Legal Question in Credit and Debt Law in Virginia
contract here, company there
several years ago, I entered into an agreement for a credit card through my company. The credit card company was located in Utah. The company went out of business holding the credit card holder responsible for all debts. There were some outstanding charges and I was sued. 7 years later, they sued again. can they do that even though I am here (VA) and they are in Utah? Can they get me twice making this a never ending nightmare? its been 12 almost 13 years with interest accumulating - Help!!!
1 Answer from Attorneys
Re: contract here, company there
They certainly cannot sue you twice for the same thing.
Are you sure they are not "domesticating" the Utah judgment in Virginia? That means they are asking the Virginia court to recognize the Utah judgment so they can try to collect on it in Virginia.
It may just be a technical procedure that is used to get the right to collect in Virginia, but it is not a new lawsuit.
But if they are trying to sue you again for the same thing, you show the court judgment from Utah and say that this is "res judicata" and they cannot sue a second time.
In fact, they cannot sue for anything they COULD HAVE INCLUDED in the first lawsuit, either.
Also, the statute of limitations for a written contract is only 5 years in Virginia. SO if it is a new lawsuit, then it is outside the statute of limitations.
If they are trying to "domesticate" a Utah judgment in Virginia, you should check how long judgments are good for in Utah.
In Virginia, a judgment from the General District Court is 10 years, but from the Circuit Court it is 20 years.
Virginia, like most States, will apply the LESSER of EITHER State.
So if Utah allows a judgment to be collected for LESS than 13 years, than Virginia will not recognize the judgment. (SC is only 10 years for everything.)
If the Utah court involved is analogous to the GDC in Virginia, the Virginia Court MIGHT apply the 10 year limit from Virginia applying to the GDC.