RMA wishes to highlight to its members several emergency orders that Texas courts have recently issued in the wake of the destruction caused by Hurricane Harvey and the ongoing recovery efforts. Specifically, the courts have provided limited suspensions to court procedures, statute of limitations, and in-state legal practice by out-of-state attorneys. More information on the aforementioned is provided below. RMA encourages its members to share this member alert with their legal counsel.
On August 28, 2017, the Texas Supreme Court and the Court of Criminal Appeals (the state’s highest criminal court) issued an “Emergency Order Authorizing Modification and Suspension of Court Procedures in Proceedings Affected by Disaster” (http://www.txcourts.gov/media/1438759/179091.pdf). The order directs all courts in Texas to consider disaster-caused delays as good cause in any civil or criminal case for modifying or suspending all deadlines and procedures—whether prescribed by statute, rule, or order. This order should protect litigants who need extensions of time, modifications of scheduling orders, or continuances of hearings or trials as a result of Harvey.
The following day the Texas Supreme Court issued an “Emergency Order on Statutes of Limitations in Civil Cases,” noting that court proceedings throughout Texas may be affected by the Harvey disaster because of closures of courts and clerks’ offices and “difficulties with access, travel, and communication by and among lawyers, parties, and others.” Recognizing that statutes of limitations are not subject to a good-cause exception, and that access to computers and the Internet for electronic filing could be limited as a result of the disaster, the Court ordered that the applicable statute of limitations is suspended for any civil claim if the claimant shows that the disastrous conditions resulting from Hurricane Harvey prevented the timely filing of the claim despite diligent efforts. “Any such suspension extends only to the date on which it becomes reasonably possible to file the claim despite the disastrous conditions, taking into account the circumstances.”
This order certainly extends to collection suits. It also extends to suits against debt collectors under state law. The limitations period for filing FDCPA claims is prescribed by federal law, and it is doubtful that the order enlarges that statute. The order extending limitations expires September 28, 2017, unless extended by the Court.
On August 29, the Supreme Court issued a third order permitting out-of-state lawyers to practice in Texas temporarily. The order provides a mechanism for out-of-state attorneys to be retained by legal-aid and pro bono programs or a bar association that provides services to victims of Hurricane Harvey. As a result, members of the ARM industry may encounter non-Texas lawyers who are representing their customers in Texas.
Hurricane Harvey has had a massive impact in the Houston area. Industry members should consider blocking calls to the affected areas (except for return calls) for a reasonable period of time. They may also wish to consider hardship programs and special programs to restore disrupted payment and settlement arrangements.
This alert is intended for members of the Receivables Management Association International and is for informational purposes only and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.
