Legal Question in Civil Litigation in Minnesota

A Promissory Note was executed in MN and states governed by MN laws. The agreement is for borrower to pay off the note when property sold in AZ..

The property is up for sale but still not sold and the borrower is harassing defendant for immediate payment in full. Defendant did make a good faith payment bringing the note down -but, can't afford to payoff note until the property is sold.

The Defendant was just served papers from an AZ attorney demanding payment in full with court costs and attorney fees; or sign enclosed Waiver to Plaintiff. The property is worth more than the note so Defendant doesn't want to sign over. If this is not done the attorney will request court hearing in AZ.

Question: Why would AZ atty send threatening letter. The Note is not in Breach and the Note is governed by MN laws. Did the atty violate FDCPA by sending this letter and filing a complaint in AZ? Defendant never received a validation letter--only told that this needs to be paid or waiver signed in 30 days. Does a response need to be made to AZ court?


Asked on 7/16/10, 7:50 am

1 Answer from Attorneys
Daniel Reiff Reiff Law Office

With these facts, it is impossible to answer your question. Does the Note say that venue is in Minnesota as well, or does it merely say it is governed by MN law? Is this property used a residence, business, or investment purposes?

If there is a formal complaint in AZ with service, then you better get an AZ lawyer ASAP. However, you also ought to retain a MN lawyer pronto. It is impossible to say based on the information provided, but a motion to dismiss may be appropriate if there is a lawsuit in AZ. Regardless, if there is a suit, you need to treat it seriously.

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Answered on 7/16/10, 11:32 am


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