One Client + $50 = 120 Days
A 120-day suspension was imposed by the Indiana Supreme Court for an attorney’s involvement in a loan modification matter
Respondent signed an agreement with Consumer Attorney Services
(“CAS”), a Florida firm, to be “of counsel” and to provide services to CAS’s Indiana loan
modification and foreclosure defense clients. CAS paid Respondent $50 (later raised to $75) for every Indiana loan modification client and $200 for each foreclosure client assigned to him. Non-lawyer employees of CAS performed all intake work for clients assigned to Respondent and drafted pleadings for Respondent to review and file.
J.D. was one Indiana resident who hired CAS and was assigned to Respondent. J.D. was not informed that Respondent’s role in the representation would be limited, nor was he informed about how fees would be shared between CAS and Respondent. The fee agreement called for an initial nonrefundable retainer followed by monthly payments for the duration of the representation. Other than making an initial brief phone call to J.D. and signing the fee agreement on behalf of CAS, Respondent had no involvement in attempting to obtain loan modification from J.D.’s lender.
After J.D. was served with a complaint for foreclosure, a non-lawyer at CAS sent J.D. a
“retainer modification agreement” increasing J.D.’s monthly payment amount. The lender later
sought summary judgment, and Respondent filed on J.D.’s behalf a response drafted initially by a non-lawyer at CAS. Respondent did not keep J.D. informed about the status of the litigation, did not consult with J.D. about the availability of a court-ordered settlement conference, and did not raise any substantive defenses.
J.D. eventually terminated his relationship with CAS. CAS did not notify Respondent of
the termination, and Respondent did not withdraw his appearance in the foreclosure action. J.D. eventually obtained a loan modification through direct negotiation with his lender. J.D. also unsuccessfully sought a refund of unearned fees being held by CAS.
Reinstatement is automatic at the end of the 120 days. (Mike Frisch)