- Chase Sues Its Former Foreclosure Counsel, Seeks Turnover of Files in $400M Worth of Cases
Chase Sues Its Former Foreclosure Counsel, Seeks Turnover of Files in $400M Worth of Cases
Posted Mar 28, 2011 2:59 PM CST
By Martha Neil
Saying that its former mortgage foreclosure counsel, Ben-Ezra & Katz, has effectively called a halt to some $400 million in litigation by refusing to turn over the case files, Chase Home Finance is suing the law firm in federal court in Florida.
At issue is approximately $5 million in unpaid fees that the law firm contends is due, according to the Palm Beach Post.
Chase disputes the alleged debt but has offered to post a $2.8 million bond and says its contract with the law firm requires immediate turnover of the file when the representation ends.
"Without the Chase files, especially the original executed promissory notes and mortgages, Chase cannot proceed with, transfer, or conclude any of the cases," the suit states. "Moreover, the original, executed promissory notes and mortgages securing Chase's interests cannot be reproduced."
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"