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Libel, College Students, and Garnished Wages: Even Entry-Level Workers Aren't "Judgment-Proof"
I wrote last November about a libel verdict in Cody v. Dirir, a lawsuit between two college students. To quickly excerpt the facts, from the court's opinion:
On October 12, 2022 [likely should say 2019 -EV], the plaintiff and the defendant were students at the University of Connecticut in Storrs, Connecticut (University). They did not know each other until October 12, 2022 [likely should say 2019 -EV], when the defendant attended a party at a home of a fraternity that the plaintiff was a member of and where he resided. During the party, the defendant believed that she was called a nigger (N-word) by another member of the fraternity, Frank V., a black male. When the defendant told the plaintiff, a white male, that Frank called her the N-word, the plaintiff tried to convince her that Frank would never say that and if he did, he did not intend it in a negative way as he used the N-word with an "a" at the end of the word and not with an "er" at the end of the word. Frank used the N-word in the defendant's presence, and she believed the word was directed to her.
The defendant was upset by this exchange at the party, and after the defendant left the party, she reported this encounter to her cousin, … Ellie …. With the defendant's assistance of providing a picture of the plaintiff and Frank, Ellie posted on her Twitter page the picture of Frank and the plaintiff with the following statement: "These two called my little cousin a nigga and continued to belittle her infront of their white friends at a UConn frat party. If anyone knows their names, please let me know. And tell them keep that energy." The statement with the picture (also referred to as "post" or "tweet") was seen initially by approximately 700 to 1000 people who are the cousin's Twitter followers. Those followers then forwarded the post/tweet to their Twitter followers, resulting in approximately 5000 or more people viewing the post.
The statement, plaintiff argued, was false, badly damaged his reputation, and distressed him. (For more details, see the longer excerpt here.) And the judge ultimately agreed, concluding (to oversimplify) that the statement was false and highly distressing. Because of this, the judge awarded $10K in compensatory damages to plaintiff, and left open the possibility of punitive damages. In May 2024, the judge indeed awarded $26K in punitive damages, reflecting 3/4 of the plaintiff's attorney fees (since plaintiff had prevailed on the most significant part of his claims but not all his claims).
Defendant thus owed $36K, and plaintiff moved to garnish defendant's wages, which is to say to have the judgment paid off (slowly) out of defendant's paycheck. Here's what happened, according to Judge Matthew Wax-Krell's order issued last week:
On May 16, 2024, the plaintiff filed a motion for an order of "nominal" installment payments…. The court granted the motion and ordered weekly payments of $35 beginning July 3, 2024.
The defendant failed to make the payments, and the plaintiff applied for a wage execution, which was issued by the court on July 24, 2024…. Although her attorney stated that $700 was being removed from each biweekly paycheck [under the execution], plaintiff's attorney stated that the amount being removed was $592, with $514 of that going to the plaintiff, and the remainder going to the marshal for his statutorily authorized fee.
The defendant seeks a modification on the basis that losing 25% of her paycheck is not financially feasible for her given her additional debts (including hospital bills and student loan payments of $700 per month). She also claims that going from paying $35 per week to $592 every two weeks is a large increase. Notably, the wage execution was only necessary because she failed to make the weekly $35 payments. She seeks to have the waged execution modified back to the $35 per week that was originally ordered.
The plaintiff opposes any modification of the statutory amount of the execution, which can be up to 25% of her disposable earnings. The plaintiff argues that the $35 per week is a "measly" payment that will take the defendant more than 20 years to pay off, however plaintiff had not moved to increase the $35 weekly payment order since it was entered on June 5, 2024. Plaintiff further argues that the defendant has not proven her financial inability to pay the $592 per paycheck and that the judgment should take priority over her other obligations.
Taking into account the judgment obtained by the plaintiff and the defendant's other financial obligations, the court modifies the wage execution to be $75 per week, commencing September 30, 2024.
So the defendant is having to pay about $4K per year, to pay off the $36K judgment. That's not a lot for a typical court case; this isn't the $36M that the presumably solvent Oberlin College had to pay in a libel case. And if plaintiff Cody had paid his lawyer up front, he will likely be in the red on that business proposition for many years to come.
But the $36K, and the $4K/year, is probably a considerable cost to the defendant, who appears to be a freshly minted registered nurse. Might it might feel to her roughly the way the $36M felt to Oberlin College officials (who after all didn't have to pay the amount, roughly 3.5% of the College's endowment, out of their own pockets)? If plaintiff wanted defendant to feel some of the pain that the defamatory statements caused him to feel—to be sure, just speculation on my part—plaintiff is likely succeeding in that.
And more broadly, this is a reminder: If you commit a tort against someone, your being a college student with no assets and no or little current income might well deter that person from suing you. But maybe the person will still sue, whether because he or his family has the money to spend, or because a lawyer is willing to help him. (I can't speak to this case, but in some cases the lawyer might have ideological reasons for participating, or might be a friend of the family and thus be willing to help.) And you might indeed end up having to pay money that's small by litigation standards, but a large chunk of whatever income you make as a young worker.
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...and maybe you shouldn't make false claims.
This is the legal world I live in. Though most of the defendants I sue are residential tenants who didn't pay their rent and/or caused damage to their apartment. Another large chunk is drivers who caused an auto accident and didn't have insurance. I am very used to hearing "I have nothing" or "(s)he's judgment proof". The thing is, a debtor may have little or nothing today, but the vast majority of people do not stay that way. With a long statute of limitations for enforcement of a judgment, there is a lot of time to collect what is owed, one wage garnishment at a time.
