Business Debt, Collections Plaintiff dismissed case, can I collect my fees back?

[Taurian]

Jurisdiction

Colorado

The plaintiff recently filed a motion to have the case dismissed. Is it possible for me to collect my fees? (Colorado / County Court)

Or can companies sue me, dismiss, then sue me again and again?

 

[zddoodah]

The plaintiff recently filed a motion to have the case dismissed. Is it possible for me to collect my fees?

What fees? I assume you're not talking about attorneys' fees because, if you had an attorney, you'd be addressing this question to him/her. How far along was the case? What was the nature of the case? If the case arose out of a contract, does the contract contain a provision that the prevailing party can recover attorneys' fees? Why did the plaintiff file the motion to dismiss? Is the plaintiff seeking dismissal with or without prejudice?

can companies sue me, dismiss, then sue me again and again?

Can something like that happen? Of course. As a practical matter, however, it doesn't happen.

 

[Taurian]

No contract.

The plaintiff's reason: Does not wish to pursue the matter at this time.

They sue, I respond, pay the fee, they file a dismissal without prejudice.

The case didn't last a month.

 

[mightymoose]

You are wanting the plaintiff to reimburse you for your costs. It won't happen.
If the matter should go to court at a later time you could ask for compensation then.

 

[zddoodah]

Again, what fees? It's hard to imagine you could have incurred many or any fees or costs if the "case didn't last a month." What was the nature of the case? Is the plaintiff seeking dismissal with or without prejudice?

 

[Taurian]

You are wanting the plaintiff to reimburse you for your costs. It won't happen.
If the matter should go to court at a later time you could ask for compensation then.

In the counterclaim?

So to file a response with a Jury Demand: $200

The plaintiff sought a dismissal without prejudice. The nature of the case was debt.

 

[adjusterjack]

It occurs to me that you might be able to file a motion for costs on the grounds that the plaintiff filed a frivolous lawsuit or abused process and seek your costs.

Unfortunately, poking the bear like that could convince the plaintiff to refile (if dismissed without prejudice) and pursue the lawsuit to its conclusion. And if it's a debt you actually owe, well...

 

[Taurian]

It occurs to me that you might be able to file a motion for costs on the grounds that the plaintiff filed a frivolous lawsuit or abused process and seek your costs.

Unfortunately, poking the bear like that could convince the plaintiff to refile (if dismissed without prejudice) and pursue the lawsuit to its conclusion. And if it's a debt you actually owe, well...

Hmm. Is there some kind of time limit or deadline to file this kind of motion?

Thanks.

 

[army judge]

Hmm. Is there some kind of time limit or deadline to file this kind of motion?

Thanks.

The original lender frequently sells credit card debts, car loans, and other debts to 3rd parties to collect. So, this third party ends up suing the debtor. These lawsuits sometimes occur many months, and often many years, from when the debtor stopped paying the debt. In examining options, the debtor often has a question about the statute of limitations (the time limit to sue); it doesn't help that Colorado has a somewhat confusing statute of limitation, so let's put the issue to rest.

To sue for a debt, any debt, the Colorado statute of limitation is 6 years (C.R.S. 13-80-103.5(1)(a)).
But wait a minute, isn't the Colorado statute of limitation on contracts 3 years? Yes it is (C.R.S. 13-80-101(1)(a). Isn't my agreement to pay the debt a contract? Yes it is? At this point, it is helpful to understand that you can have a contract for actions other than paying debt. The 3 year rule is the general rule, but the 6 year rule is specific to actions to recover a debt. So, if the lawsuit is about collecting an amount of money that is determinable (e.g. known), the 6 year statute of limitation applies.

For example, let's say Bob Borrower goes to a car dealership to buy a car. Like most people, he finances the vehicle for five years. Two years later, Bob stops making payments; the lender repossesses the car and sells it at auction. After auction, Bob still owes $8,000. The statute of limitation is 6 years because the subject matter of the lawsuit is collection of a debt.

However, let's say Bob goes to the car dealership to buy a car. He buys a new pink corvette, the only pink corvette available in the U.S. He leaves the car overnight with the dealership to get detailed. When Bob returns the next day, the dealership refuses to give him the car because someone offered to pay the dealership double what Bob paid. If Bob sues the dealership, he is suing on the purchase contract to force the dealer to deliver the vehicle; Bob's lawsuit is subject to the 3 year statute of limitation.

The Colorado statute of limitation to sue for credit cards, deficiency balances, or loans of any kind, is 6 years.

