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Judge sanctions creditor's attorney $150K...
Judge Smacks Law Firms & Partner With $150K Sanctions, But Spares 2 Associates Posted Apr 29, 2008, 03:14 pm CDT
By Martha Neil
A federal bankruptcy judge in Massachusetts has sanctioned two law firms and a name partner a total of $150,000 for incorrectly claiming that their client owned a mortgage that had in fact been reassigned at least twice.
Finding that one law firm had information in a client file that contradicted this claim, Judge Joel Rosenthal imposed fines Friday of $100,000 and $25,000, respectively, on Buchalter Nemer, the national counsel, and Ablitt & Charlton, the local counsel in the case, according to the Wall Street Journal Law Blog. He also fined name partner Robert Charlton $25,000and imposed another $500,000 in sanctions against two lenders, according to a court order (PDF provided by Law Blog) concerning a rule to show cause.
Although two associates also signed documents that said Ameriquest held the mortgage, when it didn't, Rosenthal let them off with a scolding:
"The court is mindful that young associates are often not in a position to question the assignments given to them," the judge says in a written opinion (PDF provided by Law Blog). "Because the affidavits are unclear as to what each associate was told when given the assignment, the court will not impose monetary sanctions on [the two associates] but will let this decision serve as a warning that in the future the court expects associates will be cognizant of and fulfill their responsibilities."
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