Legal Question in Real Estate Law in California

Real Estate Disclosure Problem & Poor Legal Advise

We purchased our home in July 2001 and within a matter of days,we removed the carpet to replace & we discov.a huge void 2-3'' between the foundtn and the entire rear wall of the home (poorly patched in places w/carpet tacked 4'' from wall). Since the home is on a small hill 1st we hired geo engineer ($1200) who said it wasn't good but was still safe to stay in for now. We discovered from other RE agents empty lots across street were due to mudslide 25 yrs befr. not probate as seller claimed. Hired an attorney,but after $30k nothing to show for it! Not even an 'expert' report on the extent of damage. With 2 wks to court he wants more $$ we don't have.We found out he 'settled' with Broker(same one as seller) for $1k and says we should settle with insp. and seller for $5k ea! Is there any way to keep him from settling? Is it malpractice? Should broker have knowledge of area and disclosed well known issues? We need answers, fast!


Asked on 2/18/04, 7:05 pm

5 Answers from Attorneys

Donald Holben Donald R. Holben & Associates, APC

Re: Real Estate Disclosure Problem & Poor Legal Advise

Not sure how he settled without your approval. Never should happen and you must sign off on settlement terms/agreement.

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Answered on 2/19/04, 1:43 pm
Joel Selik www.SelikLaw.com

Re: Real Estate Disclosure Problem & Poor Legal Advise

He absolutely may not settle without your authority.

If you hire another attorney, unfortunately you will need to pay additional funds, but I certainly would work with you, get proper experts, etc.

Joel Selik

Attorney

Licensed CA Real Estate Broker

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Answered on 2/18/04, 7:18 pm
Scott Schomer Schomer Law Group

Re: Real Estate Disclosure Problem & Poor Legal Advise

Sounds like a mess.

Unless you signed something giving him specific authority, attorneys don't have authority to settle cases on your behalf. If he is counsel of record, he has duty to represent you to the best of his ability. If he demands more money and you won't pay, his only recourse is to file a motion with the court asking for permission to withdraw. If you are two weeks away from trial, it is unlikely that the court would grant such a motion.

While it sounds like you have a claim, there may be good reasons for your attorney's recommendations. For instance, inspectors often have a liability limitation clause in their contract and the settlement offer may be for most or all of the damage limit.

If you don't have confidence in your attorney, try and get a second opinion by interviewing other candidates. Be prepared to provide a retainer, because if you are really two weeks before trial, it may be impossible to get a new attorney to accept the case.

With respect to malpractice, your attorney's actions are judged on a negligence standard. If he failed to take certain actions necessary for your recovery (for instance, retain a critical expert witness to support your case), he may have liability.

Good luck.

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Answered on 2/18/04, 7:20 pm
Larry Rothman Larry Rothman & Associates

Re: Real Estate Disclosure Problem & Poor Legal Advise

You apparently are going to need an expert at trial. Was one desiganted. Also, an attorney has to have your permission to settle. The attorney cannot withdraw from representing you at trial, unless certain circumstances are present.

Please call me at 714 363 0220.

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Answered on 2/18/04, 7:57 pm
Michael Olden Law Offices of Michael A. Olden

Re: Real Estate Disclosure Problem & Poor Legal Advise

Based on your question, wow are you been screwed. No attorney can settle a matter without the consent of the clients. Therefore, any settlement that he has done without your consent is voidable, or, he may be committing substantial malpractice in that regard. The case, while very costly, mate very possibly have malpractice attached but before I could comment on that I would have to review all the documents. There are far more questions that I have that are not set forth in your short question itself. My immediate advice is to see the aid of another attorney but do not fire the first attorney. Make him go to trial until another attorney gives you advice otherwise.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000.

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Answered on 2/23/04, 12:37 pm


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