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A federal judge has preliminarily approved a settlement between Church Church Hittle + Antrim and a plaintiff in a class-action lawsuit involving the firm’s debt collection communication.
The settlement, preliminarily approved in a Friday order, provides $4,000 in relief to be distributed evenly among class members, along with an additional $1,000 to Beth Hollins as the plaintiff and class representative.
Hollins filed the complaint in 2020 after the firm attempted to collect $81.52 in medical debt and implied in two letters that litigation might be initiated against her, according to court records. The complaint alleged the defendants never actually intended to initiate litigation.
Hollins brought one claim under the Fair Debt Collection Practices Act, which prohibits debt collectors from using “any false, deceptive, or misleading representation or means in connection with the collection of any debt.”
The lawsuit — Beth Hollins v. Church Church Hittle + Antrim, et al., 2:20-CV-304 — was filed in the U.S. District Court for the Northern District of Indiana, Hammond Division.
In 2021, Hollins moved for preliminary approval of a class settlement and preliminary certification of a putative class for settlement purposes, which was denied because Hollins didn’t provide the court with sufficient information.
Hollins filed an amended motion with more exhibits and a brief in support, which the court approved.
The defendants did not file an objection to the amended motion.
The proposed class consists of around 1,710 people, according to the order.
In preliminarily approving the settlement, Chief Judge Jon DeGuilio said Hollins’ case “does appear somewhat strong,” opining that the relatively small amount Hollins owed makes it seem “somewhat likely” that the firm didn’t intend to file a lawsuit against her.
The settlement also includes a proposed award of $14,000 in attorney fees, which DeGuilio concluded is fair.
Indiana Lawyer has reached out to counsel for Hollins and the defendants for comment.
A final approval hearing is scheduled for Dec. 6.
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