Recovery Over the Cap and Recovery of Attorneys’ Fees
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Author:  admin [ Sat Sep 23, 2006 6:25 am ]
Post subject:  Recovery Over the Cap and Recovery of Attorneys’ Fees

Some courts extend recovery over the cap and allow recovery of attorneys’ fees beyond the FTC Holder Rule cap. It seems to be a better rule that the creditor's liability for the consumer's attorney fees should not be capped by the creditor's maximum liability for seller-related claims. The purpose of attorney fees are to encourage settlement, make it economically feasible for consumers to bring small claims, and to discourage sellers and creditors from using their superior legal resources to wear down the consumer. All of these purposes would be thwarted if attorney's fees were lumped in with the recovery on the merits and capped at the amount of the creditor's maximum liability. Alduridi v. Community Trust Bank, N.A., 1999 WestLaw 969644 [Tenn. Ct. App. 1999].

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