Can A Person Sue A Licensed Professional or Licensed Semiprofessional For Consumer Fraud?
The Consumer Fraud Act isn’t always clear about who a person can sue for consumer fraud.
However, in some situations, a licensed professional or licensed semiprofessional may be sued for consumer fraud.
Accountants, Architects, Dentists, Doctors, Engineers, Lawyers And Other Licensed Professions Generally Excluded Under The Consumer Fraud Act
Accountants, architects, dentists, doctors, engineers, lawyers and other highly regulated professionals who have a license are generally not responsible for consumer fraud, because they are regulated by other laws. So long as these types of licensed professionals perform their professional duties, they generally cannot be sued for consumer fraud. For example, claims that a doctor or accountant provided negligent or incorrect advice does not provide the basis for a consumer fraud lawsuit. Even billing disputes involving hospitals or the offices of professionals are not likely to provide the basis for a consumer fraud lawsuit. Also, when such professionals advertise their services, it is unlikely that a misrepresentation would provide the basis for a consumer fraud lawsuit. If a professional’s misconduct doesn’t involve their clients’ or patients’ rights but instead, services outside the professional’s profession, they could be sued for consumer fraud. For example, if an architect sells real estate, the architect could be held responsible for consumer fraud associated with the sale. Accordingly, before deciding against suing anyone for consumer fraud, it is highly advisable to first consult with an attorney who has experience handling consumer fraud lawsuits.
Financial Planners
Although financial planners are licensed, they may be sued for consumer fraud.
Home Repair Contractors, Home Improvement Contractors & Home Inspectors
Home repair contractors, home improvement contractors and home inspectors can be sued for consumer fraud. Home repair contractors and home improvement contractors are regulated by laws and regulations. Also, although they may try to do so, it is unlikely that such contractors and inspectors can successfully use form language in their contracts to prevent consumers from suing for consumer fraud.
Insurance Brokers & Agents’ Responsibility For Consumer Fraud
For purposes of the Consumer Fraud Act, insurance brokers and insurance agents are considered semiprofessionals who, when providing services within the scope of their professional licenses, are exempt from being sued under the Consumer Fraud Act. But financial institutions and insurance companies selling insurance policies as goods and services marketed to consumers may be sued for consumer fraud. Federal courts (as compared to New Jersey state courts) might allow a person to sue insurance companies for consumer fraud associated with their performance when providing of benefits (but not likely for fraud involving the sale of insurance).
Licensed Semiprofessionals May Be Responsible For Consumer Fraud
Semiprofessionals are a group of licensed people whose practice trades or professions are subject to testing, licensing, regulations and penalties and whose professional activity, although not on the same level as other professionals such as physicians, architects, dentists, accountants, lawyers or engineers, is nevertheless recognized as something beyond ordinary commercial sellers of goods or services. Since the Consumer Fraud Act is not always clear, it may be necessary to actually file a lawsuit against the semiprofessional to find out whether a court shall hold them responsible for consumer fraud. However, before suing anyone for consumer fraud, it is highly advisable to first consult with an attorney who has experience handling consumer fraud lawsuits.
Real Estate Brokers & Agents/Salespersons
In many situations, real estate brokers and their agents/salespersons can be sued for consumer fraud. Since the purchase of a home is their greatest single purchase for most people, the Consumer Fraud Act’s protection of the victims of fraudulent conduct in real estate sales is of great importance.
Examples of consumer fraud by real estate brokers and real estate agents/salespeople may include the following:
· Nondisclosure of a defect if it was known to the broker or salesperson yet not readily observable to the buyer.
· Affirmative misrepresentations or omissions even where the consumer fraud claimants conducted an independent property investigation, such as by engaging their own inspector.
· When acting as the broker or sales agent for a new home builder, misrepresentations or omissions regarding the home builder’s qualifications or experience.
However, there are specific limits to suing real estate brokers and real estate agents/salespersons for consumer fraud. Accordingly, before suing anyone for consumer fraud, it is highly advisable to first consult with an attorney who has experience handling consumer fraud lawsuits involving real estate contracts.
Securities Brokers
The sale of securities is usually not an area to which the Consumer Fraud Act applies. However, before deciding against suing anyone for consumer fraud, it is highly advisable to first consult with an attorney who has experience handling consumer fraud lawsuits.
Shorthand Reporters
Shorthand reporters may be sued for consumer fraud.
Travel Agents
Travel agents may be sued for consumer fraud. Examples of consumer fraud by travel agents may include:
· The sale of a travel package, the purpose of which is to procure a foreign divorce that is invalid under New Jersey Law.
· Offering the "prize" of a free vacation to a destination over a thousand miles away that contains a disclaimer that transportation was excluded.
CAN I HANDLE A CASE MYSELF?
Many people can and do successfully handle special civil part cases from filing the first paperwork to the collection of a judgment and some people likewise handle Law Division, Civil Part cases themselves. However, many other people representing themselves make mistakes that lead to the dismissal of their cases or that result in the entry of a money judgment against them. The greater the money at stake, the greater the reason to consider using the services of a competent attorney licensed to practice law in New Jersey to handle part or all of the case. The following are reasons to use an attorney to handle part or all of your case:
· court fees often change
· court rules often change
· court employees cannot give you “free” legal advice and a judge may refuse to let you claim that you were right in taking an action (or in deciding not to take action) because you relied on advice from such employees
· court forms available on websites may not cover every situation you may face in court
· each case has its own particular legal issues and therefore, its own challenges
· it is very common for people to file inadequate or incorrect complaints that result in the complaints or answers to complaints being rejected by the court or being dismissed by the court after filing and before or after trial because of procedural deficiencies.
· it is not uncommon for judges to get very frustrated by an unrepresented party’s lack of preparation or ignorance of the facts or law of the case.
· a court has the power to punish unprepared parties, such as by throwing their case out of court or limiting what they can present at trial.
· New Jersey has many published cases, laws, regulations, court rules and rules of evidence that are very tricky and that can be used to prevent you from doing much of what you want to do at trial.
· it is very common for courts to refuse to allow a party to use or refer to documents or items at trial that the person themselves never prepared. Often parties stumble into court with a video, photograph, bill or affidavit or other form of written statement, thinking they are going to use it as proof that they lost money or that they are not responsible for someone else’s damages, only to have a judge tell the parties that it is not going to even consider such items or documents.
· without the proper preparation, items and documents may never be considered by the court. Also, if there are any legal issues to be dealt with at trial, you must be prepared to argue them, which may require you to refer to court rules, evidence rules, laws, regulations or published cases.
· you cannot show up at special civil part expecting the judge hearing your case to explain court rules, evidence rules, court procedure or the details of the law that applies to your case. The judge hearing your case is not permitted to give you legal advice.
It is important to remember that even if you have an attorney, you could lose your case. Hiring an attorney to handle part or all of your case does not guarantee your success. However, it may provide what is needed to win your case or to avoid certain mistakes.
DOES THE LAW OFFICE OF PAUL DEPETRIS HAVE EXPERIENCE WORKING ON DISPUTES INVOLVING PROFESSIONALS AND SEMIPROFESSIONALS?
Yes. Paul DePetris has worked on cases involving:
· the prosecution of lawsuits filed against professionals and semiprofessionals.
· the defense of lawsuits filed against professionals and semiprofessionals.
Mr. DePetris has also written a published article regarding consumer fraud claims against professionals and semiprofessionals -- DePetris, Learned Professionals, Licensed Semiprofessionals and the Consumer Fraud Act: The Origins of the Licensed Professionals Doctrine (New Jersey Lawyer, Oct. 2008).
WHAT IF I DON’T HAVE ENOUGH MONEY TO HIRE AN ATTORNEY TO HANDLE MY CASE FROM BEGINNING TO END?
In many situations, the Law Office of Paul DePetris offers alternatives to handling cases for an hourly fee, such as by offering limited services for fixed fees and/or by offering to prepare the court paperwork for you or helping you handle your claim by yourself (assuming the Court permits you to represent yourself, since there are limits to certain businesses representing themselves in certain courts). Such flexible methods may allow you to keep the amount legal fees you spend on your case to a fixed sum, while providing you the help you need to handle your case. For a no cost phone consultation about what the Firm might be able to do for you, call or write an email to Mr. DePetris.
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