Legal Question in Legal Malpractice in California
I filed a chapter 7 bankruptcy in 2008 and my attorney at that time failed to file the Homestead on my house which was quickly challenged by the Trustee. The case went to the 9th Circuit Court of Appeals and fortunately was ruled in our favor but cost me ~$25,000 in legal fees, thousands in late fees/penalties to subcontractors as well as the bank who was carrying our construction loan. ~$10,000 of the legal fees are from the original attorney that was negligent. I have not paid his bill and he has since filed a lien on my house preventing me from gaining clear title. I spoke with a malpractice attorney who said the attorney was clearly at fault but the damages (now that I did not loose the house equity) are not large enough to justify a case. I am therefore left in a position where I cannot gain title insurance on my home but seem to have no options to clear this mess up? Any suggestions?
3 Answers from Attorneys
You can demand fee arbitration which would be non-binding unless both parties agree that it should be binding. If that does not resolve the issue to your satisfaction, then you might consider filing a lawsuit for professional negligence and, perhaps, for other issues relating to the attorney's fees.
The attorney's lien on your property might itself be a breach of the attorney's fiduciary duties to you, and might be a breach of the Code of Professional Ethics. Much will depend on how that lien arose - for example, whether you consented to a lien in your written fee agreement, and whether that consent provided a sufficient warning and waiver of the conflict of interest created by that remedy. I suggest that you retain an attorney to look at this issue, and/or contact the California State Bar for a complaint form.
Sue the attorney for malpractice and have him withdraw the lien as a part of settlement. Contact me directly at 619 222-3504 or e-mail me at [email protected]
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