Perspective: Being sued by creditors is a mere symptom of a larger problem, it is best to be proactive to cure the underlying cancer (debt) as opposed to treating the symptom which is the lawsuit.



Colorado Statute of Limitation to Collect a Debt?

 

[zddoodah]

You still haven't answered the question about what sort of "fees" you're talking about. However, a voluntary dismissal without prejudice almost never gives rise to a right to recover attorneys' fees or costs.

 

[Taurian]

The original lender frequently sells credit card debts, car loans, and other debts to 3rd parties to collect. So, this third party ends up suing the debtor. These lawsuits sometimes occur many months, and often many years, from when the debtor stopped paying the debt. In examining options, the debtor often has a question about the statute of limitations (the time limit to sue); it doesn't help that Colorado has a somewhat confusing statute of limitation, so let's put the issue to rest.

To sue for a debt, any debt, the Colorado statute of limitation is 6 years (C.R.S. 13-80-103.5(1)(a)).
But wait a minute, isn't the Colorado statute of limitation on contracts 3 years? Yes it is (C.R.S. 13-80-101(1)(a). Isn't my agreement to pay the debt a contract? Yes it is? At this point, it is helpful to understand that you can have a contract for actions other than paying debt. The 3 year rule is the general rule, but the 6 year rule is specific to actions to recover a debt. So, if the lawsuit is about collecting an amount of money that is determinable (e.g. known), the 6 year statute of limitation applies.

For example, let's say Bob Borrower goes to a car dealership to buy a car. Like most people, he finances the vehicle for five years. Two years later, Bob stops making payments; the lender repossesses the car and sells it at auction. After auction, Bob still owes $8,000. The statute of limitation is 6 years because the subject matter of the lawsuit is collection of a debt.

However, let's say Bob goes to the car dealership to buy a car. He buys a new pink corvette, the only pink corvette available in the U.S. He leaves the car overnight with the dealership to get detailed. When Bob returns the next day, the dealership refuses to give him the car because someone offered to pay the dealership double what Bob paid. If Bob sues the dealership, he is suing on the purchase contract to force the dealer to deliver the vehicle; Bob's lawsuit is subject to the 3 year statute of limitation.

The Colorado statute of limitation to sue for credit cards, deficiency balances, or loans of any kind, is 6 years.

Perspective: Being sued by creditors is a mere symptom of a larger problem, it is best to be proactive to cure the underlying cancer (debt) as opposed to treating the symptom which is the lawsuit.



Colorado Statute of Limitation to Collect a Debt?

That's very helpful.

@zddoodah - Court Fees. You have to pay a fee to respond to lawsuits. If debt collectors are employing the tactic of filing frivolous lawsuits in an attempt to bully victims into a settlement, I think people should know and have a plan for defense. How do you stay on top of something like this when they simply come out of the blue? That is precisely why I fought it.

And I get it, people don't like to take on their debt. I have money, I just want to know if I'm going to be spending some of it in order to protect some of it, and if there's a legal way to recoup those costs via a motion post-dismissal.

 

[adjusterjack]

Hmm. Is there some kind of time limit or deadline to file this kind of motion?

When was the dismissal (date)?

Why wait at all?

 

[Taurian]

A few days ago. Why wait at all? I vote we don't. Hit them back, hit them back harder.

 

[zddoodah]

@zddoodah - Court Fees. You have to pay a fee to respond to lawsuits.

So...you're not talking about attorneys' fees and are talking about a filing fee paid to the court in order to file your answer or other responsive pleading.

The right to costs in a civil lawsuit is governed by Article 16 of Title 13 of the Colorado Revised Statutes. Section 13-16-105 provides that the defendant may recover costs when the plaintiff "is nonprossed, suffers a discontinuance, is nonsuited after appearance of the defendant, or a verdict is passed against him." A voluntary dismissal without prejudice is not any of those things. For the sake of completeness, I encourage you to review all of Article 16 thoroughly.

It occurs to me that you might be able to file a motion for costs on the grounds that the plaintiff filed a frivolous lawsuit or abused process and seek your costs.

Not gonna happen. Colorado Rule of Civil Procedure 11 provides as follows: "Reasonable expenses, including a reasonable attorney's fee, shall not be assessed if, after filing, a voluntary dismissal or withdrawal is filed as to any claim, action or defense, within a reasonable time after the attorney or party filing the pleading knew, or reasonably should have known, that he would not prevail on said claim, action, or defense."