George Badeen vs. PAR – The Ten-Year War

On March 31, 2020, the Honorable Victoria A. Roberts of the United States District Court for the Eastern District of Michigan Southern Division, granted a victory in form of a change of venue motion granted to former Allied Finance Adjusters (AFA) President, George Badeen in his ten year old lawsuit against PAR and others for operating without a collections license in the state of Michigan. George is asserting treble damages in the amount of approximately $270M. This case will now be remanded to the lower, Third Judicial Circuit Court in Wayne County, Michigan.

In April of 2010, George Badeen, then President of Allied Finance Adjusters (AFA) filed a proposed class action lawsuit against PAR, Inc. (“PAR”), Remarketing Solutions, LLC, and Renovo Services, LLC, alleging that the named defendants had been actively soliciting accounts that the Plaintiffs (Badeen and class) historically managed and the Forwarder Defendants were not licensed to collect such debt. The class being represented, is “every automobile repossession agency or owner who held a license as a debt collector in the State of Michigan during the last 6 years [– i.e., April 2004 to April 2010].” This is estimated to represent approximately 150 agencies.

Read the Motion Here!

In the amended complaint, Plaintiff alleged that;

(1) the Forwarder Defendants operated as unlicensed collection and repossession agencies in violation of the Michigan Occupational Code and Michigan Regulation of Collection Practices Act; and

(2) the Lender Defendants conspired with the Forwarder Defendants to violate the law by employing the Forwarder Defendants directly.

Discovery as to total repossessions done by Forwarders is still ongoing. As an individual, George Badeen would be entitled to $175 per motor vehicle, or $50.00 per motor vehicle tripled under the statute, MCL 339.916, plus attorney’s fees and costs. As to the unnamed class members, damages would be the total number of repossessions times $175 net proceeds per repossession.

Considering Plaintiffs’ allegation of 1.8 million repossessions together with their request for treble damages under Mich. Comp. Laws § 339.916, it is unambiguously ascertainable that the amount in controversy exceeds $5,000,000. In fact, multiplying the trebled damages available under § 339.916 by the alleged 1.8 million repossessions/violations, the amount in controversy is at least $270,000,000 (i.e., 1.8 million * $150). See Mich. Comp. Laws § 339.916(2) (if it is a willful violation, the Court “may award a civil penalty of not less than 3 times the actual damages, or $150.00, whichever is greater . . .” (emphasis added)).

In an earlier motion, PAR had successfully requested and was granted a change of venue to the higher Federal Courts where procedural requirements were more to their favor.

Years ago, when the activity in the George Badeen vs. Par class action lawsuit were at their peak, we used to muse at the scale of the legal action as being akin to Opie Taylor from Maybury RFD vs. Godzilla. Now that ten years have passed since this action first began, it would be more like Richie Cunningham from Happy Days vs. Godzilla.

No additional dates have been scheduled by the lower court for hearing this marathon lawsuit which has been covered in past articles below;