Article
Courtesy of The SUN SENTINEL
By
Joe Kollin
Published November 11, 2005
Nearly
1,300 owners who received letters threatening foreclosure of their condos and
homes must wait two more weeks to find out whether they will receive a $30 check
from the Lauderhill law firm accused of sending them the warnings in violation
of federal and state fair debt collection laws.
U.S. District Judge William P. Dimitrouleas in Fort Lauderdale on Thursday was
scheduled to approve a settlement in a class-action lawsuit against the firm,
Katzman & Korr, that included paying each owner $30. But the judge said he
couldn't accept one provision of the proposed settlement, a new letter that the
firm would use in future collections to replace the threatening one that
instigated the lawsuit.
Dimitrouleas said he couldn't approve the letter because he doesn't have the
authority to make it binding in any future debt collection cases.
If Dimitrouleas refuses to accept the letter, then the law firm will reject the
proposed settlement, said its attorney, James M. Kaplan of Miami.
The judge gave Kaplan until Nov. 23 to persuade the judge to accept the new
letter. If he isn't persuaded, the settlement agreement could be scrapped, and
the 2-year-old case would go to trial.
The lawsuit alleges the original letter from Katzman & Korr violated the
federal Fair Debt Collection Act and the Florida Consumer Collection Practices
Act.
The letter is significant because the law firm represents about 400 condo and
homeowner associations in Broward, Palm Beach and Miami-Dade counties.
Attorneys Blane Carneal of Fort Lauderdale and O. Randolph Bragg of Chicago
brought the suit for Ramsey Agan, Grace Agan, Sherry Ann Spies and Nancy J.
Bochicchio, all owners in the Plaza East Condominium at 4300 N. Ocean Blvd.,
Fort Lauderdale. The suit seeks damages and an order prohibiting the firm from
continuing its collection practices.
Because the firm sent the letter to thousands of other owners, the judge last
year declared the suit a class action.
Katzman & Korr earlier this year agreed to settle for $250,000 and use a new
form letter. The settlement would give the four main plaintiffs $5,000 each and
their attorneys $135,000 and $20,000 for expenses, including the task of
locating all recipients of the letters.
Based on Katzman & Korr's initial estimate that 2,500 owners received the
threatening letter, each unnamed plaintiff would get $30. Because the number of
owners who have admitted getting the letter turned out to be less, the judge
will decide what to do with the extra money, about $36,000.
The suit stems from a 1999 special assessment by the Plaza East association to
pay for restoration of concrete balconies.
Katzman & Korr sent Ramsey Agan a letter saying he owed $356.40. Agan said
he had already paid. The law firm filed a lien for $1,001, including attorney
fees, on his apartment and threatened foreclosure.
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