Palm Beach Gardens firm accused of filing lawsuits just to collect legal fees.
Since starting their own collection agency, LaBovick & LaBovick has filed more than 1,200 suits in Broward court — almost all of which seek less than $50 in damages
By Jane Musgrave, The Palm Beach Post
A Palm Beach Gardens law firm stepped into the limelight at SunFest when it sponsored one of three stages at the event, pairing its name with the likes of Smash Mouth, Sean Kingston and Flogging Molly.
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ANDY MEEK | The Daily News
A new class action lawsuit has been filed over the practices of a Texas law firm that’s been under fire for years over the way it collects delinquent taxes from Memphis taxpayers.
Two local attorneys filed the suit against Linebarger, Goggan, Blair & Sampson LLP, which won a no-bid contract in 2004 from former Memphis Mayor Willie Herenton. Attorneys Frank Watson and Don Donati filed the suit Thursday in U.S. District Court for the Western District of Tennessee.
Last month, two other local attorneys filed a class action suit against the city in Shelby County Chancery Court over the same issues. And the claims in both actions are roughly the same.
Shelby County government collects its current and delinquent taxes in-house. The city of Memphis treasurer’s office collects current taxes, while Linebarger picks up the city’s delinquent taxes.
After winning its contract in 2004, Linebarger hired local lawyers, including a former employee in the city of Memphis attorney’s office who previously did the same job for the city.
Linebarger makes its money from the Memphis contract by collecting fees on top of the delinquent taxes it collects.
The firm has had a few PR black marks to contend with. It has been widely reported that one of the firm’s partners pleaded guilty six years ago to being part of a bribery scheme to win a San Antonio city contract for Linebarger to collect certain fees on behalf of the city.
Both local federal suits allege Linebarger is piling fees, penalties and other costs onto tardy taxpayers, although the suits claim taxpayers are only supposed to be charged, at most, a 10 percent attorney fee.
The new suit against Linebarger asks for damages that include compensatory damages for class members and punitive damages.
A Chapter 13 is reorganization. The debtor, the individual or husband and wife filing the bankruptcy, maintain(s) possession of their exempt and non-exempt and pay(s) to the Chapter 13 trustee their disposable income for a period of at least 36 months and up to 60 months. In most cases, disposable income is the difference between monthly gross income and monthly household expenses. A debtor or debtors who are self-employed or own and operate a business also deduct their monthly business expenses from gross receipts and income.
A Chapter 13 Plan can pay back taxes owed to the IRS, past due mortgage payments on homes and businesses and property taxes, for example. In Chapter 13, the trustee does not sell the debtor’s non-exempt property. Instead, an individual or husband and wife keeps their non-exempt property and pays the value of their non-exempt property as part of their Chapter 13 Plan payment, to the Chapter 13 Trustee who disburses a pro rata payment to the individual or husband and wife’s unsecured creditors.
