The Florida Bar v. Van Stillman, 76066

• Decision Date: 01 October 1992
• Docket Number: No. 76066,76066
• Citation: 606 So.2d 360
• Parties: 17 Fla. L. Week. S607 THE FLORIDA BAR, Complainant, v. L. VAN STILLMAN, Respondent.
• Court: Florida Supreme Court

Page 360

606 So.2d 360

17 Fla. L. Week. S607

THE FLORIDA BAR, Complainant, v. L. VAN STILLMAN, Respondent.

No. 76066.

Supreme Court of Florida.

Oct. 1, 1992.

John F. Harkness, Jr., Executive Director and John T. Berry, Staff Counsel, Tallahassee, and David M. Barnovitz, Bar Counsel, Fort Lauderdale, for complainant.

John A. Weiss, Tallahassee, for respondent.

PER CURIAM.

This cause is before the Court on complaint of The Florida Bar for consideration of the referee's findings and recommendation that attorney L. Van Stillman be disciplined for ethical violations. We have jurisdiction. Art. V, Sec. 15, Fla. Const.

The referee entered detailed findings of fact. At the times in question, Stillman acted as counsel to the Greater New York Mortgage Co. during a real estate transaction. In this transaction, Joel B. Tag was purchasing from Southeast Development of Palm Beaches, Inc., a residence and lot located in Lantana. Greater New York was providing financing. The contract was contingent upon Tag securing a first mortgage loan in the principal sum of $56,250.00. Stillman's written instructions from Greater New York specified that there could be no secondary financing.

When the contract was made, the Lantana property was subject to an existing mortgage lien of $33,000.00 in favor of Lea Bruschi. Stillman secured an assignment of the Bruschi note and mortgage in favor of the seller, Southeast. Tag executed a purchase money second note and mortgage in favor of Bruschi. This document had been prepared by Stillman. Stillman also obtained Tag's signature on a Fannie Mae affidavit stating that there was no subordinate financing.

Title was closed on June 13, 1988. The settlement statement prepared by Stillman stated that Tag had paid $23,804.92 in cash to cover the balance due on the purchase price, borrower's costs, and adjustments. In fact, no such cash was produced or collected at closing, resulting in an overall disparity of $9,195.08.

On or about July 18, 1988, Stillman issued a mortgage title insurance policy to the lender in the amount of $56,250.00. This policy failed to disclose the existence of the Bruschi note and mortgage, which was recorded on or about August 2, 1988. Ultimately, the Tag mortgage went into default and foreclosure.

With regard to the foregoing, the referee found that Stillman had violated the following provisions of the Rules Regulating The Florida Bar: Rule 3-4.3 (acts contrary to honesty); Rule 4-8.4(a) (acts contrary to the Rules of Professional Conduct); and Rule 4-8.4(c) (acts of deceit or misrepresentation). The referee further found that Stillman joined with Tag in perpetrating a deceit. The referee found this to be a violation of Rule 3-4.3 (acts contrary to honesty); Rule 4-8.4(a) (acts contrary to the Rules of Professional Conduct); and Rule 4-8.4(c) (acts of deceit or misrepresentation).

Also in 1988, Stillman acted as counsel to Greater New York in a separate real estate transaction. L & M Management of the Palm Beaches, Inc., was selling a $170,000.00 residence and lot located in Plantation. The purchaser was Rory D. Kaiser. The sale was contingent upon Kaiser securing a $127,500.00 first mortgage loan. Greater New York agreed to provide this financing.

Once again, the written instructions to Stillman were that no secondary financing would be allowed. Stillman secured the buyer's signature on a Fannie Mae form stating that no subordinate financing existed. However, this was not true. In actuality, Stillman prepared and Kaiser signed two subordinate notes and mortgages. One was in the principal amount of $55,937.97 in favor of H.S. Sibia and Dr. Manjit Kaur Sibia. The other was in the principal amount of $13,500.00 in favor of the seller, L & M.

Stillman closed title on August 8, 1988. The settlement statement he prepared stated that Kaiser had produced a cash sum of $50,314.22 to pay the balance due, borrower's costs, and adjustments. In fact, no cash was produced or collected. The resulting disparity from the settlement statement was $12,162.65.

On or about August 25, 1988, Stillman issued a mortgage title insurance policy to Greater New York in the amount of $127,500.00. The policy failed to disclose the existence of the second and third purchase money notes and mortgages. Later, the Kaiser mortgage went into default and foreclosure.

With regard to the foregoing, the referee found that Stillman had violated: Rule 3-4.3 (acts contrary to honesty); Rule 4-8.4(a) (acts contrary to the Rules of Professional Conduct); and Rule 4-8.4(c) (acts of deceit or misrepresentation). The referee further found that Stillman joined with Kaiser in perpetrating a deceit and that Stillman thereby had violated: Rule 3-4.3 (acts contrary to honesty); Rule 4-8.4(a) (acts contrary to the Rules of Professional Conduct); and Rule 4-8.4(c) (acts of deceit or misrepresentation).

In 1987 or 1988, Stillman acted as counsel to Greater New York on a separate real estate transaction. Kathleen White had agreed to buy property in Palm Beach County for $182,000.00. The seller was Lance Lovejoy. The sale was contingent upon mortgage financing in the principal sum of $135,000.00. Once again, Greater New York instructed Stillman in writing that no secondary financing would be allowed.

At the time the contract was signed, the property was encumbered by an existing mortgage lien in the amount of $40,000.00 in favor of John and Donna Maggard. Stillman prepared, executed, and recorded a satisfaction of mortgage. He also prepared, and White signed, a Fannie Mae affidavit reciting that there was no secondary financing.

In actuality, Stillman prepared two subordinate mortgage agreements. The first, in favor of the Maggards, was for $25,000.00. The second, in favor of Susan Blair-Sheets, was for $5,000.00.

Stillman closed title on January 12, 1988. The settlement statement said that White had paid a cash sum of $51,747.58 toward the balance due, borrower's costs, and adjustments. In actuality, this sum could not have exceeded $21,747.58. The result was a disparity from the settlement statement in the same amount.

On or about January 21, 1988, Stillman issued a mortgagee title insurance policy for $135,000.00. This policy failed to disclose the second and third mortgages. Later, the White mortgage went into default and foreclosure.

With regard to the foregoing, the referee found that Stillman had violated: Rule 3-4.3 (acts contrary to honesty); Rule 4-8.4(a) (acts contrary to the Rules of Professional Conduct); and Rule 4-8.4(c) (acts of deceit or misrepresentation). The referee also found that Stillman had joined with White and others to perpetrate a deceit. This resulted in separate violations of: Rule 3-4.3 (acts contrary to honesty); Rule 4-8.4(a) (acts contrary to the Rules of Professional Conduct); and Rule 4-8.4(c) (acts of deceit or misrepresentation).

In 1987, Wanda A. Godfrey entered into an agreement with Lance Lovejoy whereby the latter agreed to sell Godfrey a $75,000.00 parcel located in North Lauderdale. Sale was contingent upon Godfrey obtaining a first mortgage loan in the principal amount of $54,000.00. Greater New York agreed to provide this amount, and retained Stillman as closing agent. Once again, Greater New York specified in writing that there would be no subordinate financing.

At the time the agreement was made, the property was encumbered with a mortgage lien of $49,000.00 in favor of...