Remedies
It is very common to have an open and shut fraud case but no
realistic remedies. Unless you want to waste money, the defendant must be
solvent. Most are not so if the case is to proceed, there must be a defendant
who is a "deep pocket". Usually this defendant is not the perpetrator but a
mostly innocent fellow-traveler. Examples include directors of companies,
professionals, and employers who fail to keep a watch over the perpetrator.
A simple fraud case will cost over $10,000 in legal fees. If a
vigorous defense is asserted the fees can easily exceed $50,000. It is not
uncommon to spend over $100,000 to prosecute a fraud case. Often a clearly
liable defendant will spend large sums in a non-meritorious defense. The
plaintiff must also spend to respond to each defense motion and to each defense
trial witness.
For smaller cases, you should consider small claims courts. They
are limited to $5,000 in damages but attorneys are not generally allowed. It is
often to reduce damage claims to us the small claims process because of the
potential legal cost.
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Small Claims Courts in Oregon and Washington |
Statutory legal fees are often available to the prevailing
parties. Unfortunately courts often minimize fees for small cases. Consider a
fraudulent sale of a computer case involving $1,000. You win and have spent
$10,000 in legal fees. The court may allow only a small portion of the fee
because of the low amount of damages. This is not the intent of the statute but
courts tend to discourage litigation. Most attorney will not take these case on
the hope that the court will award reasonable attorney fees.
Most people who have been defrauded attempt to find an attorney
who will be paid from the final judgment. Contingency fees attorneys usually
require a great case, a solvent defendant, and the damages to be over $100,000
to justify the risks. Contingency fees usually run between 25% and 50%.
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