Katz & Katz, crooked debt collection lawyers
For Southfield lawyer, civil suit adds to a collection of problems
BY JOE SWICKARD
FREE PRESS STAFF WRITER
August 3, 2005
A civil lawsuit was brought Tuesday against Howard Alan Katz, the Southfield lawyer facing more than 300 criminal contempt of court counts in Lincoln Park for allegedly filing fraudulent court documents in debt collection cases.
The lawsuit, brought by Macuga & Liddle of Detroit, claims Katz, his law firm Katz & Katz and a processes server, Robert Lutren Inc. of Farmington Hills, used the documents to get judgments for overdue bills. They allegedly claimed to have served summons for court hearings when they had not.
The complaint alleges that Katz used the false documents to get default judgments -- that could include the outstanding debt, interest and other fees -- when the debtors did not appear in court.
The debtors allegedly did not know of the judgment until their wages were garnished.
The suit was filed in Oakland County Circuit Court on behalf of two debtors and asks that it be named a class action on behalf of other people victimized by the filings.
"We are looking at a potential class of several thousand people," said David Dubin, a lawyer with Macuga & Liddle. "Mr. Katz had an extensive practice. We believe his actions were denying debtors their day in court."
The civil suit is not part of the criminal contempt cases pending in 25th District Court in Lincoln Park.
Katz's lawyers could not be reached for comment, nor could Robert Lutren.
Also named in the suit were Henry Ford Health System, based in Detroit, and Credit Acceptance Corp. of Southfield. The suit said the health system and Credit Acceptance knew or should have known about the alleged false filings.
In a prepared statement, the health system said: "We are reviewing our association with these collection agencies and those they authorize for services to ensure legal services for collection methods are appropriate."
Angela Williams, a staff lawyer with Credit Acceptance, said the corporation has not yet been served with the lawsuit, but that employees are "working to determine what if anything" improper occurred.
Katz faces trial Sept. 29 in 25th District Court, where Chief Judge David Bajorek brought the criminal contempt charges and seized Katz's bar association membership card.
Katz cannot practice law as long as the judge holds his bar card.
posted by Creditwrench at 7:46 AM
