Current Edition- California Business Practice

The Peacemaker Quarterly- April 2014

Friday, October 9, 2009

Bar names foreclosure lawyers under scrutiny

This article has been pulled from the California Bar Journal.

Alarmed by complaints about the number of lawyers preying on vulnerable homeowners, the State Bar last month identified 16 attorneys who are under investigation for misconduct related to loan modification.

“In my 21 years in attorney discipline, I have not seen a crisis of this magnitude. It is truly unprecedented,” said Interim Chief Trial Counsel Russell Weiner, who is waiving investigation confidentiality in favor of public protection. The waiver, allowed by statute, is rarely used, but Weiner said the seriousness of the problem demanded a strong reaction by the bar in order to protect consumers. This is the first time the names of more than a few lawyers being investigated have been made public.

“The number of attorneys using their law licenses to essentially take money from unwary, but trusting, consumers is astounding,” Weiner added. “There are literally thousands of victims who have lost money they could not afford to lose. Under the circumstances, the need for public information and protection is paramount.”

Those attorneys being named by the State Bar have allegedly taken fees for promised services and then failed to perform those services, communicate with their clients or return the unearned fees, Weiner said. Some attorneys misrepresented the services they could provide. “It appears these attorneys may have significantly harmed their clients who were already facing great financial pressure and the possible loss of their homes.”

About one-quarter — almost 800 cases — of the active investigations in the Office of Chief Trial Counsel (OTC) are related to foreclosure complaints. The office has experienced a 58 percent increase in active investigations over 2008 due in large part to the huge increase in complaints against attorneys offering loan modification services.

“We are moving decisively with proceedings against those lawyers,” said State Bar President Howard Miller.

“The profession as a whole has a responsibility here, and we must meet it. And as a part of that we also must expand our pro bono efforts to help clients who have been harmed by lawyer misconduct.”

Last March, the State Bar created a special team of investigators and lawyers to handle the growing number of complaints received about attorneys offering loan modification services. OTC found that many of the offending attorneys are associated with firms that use telemarketers or phone banks to sign up clients without regard to the facts of the individual case or whether or not the client can be helped, Weiner said.

In many cases, the attorneys work with untrained non-attorney staff engaging in the unlawful practice of law by offering legal advice to prospective clients. OTC also is investigating the non-attorney staff for possible referral to law enforcement.

In recent months, OTC has obtained the resignation of three attorneys who were offering loan modification services. Those attorneys chose to give up their licenses to practice law rather than face disciplinary charges and possible disbarment. In addition, OTC lawyers are preparing to put some attorneys on inactive status pending the filing of formal disciplinary charges

Weiner warned consumers to be careful when seeking legal representation related to loan modification. “Consumers should not be comforted by advertisements that claim the attorney is a member of the State Bar of California,” he said, noting that all attorneys practicing in California on a regular basis are members.

“Such membership does not mean the attorney has any special knowledge, experience or expertise in the area of loan modification. In fact, it appears that many of the attorneys offering these services have little or no prior experience in the area of loan modification.”

    Wednesday, October 7, 2009

    Please View- FCC & Fairness Doctrine

    George Tiller "The Baby Killer"?

    In regards to today's discussion on media's freedom of speech, this example may be a relevant to the topic. George Tiller, an abortion doctor was murdered. Could the murderer possibly be influenced by Bill O'Reilly and his years long view against Tiller using names like "Tiller the Baby Killer"?

    CNN Story on the murder
    http://www.cnn.com/2009/CRIME/05/31/kansas.doctor.killed/index.html

    O'reilly's views against George Tiller
    http://www.huffingtonpost.com/2009/06/01/bill-oreilly-crusaded-aga_n_209665.html

    O'reilly's Response
    http://www.foxnews.com/story/0,2933,524344,00.html

    You decide.

    Monday, October 5, 2009

    California anti-Slapp Legislation

    In enacting this anti-SLAPP provision, the California Legislature declared that there has been a disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress of grievances. The Legislature finds and declares that it is in the public interest to encourage continued participation in matters of public significance, and that this participation should not be chilled through abuse of the judicial process. To this end, this section shall be construed broadly.

    Code of Civil Procedure section 425.16.

    Under Code of Civil Procedure section 425.16(c), a court is obligated to award attorneys' fees and costs to a defendant who successfully moves to strike under that section. ("In any action subject to subdivision (b), a prevailing defendant on a special motion to strike shall be entitled to recover his or her attorney's fees and costs."). Subdivision (b)(1) of section 425.16 provides:

    A cause of action against a person arising from any act of that person in furtherance of the person's right of petition or free speech under the United States or California Constitution in connection with public issue shall be subject to a special motion to strike, unless the court determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim.

    Subdivision (e) of section 425.16 elaborates upon subdivision (b). It provides:
    As used in this section, "act in furtherance of a person's right of petition or free speech under the united States or California Constitution in connection with a public issue" includes: (1) any written or oral statement or writing made before a legislative, executive, or judicial proceeding, or any other official proceeding authorized by law; (2) any written or oral statement or writing made in connection with an issue under consideration or review by a legislative, executive, or judicial body, or any other official proceeding authorized by law; (3) any written or oral statement or writing made in a place open to the public or a public forum in connection with an issue of public interest; (4) or any other conduct in furtherance of the exercise of the constitutional right of petition or the constitutional right of free speech in connection with a public issue or an issue of public interest.

    Friday, October 2, 2009

    Jewel's Big Case

    Hey, I'm not sure if this came up in the other sections, but here's a link to more information about her case involving the "Slavemaster" murders:

    http://topics.nytimes.com/topics/reference/timestopics/people/r/john_edward_robinson_sr/index.html

    The link brings you to several articles about the case.

    Guest Speaker

    I thought todays guest speaker did an excellent job. I feel that being able to ask questions and have them answered by someone who was directly involved in cases that relate to our class was not only interesting but valuable in our learning. I agree with her thoughts on Polanski, and would enjoy hearing from more guest speakers or even hearing from her again.