Motion to Dismiss Granted in Fair Debt Collection Practices Act Case
Pete Werdesheim secured dismissal of a lawsuit brought against a law firm under the Fair Debt Collection Practices Act. The Complaint alleged that the law firm’s foreclosure notice violated various sections of the FDCPA. The Plaintiff had previously sued the lender in state court. In entering a judgment in favor of the lender for attorney’s fees under Code Section 9-15-14, the state court made findings of fact and conclusions of law, including that the subject loan was for a business, rather than consumer, purpose. In the Motion to Dismiss, we argued that the state-court order had preclusive effect insofar as the FDCPA does not apply to such loans. The Magistrate Judge entered a Report and Recommendation that the Motion be granted on collateral-estoppel grounds. This Report and Recommendation was adopted by the District Judge in the Northern District of Georgia, resulting in entry of final judgment in favor of the law firm.