Sixth Circuit Holds That Rule 68 Offer to Class Representative Does Not Moot Class Claims

On Tuesday, the Sixth Circuit decided the much-anticipated case Hrivnak v. NCO Portfolio Management, Inc.

At issue in the case is whether a defendant’s pre-certification offer of complete relief to a plaintiff who purports to bring a class action operates to moot the plaintiff’s complaint and strip the plaintiff of Article III standing.

Christopher Hrivnak sued several debt management companies and a law firm seeking monetary and injunctive relief on behalf of a class of like-situated individuals, alleging several federal and state consumer protection claims. In response, the defendants gave Hrivnak a Civil Rule 68 “offer he could not refuse — $7,000 plus reasonable costs and attorney’s fees — or so they thought.”

Hrivnak rejected the offer. The defendants argued that their offer mooted the case and, with it, the class action because it satisfied all of Hrivnak’s claims. The court disagreed, holding that the offer at most resolves some, but not all, of Hrivnak’s claims. For more, read the full article.  

Federal Class Action Law, Pre-Certification Motions, Sixth Circuit Class Action Law, Standing