1/12/2011 Foreclosure Judges Berate Lawyers - …

HOME PAGE TODAY'S PAPER VIDEO MOST POPULAR TIMES TOPICS Try Times Reader today Log In Register Now Help TimesPeople

Search All NYTimes.com

Business Day
W ORLD U.S. N.Y . / REGION BUSINESS T ECHNOLOGY SCIENCE HEA LT H SPORT S OPINION A RT S ST Y LE T RA V EL JOBS REAL ESTATE AUTOS

Global DealBook Markets Econom y Energy Media Personal Tech Sm all Business Your Money

www.trademe.co.nz/Trade-me-jobs Ads by Google

Advertise on NYTimes.com

Judges Berate Bank Lawyers in Foreclosures Log in to see w hat your friends Log In With Facebook
are sharing on nytimes.com.
By JOHN SCHWARTZ
Privacy Policy | What’s This?
Published: January 10, 2011

With judges looking ever more critically at home foreclosures, they RECOMMEND What’s Popular Now
are reaching beyond the bankers to heap some of their most TWITTER Obam a’s Prom inent
scorching criticism on the lawyers. Rem arks in Chinese Artist’s
SIGN IN TO E-
Tucson Studio Torn
MAIL
Dow n
Enlarge This Image In numerous opinions, judges have PRINT
accused lawyers of processing shoddy SINGLE PAGE
or even fabricated paperwork in
REPRINTS
foreclosure actions when representing
SHARE
the banks.

Judge Arthur M. Schack of New Y ork

State Supreme Court in Brooklyn has
taken aim at an upstate lawyer, Steven
J. Baum, referring to one filing as “incredible, outrageous,
Ozier Muhammad/The New Y ork Times, lef t; ludicrous and disingenuous.”
Julie Glassberg/The New Y ork Times
Judge Arthur Schack, left, of New
York State Supreme Court, called one
But New Y ork judges are also trying to take the lead in
filing “outrageous.” Jonathan Lippman, fixing the mortgage mess by leaning on the lawyers. In
the state’s chief judge, says law yers
must ask clients if their paperw ork is November, a judge ordered Mr. Baum’s firm to pay nearly
sound. $20,000 in fines and costs related to papers that he said
Breaking News Alerts by E-Mail
contained numerous “falsities.” The judge, Scott Fairgrieve
Sign up to be notified w hen important new s breaks.
Multimedia of Nassau County District Court, wrote that “swearing to
The Takeaw ay With John false statements reflects poorly on the profession as a Privacy Policy
Schw artz
whole.”
MOST POPULAR - BUSINESS DAY
More broadly, the courts in New Y ork State, along with
Add to Portfolio E-MAILED BLOGGED VIEWED
Florida, have begun requiring that lawyers in foreclosure
Wells Fargo & Co cases vouch for the accuracy of the documents they 1 . Is Law School a Losing Gam e?
Go to your Portfolio » present, which prompted a protest from the New Y ork bar. 2 . Rising Chinese Inflation to Show Up in U.S. Im ports
The requirement, which is being considered by courts in 3 . Econom ic Scene: The Real Problem With China
other states, could open lawyers to disciplinary actions that could harm or even end 4 . Econom ix: Why So Many Rich People Don’t Feel
Very Rich
careers.
5. Auto Show Outsiders Seek Rebirth

Stephen Gillers, an expert in legal ethics at New Y ork University, agreed with Judge 6. Weather Monitoring Com pany Turns to
Greenhouse Gases
Fairgrieve that the involvement of lawyers in questionable transactions could damage the
7 . Judges Berate Bank Lawy ers in Foreclosures
overall reputation of the legal profession, “which does not fare well in public opinion”
8. Itineraries: Sneeze-Free Zone
throughout history. 9. Film Studio Born of Com ic Books Grabs Holly wood’s
Attention
“When the consequence of a lawyer plying his trade is the loss of someone’s home, and it 1 0. Flex Tim e Flourishes in Accounting Industry
turns out there are documents being given to the courts that have no basis in reality, the
Go to Complete List »
profession gets a very big black eye,” Professor Gillers said.

