Judge Sues Newspaper Over Debt Collection Stories

What’s not in question is that Erie 6th Ward District Judge Dominick DiPaolo signed off on many judgments against debtors on behalf of the now-defunct Unicredit America, Inc.

Also not in question is the fact that DiPaolo and Michael J. Covatto, former president and current bankruptcy-seeker of the aforementioned defunct Unicredit, are cousins. First cousins, once removed, if you’re working on a family tree.

Still, Judge Dominic DiPaolo is suing the Times Publishing Company and three reporters — Ed Palattella, Lisa Thompson and Michael Maciag — for libel. DiPaolo claims that in covering the malfeasance and misfortunes of Unicredit, the Times Publishing Company maligned his name and damaged his reputation.

How? A quick recap: Unicredit sought fraudulent judgments against debtors. DiPaolo signed the orders on over half of Unicredit America’s debt collection efforts. Unicredit, however, often took things a step further: they used a fake courtroom to intimidate debtors into paying, complete with a fake judge. Unicredit America would later suggest that they never said the woman was a judge; she was simply a notary dressed in all black the way notaries are want to do.

As a story running on GoErie.com reports: “DiPaolo claims in the lawsuit that he had no knowledge of, nor involvement with, any fake judicial proceedings or any of Unicredit’s other post-judgment actions. DiPaolo also claims in the lawsuit that he had no knowledge of Unicredit’s collection practices before he entered judgments against the debtors.”

DiPaolo is alleging that his only involvement was in signing judgments — and that his signing of the judgments was in no way fraudulent or illegal. He is claiming that news stories run through the Times Publishing Company did not go far enough in distancing DiPaolo from the illegal activities of his first cousin once removed. Further, he believes that many would come away feeling that DiPaolo was intimately involved with the illegal activities pursued by Unicredit. The result? “Emotional and mental distress and anguish, humiliation, loss of reputation in his professional capacity and his government office, decreased contributions to his 2011 campaign and decreased voter support in the May primary.”

No news yet as to how much in damages the judge is seeking.