A federal law granting active duty service members legal protections should apply to foreign collections in Maryland, as a U.S. district judge ruled in Baltimore, Maryland.
The judge explained that the Servicemembers Civil Relief Act (SCRA) protections apply to the state’s procedure for garnishing assets. This federal law protects military personnel from civil actions while on active duty.
The issue was brought up after three active duty service members unexpectedly faced asset garnishment after a businessman from Nevada enrolled judgments against them in Maryland. These foreign judgments originated from other states, but George LeMay, the businessman, pursued legal action in Maryland.
None of the military members filed against lived in Maryland. However, LeMay had to enforce these foreign judgments in Maryland before filing an affidavit that stated the defendant’s active-duty military status.
The SCRA stipulates that judges should grant servicemembers permission to stay civil proceedings or appoint a lawyer to represent them.
One of the plaintiffs, retired Army sergeant Latasha Rouse, explained that she didn’t know LeMay filed an out-of-state judgment against her in Maryland. Rouse, along with her husband and three daughters, resides in Georgia. She was surprised that funds were deducted from her account without prior notice from the courts.
Interestingly, according to the complaints, the judgments were invalid. LeMay received a $2,500 judgment against the Rouse couple in Nevada, recorded in Garrett County in 2021. Rouse’s family didn’t live in Maryland or Nevada.
Afterward, LeMay filed a writ of garnishment with the Garrett County District Court. He didn’t file an SCRA affidavit, which would’ve revealed he attempted to collect debt from an active duty service member. The court cascaded the garnishment to Rouse’s bank which froze their accounts.
The Rouse family shared they had to pay legal fees to vacate the judgment and were embarrassed and anxious because of the inappropriate collection efforts.
The complainant claims that LeMay used the same tactics with two other couples who were also plaintiffs in the lawsuit. All three couples didn’t live in Maryland or possess any assets in the state. The plaintiffs’ lawyer, Phillip R. Robinson, said that LeMay took advantage of loopholes in Maryland laws and rules of civil procedure.
This loophole says you don’t need to provide the mandatory SCRA affidavit to enroll foreign judgments in Maryland state courts.
According to court papers, the plaintiffs have since then settled with LeMay, and he’s been compensated accordingly.
Evidence that one is on active duty is integral to enforcing the SCRA. SCRACVS can help businesses and military personnel procure proof of a person’s active duty status. Click here to sign up at SCRAVS and verify the active duty status.