Massachusetts Lawyers Weekly has published a recent decision involving a case successfully argued by Prince Lobel attorneys.
This decision is confirmation that a plaintiff cannot file a claim under the Massachusetts Consumer Credit Cost Disclosure Act in state court more than four years after the date of the underlying transaction. Bankruptcy courts have held that the statutorily-proscribed statute of limitations did not apply to adversary proceedings because such actions were "defensive" lawsuits by nature and were thus within the limited exception to the limitations period. This case confirmed that a plaintiff in state court cannot avail himself of the bankruptcy exception, even where the plaintiff has a current bankruptcy action pending.
According to Briansky, “this case may have some significance on the ever expanding subprime litigation. This is a common (and until recently) successful defense to these claims.” Click here to read the article in Massachusetts Lawyers Weekly, and click here to read the full text of the court’s decision.