live in New Jersey ? READ THIS

What you don't know can hurt you!

I'll try to be breif. If you recall, recently I was sued in NJ for a time-barred debt. I didn't know my rights about the SOL and didn't raise any defense. I just hit the panic button as soon as I received the summons and gave in giving the collectors money they asked for.

After caving into the demands of the "moeny sharks", I found creditnet and began to study the law which says the debt collector was in clear violation of the FDCRA.

I had an attorney who was ready to take my case until he found out about New Jersey's "Entire controversy doctrine":


The entire controversy doctrine is a procedural rule applied in New Jersey and other jurisdictions that requires any party to a lawsuit to bring all of its claims that relate to the same set of underlying facts in one single suit. In several recent cases (decided August, 1995), the New Jersey Supreme Court reaffirmed and strengthened this doctrine. The doctrine applies to both plaintiffs and defendants, and even requires the assertion of claims against persons or businesses not otherwise involved in the lawsuit. Awareness of the entire controversy doctrine is very important, as any potential claims that are not brought as part of the original lawsuit will be barred, and forever lost.

I believe this conflicts with federal law where FDCPA says I have one year to file a claim. Federal law supercedes state law if they are in conflict with one another. Lawyers?? Anybody?? What if I move this to Federal court? The suit was $2200.00 and might not be worth the cost or trouble. In short, a lawsuit by me will be barred in new Jersey since this is part of the original suit.

Attorneys would not take this case on contingency because of so many grey areas and it will be a lot of work to fight this since of the conflicting laws in Jersey. So I'm screwed... I'll just give up and mope for the rest of the evening. I hope this is a lesson to the other newbies to start reading the law and read this board. What you don't know will hurt you.

Thanks for sharing, this IS important!

While I think that you may still have a good case because you did not KNOW at the time about the violations, I can see how attorneys would no longer take the case.

You do have the option of going public with the violations as in 7/25 fax to collector Genesis Financial - MUST READ if you have collections (http://bayhouse.com/credit-forum/showthread.php?s=&threadid=883)

The case was just settled OUT of court, and while I don't know the exact terms of the settlement, I think the check is for at least a couple thousand and I'm sure the account will be deleted and the debt written off.

If this hadn't been settled, we would have opened an entire section on Genesis at CreditCourt. I worked on it last weekend, was ready to make it public on Monday after a final review, but my client settled Monday morning.

The legal system has a LOT of problems, but there are alternatives.

If you compare the time it takes to locate an attorney and the time it takes to put a case on the web, it's probably about the same. And while your attorney settlement will usually contain a confidentiality clause, if you go public you get the word out about scummy collectors.

It's not for everybody, but it's definitely an option.

I am currently filing a suit in NJ, the SOL is not an issue.

Where do you find the "Controversy Doctrine"?
Do you know the name of the case ruled on by the NJ Supreme Court?

I would be curious as to what would happen with regard to the following:

This is the first and hopefully the last suit I will ever be involed with, so I'm new at this.

My attorney said we will "load" the Complaint and file it, at which time some of the charges will be thrown out. Who decides this?, and if they are thrown out by the Court, does that mean you can't address them in another suit if necessary?

I appreciate your posting this information.

One quick note, do you know if the CA is "bonded" in the State of NJ?, if they sued you for a debt beyond the SOL, I would check on this.

I just found out , not my attorney, that the CA I'm suing has never been bonded to do business in NJ - thanks to this forum.

Trixie,

The Debt Collectors were a law firm. I'm gonna see if they are up to spec according to New Jersey law. I'm running out of time (2 weeks) before the 1 year SOL for FDCPA violations is up. I would file the case myself but have no experience in court and especially this case would need someone trained.

I'd be challenging Jersey law by saying the FDCPA states I have one year to file my claim which is Federal Law but Jersey is in conflict saying I had to file it during the original suit. Federal Law supercedes but I'd need a lawyer to present this.

Was your first suit filed in Federal Court??

If not, file it there.

Trixie,

Will Federal Court entitle me the right to tell NJ to kiss off with there laws? FDCPA says I have one year. That should override anything Jersey says. I don't know jack about which courts do what but I'm trying. I assume Federal Court is for Federal Laws and violations.

It is my understanding from being "thrown into the fire" that state courts are not all that informed or care very much about "Federal" issues.

Christine is an excellect source for the answer, I'm sure she'll post.

I believe the Federal Court would uphold the FDCPA and override the NJ State Court.

If you talk to an attorney regarding filing in Federal Court, relay to him that this was FRAUD. This agency had no legal right to "sue" you for a time-barred debt.

I think CA's like to go to State Court because State Courts and the "uneducated consumer" make easy prey - nobody knows the rules. No insult intended.

I really can't give any advice on this state vs. federal issue, have NO idea. Ask 5 lawyers and you probably get 5 different answers.