Cavalry SPV I, LLC v. Morrisey

Petitioners in this consolidated appeal were engaged in various aspects of the collection of consumer debts. After the Attorney General (AG) received complaints from consumers indicating that certain Petitioners had violated consumer protection laws, the AG issued an investigative subpoena, to which Petitioners objected. The AG filed a civil action against Petitioners seeking to compel Petitioners to comply with the subpoena. The circuit court ordered Petitioners to comply with the subpoena and temporarily enjoined Petitioners from collecting debts they had acquired before they were licensed. The Supreme Court primarily affirmed the circuit court's orders, holding (1) when the AG files a cause of action against an entity that is subject to an investigative subpoena, the AG's subpoena authority ends as to those matters that form the basis of the complaint's allegations, and the rules of discovery provide the method by which the AG may investigate the wrongdoing; (2) the investigative subpoena survives the AG's filing of a lawsuit when the subpoena pertains to matters that do not form the basis of the complaint; and (3) once the AG has instituted a civil action against an entity to enjoin unlawful conduct, the AG may seek temporary relief against the entity during the pendency of such proceedings. View "Cavalry SPV I, LLC v. Morrisey" on Justia Law