Saturday, June 18, 2011

Ticket-Lacking 'Lawyer' Buys Delinquent Debts As Price Of Admission To Protracted Foreclosure, Bankruptcy Litigation

In Worcester, Massachusetts, the Worcester Telegram & Gazette reports on a story of a law school graduate who, despite the fact that he's failed the state bar exam five times and is not licensed to practice law, has nevertheless carved out a name for himself as a dogged litigator appearing regularly before the local state and federal courts representing one particularly litigious client, himself:
  • On most days, you can find Ara Eresian Jr. either poring over thick law books at the public law library on Main Street or tending to matters across the street at the state courthouse.
  • The 57-year-old Shrewsbury man has scores of cases on the dockets of state and federal courts, many that have been litigated and appealed for years. His painstakingly researched legal pleadings number in the tens of thousands of pages and counting.
  • But Mr. Eresian is not a lawyer. He is a kind of continual plaintiff who sues over real estate deals in which he claims a stake, usually representing himself. In some cases, Mr. Eresian buys the rights to debts or court judgments as a means of inserting himself into bankruptcy cases or foreclosure proceedings.
  • The would-be lawyer, who holds a law degree but has failed the bar exam five times, stands infamous among local attorneys more for his doggedness in the face of defeat than for his legal acumen. Undeterred by adverse rulings from judges, Mr. Eresian appeals nearly every loss, tying up the subjects of his lawsuits in court for years and leaving them with mounting legal bills.(1)

For more, see Legal fights never end (Who Is Ara Eresian; Why Does He Do It?).

(1) Reportedly, one case (In re Scheffer, Case No. 06-41218-MSH (Bankr. D. Mass. May 25, 2011)) involved a local homeowner/couple who had filed for bankruptcy. Eresian reportedly purchased an unpaid debt to a local heating oil company owed by them, thereby making him a creditor with the legal standing to challenge the couple's bankruptcy protection.

As the story goes, Mr. Eresian's parents, first generation Armenian-Americans originally from Somerville, once owned the home where the couple now live. Eresian apparently grew up in the three-bedroom ranch, which his parents lost to a foreclosure more than two decades ago. In rejecting Eresian's challenge, U.S. Bankruptcy Melvin S. Judge Hoffman characterized Mr. Eresian's case against the couple as a “misguided and obsessive crusade to avenge" that foreclosure, which the couple had nothing to do with. Reportedly, the couple's attorney said his clients were left bewildered by Eresian's legal onslaught that put their home at risk. A few of Judge Hoffman's comments from his ruling:

  • "I find that Mr. Eresian purchased the Peterson Oil claim in order to gain standing so he could more effectively continue his campaign of harassment against the debtors, the unlucky owners of his childhood home. [...] Mr. Eresian has exhibited a pattern of behavior that any reasonable person would find shocking. He has needlessly multiplied litigation in this Court and has saddled the debtors with the need to defend their discharges a year after they were granted."