Posts Tagged ‘fraud’

Legal trap doors for New Jersey builders

According to attorney Jeffrey Newman in the Times of Trenton, New Jersey law allows class actions and consumer fraud suits to be based on paperwork infractions with no showing of actual harm, creating openings for opportunistic litigation:

As an attorney, I have defended numerous business owners against frivolous claims in which the plaintiff could prove absolutely no injury and he or she had received whatever service or product that was promised. Yet there was language in the purchase agreement that was found to be considered “non-compliant” with the Contractors Registration Act and the Consumer Fraud Act’s Home Improvement Contract regulations.

…Contractors who choose to use boilerplate contracts often sold in office supply stores are playing with fire, as such agreements would never withstand the scrutiny of the state’s consumer protection laws. When contractors use these forms and are sued, the courts can rule that they have to hand back to the consumer every penny — even the money they laid out for materials to do the job. … In another case, we represented a contractor whose advertisements were not in compliance. Even though the plaintiff never bought anything, our client was still sued!

Why alimony cheats shouldn’t blog

“Despite claims that she couldn’t work, rarely left home and rarely socialized because of injuries from a 1996 car accident, Dorothy McGurk, 43, was belly-dancing at home and in Manhattan for hours a day — and then spending several more hours a day blogging about [it].” Asked by a Facebook acquaintance why she wasn’t posting pictures of her dance adventures, McGurk said her ex, from whom she was demanding lifetime maintenance, “would love to fry me with that.” Her words sufficed, and Justice Catherine DiDomenico denied most of her maintenance claim as well as awarding the husband “60 percent from the sale of their house and thousands in legal fees for her ‘dilatory tactics.'” [Dareh Gregorian, New York Post]

Update: California tow-and-sue scam

In an elaborate scheme discussed in this space in May, a northern California towing operator towed cars without authority, then proceeded to sue the owners — and even some non-owners — for exaggerated storage and handling fees. The enterprise was eventually exposed by Greg Adler, a young lawyer who estimates that he spent 1,200 hours documenting the misdeeds. Two of the scammers are now headed to prison, with one receiving a 14-year sentence. [San Jose Mercury News via Legal Ethics Forum]

June 25 roundup

California: “Elaborate, decade-long towing scam”

According to prosecutors in Santa Clara County, a “lawsuit mill” formed part of an extensive “tow-and-sue” criminal scheme in which a towing operator sold towed cars without notifying the owners and then added insult to injury by going after the owners for storage and handling fees. Paul Stephen Greer, also known as Vincent Cardinalli Jr., pleaded no contest to fifty-nine felonies. Prosecutors say Greer, who operated tow trucks in Clovis, Gilroy and Hollister, sued parties that did not own the vehicles, arranged for falsified proof of service so as to obtain quick default judgments against defendants never apprised of his suits, and engaged in perjury. [San Jose Mercury-News, press release]