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Law firm violated debt collection statute, federal suit alleges
Law Center | 2008/03/01 12:22
Pauline Sumowski filed suit in federal court Feb. 27, alleging the law firm Baker, Miller, Markoff amp; Krasny, LLC of Chicago violated the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, when trying to collect a debt owed by her deceased husband.

According to the complaint filed in U.S. District Court for the Southern District of Illinois, Al Sumowski opened a consumer credit card account with Discover Bank roughly 30 years ago and was the only authorized user on the account.

Sumowski claims that 10 years after her husband's death in 1990, Discover began sending billing statements directly to her demanding payment on the account.

Mrs. Sumowski assumed that she was somehow liable for the Discover account and accordingly, she tried her best to make payments on it, the complaint states.

When Mrs. Sumowski began having trouble paying some of her debts in 2006, due to increased family and household expenses, she was unable to make any further payments to Discover.

She claims that after missing payments, the Baker firm, on behalf of Discover, filed suit against her in Madison County on March 5, 2007, despite the fact that the debt is not owed by her.

Sumowski claims she was forced to hire an attorney and learned that she was not liable for the Discover account owed by her late husband.

According to Sumowski, the Baker firm attached a purported affidavit along with purported terms and conditions for the account that the firm claimed formed the basis of the original contract between Sumowski and Discover.

That generic agreement, however, is incomplete, is dated several years after the alleged account at issue was opened, and thus, is not the agreement that governs the account at issue, the complaint states. In fact, no evidence of any signed agreement between Mrs. Sumowski and Discover was attached to the State Court Lawsuit.

Sumowski also claims none of the billing statements that were offered as exhibits contained any new charges but only contained a demand for payment of a past due balance, late fees, penalties and credit protection services.

She claims the day her case was scheduled for trial, the Baker firm dismissed the suit.

According to Sumowski, the Baker firm violated the Fair Debt Collection Practices Act by:

liFalsely claiming that she owed the alleged Discover debt;
liFalsely claiming that the account agreement attached to the complaint was a contract between Discover and herself;
liFalsely stating in a sworn affidavit attached to the complaint that Discover's business records had been reviewed and confirmed that she owed a balance to Discover; and
liFiling a lawsuit against her on a time-barred debt.

Represented by David J. Philipps and Bonnie C. Dragotto of Palos Hills, Sumowski is seeking a judgment for actual and statutory damages, costs and reasonable attorneys' fees. The case has been assigned to District Judge Michael Reagan.
/li


Law Firms Combine, Offer Affordable Rates
Marketing | 2008/03/01 12:21
pThe San Diego law firm of Steigerwalt amp; Associates merged Wednesday with the Pacific Law Center, creating a new entity specializing in personal injury, bankruptcy and criminal defense litigation./ppThe new firm -- called Kerry Steigerwalt's Pacific Law Center -- will have 30 attorneys working out of offices in downtown San Diego, La Jolla, Escondido and Chula Vista, Steigerwalt said./ppHe said the company will provide effective and affordable representation for the average person who becomes involved in litigation, offering the services of experienced lawyers who have handled thousands of matters ranging from death penalty cases to traffic offenses./ppSteigerwalt stressed KSPLC's commitment to offering experienced and effective legal services at affordable rates, including free initial consultations./ppThe very rich can afford whatever lawyers they choose, Steigerwalt said. The poor are provided lawyers at public expense. The big gap in legal representation involves the average citizen who becomes involved with litigation and doesn't know where to turn. We're here to provide them that same access to justice./p


Law Firm Warns Of Looming Katrina Lawsuit Deadline
Law Firm News | 2008/02/28 14:05
That's significant not only in it being leap year, but it's also exactly six months until the deadline for anyone with a Katrina insurance dispute to file a lawsuit against insurance companies. Now one law firm is launching a campaign telling people who haven't decided whether to take their claim to court, not to wait until it's too late. pThe Merlin Law Group has already fought for hundreds of people unhappy with how their insurance companies handled their Katrina claims. Attorney Chip Merlin says he worries about the thousands who have yet to join the battle./ppThere's a whole bunch of people who've filed claims and they've been paid, said Merlin. Sometimes they've been paid a little bit, sometimes they've been paid a lot. But they're still owed some more. Insurance companies bank on people just giving up./ppBeginning February 29th, the Merlin Law Group will start running print and television ads letting people know the clock it ticking down./ppThe deadline effectively stops people's ability to collect from the insurance company, Merlin said. You have to have a lawsuit filed by that time. It doesn't mean the lawsuit is over with. It just means you have to have it filed./ppMerlin says he's not concerned about where people who lost their homes and businesses go to find legal representation, just that they go and quickly. /ppI don't think it's right for insurance companies to cheat people and not pay the full amount that's owed, said Merlin. I've devoted my adult life to this and I believe that, regardless if they go to my law firm or any other law firm anywhere, it would be really wrong in our society if we allowed insurance companies to cheat people. They shouldn't just let the claim go away because they don't think it's worth the hassle./ppAttorney Chip Merlin says many attorneys don't charge to review the merits of a claim, and will work on contingency. He says as the deadline for Katrina suits loomed in Louisiana last year, people were lined up outside the courthouse./p


