Midland Funding v. Johnson Page 19

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Audio Transcription for Oral Argument - January 17, 2017 in Midland Funding v. Johnson

Kannon K. Shanmugam:

FDCPA liability would not be available, and that simply illustrates the fact that this is really a problem, if it is, in fact, a problem, with the operation of bankruptcy, and it's a problem that Congress or the advisory committee are -- are best situated to remedy, and so, for instance, if there is concern about the limitations defense, one solution is to eliminate the fact that that's a defense, and for Congress to shift the burden back on to the creditor. But, again, that's a remedy in the particular context of bankruptcy. And just to address, finally, the government's broader argument about the sanctionability of conduct outside bankruptcy.

This Court has never held that it would be a violation of Rule 11 for a plaintiff to file a complaint in the face of an obvious defense, whether it's a limitations defense or some other type of defense.

And notwithstanding the rather cursory analysis in the court of appeals' cases that Respondent and the government cites, I would respectfully submit that that would be an astonishing proposition for civil litigants if this Court were to adopt it and it would have very broad consequences against -- across the full range of litigation. Thank you.

John G. Roberts, Jr.:

Thank you, counsel. The case is submitted.