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TALLAHASSEE, FLA---Are Florida law firms exempt from investigation and prosecution under Florida's Deceptive and Unfair Trade Practices Act?
Florida Attorney General Charlie Crist announced Dec. 6 that his office has sued two Palm Beach County men for unfair and deceptive trade practices stemming from allegations that their cabinet and countertop business took customers' deposits but failed to provide the requested items. The Attorney General's complaint alleges the two men never delivered the promised services. Affidavits from consumers reflect that victims were cheated out of more than $175,000 in deposits.
News Release
Complaint - PDF File
Crist's office says two men are being sued under Florida's Deceptive and Unfair Trade Practices Act, which allows a penalty of $10,000 per violation, or $15,000 if the victim is a senior citizen or disabled adult. The lawsuit also calls for an injunction to be entered against the men, preventing them from conducting any business dealing with counter tops and cabinets, home improvements and the acceptance of advance deposits.
In sharp contrast, Crist's office declined to even investigate Florida attorney Jeffrey R. Hill's report of a law firm's widescale overcharging practices. Hill was employed by the Jacksonville law firm of Farah, Farah & Abbott, P.A. (a/k/a The Law Offices of Eddie Farah) in 2004 when he says he discovered, "The firm was frequently 'padding' costs charged to personal injury clients by $300 or more per case and had been doing so for several years. It overcharged hundreds of unsuspecting clients … and the combined misappropriated funds are estimated at several hundred thousand dollars."
Hill's letter to the AG's office dated Jan. 10 reported the law firm's alleged repeated acts of consumer theft/fraud in the years 2002 through 2004. Letter - PDF File
Hill's letter emphasized, "Given the frequency and duration of [the firm's] overcharging practice, many clients and considerable sums of money are involved in these matters".
Crist's office responded by letter dated Jan. 24, simply identifying the Florida Bar as the agency responsible for reviewing grievances against Florida lawyers. Letter - PDF File
The referenced letters and examples of the firm's overcharging practices are available on Hill's personal web page called Hill's Peek at Hill's Peek Website.
Hill had already reported his concerns over the firm's illicit overcharging practices in September 2004 by letter to Donald M. Spangler, Chief Branch Discipline Counsel for the Florida Bar. Hill said to his surprise, a full year went by with no contact from any representatives of the Bar to investigate his allegations of wide scale fraud and misappropriation of clients' funds by the Farah firm.
The fact Farah's firm overcharged clients by substantial sums is not in dispute, Hill says. Attorney John A. Weiss of Tallahassee represented the law firm's principals, attorneys and brothers Eddie and Chuck Farah, before the Bar. Hill says that Weiss admitted in a Sept. 22 letter to the Bar that the firm overcharged clients, stating "As an aside, I would advise you that the firm has refunded in excess of $120,000 ..., including both principal and interest, to those clients who were inadvertently overcharged for costs. Approximately $10,000 remains undisbursed because the firm, and the private investigator it subsequently hired, could not find the individuals." Letter - PDF File
Hill observes, "that certainly sounds like quite a bit of money to be 'inadvertently overcharged'. It would take overcharging 400 clients by $300 each to reach $120,000."
When Hill followed up with the Bar concerning his reports of the firm's overcharging practices, he said he received a succinct Oct. 27 email from Spangler stating, "The file to which you refer was closed. The grievance committee considered the matter after investigation and an audit by the Bar Staff Auditor, and found there was no probable cause to pursue disciplinary proceedings. They did elect to send a letter of advice to the firm."
Hill says he finds it difficult to fathom how the Florida Bar's grievance committee could reach an informed decision concerning probable cause to pursue disciplinary proceedings without ever even contacting him as the person reporting the misconduct.
He says that what's perhaps even more puzzling is why Attorney General Crist's office is foreclosed from investigating Hill's allegations of consumer fraud by the Farah firm and, if appropriate, prosecuting. Hill says he has yet to research whether law firms are somehow exempt from investigation and prosecution under Florida's Deceptive and Unfair Trade Practices Act. If they are, Hill feels that would be a regrettable loophole that unscrupulous law firms could readily exploit to the public's detriment. 12-16-05
© 2005 North
Country Gazette
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