In re Leff

213 A.D.2d 11, 630 N.Y.S.2d 372, 1995 N.Y. App. Div. LEXIS 8674
CourtAppellate Division of the Supreme Court of the State of New York
DecidedAugust 14, 1995
StatusPublished
Cited by2 cases

This text of 213 A.D.2d 11 (In re Leff) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Leff, 213 A.D.2d 11, 630 N.Y.S.2d 372, 1995 N.Y. App. Div. LEXIS 8674 (N.Y. Ct. App. 1995).

Opinion

[12]*12OPINION OF THE COURT

Per Curiam.

In this proceeding, the respondent was charged with 17 allegations of professional misconduct. The respondent was originally charged with 18 allegations but Charge Sixteen was withdrawn by the petitioner. The Special Referee sustained Charges One, Three, Four, Five, Six, Seven, Eight, Eleven, Twelve, Thirteen, Fourteen, Fifteen, and Seventeen. The Special Referee did not sustain Charges Two, Nine, Ten, and Eighteen. The petitioner moves to confirm the report of the Special Referee with respect to the charges that were sustained and to disaffirm the report of the Special Referee insofar as it did not sustain four charges. The respondent cross-moves to disaffirm the report of the Special Referee insofar as it sustained 13 charges and to confirm the report of the Special Referee insofar as it did not sustain four charges.

The 17 charges are based on the following factual allegations.

1. On or about December 18, 1986, the respondent represented Ralph Grosso, Jr. and Jacqueline Grosso, his wife, in the purchase of a condominium located at 382 Sprague Avenue, Staten Island, New York.

2. On or about June 23, 1987, the respondent represented Ralph Grosso, Sr. and Ida Grosso, his wife, in the refinance of their home, located at 1561 59th Street, Brooklyn, New York. A $150,000 mortgage was obtained from the Dime Savings Bank of New York.

3. On or about July 8, 1987, the respondent represented Ralph Grosso, Sr. and Ida Grosso, his wife, in the purchase of a condominium located at 374 Sprague Avenue, Staten Island, New York.

4. In or about March 1988, an agreement was entered into between Fairmount Development Corporation, of which the respondent was a principal, and "Ralph Grosso, Jacqueline Grosso and Ida Grosso”. The agreement provided that Fair-mount would:

a) pay the carrying costs on the two units owned by the Grosses, including the mortgage payments on the Grosses’ home in Brooklyn, an equity line of credit, real estate taxes, and common charges;
b) be in control of renting the units and collect the rents thereon;
[13]*13c) be in control of selling the two units;
d) guarantee a purchase price of $292,000 for the two units and $146,000 for each unit individually; and
e) be entitled to any difference between the actual sale price of the units and the guaranteed price.

5. The agreement was signed by the respondent as the authorized representative of Fairmount Development Corporation.

6. Fairmount Development Corporation failed to make all of the payments as required by the agreement.

7. On or about August 9, 1988, the respondent represented Ralph Grosso, Jr. and Jacqueline Grosso, his wife, in the sale of the condominium located at 382 Sprague Avenue, Staten Island, New York.

8. The respondent appeared as a principal of Fairmount Development Corporation in this transaction.

9. At the August 9, 1988 closing, the purchaser of 382 Sprague Avenue delivered to Fairmount a $13,000 mortgage, representing the difference between the sale price of $159,000 and the $146,000 received by the Grosses.

10. On or about June 19, 1989, pursuant to a written agreement prepared by the respondent, a real estate transaction was entered into between "Maria Vono and Frank Vono, Ralph Grosso and Ida Grosso” wherein:

a) the deed to 374 Sprague Avenue was conveyed to Frank and Maria Vono;
b) the Grosses took back an unrecorded $146,000 mortgage which was to run for six months;
c) the $146,000 unrecorded mortgage was to be subordinate to a $40,000 recorded mortgage;
d) in the event that Frank Vono failed to pay off the $146,000 mortgage in six months, the Grosses would have the right to record the mortgage as a lien against the property and charge Frank Vono for the mortgage recording tax;
e) Frank Vono was to be responsible, during the six-month period, to make the mortgage payments to the Dime on the Grosses’ Brooklyn home; and
f) the Grosses released Fairmount from its obligation to make any further payments and from all liability.

11. On or about June 19, 1989, a second agreement, prepared by the respondent, was entered into between "Ralph [14]*14Grosso, Ida Grosso, and Frank Vono and Marie Vono” which stated that:

a) the parties had negotiated the agreement and did not need to be represented by independent counsel;
b) the respondent had been requested by the parties to prepare the documents and had not been retained by any of the parties;
c) the parties had reviewed the documents prepared by the respondent and had determined that they were in conformity with their understanding;
d) the respondent was to be held harmless from all liability to any of the parties; and
e) the respondent was acting solely as a translator who was translating the agreement from the verbal wishes of the parties to the paper format.

12. At the June 19, 1989 closing, the lenders, Santoro and Volpe, were represented by Joseph Carmine, Esq.

13. The respondent prepared the mortgage and note, the deed; and other documents necessary to record the deed, including the transfer tax forms and nonmultiple dwelling affidavit for the June 19, 1989 closing. At the closing, the respondent explained to the Grossos and Vonos the forms being signed and collected reimbursement for the stamps on the deed. The respondent recorded the deed.

14. The deed was signed by Ralph Grosso, Jr., and notarized by the respondent.

15. The respondent appeared at the closing on behalf of Flagg Abstract, of which he is the sole principal, and put together the documents received from the title examiner.

16. The respondent appeared at the June 19, 1989 closing as a principal of Fairmount Development Corporation.

17. The respondent failed to instruct the Grossos on the necessity for recording the mortgage and failed to advise them that their unrecorded $146,000 mortgage would be subordinate to subsequent recorded mortgages on 374 Sprague Avenue. The $146,000 mortgage was not recorded.

18. On or about June 19, 1989, a $40,000 mortgage was obtained from the Vonos, by Frank Santoro and Nicholas Volpe, on 374 Sprague Avenue. The mortgage was recorded with the Richmond County Clerk.

19. On or about August 15, 1989, a $30,000 mortgage was obtained from the Vonos, by Frank Santoro and Nicholas [15]*15Volpe, on 374 Sprague Avenue. The mortgage was recorded with the Richmond County Clerk.

20. On or about September 27, 1989, a $108,000 mortgage was obtained from the Vonos, by Citibank, on 374 Sprague Avenue. The mortgage was recorded with the Richmond County Clerk. The proceeds of the mortgage were used to satisfy the mortgages obtained by Santoro and Volpe on June 19, 1989 and August 15, 1989.

21. The respondent represented the Vonos at the closing on the September 27, 1989 mortgage.

22.

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Related

Schweizer v. Mulvehill
93 F. Supp. 2d 376 (S.D. New York, 2000)
In re Leff
268 A.D.2d 37 (Appellate Division of the Supreme Court of New York, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
213 A.D.2d 11, 630 N.Y.S.2d 372, 1995 N.Y. App. Div. LEXIS 8674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-leff-nyappdiv-1995.