Tuesday September 07 , 2010

Litigation Privilege Does Not Always Protect Collectors

California’s Civ. Code § 47(b) is broad.  But it doesn't apply to abusive debt collection practices. In Plaintiff’s complaint it was alleged that the debt collector violated the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq. (“FDCPA”) and the Rosenthal Fair Debt Collection Practices Act, California Civil Code §§ 1788-1788.32 ("Rosenthal Act") in filing a false police report that Plaintiff was in the middle of killing his wife in retaliation for Plaintiff not agreeing to pay a disputed bill.   Defendant, debt collector, filed a Motion to Dismiss based on California’s broad litigation priviledge under Civ. Code § 47(b). The Court in Yates v. Allied Int’l Credit Corp, 578 F. Supp.2d 1251 (SD 2008), held that that Plaintiff’s claims for violations of the RFDCPA and FDCPA were not barred by the litigation privilege.