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Oct 1, 2023

Utah District Court Lacks Jurisdiction to Hear Employer’s Suit to Recover Injured Employee’s Fair Debt Collection Act Settlement Proceeds

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Where an injured employee settled a civil action that she had filed against various debt collectors, contending that they had violated Utah’s Fair Debt Collection Practices Act (FDCPA) when they...

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Utah District Court Lacks Jurisdiction to Hear Employer’s Suit to Recover Injured Employee’s Fair Debt Collection Act Settlement Proceeds

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2 Oct, 2023, 16:36
ramivou

Why didn’t they file it with the state Commission instead?
- 2 Oct, 2023, 17:26
  trob
  
  Excellent question. My thought is that the employer was following what it assumed was the typical practice of seeking to protect its “subrogation” interest in state court; in virtually all jurisdictions, the state trial courts are where subrogation issues are litigated. What differed here, of course, was that it wasn’t a standard subrogation case, i.e., the employee’s work-related injury wasn’t caused by a third-party. Here the employee had a completely separate cause of action against the collection agencies. I suspect that the employer also realized that if offered a “subrogation” argument before the commission, it would be unsuccessful. In other words, although the Supreme Court never addresses the issue–it wasn’t before the court–but had the employer sought reimbursement through the commission, I don’t see how it could have prevailed.
  
  Your thoughts?