Payne v. Progressive Fin. Serv., Inc.

Plaintiff filed suit against Progressive for violations of the Fair Debt Collection Practices Act (FDCPA),15 U.s.C. 1692 et seq., as well as violations of Texas state law. The district court dismissed the suit for lack of subject matter jurisdiction on the ground that Progressive's unaccepted offer of judgment rendered plaintiff's claims moot. The court concluded, however, that Progressive's incomplete offer of judgment did not render plaintiff's FDCPA claims moot. Under the FDCPA, an individual claimant was eligible to recover actual damages under section 1692k(a)(1). Plaintiff requested actual damages. Progressive's Rule 68 offer of judgment did not offer to meet plaintiff's full demand for relief because it did not include actual damages. Therefore, Progressive's offer left a live controversy for the court to resolve, plaintiff maintained a personal stake in the outcome of the action, and the offer did not render plaintiff's FDCPA claims moot. Accordingly, the court reversed and remanded for further proceedings. View "Payne v. Progressive Fin. Serv., Inc." on Justia Law