LVNV Funding LLC v. FinchAnnotate this Case
In this class action lawsuit filed by individuals against whom Defendant, an unlicensed debt buyer, obtained judgments in the district court, the Court of Appeals vacated the decision of the Court of Special Appeals affirming the circuit court's rulings with respect to Defendant's liability under the Maryland Consumer Debt Collection Act, Md. Code Title 14, Subtitle 2 of the Commercial Law Article, but remanding the case for retrial on the issue of damages, holding that remand was necessary for a reassessment of damages.
Because Defendant was unlicensed, Plaintiffs sought to have the judgments against them declared void and sought monetary damages. The circuit court dismissed the case, concluding that it was an impermissible collateral attack on enrolled judgments. The Court of Special Appeals remanded for trial, ruling that the enrolled judgments were void. On remand, the jury returned verdicts for Plaintiffs and the class. The Court of Special Appeals remanded for a new trial on damages after again holding that the district court judgments were void. The Court of Appeals held (1) the Court of Special Appeals erred in concluding that the judgments were void because the collateral attack on the enrolled judgments was not allowed; and (2) the licensing statute permits a private cause of action for acting as a collection agency without a license.