Posted Apr 28, 2011 11:00 pm CDT
A South Florida law firm known for its high volume of mortgage foreclosure work is making another 146 layoffs as part of a plan to exit the practice area.
Ben-Ezra & Katz had nearly 600 employees at one time, but made 280 layoffs earlier this year after losing Fannie Mae business over concerns about the way the firm handled foreclosure cases, the Palm Beach Post reports. The article doesn’t say how many lawyers are among those laid off.
Although the firm will no longer do foreclosure work, it plans to continue a boutique real estate practice.
The article also notes that the firm plans to oversee an orderly transition of its foreclosure cases, which once numbered around 15,000, to other counsel.
As detailed in an earlier ABAJournal.com post, the shutdown of the state’s largest foreclosure firm, the Law Offices of David J. Stern, has been chaotic, as he simply mailed letters to chief judges listing his approximately 100,000 cases and saying he lacked the staff to withdraw in a standard manner.
ABAJournal.com: “Judge Axes Foreclosure, Bans Do-Over, Holds Lawyer in Contempt; Fannie Mae Pulls Files from Firm”
ABAJournal.com: “Layoffs of Hundreds Follow Foreclosure Firm’s Loss of Fannie Mae Files”
ABAJournal.com: “Fed’l Judge Says Chase Must Post $4M Surety Bond to Get Its Foreclosure Files Back From Law Firm”
ABAJournal.com: “Suit Says Ben-Ezra Law Firm Was In Network Paying Kickbacks for Foreclosure Cases”