Diane N. Resnick, et al. v. KrunchCash, LLC, et al., No. 20-14504 (11th Cir. 2022)
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Plaintiffs appealed the district court’s dismissal of their constitutional and state law claims against Defendants and its owner for lack of subject matter jurisdiction. Plaintiffs are legal practitioners who reside in Florida and represent clients in personal injury cases. Defendant is a company is operated by an owner who resides in Florida.
Plaintiffs claim that Defendants violated their right to due process of law by freezing their assets in Maryland, obtaining writs of garnishment based on Maryland law without providing notice and an opportunity to be heard. They also alleged violations of state law, including a charge of usury, breach of contract, and tortious interference. The district court concluded that it lacked subject matter jurisdiction because Plaintiffs’ federal claim was so utterly frivolous that it robbed the court of federal question jurisdiction.
The sole issue before the Eleventh Circuit court was whether the district court erred in concluding that it lacked subject matter jurisdiction over Plaintiffs’ claims. The court reversed the district court’s ruling that it lacked subject matter jurisdiction to adjudicate Plaintiffs’ state and constitutional claims against Defendants. The court reasoned that Defendants have identified no case law suggesting that a plaintiff does not have a constitutionally protected interest in her property, even post-judgment. Plaintiffs have plausibly raised an as-applied challenge to the use of Maryland’s garnishment statute, as opposed to a facial challenge, because they claim that the Maryland rules were applied in a way that unconstitutionally deprived them of their property.
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