Deadbeat Buster Newsflash — Aggressive Debt Collection Tactics Collects 400K

A supplier is owed $340,000.00 from its once good customer. The customer, knowing that it was about to be sued, sued first – seeking over $400,00.00. The customer claimed that the supplier breached an alleged oral exclusive distribution agreement and made false promises that it relied upon. The supplier’s first attorney stalled and crawled.

Based upon a referral from an existing client, the supplier jumped ship and retained our firm.

We immediately counterclaimed for the $340,000.00 and obtained an ex parte bank attachment. The attachment froze almost $200,000.00 of the customer’s money.

Although the customer’s counsel huffed and he puffed, he could not convince the Court to release the frozen funds. When the customer attempted to transfer the case to the Superior Court, we defeated the motion.

The next phase involved “discovery”. After receiving excuse upon excuse, we sought and received a Court order that the customer be deposed. Faced with discovery motion after discovery motion, the customer finally offered $75,000.00. Offer Rejected!

When the customer tried to take discovery to support its promissory estoppel claims, we filed for a “protective order.” The Court agreed and prevented the customer from taking any discovery until he could complete discovery on the merits of their case.

Faced with an uphill battle that it could not win, the customer started exploring whether we would be willing to mediate the case. After winning almost every discovery and procedural motion, we convinced the customer to offer at least $200,000.00 to induce our client to mediate the case.

After almost three hours of mediation, the customer offered to pay $300,000.00 over time. The offer was again rejected.

A few weeks before trial, the customer’s counsel contacted us to see if they would accept $350,000.00. The answer was still no.

Facing very likely liability for alleged unfair and/or deceptive trade acts and after admitting in deposition that it owed the full principal amount, the customer faced the music and danced to the tune of Attorney Cohen’s fiddle!

Because of our aggressive and persistent efforts, our client received $400,000.00 within 30 days of the settlement agreement and paid to the customer nothing on its complaint.

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