What is the name of your state (only U.S. law)? South Dakota
I apologize if this is in the wrong section and too long but here is the scenario.
I borrowed money from my mother and another investor to purchase an investment property held in a corporation that my wife and I each have 50%. My mother’s mortgage is in first position and the investor is in 2nd position. The property is currently rented but mom isn’t receiving monthly payments.
In a separate deal the corporation and myself (personally) are being sued. My mother was concerned as to whether the lawsuit would put her investment at risk and if needed how would we legally transfer deed to her.
I told her that it should be safe but I’m not a lawyer so, I told her that she should get legal advice and I recommended local lawyer that I have used before but do not have a current relationship with. I was anticipating it would cost her 1-2 hours.
My mother and father went to see this lawyer (without me) and he told her that he needed a check for $2,000.00 which they wrote on the spot. They explained the situation to the attorney and he said he couldn’t advise them until he did a title search.
I talked to my mother after their meeting and she told me that the lawyer said that he couldn’t advise her until he did a title search. This was a bit of a red flag and but we decided to see what the title search showed. About a month later I get served in a law suit from this lawyer on behalf of my mother- my mother and I are on good speaking terms and talk regularly so I was shocked to say the least. As I was reading thru the summons and complaint my mother called me and asked what was going on….. I explained that she was suing me, the county and the investor in second position. The only communication she had with the lawyer was following up with him on the status of the title search. I told her if she wasn’t planning on suing me she needed to talk to the lawyer. According to her, when she called, the attorney seemed confused and would not answer any direct questions and would say things like “it’s in the file” or “I don’t have it in front of me”, which is understandable the first time but then she called back and he wouldn’t/couldn’t answer her questions. However, he continually made derogatory comments about me ( he’s not getting any more referrals) to the point where she couldn’t/wouldn’t talk to him anymore. At this point he had billed her $1,700 for services and still couldn’t get advice.
Up until this point I was intentionally staying out of the conversations between the lawyer that I referred my mother to and my mother, but now she’s back to asking me legal advice because the lawyer won’t give it to her. So, I set a meeting with the attorney and my mother came with. We spent 45 minutes talking to him and he still wouldn’t/couldn’t answer the question “If I get sued can she loser her secured interest in the property?” I asked multiple questions about the foreclosure process, deed in lieu, contents of the title search and about the hours he had billed for and for the most part he dodged every one and threw insults at me where ever he could (though I’m not sure why; must hate referrals). He kept telling me that I had to stay out of it (including that I shouldn’t be talking to my mother or the investor) and then would turn around and say things like “you should have told me that before”. He also told me that I’m not his client she is but my mother has never signed any retainer agreement – only a check. He also mentioned that he had “worked a deal” with the investor and told them that they could sue me if they wanted to also. When I drilled into this he said that he’s not representing them yet so there is no conflict. (Except he’s billing my mom to talk to them.) Today my mother got another bill for another $1,000.
My mom doesn’t really want the house in her name but she wants to make sure that she’s protected. We are now past the 30 days to answer the complaint (neither my corporation nor the investor have answered) and we are wondering what to do and my mom, the corporation nor the investor have or want so spend any more money on a lawsuit.
1) Is there any reason my mom should want the house in her name?
2) Can we get rid of this law suit without a lawyer?
3) What happens if we do nothing?
4) Is there someone like an oversite board for lawyers or state’s attorney we can get advice from?
5) Is it unethical/unlawful to take a $2,000 retainer and not have some written agreement?
6) Is it unethical/unlawful to file a law suit on someone’s behalf without a review or signature?
Thanks in advance.
I apologize if this is in the wrong section and too long but here is the scenario.
I borrowed money from my mother and another investor to purchase an investment property held in a corporation that my wife and I each have 50%. My mother’s mortgage is in first position and the investor is in 2nd position. The property is currently rented but mom isn’t receiving monthly payments.
In a separate deal the corporation and myself (personally) are being sued. My mother was concerned as to whether the lawsuit would put her investment at risk and if needed how would we legally transfer deed to her.
I told her that it should be safe but I’m not a lawyer so, I told her that she should get legal advice and I recommended local lawyer that I have used before but do not have a current relationship with. I was anticipating it would cost her 1-2 hours.
My mother and father went to see this lawyer (without me) and he told her that he needed a check for $2,000.00 which they wrote on the spot. They explained the situation to the attorney and he said he couldn’t advise them until he did a title search.
I talked to my mother after their meeting and she told me that the lawyer said that he couldn’t advise her until he did a title search. This was a bit of a red flag and but we decided to see what the title search showed. About a month later I get served in a law suit from this lawyer on behalf of my mother- my mother and I are on good speaking terms and talk regularly so I was shocked to say the least. As I was reading thru the summons and complaint my mother called me and asked what was going on….. I explained that she was suing me, the county and the investor in second position. The only communication she had with the lawyer was following up with him on the status of the title search. I told her if she wasn’t planning on suing me she needed to talk to the lawyer. According to her, when she called, the attorney seemed confused and would not answer any direct questions and would say things like “it’s in the file” or “I don’t have it in front of me”, which is understandable the first time but then she called back and he wouldn’t/couldn’t answer her questions. However, he continually made derogatory comments about me ( he’s not getting any more referrals) to the point where she couldn’t/wouldn’t talk to him anymore. At this point he had billed her $1,700 for services and still couldn’t get advice.
Up until this point I was intentionally staying out of the conversations between the lawyer that I referred my mother to and my mother, but now she’s back to asking me legal advice because the lawyer won’t give it to her. So, I set a meeting with the attorney and my mother came with. We spent 45 minutes talking to him and he still wouldn’t/couldn’t answer the question “If I get sued can she loser her secured interest in the property?” I asked multiple questions about the foreclosure process, deed in lieu, contents of the title search and about the hours he had billed for and for the most part he dodged every one and threw insults at me where ever he could (though I’m not sure why; must hate referrals). He kept telling me that I had to stay out of it (including that I shouldn’t be talking to my mother or the investor) and then would turn around and say things like “you should have told me that before”. He also told me that I’m not his client she is but my mother has never signed any retainer agreement – only a check. He also mentioned that he had “worked a deal” with the investor and told them that they could sue me if they wanted to also. When I drilled into this he said that he’s not representing them yet so there is no conflict. (Except he’s billing my mom to talk to them.) Today my mother got another bill for another $1,000.
My mom doesn’t really want the house in her name but she wants to make sure that she’s protected. We are now past the 30 days to answer the complaint (neither my corporation nor the investor have answered) and we are wondering what to do and my mom, the corporation nor the investor have or want so spend any more money on a lawsuit.
1) Is there any reason my mom should want the house in her name?
2) Can we get rid of this law suit without a lawyer?
3) What happens if we do nothing?
4) Is there someone like an oversite board for lawyers or state’s attorney we can get advice from?
5) Is it unethical/unlawful to take a $2,000 retainer and not have some written agreement?
6) Is it unethical/unlawful to file a law suit on someone’s behalf without a review or signature?
Thanks in advance.