Minnesota Debt Collectors Lose Major Case

Non-Attorney Debt Collectors Prohibited from Filing Mechanic's Lien

In a case of first impression, Droel, PLLC successfully argued that non-attorney debt collectors are prohibited from preparing, signing, and recording mechanic’s lien statements for others as doing so constitutes the unauthorized practice of law.  On December 29, 2015, Hennepin County District Court Judge Karen A. Janisch issued an Order to that effect, and permanently enjoined a non-attorney debt collector from continuing to engage in such practices “for a fee or otherwise.”  Dering Pierson Group, LLC v. Rockstar Design, LLC, et al., Court File No. 27-CV-15-11142, Hennepin County District Court, Minnesota.

Whether non-attorney debt collectors may lawfully prepare, sign, and record mechanic’s lien statements had not been previously determined by Minnesota Courts, and the Court’s December 29, 2015 Order implicates all non-attorney debt collectors who offer such services in Minnesota.

Droel, PLLC is a Minnesota based law firm with offices in Bloomington, Minnesota, and Houston, Texas, and practices primarily in the areas of renewable energy and commercial construction law.  www.droellaw.com  For more information regarding the Court’s decision, please contact attorney Tim L. Droel at (952) 835-1614 or tdroel@droellaw.com.