Legal Malpractice- Lawyers Overcharging Clients
Susan Stephenson et al. v. Equity Title & Escrow Company, Fearnley & Califf, PLLC, Case No. 06-67 (Dyer Co. Cir, Tennessee 2006)
This class action involved allegations that Defendants unlawfully charged and collected inflated title insurance premiums from approximately 30,000 Tennessee consumers by including a title “commitment fee” of approximately Twenty-Five Dollars ($25.00). Specifically, acting throughout Tennessee as legal counsel and settlement agent for numerous Tennessee home buyers, Defendants charged and collected from Tennessee home buyers premiums for title insurance issued by Lawyers Title which are in excess of the statutory title insurance rates filed by Lawyers Title with the Commissioner of Commerce and Insurance. This case was ultimately settled on behalf of a statewide class and the defendants agreed to pay back twice the amount of the overcharge to each Tennessee consumer.