Johnson v. Pushpin Holdings, LLC

Dist. Ct. did not err in dismissing for failure to state valid cause of action instant class action lawsuit alleging that defendants violated Illinois Consumer Fraud and Deceptive Business Practices Act, when it filed more than 3,000 small claims actions against class members in Cook County to enforce personal guaranties on leases of credit-card machines. While most class members did not reside in Illinois, defendants could file said lawsuits in Cook County since leases contained forum-selection clause that required that all disputes be litigated in Cook County. Moreover, although class members argued that defendants had failed to register as debt collection agency, said Act required registration by collectors of consumer debts and not by collectors of instant commercial debts. Ct. further rejected class members’ contention that: (1) defendants’ attempt to collect $3,000 owed on each lease violated Act because credit-card processing machines were worth only $250 apiece; and (2) instant guaranties were unenforceable, where guarantor was same person as individual named in lease.