Question
Accrued Financial Services, Incorporated (AFS), is a corporation engaged in the business of conducting lease audits on behalf of tenants in commercial buildings and factory
Accrued Financial Services, Incorporated (AFS), is a corporation engaged in the business of conducting lease audits on behalf of tenants in commercial buildings and factory outlet malls. AFS is paid a percentageusually 40 to 50 percentof the discrepancy overcharges that it discovers and collects as a result of its audits. The tenant signs a letter of agreement with AFS and assigns all legal causes of action it may have against the landlord to AFS. The assignment grants AFS the authority to file lawsuits in its name against landlords at its discretion. After AFS conducted an audit of Prime Retail, Incorporated (a landlord), on behalf of tenants who had signed assignment agreements, AFS brought a lawsuit against Prime Retail, asserting various claims of overcharges. The U.S. District Court dismissed the case, finding that the assignment of the tenants' claims to AFS violated public policy and were therefore illegal. AFS appealed.
Do you agree or disagree with the court's decision in this case?
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