Did not sign a representation contract with this attorney
Okay, here goes. I had an equal (50/50) partner in three real estate transactions. All three were vacant land parcels and we purchased these three tracts (at $127,000, $76,000 and $52,000) going in with the idea we would hold them for 5 to 10 years and then sell them (land has been appreciating outside of Atlanta at a phenomenal rate and in 5 to 10 years we would most likely be able to double our investment in the Gwinett County area). My partner turned out to be a real bum and I ended up footing the mortgages and taxes on all three pieces of property (I didn’t want my credit to go to Halifax).
After much dunning, "good ole pardner" came to me with a “deal” that 1) He would catch up (pay me) the payments and taxes he had skipped that were his share in two equal installments spaced six months apart. 2) We agreed to deed two parcels (the $76,000 one and the $52,000 one) over to him completely and the other one (the $127,000 one) over to me completely at the prices we paid for each. This was to take some of the mortgage load off of both of us as since we were co-signers, the entire amounts of the debts were on each of our credit. The mortgages were also refinanced in our respective names. 3) Additionally, within this new contract it was spelled out that if/when we sold our parcels of land, the profit on each of the three tracts (amount above the original price) would be split between both of us equally as/when/if they were sold. There was no time limit on selling these parcels. (Indeed, I plan on holding onto mine until it at least doubles in value – that was the original plan.) This contract was negotiated and written by my attorney (at my expense, of course).
And of course "good ole pardner" never paid a dime on the payment plan (Item #1) either. I went to court and sued him for the back payments and taxes he owed me (plus interest) and won a judgment. I did this MYSELF and had no legal representation at that point, it was pretty cut and dried and "good old pardner" defaulted on everything (never filed an answer to the complaint nor showed up in court). So I obtained this judgment myself. It was in the amount of $8,036.79. He never paid the judgment (so far, he is batting 1000) and I executed the judgment against both the parcels he owned.
Well, low and behold, he sold one of his parcels approximately six weeks ago for $15,000 above what we paid for it. This is when I retained my attorney on a 1/3 cut basis because I knew this was going to get sticky. Under the previous contract I was entitled to ½ or $7,500 of the profit. Also, "good ole pardner" had a problem: since I had executed the judgment against his parcels, the title company would not write the title insurance until that judgment had been cleared.
This is where I get upset with my attorney. The closing attorney contacted my attorney and told him to give him a “number” to get the judgment cleared so the title could be transferred. My attorney came back to me and told me that they wanted to “settle”. I said good, they can go down to the Clerk of Courts and see how much interest the judgment had accrued and pay off the $8,036.79 judgment plus interest, plus the $7,500 (my part of the profit). That’s what I would “settle” for.
My attorney said that there is no way they will “settle” for that – What I didn’t understand, what’s to “settle”? It seemed pretty cut and dried to me! $15,036.79 plus the interest on the judgment would get "good ole pardner" his parcel cleared for the title company. I made it clear to my attorney AT THAT POINT, that I would NOT “settle” for less and I would NOT give up my right (under the original contract) to sue him for my share of the profit if/when he sold the second tract. I made these two points VERY, VERY clear and they are in writing to my attorney.
I get a call this week from my attorney with GOOD NEWS, he has a cashier’s check from the closing attorney for the SETTLEMENT! I said what do you mean, you “settled”? Well he cut a deal that the partner is going to pay off the judgment plus interest. I said, “that’s it? No ½ profit from the sale?” My attorney said, “yes, and I worked hard to get us the judgement amount” -- Worked hard, my foot! -- this attorney didn't even obtain that judgment in the first place. In addition, within this settlement, my attorney waived my right to sue this jerk on down the road when he sells the second parcel. My attorney claims that he did this to “protect” me if/when I sell my parcel. I don’t need “protecting” and I never asked for that. I might never sell my tract, I might sell it tomorrow, but that was never even discussed as being part of the “deal”.
I hit the ceiling and told my attorney to dare not deposit the “settlement” check and to not release the judgment. He told me that he had already signed everything for me and that he had deposited the settlement check in his escrow account (of course he took a third for himself).
I am FROSTED! And as a side note, I never signed a “contract” for representation with this attorney on this case. It was a verbal agreement that he work on a 1/3 contingency.
I have not deposited the check he cut me out of his escrow account and I have sent him a letter that I am not going to deposit it and this was not a settlement I would have ever agreed to. I never even got to review a copy of this settlement prior to his “signing everything for me”.
Do I sue my attorney now?
