Dollar Loan Center of South Dakota, LLC v. Afdahl, No. 18-2416 (8th Cir. 2019)
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DLC filed a 42 U.SC. 1983 action against defendant, the Director of the South Dakota Division of Banking, alleging that license revocation without a pre-deprivation hearing deprived DLC of its procedural due process rights under the Fourteenth Amendment. On appeal, defendant challenged the district court's denial of absolute or qualified immunity and its decision that the quick action exception to a pre-deprivation hearing was not applicable.
The Eighth Circuit reversed, holding that defendant was entitled to qualified immunity because DLC failed to show a violation of a constitutional right that was clearly established. The court held that there was no procedural due process violation where DLC was on notice that the Division was investigating the lawfulness of its new loan product, DLC was afforded an opportunity to provide additional information addressing the Division's concerns, and the revocation order had no more of an effect on DLC's business than the simultaneously issued cease and desist order.
Court Description: Erickson, Author, with Loken and Kelly, Circuit Judges] Civil case - Civil rights. In this action plaintiff alleged that revocation of its money lending licenses without a pre-deprivation hearing deprived it of procedural due process under the Fourteenth Amendment. The district court denied the Director of the South Dakota Division of Banking's motion for summary judgment based on absolute or qualified immunity, and he appealed. Held: The Director was entitled to qualified immunity. Under these circumstances, where plaintiff was on notice that the Division was investigating the lawfulness of its new loan product, plaintiff was afforded an opportunity to provide additional information addressing the Division's concerns and the revocation order had no more of an effect on plaintiff's business than a simultaneously issued cease and desist order, plaintiff had not shown a procedural due process violation.
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