Legal Question in Legal Malpractice in Maryland

Real Estate Settlement Attorney - Conflict of Interest +

The seller of a property in MD arrives at the Settlement Attorney's(SA) office.The SA eventually presents the seller, in the lobby, with a HUD-1 settlement document that is misdated by one month in the future,and informs her of an anonymous letter from a neighborhood group claiming to have filed a lis pendens against the purchasers of the property.The SA refuses to disburse settlement proceeds in conformance with the contract, and instead insists that the seller execute and deliver the misdated deed and HUD-1, and have his lawfirm record the deed, all before she recieves her disbursement check.When she refuses this highly odd proposition, the settlement does not occur, and she leaves the office. After she leaves, the SA accepts a retainer check from the purchasers to file suit against the seller for specific performance.The settlement attorney's office calls the seller the next business day and proposes that the seller meet a ''runner-girl'' at the courthouse to consummate settlement, without an attorney being present.The seller is never informed that the SA is now representing the purchasers.Later that same day, the seller is served with a specific performance lawsuit, filed by SA.Does she have a case for legal malpractice?


Asked on 4/18/07, 5:49 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Real Estate Settlement Attorney - Conflict of Interest +

No. There was never an attorney-client relationship between the seller and the sa. However, the actions you describe, particularly with respect to the misdated deed and HUD-1, seem unethical, and you may want to see if the Attorney Grievance Commission wants to look into this.

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Answered on 4/19/07, 9:53 am


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