCPA – Creditor Debtor – Class Certification

Petition to appeal denial of class certification granted, district court’s denial of petition was in error

“On the merits, we agree with McMahon that the district court exceeded the bounds of its discretion when it denied class certification. As McMahon points out, the court’s analysis is inconsistent with this court’s decisions. Its reasoning suggests that the existence of individual issues of causation automatically bars class certification under Rule 23(b)(3). That overstates the case. Although “[p]roximate cause … is necessarily an individual issue,” we have explained that “the need for individual proof alone does not necessarily preclude class certification.” Pella Corp., 606 F.3d at 394; see Suchanek v. Sturm Foods, Inc., 764 F.3d 750, 759 (7th Cir. 2014) (concluding that district court committed “error of law” by denying class certification where district court’s reason for denial was that “[t]he problem with the proposed class here is that showing reliance or causation—as required to establish liability— requires an investigation of each purchaser” (internal quotation marks omitted)); see also Bell v. PNC Bank, Nat’l Ass’n, 800 F.3d 360, 381 (7th Cir. 2015) (“[O]ur cases demonstrate that commonality as to every issue is not required for class certification.”); Mullins v. Direct Digital, LLC, 795 F.3d 654, 671 (7th Cir. 2015) (“It has long been recognized that the need for individual damages determinations at [a] later stage of the litigation does not itself justify the denial of certification.”); Arreola v. Godinez, 546 F.3d 788, 801 (7th Cir. 2008) (“[T]he need for individual damages determinations does not, in and of itself, require denial of [a] motion for certification.”).

Vacated and Remanded

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.