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March 11, 2005

Poor Diligencing of Defendants

Real estate closing costs are a tangled mess, so I’m generally happy to see some consumer protection litigation over them. One case involved a $60 “fax fee” charged by title companies. The lawyers try to form a class action against the title companies for charging these fees. Only problem? One of the plaintiff’s lawyers also owns a title company that’s named as a defendant. While that seems to violate a number of ethics rules, incredibly the judge doesn’t disqualify him from the lawsuit. Irrespective of the litigation conflicts, I wonder if the lawyer got appropriate waivers for doing business with his client (representing home buyer as attorney when home buyer chose the title company owned by the attorney).

Posted by Eric at March 11, 2005 09:30 AM | Legal Industry