Legal Question in Civil Litigation in Pennsylvania

Atty has one client who sold house to another client. Seller was supposed to pay off prior mortgage with sale proceeds but instead pocketed the funds. Now house has 2 mortgages. Client who took money has disappeared. Can atty report theft to authorities?

In the same matter, atty's paralegal is a former atty who plans to seek bar reinstatement. He knows of these events. What should the former atty do to protect himself?


Asked on 2/01/11, 6:42 pm

1 Answer from Attorneys
Andrew Solomon Law Office of Andrew A. Solomon

The attorney clearly had a conflict of interest in representing both sides of the transaction. Unless the client has waived the conflict, the attorney could have a proble if this was reported to the PA Disciplinary Board.

Not only should the attorney report this theft to the authorities, but the client/buyer should as well.

The former attorney should report this matter to his malpractice insurance carrier (if he has malpractice insurance). Ultimately, that attorney may well be held respnsible for the loss. Under normal circumstances, at settlement, the outstanding balance of the seller should have been paid directly to the mortgage company. from the sellers funds. The fact that this wasn't done, and the lawyer represented both parties, is clearly a problem for the lawyer, and he should probably consult counsel himself.

Read more
Answered on 2/02/11, 7:08 pm


Related Questions & Answers

More General Civil Litigation questions and answers in Pennsylvania