I threw the term “pocket service” out there the other day, and then Ben Popken IM’ed me to ask more about it. Pocket service is lawyer slang for the procedural rule in Minnesota that a lawsuit begins with service of the summons and complaint. This is different than the rule in most states and the federal courts, where a lawsuit begins with filing of the summons and complaint.
When coupled with Minnesota’s rules on pre-judgment garnishment, this can cause serious problems. A defendant who was never properly served, for example, can end up getting money taken from their bank account without any notice or any chance to respond to the lawsuit.
The moral: if you discover or are even suspicious you may be named in a lawsuit, look into it. And call a lawyer.
Advantages and disadvantages
Pocket service saves money, since the plaintiff (the person starting the lawsuit) doesn’t have to pay a filing fee, which is usually about $250-330, depending on whether a jury is desired, etc. This is great for consumers, at first glance. However, it really saves money for debt collectors, who are filing hundreds of lawsuits at a time. Sure, it may save one consumer $250, but it saves debt collectors thousands of dollars a day.
Do I like pocket service? Yes, because I can make sure everyone involved is served before filing a lawsuit, and I may be able to settle the case to my client’s advantage without ever involving the court. But if you are a consumer, your chances are often better in court than out of it. In effect, pocket service is a far more powerful tool for debt collectors than for consumers. On balance, I wouldn’t be a bit sad to see pocket service disappear in Minnesota.
While conciliation court is cheap, quick, and easy enough, it still requires debt collectors to take their win in conciliation court to district court before they can collect. With pocket service, it is actually cheaper to go straight to district court.
The internet would have you believe that if you are served with a summons and complaint, but the court has no record of the lawsuit, you don’t have to respond. Not true in Minnesota, and possibly in other states with pocket service laws. If you don’t respond, the plaintiff will be able to get a default judgment.
And, in Minnesota, the plaintiff will be able to garnish your wages and bank accounts without even getting a judgment. They can just show up in court, get an order for pre-judgment garnishment, and then start taking your money. Or, if they claim “extraordinary circumstances,” they don’t even have to go to court before garnishing. Scary stuff.
Then, if the debtor wants to challenge the garnishment, the fact that the summons was served by hiding it in a bush down the street, or the fact that their bank account is full of exempt funds, they have to pay to file the case in district court.
So if you find out your are named in a lawsuit, however you find out, make sure you get involved, if only to argue that you were never properly served. If you don’t, you might end up losing money without ever having a chance to defend yourself.
If you are in Minnesota, contact The Glover Law Firm, LLC, for a free case evaluation. In any other state, you can find a consumer rights lawyer using the National Association of Consumer Advocates lawyer database.
{ 1 trackback }
{ 7 comments… read them below or add one }
I am a true case in point in MN of this argument of “Pocket Service”. I had an affidavite of Summons Service filed with the court by a debt buyer. I did not know that I even had a Court hearing until I received the Notice of” Default Judgement”. I fortunately was able to prove that the person who signed the affidavite that said he personally served me with the Summon lied (there must be a recourse against this person also I hope). I was able to prove that I was not a home the entire day due to working a double shift at work with an electronic printout of my time on that date. If it wasn’t for this SITE, I would have been up a creek without a paddle. The Default Judgement was Vacated and now I am still in the process of winning against this Debt Buyer. I am hanging in there alone, by my fingernails as I am at a border city that has no qualified attorneys in this area, that will do this kind of case. This site IS a “God Send” to folks that are preyed on by these unscrupulous debt buyers.
Great job, Kathy!
If the process server truly lied, you should contact the Minnesota Department of Commerce, which licenses process servers. They should be able to help.
Does it count as service if they just send you an unfilled summons and complaint by normal mail and no return enevolpe? Also the “summons” stated that it is from a debt collector on the back.
Whether mail is proper service depends on the circumstances and the type of lawsuit. If it is a conciliation court lawsuit for $2,500, service can be by mail. If it is a conciliation court lawsuit for more than $2,500, service can be by certified mail. If it is a district court lawsuit, service may be by mail if the defendant consents to be served that way. And so on. The answer depends on your situation.
If you are in Minnesota, get in touch with us, and we can help you figure out the answer in your case, but we will not address your personal situation in public.
Thanks for the response. It states district court on the “Summons” and is under $2500. If I do not return the consent form, will they have to serve me in person.
Another question. What is the difference between a law firm and a debt collector? Can they be both?
Mike, please consult an attorney with your questions. You should never talk about the details of your lawsuit in a public forum—like this one. Most consumer rights lawyers will make sure they can help and give you an idea of your options before they charge you anything, so you can decide whether you need to.
In response to your second question, law firms can be debt collectors, and debt collectors can be law firms.