Unbundled

The California State Bar Court Review Department has recommended a 90-day suspension for an attorney’s misconduct in several loan modification matters

 Two Notices of Disciplinary Charges alleged that from 2010 to 2012, he collected legal fees before completing each loan modification service outlined in a single retainer agreement. A loan modification law enacted in 2009 prohibits collecting any fees until each and every loan modification service contracted for has been performed; it is designed to protect the borrower.

The Review Department rejected the attorney’s “advice of counsel” defense

 The record reveals that [the attorney] received conflicting information about “unbundling” his legal services from knowledgeable professionals in the industry, including attorneys, and from State Bar representatives. Even so, much of his misconduct occurred while the State Bar was investigating him about collecting fees for the unbundled services. Scurrah’s reliance on the advice of other attorneys is not a defense to his wrongdoing, but it does warrant mitigation.

 The attorney’s constitutional challenge to the 2009 loan modification law that forbade the fee collection prior to completion of services also was rejected. (Mike Frisch)