Monday, December 6, 2010

"Concern For Our Sister Courts In This Commonwealth" Cause PA Bkptcy Judge To Ring Warning Bell Regarding Unreviewed F'closures Filed By Non-Lawyers

In an October 5, 2010 order issued from a U.S. Bankruptcy Court in Pittsburgh, Pennsylvania, Chief Judge Thomas P. Agresti expressed his concerns over certain dubious practices by Philadelphia-based foreclosure mill law firm Goldbeck, McCafferty and McKeever ("GMM") in the following excerpt:

  • During the trial the Court also became aware of some apparently routine practices at GMM that raise issues that cannot be ignored. McKeever testified to a procedure at his firm whereby foreclosure complaints are prepared and filed by non-attorneys and never reviewed by an attorney, even though the “signature” of an attorney appears on the document. 12/8 Tr. at 83-84.

  • This would seem to be a violation of the Pennsylvania Rules of Civil Procedure, which provide that the signature of an attorney on a document filed with a Pennsylvania court is a certification that the document has been read by the attorney. See Pa.R.Civ.P. 1023.1(c).

  • Even though these foreclosure actions are not being filed in this Court and thus do not expose GMM to sanctions, concern for our sister courts in this Commonwealth compel the Court to at least make publicly known what it learned during the trial. Furthermore, often these fundamentally flawed foreclosure actions, form the basis for related relief in this Court should the state court defendant subsequently file a bankruptcy petition. Therefore, the Court is concerned about the continuation of this practice by GMM.(1)

For Chief Judge Agresti's order, see DeAngelis v. Countywide Home Loans, Inc., et al. (In re Hill) (Bankr. W.D. Pa. Oct. 5, 2010 - Memorandum Opinion And Order sanctioning Countrywide).

In a related story, see Thousands of Pennsylvania Foreclosures Could Be on Shaky Ground.

(1) Judge Agresti's ruling is the latest in the ongoing litigation involving Countrywide Home Loans, and alleged fabricated evidence, suspected forgeries, and requests for allegedly improper fees or payments from bankrupt homeowners filed in this and other cases he has overseen. See:

No comments: