The U.S. Court of Appeals for the Second Circuit again revived an attempted class action suit that U.S. District Judge Katherine Forrest of the Southern District of New York has tried to close out twice now, most recently by entering judgment on a Rule 68 settlement offered by the defendants in Franco v. Allied Interstate.
On Monday, the panel of Second Circuit Judges Rosemary Pooler, Reena Raggi and Christopher Droney, armed with two recent decisions, vacated and remanded the suit back to Forrest via a summary judgment. The district judge had initially dismissed the amended complaint in the action over alleged violations of the Fair Debt Collection Practices Act. Gilberto Franco had sued Allied Interstate in 2013 over claims mailed to him by the company that warned debtors of a 15 percent pay garnishment, despite the FDCPA allowing the garnishment on disposable income.
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