U.S. court orders Black to prison on Monday
Headline News | 2008/02/28 13:47
pMedia mogul Conrad Black has lost his bid to be freed on bond and will have to report to a Florida prison on Monday./ppA U.S. federal appeals court in Chicago on Thursday ruled that Black must go to jail while his appeal of his fraud and obstruction of justice convictions moves through the court system.

/ppThe Montreal-born Black was convicted July 13 of obstructing justice and defrauding shareholders of his former newspaper company, Hollinger International Inc. He was sentenced to 6½ years in prison and ordered to start serving his time on March 3./ppThe U.S. 7th Circuit Court of Appeals on Thursday did, however, agree to free Black's two co-defendants on bond while they appeal their own fraud sentences./ppFormer Hollinger executive John Boultbee was sentenced to 27 months in jail while his colleague Peter Atkinson received a 24-month jail sentence./ppIn explaining the decision not to free Black, the three appeal court judges who ruled on Black's case noted that he was convicted of one offence that the other Hollinger executives were not — the obstruction of justice./p


eBay Settles Patent Dispute With MercExchange
Topics | 2008/02/28 11:17
peBay has agreed to settle a patent dispute with MercExchange. The online auction company told investors Thursday it would buy MercExchange's patents and MercExchange would dismiss all claims and appeals regarding a lawsuit it filed seven years ago. /ppWe're pleased to have been able to reach a settlement with MercExchange, Mike Jacobson, eBay senior VP and general counsel, said in a prepared statement. In addition to resolving the litigation, this settlement gives us access to additional intellectual property that will help improve and further secure our marketplaces. /ppMercExchange claimed credit for eBay's fixed price auction options through eBay's Buy It Now feature, saying the online auction infringed on three of its patents. According to records from the U.S. Patent and Trademark Office, MercExchange filed for the patents in 1995, 1999, and 2001. /ppeBay tried to fight a judgment that would have cost the company about $30 million. The case went up and back down the U.S. court system. In December of 2007, a U.S. District Court ruling concluded in December that the court lacked authority to consider eBay's motion for summary judgment. /ppeBay claimed then that it did not infringe on MercExchange's '265 patents and that it owed no damages. /ppeBay said it will buy three patents, related technology and inventions, as well as a license to a search patent portfolio that is separate from the lawsuit. /ppThe companies did not disclose other settlement terms, which eBay said are confidential. eBay said the settlement should not affect its 2007 results or 2008 financial guidance from January's fourth quarter earnings release. /p


Court Denies Altria Motions To Dimiss Claims
Topics | 2008/02/27 13:57
pThe law firm of Broach amp; Stulberg LLP said the U.S. District Court denied orgAltria Group Inc.'sorgid value=NYSE:MO/org (MO) motions to dismiss an age discrimination and retaliation lawsuit brought by a former Swiss-based employee against orgAltriaorgid value=NYSE:MO/org and Philip Morris International Inc./ppThe motions sought to dismiss the claims on the ground that the U.S. court lacked subject matter jurisdiction because the plaintiff, D'Arcy Quinn, was employed by a foreign employer not subject to the U.S. Age Discrimination in Employment Act./ppJudge personLaura Taylor Swain/person ruled that orgAltriaorgid value=NYSE:MO/org failed to raise a meritorious issue as to lack of subject matter jurisdiction./ppThe suit alleges that firing, hirings and promotions within orgPhilip Morrisorgid value=NYSE:MO/org illegally considered ages of candidates and employees./ppThe suit was filed in October in the U.S. District Court for the Southern district of locationNew York/location on behalf Quinn, a former Philip Morris brand integrity director who served as in-house counsel for international anti-counterfeiting and anti-smuggling matters./ppAn orgAltriaorgid value=NYSE:MO/org spokesman wasn't immediately available for comment./p


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