The issue of vouching for documents will undoubtedly meet resistance by lawyers
elsewhere as it has in New Y ork.
nytimes.com/2011/01/…/11lawyers.ht… 1/3
1/12/2011 Foreclosure Judges Berate Lawyers - …

Anne Reynolds Copps, the chairwoman of the real property law section of the New Y ork
State bar, said, “We had a lot of concerns, because it seemed to paint attorneys as being
the problem.” Lawyers feared they would be responsible for a bank’s mistakes. “They are
relying on a client, or the client’s employees, to provide the information on which they are
basing the documents,” she said.

The role of lawyers is under scrutiny in the 23 states where foreclosures must be reviewed
by a court. The situation has become especially heated for high-volume firms whose
practices mirror the so-called robo-signing of some financial institutions; in these cases, The New Yorker confidential
ALSO IN OPINION »
documents were signed without sufficient examination or proper notarization. Goldman's mutual friend
Does one word change 'Huckleberry Finn'?
In the most publicized example, David J. Stern, a lawyer whose Florida firm has been part
of an estimated 20 percent of the foreclosure actions in the state, has been accused of filing
sloppy and even fraudulent mortgage paperwork. Major institutions have dropped the
ADVERTISEMENTS
firm, which has been the subject of several lawsuits, and 1,200 of the 1,400 people once at
the firm are out of work.
Fi n d y ou r dream h om e wi th
Th e N ew Y ork Ti m es Real Estate
The Florida attorney general’s office is conducting a civil investigation of Mr. Stern’s firm
and two others.
Fan Th e N ew Y ork Ti m es on
Facebook
“There’s been no determination” in a court that Mr. Stern or his employees “did wrong
things, said Jeffrey Tew, Mr. Stern’s lawyer, adding that the impact was nevertheless
Th e n ew i ssu e of T i s h ere
devastating.
See th e n ews i n th e m aki n g. Watch
“There are groups in society that everybody likes to hate,” Mr. Tew added. “Now Ti m esCast, a dai l y n ews v i deo.
foreclosure lawyers are on the list.”

Such concerns have, in recent months, brought a sharp focus on activities in New Y ork
State, and in particular on the practice of Mr. Baum, a lawyer in Amherst, outside Buffalo.
Judges have cited his firm for what they call slipshod work that, in some cases, was
followed by the dismissal of foreclosure actions.

One case involved Sunny D. Eng, a former manager of computer systems on Wall Street.
He and his wife, who has cancer, stopped paying the mortgage on their Holtsville, N.Y .,
home after Mr. Eng’s Internet services business foundered. The mortgage was originally
held by the HTFC Corporation, but the foreclosure notice came from Wells Fargo, a bank
that the Engs had no relationship with. They hired an experienced foreclosure defense
lawyer on Long Island, Craig Robins. The court ultimately ruled in favor of Mr. Eng.

1 2 NEXT PAGE »

A version of this article appeared in print on January 11, 2011, on page

A1 of the New York edition.

Get the full newspaper experience, and more, delivered to your Mac or PC. Times
Reader 2.0: Try it FREE for 2 full weeks. SIGN IN TO E-
MAIL
Advertise on NYTimes.com
PRINT

SINGLE PAGE Ads by Google what's this?

REPRINTS
Home Foreclosures in USA
Ads by Google what's this? Buy foreclosed Property in the USA
Now. Guarnateed High Yield Returns
Home Foreclosures in USA CashflowGold.com
Buy foreclosed Property in the USA
Now. Guarnateed High Yield Returns
CashflowGold.com

Get Free E-mail Alerts on These Topics

Foreclosures

Legal Profession

nytimes.com/2011/01/…/11lawyers.ht… 2/3
1/12/2011 Foreclosure Judges Berate Lawyers - …
New York State Bar Assn

New York State

INSIDE NY TIMES.COM

BUSINESS » ART & DESIGN » OPINION » DINING & WINE » OPINION » SPORTS »

More Guns,
Less Crime?
A Room for Debate
forum on why the
shootings in Arizona
have not led to calls for
more gun control.

