Consumer Debt Defense Case Law: DBCA, LLC v Cohen, 62 Misc 3d 493, 493-95 (NY Dist Ct 2018)

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DBCA, LLC v Cohen, 62 Misc 3d 493, 493-95 (NY Dist Ct 2018) “WHAT'S GOOD FOR THE GOOSE IS GOOD FOR THE GANDER”. Hon. Scott Fairgrieve, J., holds that if the agreement provides for the plaintiff the right to recover attorney fees and costs in any successful action on the contract, General Obligations Law § 5-327, creates a reciprocal right for the defendant's recovery of such attorney fees and costs on a consumer contract if they are successful.

1. GOL § 5-327(2), Reasonable Attorney's Fees And Costs: GOL § 5-327(2) states that whenever a consumer contract provides that the creditor, seller or lessor may recover attorney's fees and expenses incurred as the result of a breach of any contractual obligation it shall be implied that the creditor, seller or lessor shall pay the attorney's fees and expenses of the debtor, buyer or lessee incurred as the result of a breach of any contractual obligation by the creditor, seller or lessor, or in the successful defense of any action arising out of the contract commenced by the creditor, seller or lessor.
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