CLLA Creditors' Rights Section Newsletter: "Debtor Abuses
A couple of frequent hot issues are still important to you when a debtor files a defense utilizing arguments and forms bought or acquired from a Web site.
a. Copyrighting
Debtor claims in a written communication/notification or in a defense or counterclaim that he/she has obtained a copyright on their name and that you have violated the copyright but using their name in collection letters or writings involved in litigation. The debtor may bring action against your client and firm for the alleged violations.
Be aware that a personal name is not protected by state or federal trademark statutes unless the name is used in a commercial manner. Section 102 of the Copyright Act protects 'original works of authorship.' Absent is any case law that establishes liability for the use of a person�s name in a non-commercial setting.
b. Arbitrations
Another popular debtor scam occurs when debtors notify you in writing or as a defense during litigation of an allegedly obtained 'Arbitration Award.' Debtors/money protesters then file bogus UCC-1 financing statements against your client or your firm.
Such arbitrations are void for lack of due process and lack of jurisdiction. For case references to assist you in your research, you can refer to Citibank ( South Dakota), N.A. v. American Arbitration Forum, et al., Case No. 02-8143, Hillsborough County, Florida (an arbitration forum was enjoined from issuing awards). See also, Citibank ( South Dakota), N.A. v. Southeast Arbitration Service, et al., Case No. 02-1902-CA-G, Marion County, Florida (a temporary injunction restrained the issuing of arbitration awards).
The Federal Arbitration Act (FAA) and many state Uniform Arbitration Acts allow for an action to vacate an award, after it has been entered. Consider "