- A Year After Fla. Foreclosure King’s Law Firm Collapsed, Many Cases are Still Sputtering or Stalled
Real Estate & Property Law
A Year After Fla. Foreclosure King’s Law Firm Collapsed, Many Cases are Still Sputtering or Stalled
Posted Apr 2, 2012 10:53 AM CST
By Martha Neil
A year after an attorney known as Florida's foreclosure king closed his once-mighty law firm, many of the 100,000 cases he reportedly abandoned are still sputtering their way through the legal system or even stalled entirely.
Meanwhile, David J. Stern remains licensed and in good standing. His attorney says he is working with a skeleton team of employees on litigation seeking to collect some $35 million in fees from former clients, reports the Palm Beach Post.
At its height, the firm was grossing around $260 million per year. It was founded in 1994 and collapsed in 2009 after Fannie Mae pulled its files. Soon after that, Stern sent letters to presiding judges saying that he lacked resources to formally withdraw from the cases his law firm was handling.
"I'd say it was unprecedented, especially in the way it was done," Palm Beach County Chief Judge Peter Blanc told the newspaper. His court was left with about 9,000 of Stern's foreclosure cases.
"He just said he wasn't going to represent his clients, which is contrary to the rules of law."
ABAJournal.com: "Law Firm of Fla. ‘Foreclosure King’ to Close; It and Affiliated Company Once Had 1,200 Workers"
ABAJournal.com: "What to Do with 9,000 Abandoned Cases in One County? Chief Judge Isn’t Sure, Researches Options"
ABAJournal.com: "Onetime Foreclosure King Facing Multiple Suits Now Turns to New Venture: Five Guys Burgers and Fries"