The Real Problem With Elusiv e Art Forger Giv es Cabbage’s Sweet Side Op-Ed: An Arm ed and Cam by Knows What the
China but Nev er Steals Dangerous Congress Knicks Are Missing

Home World U.S. N.Y. / Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top

© 2011 The New York Times Company Privacy Your Ad Choices Terms of Service Corrections RSS First Look Help Contact Us Work for Us Advertise Site Map

nytimes.com/2011/01/…/11lawyers.ht… 3/3
1/12/2011 Foreclosure Judges Berate Lawyers - …

HOME PAGE TODAY'S PAPER VIDEO MOST POPULAR TIMES TOPICS Try Times Reader today Log In Register Now Help TimesPeople

Search All NYTimes.com

Business Day
W ORLD U.S. N.Y . / REGION BUSINESS T ECHNOLOGY SCIENCE HEA LT H SPORT S OPINION A RT S ST Y LE T RA V EL JOBS REAL ESTATE AUTOS

Global DealBook Markets Econom y Energy Media Personal Tech Sm all Business Your Money

Advertise on NYTimes.com

Judges Berate Bank Lawyers in Foreclosures Log in to see w hat your friends Log In With Facebook
are sharing on nytimes.com.
Published: January 10, 2011
Privacy Policy | What’s This?

(Page 2 of 2) RECOMMEND
What’s Popular Now
TWITTER
“Y ou want to call it God, you can call it God,” Mr. Eng said. “Y ou Obam a’s Prom inent
SIGN IN TO E- Rem arks in Chinese Artist’s
want to call it luck, you can call it luck. We just followed the system, MAIL
Tucson Studio Torn
and thank God the system worked.” PRINT Dow n

SINGLE PAGE
Through a spokesman, Mr. Baum
Multimedia REPRINTS
said, “The foreclosure process in New Ads by Google what's this?
The Takeaw ay With John Y ork State is extremely complex and SHARE
Schw artz Hotels in New York City
subject to extensive judicial review. We Affordable Luxury in New York City. Call 800-661-731.
believe this review respects the due Book today!
www.CrownePlaza.com
Add to Portfolio process of anyone who challenges a
10 Keys to Short Selling
Wells Fargo & Co
foreclosure. Consumer activists and Do you want to start Short Selling? This Free report will
attorneys representing homeowners have their own agenda show you how.
Go to your Portfolio » MoneyMorning.com/Short_Selling_Keys
in this process, including degrading the legal work we
conduct on behalf of our clients by using terms like USA Property Club Sydney
Australia's #1 USA Real Estate Club Learn How to Buy
’foreclosure mill,’ which I find personally and professionally insulting.” USA Foreclosures
www.USAPropertyClub.info

He added, “What is important now is that all parties attempt to work together to resolve Advertise on NYTimes.com
issues amicably. The barrage of accusations and litigation does little to help the underlying
problems.” Personal Tech E-Mail
Sign up for David Pogue's exclusive column, sent every
Cases across the nation like Mr. Eng’s have led New Y ork’s judicial system to take a hard Thursday.
look at the 80,000 pending foreclosures in the state and demand that the paperwork be
sound, said the state’s chief judge, Jonathan Lippman. “Knowing what we know, our only See Sample | Privacy Policy

option — at least from my perspective — is to turn to the lawyers who are officers of the
MOST POPULAR - BUSINESS DAY
court and say, ’Y ou’d better go to your clients and find out if these cases are real,’ ” he said.
E-MAILED BLOGGED VIEWED

The court devised a two-page affirmation to be signed by lawyers in foreclosure actions 1 . Is Law School a Losing Gam e?
saying they had reviewed the documents and had “confirmed the factual accuracy” of any 2 . Rising Chinese Inflation to Show Up in U.S. Im ports
allegations with the clients. 3 . Econom ic Scene: The Real Problem With China
4 . Econom ix: Why So Many Rich People Don’t Feel
Ann Pfau, deputy chief administrative judge for New Y ork State, who has worked directly Very Rich
with the state bar to carry out the plan, said, “We need to know that this is a court process 5. Auto Show Outsiders Seek Rebirth
that has some integrity.” 6. Weather Monitoring Com pany Turns to
Greenhouse Gases
Judge Pfau said, “If you can’t get good information, you shouldn’t be filing the cases in the 7 . Judges Berate Bank Lawy ers in Foreclosures
first place.” 8. Film Studio Born of Com ic Books Grabs Holly wood’s
Attention
To address some lawyer concerns, the judiciary issued a modified version of the 9. Itineraries: Sneeze-Free Zone

affirmation in November but said that the alterations were minor. In the end, the lawyers 1 0. A Warning as Markets Cool in Asia

are vouching for their filing, Judge Pfau said. “They are absolutely still on the hook.” Go to Complete List »

While lawyers are being implicated as part of the problem, they should also be part of the
solution, said Stephen P. Y ounger, the president of the New Y ork State Bar Association,

nytimes.com/2011/01/…/11lawyers.ht… 1/2
1/12/2011 Foreclosure Judges Berate Lawyers - …
which has not taken an overall position on the foreclosure matter. Foreclosure defense
lawyers, he noted, have led court proceedings to throw out flawed cases.

“The real problem is that there are thousands and thousands of people who are
unrepresented by lawyers,” Mr. Y ounger said.

« PREVIOUS PAGE 1 2

A version of this article appeared in print on January 11, 2011, on page

A1 of the New York edition.
The New Yorker confidential
Get the full newspaper experience, and more, delivered to your Mac or PC. Times ALSO IN OPINION »
Reader 2.0: Try it FREE for 2 full weeks. SIGN IN TO E- Goldman's mutual friend
MAIL Does one word change 'Huckleberry Finn'?
PRINT

SINGLE PAGE

REPRINTS ADVERTISEMENTS

Ads by Google what's this?

Fi n d y ou r dream h om e wi th
Th e N ew Y ork Ti m es Real Estate
Home Foreclosures in USA
Buy foreclosed Property in the USA
Fan Th e N ew Y ork Ti m es on
Now. Guarnateed High Yield Returns Facebook

CashflowGold.com
Th e n ew i ssu e of T i s h ere

Get Free E-mail Alerts on These Topics

See th e n ews i n th e m aki n g. Watch
Ti m esCast, a dai l y n ews v i deo.
Foreclosures

Legal Profession

New York State Bar Assn

New York State

Ads by Google what's this?

Personal Loan - GE Money

Get a Verbal Confirmation in 1 hr.
Apply for a GE Personal Loan Now!
www.GEMoney.co.nz

INSIDE NY TIMES.COM

BUSINESS » ART & DESIGN » OPINION » DINING & WINE » OPINION » SPORTS »

More Guns,
Less Crime?
A Room for Debate
forum on why the
shootings in Arizona
have not led to calls for
more gun control.

The Real Problem With Elusiv e Art Forger Giv es Cabbage’s Sweet Side Op-Ed: An Arm ed and Cam by Knows What the
China but Nev er Steals Dangerous Congress Knicks Are Missing

Home World U.S. N.Y. / Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top

© 2011 The New York Times Company Privacy Your Ad Choices Terms of Service Corrections RSS First Look Help Contact Us Work for Us Advertise Site Map

nytimes.com/2011/01/…/11lawyers.ht… 2/2