Seventh Circuit Overrules Rule 68 Precedent In Chapman v. First Index, Inc.

The Seventh Circuit overruled its longstanding prior precedent in an opinion issued on August 6, 2015, in Chapman v. First Index, Inc., No. 09 C 5555 (7th Cir. 2015). With this ruling, the Seventh Circuit joined the Second and Ninth Circuits in holding that a defendant's offer of full compensation does not render the case moot.

In Chapman, individual plaintiff, Arnold Chapman, sued defendant First Index, Inc. under the Telephone Consumer Protection Act ("TCPA"), 47 U.S.C. 227, on behalf of himself and a proposed class of persons who had improperly received faxes from First Index. Following the district court's denial of Chapman's motion to certify a class, First Index made an offer of judgment under Rule 68 that exceeded Chapman's demand. After Chapman allowed the offer to lapse, First Index moved to dismiss...