Legal Question in Civil Litigation in California

Hello,

I was defrauded of money by a partner in a real estate transaction, and this partner has since left the country so there is little chance of recouping my money from him. However, there was also an accountant involved, Morris (background: Morris was and still is a close friend of my ex- partner, and Morris was hired by my ex-partner to oversee the transaction. I never had a written agreement with Morris; however, he advised us both by phone and e-mail). Morris stills lives in the US and has a successful accounting firm.

A friend of mine, Henry, who knows Morris well, told me in confidence that (Morris has no knowledge that Henry is feeding me this information), if I wanted to get my money back, I should send a letter to my ex-partner AND Morris claiming/pretending that I had hired a lawyer and that I was filing a lawsuit against BOTH of them (Henry told me that Morris would pay me, and then later turn around a then force his friend, my ex-partner, to pay the money back to him eventually since my ex-partner and Morris have common financial interests).

I should mention here that the reason I am pretending that I have hired lawyers is because I am completely broke, it is a small amount (20,000 dollars), and I am overseas. All this would make it extremely difficult to file a real lawsuit.

The letter basically stated that the Morris was also liable because, although we never had a written agreement and, even though he worked in his capacity as accountant for my ex-partner and not me, he misadvised me leading me into this fraudulent transaction (I have a number of e-mails from him giving me (and my ex-partner) instructions�Henry said there is some kind of conflict of interest going on here), and that he violated the ethics of his profession by being engaged in this fraudulent transaction.

It is a given that the lawsuit is flimsy; however, Morris is quite nervous about being sued as he has also been sued before, and he is worried about any kind of lawsuit (according to Henry). As soon as I sent the letter, Morris told Henry that he was quite nervous about the whole thing, and estimated my damages at 20,000 (Henry again relayed this information to me in confidence). Morris then contacted me and said that he would be referring my claim to his insurance agent. The insurance agent has subsequently contacted me wanting to do an investigation of this claim. Henry has also told me that since the amount is small, $20,000 dollars, the insurance company that insures Morris would probably settle the claim to avoid paying legal fees which would equal or surpass the amount of the money I am claiming.

Question:

1. I am reluctant to talk to the insurance agent investigating this claim because I am worried about how to respond if he asks me for the name of the lawyer, and then asks me for hard documented figures (my friend Henry told me that I would be able to put off giving him the name by telling them that I hadn�t signed the retainer yet). Is there a way to avoid talking to the claims representative? Can I pressure Morris to settle for $18,000 without involving the insurance agent? Or would Morris not do that because he would be out the money for sure?

2. I have estimated the damages as 18,000 to 20,000, but will the insurance agent/investigator accept my figures without verification from a law firm?

3. Shall I mention the illegalities of the transaction? Or just the ill-advice? I think it would be clear by the letter unless Morris hasn�t shown it to his representative. Of course, it implicates me since I was (stupidly and somewhat ignorantly) involved in the transaction as well.

4. If I delay talking to the insurance agent, for a week or two will it hurt my claim?


Asked on 12/04/09, 6:13 am

1 Answer from Attorneys
Deborah Skanadore Reisdorph Skanadore Reisdorph Law Offices

From my experience, the insurance agent would prefer to speak with you without an attorney. If he asks about the attorney, it would be to determine if he is authorized to speak with you, without the attorney, so telling him the attorney retainer is not finalized is perfectly fine. Just know that he must tell you if he is recording any conversation and you do not have to agree to be recorded. hold your position until they get to the dollar amount you want. You should ask for more than $20,000 so that you have some movement room. For example, tell him that your attorney fees are expected to be $5,000 miniumum for just the consultations to date, and so you are demanding $25,000. Plus Fraud includes general damages above the $20,000 for emotional distress in California, so you can easily add dollars for general damages. Be creative . . ask for more and settle for the range you have in mind. YOU CAN DO IT! Good luck

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Answered on 12/09/09, 9:31 am


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