Sixth Circuit Rings the Spokeo Bell in FDCPA Ruling Involving Discovery Statute Violation -
In May 2016, the U.S. Supreme Court ruled on whether the Fair Credit Reporting Act ("FCRA") created a right confering Article III standing for plaintiffs in consumer litigation. The decision, Spokeo, Inc. v. Robins, 136 S.Ct. 1540 (2016), now known simply as "Spokeo" – which was widely interpreted to raise the bar on standing – has also become a tool for plaintiffs seeking to allege Article III injury on the basis of statutory violations.
On April 20, 2017, the United States Court of Appeals for the Sixth Circuit joined several other federal courts of appeal in clarifying what constitutes concrete harm as a result of a state procedural violation. In Lyshe v. Yale R. Levy, et al., Appellees brought a collection action against consumer, Lyshe. Soon after bringing the action, Appellees served Lysche with discovery requests. In doing so, Appellees provided mistaken statements associated with their discovery requests. Upon receipt of the discovery requests, Lyshe brought suit against Appellees, claiming Appellees violated the Fair Debt Collection Practices Act ("FDCPA") by violating the Ohio Rules of Civil Procedure as to discovery. Lyshe contended state discovery procedure errors created a cognizable intangible injury under the FDCPA. The Court disagreed.
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