Morgan Drexen, Inc. Wins Decisive Case in South Carolina: Vows To Continue Fighting...

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Tue May 19, 2009 6:15am EDT

Morgan Drexen, Inc. Wins Decisive Case in South Carolina: Vows To Continue
Fighting Frivolous Lawsuits

ANAHEIM, Calif., May 19 /PRNewswire/ -- For most companies, handling
"frivolous" lawsuits out of court is routine. The few thousand dollars spent
to get rid of nuisance suits are considered to be a cost of doing business.
That's not Morgan Drexen's approach. As the country's preeminent provider of
services to law firms, the company knows its rights. This aggressive approach
especially is important for the law firms that outsource debt settlement
paralegal and para-professional work for their consumer clients that need help
to pull themselves out of debt.

On May 14, 2009 the company won a decisive victory in the South Carolina Court
of Common Pleas, Fifth Judicial Circuit.  In a well-reasoned summary judgment,
the Court found in favor of Morgan Drexen and against plaintiffs who brought
suit that alleged the company violated the federal Telephone Consumer
Protection Act (TCPA) by making calls to consumers containing a prerecorded
message.

The Court ruled against the plaintiffs because the company that actually made
the calls was not Morgan Drexen. The TCPA unambiguously authorizes legal
action against the "initiator" of prerecorded calls, and the Court ruled that
Morgan Drexen did not violate the law. This clear affirmation of Congressional
intent is persuasive precedent for companies across America.

Normally, such a suit would be dealt with as a nuisance, not a "serious" legal
concern. But top executives and legal counsel for Morgan Drexen, including
lead attorney Erik Norton, decided to vigorously stand up for the company's
reputation; and to send a strong notice that it will forcefully defend all
such cases.

"We are a highly ethical company and an industry leader," explains Walter
Ledda, founder of Morgan Drexen. "We will not succumb to what I consider to be
simple extortion. Our policy is not to settle frivolous suits and never pay
those who make a living by ripping off legitimate companies. We will fight,
regardless of cost, and we will win. Frankly, in cases like these we want to
go to trial."

As the Court noted, "Summary judgment is proper when there is no genuine issue
as to any material fact and the moving party is entitled to judgment as a
matter of law." Indeed, the facts were not in dispute. Calls were made to the
plaintiffs. The Court found that the calls were not initiated by Morgan
Drexen. Consequently, the suit was summarily dismissed.

"We create marketing campaigns for law firms and we also employ companies to
generate leads, not to generate phone calls, and certainly not to break the
law," says Ledda. "The Court held that Congress' wording of the TCPA is
precise. Even if a second company might benefit from the calls at some later
date or in some way or another, that possible beneficiary has not broken any
law. I'm pleased the Court followed to the letter what Congress wrote in
1991."

Ledda continues: "We could have pursued legal action against the plaintiffs
and their lawyer for bringing such ridiculous charges against us, but we're
going to move on. In the future, we will seriously consider taking legal
action against clients and their attorney who file this kind of frivolous
lawsuit."

About Morgan Drexen
As the nation's first Internet-based provider of accounting, marketing, and
various paralegal and paraprofessional services to law firms - including
analysis and administrative assistance for debt settlements - Morgan Drexen
works with attorneys nationwide to substantially lower credit card and other
unsecured debt, to protect clients from threats and harassment, and to help
law firm clients build a secure financial future. The company administers the
Emergency Direct Assistance Fund (EDAF), which is a hardship program that
quickly is gaining national recognition by lawyers as a much-needed lifeline
for clients who struggle in today's unprecedented economic upheaval.





SOURCE  Morgan Drexen, Inc.

Elizabeth Stone, Morgan Drexen, 1-800-868-1458, x253, fax, 1-877-533-6553,
estone@mdrexen.com
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