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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 118087
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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We are a small collection agency, cant afford an attorney,

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We are a small collection agency, can’t afford an attorney, I have been handling settlements myself. I got a class action suit in "United states District Court Middle District of Florida. A couple questions: 1. is a class action suit minimum $1,000,000? I reached out to the attorney explained we are financially strapped offered $2000, he responded with get your insurance involve, would that be a bonding company?
Are you a licensed business entity? LLC, C-Corp, S-Corp?
Customer: replied 4 years ago.

S Corp

Customer: replied 4 years ago.

S Corp

The issue is that to represent an S-Corp, LLC or C-corp the ower legally cannot represent the business as the business is a separate entity and a person cannot represent anyone other than themselves pro se, the company must have an attorney. There are no minimum statutory damages in a class action, the damages are whatever they can prove they suffered plus any punitive damages if available. To be in federal court on a state law claim based on diversity of citizenship, the minimum damages is greater than $75,000, but other than that there are no minimum damages they have to have to seek to have a federal class action suit under federal laws.

If you have a bond company or insurance, they are telling you to get with them to cover your attorney's fees as most bonds and insurance policies have clauses stating they will provide legal representation.

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Customer: replied 4 years ago.

We have read that there is a 1% cap on the net worth of the company, is that true?

I am sorry, I do not understand what you mean about the 1% net worth cap. Can you explain that some more?
Customer: replied 4 years ago.

What I mean is can they recover more than 1% of the net worth of the company?

Thank you. In a suit for illegal collection practices against a debt collector, the court has the discretion of awarding as high as $500,000 or 1% of defendant’s net worth, whichever is lower.