A new filing in an advertising company's case against a foreclosure law firm suggests that the firm's advertising fee debts are not the greatest of its worries as it prepares to close.

Mansfield Advertising, which is suing New Jersey foreclosure firm Udren Law Offices, has asked a judge to appoint a receiver for the law firm. Mansfield has alleged that Udren cannot transition its clients and close down its firm without supervision.

Udren Law Offices, however, has said this latest motion is frivolous.

The advertising company, also known as William J. Mansfield Inc., has alleged in its complaint that Udren Law failed to pay more than $139,000 in fees for foreclosure notices published since January of this year. Udren Law represents lenders and mortgage servicers on real estate matters in Florida, New Jersey and Pennsylvania, according to its website.

In a statement Wednesday, the law firm said, it has “legitimate defenses and potential counterclaims” to the lawsuit, and “intends to vigorously defend the frivolous motion to appoint a receiver that was filed today.”

“Udren Law Offices P.C. values its relationships with all of its clients and vendors. William J. Mansfield Inc. is the lone vendor in the firm's 25-year history to file a lawsuit seeking payment of outstanding invoices,” the firm's statement said. “Each of the firm's other vendors are working with us during this transition.”

According to the emergency motion, filed Wednesday in the U.S. District Court for the Eastern District of Pennsylvania, Mark Mansfield visited Udren Law's headquarters in Cherry Hill, New Jersey, earlier this month “to follow up on several unreturned phone calls,” and spoke with employee Lorraine Geist.

“Geist said that Udren Law's obligation to Mansfield Advertising is not the firm's largest payable,” the filing said. She also solicited a settlement proposal, it said, but Udren Law has not responded to more recent attempts to discuss a resolution.

The filing also suggested that Udren Law's employee compensation “may be excessive” under the circumstances of the wind-down.

“Although Mansfield Advertising's right to payment is indisputable, Mansfield Advertising may be prevented from obtaining a complete recovery by wasteful spending of Udren Law's limited resources, for example, by maintaining excessive staff levels for the wind-down, or by exercising improper preference in paying its debts,” the motion said.

Mansfield, which is based in Wayne, Pennsylvania, attached the 86 unpaid invoices, all dated between Jan. 26 and Aug. 20 of this year, to its complaint. The plaintiff lists fees for ads in a number of publications around Pennsylvania, including several in The Legal Intelligencer. Mansfield is alleging breach of contract and unjust enrichment.

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