Legal Question in Credit and Debt Law in Virginia
Does ''res judicata'' apply to a collection agency?
An original creditor sued me a couple of years ago. However, on the trial date, its lawyer failed to show, and instead faxed the court asking for a non-suit. This was the second time this had happened. I complained to the clerk, and she said she'd talk to the judge. A couple of weeks later, I received notification from the court saying the case had been dismissed.
I now have a collection agency threatening a lawsuit concerning the same issue. Could I claim ''res judicata'' as an affirmative defense if it concerns the same debt, or does it not apply since the plaintiff will now be different?
2 Answers from Attorneys
Re: Does ''res judicata'' apply to a collection agency?
The legal doctrine known as Res Judicata would not apply to this situation since the matter never came to trial or was adjudicated but, as Mr. Stone points out, the plaintiff is only allowed one nonsuit in a given case and thereafter, if he or she attempts to claim another, will have her or his cause of action extinguished.
Re: Does ''res judicata'' apply to a collection agency?
Yes. Two nonsuits and the debt is extinguished. Have a lawyer write them a letter threatening sanctions.
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