Seems like an inspiring legal world to live in.
Those that have little or nothing today waste all of that time during which the judgment can't be executed. That's the time to pull the bankruptcy trigger, not a decade later when they finally have income and Merlin's Beard comes along to garnish/levy it away, with lots of accrued interest.
IS this dischargable in bankruptcy?
Oh, almost certainly. It's not child support, back taxes, criminal debt, or student loan debt.
I enjoy my work. Many of my clients are small businesses, often mom-and-pop operations, who have been stiffed on money legally owed to them. It's nice to be able to help them recover what theirs.
Bankruptcy isn't for everyone. It destroyes a person's credit for a decade. Plus, it's still expensive to hire a bankruptcy lawyer. Local rates in my neck of the woods are in the $1500 - 2000 range for a no-asset Chapter 7. (Not to mention the $338 filing fee.)
One of the commenters below reminded me that if the damages were punitive, they are generally not dischargeable. Good catch. I try to avoid bankruptcy court like the plague, so when I do have to file an appearance over there, I have to go re-read the law every darn time.
Maybe you'll enjoy the story from last week about the landlord who used a bulldozer to evict problem tenants. It worked. The damaged house was condemned so the tenants can't live there any more. Unfortunately for the landlord, he still needs a lawyer.
https://www.nbcboston.com/news/local/salisbury-landlord-allegedly-rammed-cabin-with-bulldozer-while-tenants-were-inside/3493215/
Interesting.
Approach I have always heard of is hiring a few gang members to "encourage" the tenant to leave.
Are you one of the "good guys" or one of the assholes?
I took a job half way across the country. When my father passed, I moved back home. I went to my landlord asking if I could be released from my lease. They said the penalty was 2.5 months rent + forfeiting my deposit. At the time was in my mid-20's, just a few years out of college. I asked if I could work out a payment plan, and they verbally said "no problem, we will work it out."
After returning home, I continued to try and figure out the details of the payment plan. Nothing came out of those discussions. Then suddenly, about 2 months after I returned to my hometown, I was served with a judgement and that my wages would be garnished. I received no summons. I received no notice that this was in process. I called the lawyer's office and asked why they were doing this. Their front desk had their canned script of "We are just doing our job. Nothing personal."
Fortunately, my uncle walked me through the process and I produced the emails and letters between myself and the apartment complex. The judge reworked the judgement. Two things drove this: 1) the lawyer sent the summons to my *old* address 1,000 miles away and claimed I never responded and 2) the fact I made good faith attempts at a repayment plan were ignored by the apartment complex and the collections lawyer.
Which kind of lawyer are you? "Nothing personal, just doing my job" or "Let's work out an equitable solution for my client and you."
I'm the "zealous advocate for my client" kind of lawyer, trying to achieve my clients' goals through legal means and keep my clients out of legal trouble. What that ends up looking like in any given situation is a very case-specific question. Based on my online reviews, my clients like me, some debtors like me, and a few debtors hate me with the white-hot passion of a thousand burning suns.
I'm skeptical that $70/week is such a burden for her. 25% of her paycheck was at least $592/2 weeks, so she should now pay a bit under 6% of her wages. That's much less than, say, alimony. It's less than payroll taxes. Sure, it will hurt -- but the plaintiff wouldn't be made whole even if she paid the entire balance now, and it doesn't sound like he will get interest to counteract inflation or reflect the time value of money.
I thought no one paid student loans - - - - - - - - - - - -
The question I have is if she can then go with an income-based repayment (which is based on her discretionary income -- now 25% less).
What well could wind up happening is the money she was going to use repaying her student loan instead goes to this.
It's called punishment for a reason. Dude should have offered to accept the small payment IF he got interest. Make her pay for more years.
So words can be costly, in addition to violent.
Does the defendant in this case owe postjudgment interest? Based on a quick search, a Connecticut plaintiff is ordinarily entitled to 10% interest but an installment plan may modify that rule. The installment payment amount in this case is approximately equal to 10% interest. If interest is owed, the judgment is not being paid off. Otherwise it will be paid in a decade or so.
Her loan payments are $700 for a public university?
It says "including hospital bills and student loan payments of $700 per month." That may mean (hospital bills and student loan payments) of $700 per month, rather than hospital bills and (student loan payments of $700 per month).
University of Connecticut at Storrs has in-state tuition of $17K, so for a four year degree, just from that one could easily have student loan payments of $700 per month. (Tuition was probably less in 2019, and one could get more non-loan financial aid after the pandemic, but she might have taken more than four years or had student loans to cover other expenses.)
Yes, that is quite possible.
First, state schools cost more than you might think.
And second, you can borrow more than that, for living expenses, vacations, even purchasing CDs and making money over the difference in interest rates. (I know people who did that in the late '80s.)
Nice reminder about the "find out" stage of the process.
If defendant has considerable other debt, including medical debt, and no wealth, then it's probably time for bankruptcy. Bankruptcy takes only one short decade of enduring bad credit. Seems like satisfying all of these debts/judgments will take longer than that.
You generally can't discharge either student loans or defamation judgments in bankruptcy.
The judgment was for "intentional infliction of emotional distress" rather than defamation, but I doubt that would make any difference with respect to bankruptcy.
Thanks for the correction, but you are correct: it wouldn't make any difference. Particularly because most of the damages were punitives, which are generally not dischargeable regardless of the underlying cause of action.
Play a man's game, pay a man's price. Or, as the kids say, "FAFO".
Since when do defamation judgments include “compensation” for hurt feelings? They are not damages. The plaintiff is being a cry baby, and the law ought not help him do it.