In a closely watched case, the United States Supreme Court concluded by a 5-3 vote that the filing in bankruptcy proceedings of a proof of claim that is time-barred “is not a false, deceptive, misleading, unfair, or unconscionable debt collection practice within the meaning of the Fair Debt Collection Practices Act.”
As a result of the Court’s decision, debt collectors such as Midland Funding that pursue older debts in bankruptcy proceedings do not run the risk of civil liability under the Fair Debt Collection Practices Act. The decision overturned a previous Eleventh Circuit decision that held debt collectors liable.
Law360 named Williams & Connolly a “Legal Lion” for its victory on behalf of Midland Funding.
Led by Kannon Shanmugam, the Williams & Connolly team representing Midland Funding included Allison Jones Rushing, Masha Hansford, Katherine Petti, and Will Marks.