Haddad v. Alexander, Zelmanski, Danner & Fioritto, PLLC

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In 1992, Haddad purchased a condominium. He timely paid association assessments and lived at the home until 2005. Since then, the condominium has remained vacant or leased. In October 2008, Haddad received a collection letter from the firm, representing the condominium association, stating that Haddad he was in default on $898 of association dues and that if the amount was not paid within 30 days, the association would commence proceedings for a lien against the condominium. In December 2008, Haddad received a second notice. Haddad timely responded to both, requesting verification of the debt. The firm did not verify the debts and recorded a Notice of Lien in May 2009. The condominium association eventually corrected its records. The lien was discharged in 2010. Haddad sued under the Fair Debt Collection Practices Act, 15 U.S.C. 1692, and the Michigan Collection Practices Act (445.251), alleging violations of prohibitions on use of false, deceptive, or misleading representation and continuing collection of a disputed debt without verification of a debt incurred for personal rather than business purposes. The district court granted the firm summary judgment, holding that the assessments were not debts under the statutes because the property was a rental. The Sixth Circuit reversed and remanded. View "Haddad v. Alexander, Zelmanski, Danner & Fioritto, PLLC" on Justia Law