BROOKLYN, N.Y. (legal Newsline) – Plaintiffs lawyers have been warned by a federal judge that more frivolous litigation will result in sanctions.
New York judge Frederic Block on Nov. 5 put the Garden City firm Barshay Sanders on notice when he dismissed its Fair Debt Collection Practices Act lawsuit against United Collection Bureau.
The lawsuit alleged defects in a letter sent to plaintiff Jacob Leifer that offered to settle his $18,000 in debt for as much as a 50% discount.
UCB moved to dismiss and impose sanctions, citing a previous case in which a judge was tempted to penalize the firm.
“The Court shares Judge Dearie’s concerns,” Judge Block wrote. “Although sanctions will not be imposed at this time, plaintiff’s counsel is on notice that similar cases of this nature will undoubtedly result in the imposition of sanctions.”
Judge Raymond Dearie about a year ago wrote in plaintiff Anna Solovyova’s lawsuit that Barshay Sanders had failed to show there were any false, deceptive of misleading representations in a letter sent by UCB.
In Leifer’s case, Barshay Sanders alleged the letter failed to tell him whether the date specified applied to when the payment was sent or when it was received.
But a stipulation that the offer was contingent on clearance of funds meant even the least sophisticated consumer would understand the date applied to receipt of the money, Block wrote.
The firm also complained there were multiple addresses in the letter. But UCB clearly instructed funds should be sent to a certain P.O. box address, Block said.
“Here, the plaintiff seeks to use the FDCPA not as a shield against abusive tactics but as a sword against a debt collector who has conveyed a commonsense letter to an individual with an outstanding debt,” Block wrote.
UCB’s firm, Gordon & Rees, had moved for sanctions on April 13, arguing the complaint failed to state any cause of action.