If you are sued by another person and feel as though there is no good faith basis for filing that case against you, there is a cause of action for malicious prosecution. You can file a counter-claim against her in this regard. You will probably have to get an attorney to do so.
Respond to the lawsuit if one has been filed, but filing your appearance (if required) and appearing on the date set. It will be up to the Plaintiff to prove money was owed and if what you say is true, them proof will not be possible. Consult with a local attorney and if advised to do so, hire counsel to represent you. Best wishes.
Firstly, this is not a "libel" question. Secondly, if she is claiming that she loaned you money, which you deny, and she does not have any documentation to prove that she gave it to you (ie- an "I.O.U"/receipt(s)/other written acknowledgment/ a corroborating witness, etc.) she is going to have a hard time proving a valid debt owed by you. If she hired a lawyer, it is presumed that the amount she is suing for is large enough to have made it worth her while to pay attorney's fees (unless she is using a "friend"), therefore, it is worth your while to retain local counsel to defend against the action. Do so a.s.a.p. as you have a limited time period in which to serve an Answer to the complaint, if the action has already been started.
Suing is one thing. Winning is another.
Without hard evidence, and with your defense against the suit, it sounds like you are in a strong position.
DO NOT blow off the hearing though, if you do not defend yourself the court COULD issue a default judgment against you.
NOT LEGAL ADVICE. FOR EDUCATION AND INFORMATION ONLY. Mr. Rafter is licensed to practice in the Commonwealth of Virginia and the US Federal Courts in Virginia. There is no implied or actual attorney-client relationship arising from this education exchange. You should speak with an attorney licensed in your state, to whom you have provided all the facts before you take steps that may impact your legal rights. Mr. Rafter is under no obligation to answer subsequent emails or phone calls related to this matter.
It looks like none of the lawyers who answered this question practice in Pennsylvania, so I just want to reassure you that they are right. You can be sued for anything and you have to defend yourself or risk an unjust result by default. If you never borrowed money from your friend then she won't be able to prove her case. One thing in your question bothers me: You talk about "cash advances". I don't know what to make of that. Did you ever have access to your friend's credit cards or bank accounts? Or do you mean she is saying she gave you cash? Please be more clear as to what you are being accused of doing. I would be happy to talk to you, although Washington, Pa. is to far from me to represent you.
This answer is not intended to be legal advice in a lawyer/client relationship. Misunderstanding of the answer or use of the answer for any illegal purpose is not the responsibility of the writer. The answer to any question in the Avvo website is constrained by the limited content of the question, an incomplete description of the facts underlying the question or a wrongful motivation for the question.