Rotkiske v. Klemm
Issues
Does the “discovery rule” apply to toll the one-year statute of limitations in the Fair Debt Collection Practices Act?
This case asks the Supreme Court to determine whether the one-year statute of limitations in the Fair Debt Collection Practices Act (“FDCPA”) begins once a violation occurs or once the violation is discovered. Petitioner Kevin Rotkiske, whose FDCPA lawsuit was barred by the statute of limitations, argues that the Court should apply the discovery rule and determine that the limitations period begins when the violation is discovered. He argues that the FDCPA should be interpreted in light of common law and precedent which hold that the discovery rule is applicable to suspend statutes of limitations. Respondent Paul Klemm counters that the Court need only read the FDCPA’s plain language to determine that Congress intended the statute-of-limitations period to begin at the time the violation occurred. He too points to precedent that supports his argument that Congress knows how to implement the discovery rule but—based on the FDCPA’s explicit language—chose not to do so. This case has implications for the purpose and history of the FDCPA and its statute of limitations and could affect blameless victims and marginalized communities.
Questions as Framed for the Court by the Parties
Whether the “discovery rule” applies to toll the one-year statute of limitations under the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692, et seq., as the U.S. Courts of Appeals for the 4th and 9th Circuits have held but the U.S. Court of Appeals for the 3rd Circuit (sua sponte en banc) has held contrarily.
Petitioner Kevin Rotkiske accrued credit card debt between 2003 and 2005. Rotkiske v. Klemm, at 424. The credit card issuer then appointed the law firm Klemm & Associates, managed by Respondent Paul Klemm, to collect Rotkiske’s debt.
Edited by
Additional Resources
- Bill Fay, Fair Debt Collection Practices Act, Debt.org (2019).
- Fair Debt Collection Practices Act: BCFP Annual Report, Bureau of Consumer Financial Protection (Mar. 2019).
- Mark Rooney, Can the FDCPA’s One-Year Statute of Limitations Be Expanded Under the “Discovery rule”? Supreme Court Will Decide, insideARM, (Feb. 12, 2019).