Rodriguez v. Hirshberg Acceptance Corp., No. 20-2253 (6th Cir. 2023)
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Rodriguez filed a purported class action, alleging that Hirshberg violated the Fair Debt Collection Practices Act. Because a pending Sixth Circuit case (VanderKodde) would likely resolve the issues, the parties jointly requested a stay. The district court, however, administratively closed the case in November 2018, instructing that within 14 days of the VanderKodde decision, either party could move to reopen the case and that the motion would be granted. In February 2020, the Sixth Circuit decided VanderKodde. Neither party moved to reopen until June. Rodriguez then explained that counsel had mistakenly confused the court’s deadline and noted the onset of the pandemic. The district court denied Rodriguez’s motion without issuing a separate judgment.
Rodriguez filed a notice of appeal more than 30 days after the order. Hirshberg moved to dismiss the appeal as untimely. The Sixth Circuit denied the motion because the district court did not enter a separate judgment. Rodriguez also filed a new complaint in state court. Hirshberg removed this second case to the federal district court, where it was dismissed on res judicata grounds.
Consolidating the issues, the Sixth Circuit reversed. Using an “administrative closure” to suspend and ultimately dismiss the suit arose from judicial fiat, not the Federal Rules of Civil Procedure, which articulate different procedures for dispensing with a case. In this instance, the district court’s deployment of local practices is irreconcilable with the requirements set forth in the Rules.
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