With the financial fallout of the novel coronavirus (“COVID-19”), consumer financial services businesses should anticipate an increase in state court counterclaims filed in response to collection actions. These counterclaims are often challenging and can make it practically difficult to come out ahead financially if not handled appropriately.

On August 27, 2020, Troutman Pepper attorney David Anthony presented for RMAi’s webinar “Combating State Court Consumer Counterclaims.” The webinar is available here and RMAi’s description of the class is available here. The course provides helpful information for businesses or litigators who routinely deal with state court collection actions.

This webinar walks through mechanics of responding to a state court counterclaim, highlights concerns that need to be evaluated in any business’ response and provides actionable suggestions for how to best handle common occurrences.

Covered topics include:

  • Common counterclaims for state court actions;
  • A brush-up and considerations for removal to federal court;
  • How to tailor your case to state court juries/judges instead of federal judiciary;
  • Strengths/weaknesses to litigating in state court instead of federal court;
  • Establishing a relationship and defining roles with multiple attorneys;
  • Anticipating and issue-spotting potential follow-up actions; and
  • How to evaluate case both individually and within total cost context.

As state courts resume operations and lift moratoriums against collection activity, those receiving state court counterclaims will need to be mindful of the considerations covered in the webinar as judges and juries may be more inclined to favor consumers in the current climate.

Troutman Pepper routinely handles state court counterclaims and is actively monitoring developments in this area.