Ex-Clients Claim Collapsed Ga. Law Firm Took Filing Fees Without Filing Suit
Posted Nov 17, 2009 9:26 AM CST
By Debra Cassens Weiss
A Georgia law firm that handled debt collections has collapsed amid allegations that it paid its own expenses with client money that had been designated for filing fees.
Trauner, Cohen & Thomas of Sandy Springs, Ga., is facing three suits by former clients alleging the firm took money for filing fees and other expenses, but never filed all the lawsuits that had been promised, according to the Fulton County Daily Report.
The story has the details on the lawsuits. One plaintiff, NCO Financial Systems, says Trauner Cohen used $1.3 million of money designated for filing fees in more than 15,000 suits to pay its own operating expenses. Another plaintiff, Midland Credit Management, seeks $1.7 million plus restitution and punitive damages, saying the firm requested reimbursements for suits that weren't filed. A third suit by Zenith Acquisition Corp. and Northstar Capital Acquisition says the law firm failed to pay more than $124,000 in court filing fees, even though the clients had paid nearly $65,000 for the expenses.
The lawyer representing Trauner Cohen, Kim Jackson of Hawkins & Parnell, told the Fulton County Daily Report that the firm “has cooperated fully with all of its clients and former clients, and continues to cooperate fully with them.”