The Rime Of The Ancient Mortgages
A public censure was imposed by the New York Appellate Division for the Second Judicial Department based upon a consent sanction in New Jersey.
The story
The respondent represented three buyers in the purchase of residential real estate located in New York, owned by Mary Abernathy. A title search conducted by Icon Abstracts Solutions, Inc. (hereinafter Icon), of which the respondent was a co-owner, revealed three “ancient” mortgages. Consequently, the parties to the transaction agreed that Icon would hold $33,000 from the sale proceeds in escrow until the mortgages were discharged and title cleared. New York had in place a statutory framework to discharge such “ancient” mortgages of record. Abernathy, who later died, and her son retained the respondent to clear title on the property. During the course of his representation for that purpose, the respondent did not exercise due diligence, causing the unopposed action to quiet title to unnecessarily span over two years. During that time period, he refused to respond to reasonable questions posed on behalf of Abernathy’s estate by her children (one of whom was her executor) and the estate’s attorney. Moreover, the respondent took the position with the estate’s new attorney that he “had never held any escrow monies on behalf of Mary,” ignoring his principal ownership of Icon and his related fiduciary duties. Additionally, he attempted to demand payment of an additional $500 in legal fees for his “continued cooperation”—presumably the necessary instruction to Icon to disburse Abernathy’s escrow funds.
In New York
The respondent has submitted a letter response dated June 3, 2016, wherein he asks for the imposition of the lightest sanction. He acknowledges that he stipulated to the above findings. Nonetheless, he wishes to note that the New Jersey disciplinary authorities were “incapable of adequately judging the pace of a Queens County adjudication,” suggesting that the delay was attributable to the court system and the “glacial pace” at which it operates. The respondent concedes that he should have been more communicative with his clients. He accepts responsibility for his actions, noting in mitigation that he has practiced law for 25 years and has had “very few” complaints filed against him during that stretch of time.
Apologies to Samuel Coleridge. (Mike Frisch)