The Florida Bar v. Hughes

824 So. 2d 154, 27 Fla. L. Weekly Supp. 680, 2002 Fla. LEXIS 1477, 2002 WL 1476284
CourtSupreme Court of Florida
DecidedJuly 11, 2002
DocketSC01-617
StatusPublished
Cited by2 cases

This text of 824 So. 2d 154 (The Florida Bar v. Hughes) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Florida Bar v. Hughes, 824 So. 2d 154, 27 Fla. L. Weekly Supp. 680, 2002 Fla. LEXIS 1477, 2002 WL 1476284 (Fla. 2002).

Opinion

824 So.2d 154 (2002)

THE FLORIDA BAR, Complainant,
v.
Robert E. HUGHES, Sr., Respondent.

No. SC01-617.

Supreme Court of Florida.

July 11, 2002.

*155 R. Lee Bennett, Chair, Standing Committee on Unlicensed Practice of Law, John F. Harkness, Jr., Executive Director, and Loris S. Holcomb, Unlicensed Practice of Law Counsel, Tallahassee, FL; and Loretta Comiskey O'Keeffe, Branch Unlicensed Practice of Law Counsel, Tampa, FL, for Complainant.

Robert E. Hughes, Sr., pro se, Clearwater, FL, for Respondent.

PER CURIAM.

We have for review a referee's report recommending that Robert E. Hughes, Sr., be found guilty of indirect criminal contempt for engaging in the unlicensed practice of law in violation of this Court's injunction issued in Florida Bar v. Hughes, 697 So.2d 501 (Fla.1997), and also recommending that Hughes be incarcerated for five months. We have jurisdiction. See art. V, § 15, Fla. Const. For the reasons that follow, we approve the referee's findings of fact and conclusions of law, and continue to enjoin Hughes from engaging in the unlicensed practice of law, but we modify the referee's recommended sentence.

FACTS

The Florida Bar filed a complaint against Hughes alleging that he has continued to engage in the unlicensed practice of law, despite this Court's 1997 injunction in Hughes. In that decision, Hughes was enjoined "from counseling, advising and preparing documents for individuals in the creation and transfer of land trusts, or from otherwise engaging in the practice of law in Florida until he is licensed to do so." 697 So.2d at 503.

The referee issued a report in the instant case after conducting proceedings for *156 indirect criminal contempt according to rule 10-7.2(a)(1) of the Rules Governing the Investigation and Prosecution of the Unlicensed Practice of Law. The facts as found by the referee are as follows:

Hughes admitted knowing that, in July 1997, this Court enjoined him from counseling, advising, and preparing documents for individuals in the creation and transfer of land trusts. However, Hughes considers himself an expert in the Illinois-type land trust.[1] Despite the injunction, Hughes advised others, including Mr. Larry Bunting and Mr. Keith Barbour, about land trusts. Also, Hughes has drafted land trust forms that he uses to create or transfer land trusts. Further, Hughes manages property wherein he either has an interest in the property or he is the trustee under a land trust agreement, and he buys and sells real estate either as a beneficial owner or as the trustee.

The Bunting Property. Mr. Bunting purchased property from Mr. Angel Johns, with Bunting providing a mortgage note to Johns. When Johns died, attorney Browder represented Johns' estate, and Bunting made regular mortgage payments to Browder until a fire destroyed the rental units on the property. Browder performed a title search of the property, which revealed that Bunting had transferred the property by quit claim deed to Hughes as trustee under a land trust. Hughes transferred a portion of the property by quit claim deed from the land trust to another land trust and again listed himself as trustee. Attorney Browder filed a foreclosure action on the mortgage note. He served Hughes with the foreclosure action as trustee of the land trusts and he also served Bunting because Bunting signed the mortgage note. Hughes filed an answer, affirmative defenses, and counterclaim to the foreclosure action, and a response to a notice to produce. Hughes indicated in his pleadings to that action that Bunting had been forced to employ Hughes to represent the interests of the trust in the litigation. The referee found that in Hughes' pleadings in the foreclosure action, Hughes alleged cancellation of the note, concealment, fraud, lack of a note from which to foreclose, lack of fire insurance, and failure to disclose, and demanded a trial by jury. Bunting failed to file an answer and a judgment of default was entered against him. Bunting did not answer the foreclosure complaint because he relied upon the letters that Hughes wrote in response to the foreclosure. Although Hughes did not have any ownership interest in Bunting's property, he prepared and signed pleadings in defense of the foreclosure action on Bunting's behalf.

The Barbour Properties. Mr. Barbour met Hughes in July 1997, the month this Court issued its decision enjoining Hughes. At their first meeting, Hughes held himself out as an expert in land trusts and explained to Barbour how land trusts could be used. At their second meeting, Hughes convinced Barbour to use land trusts when purchasing investment property. Hughes told Barbour he would take care of everything and, if there was any litigation or any problems, Hughes would "represent" Barbour. Hughes also told Barbour that there were significant tax benefits to using land trusts.

Barbour relied on Hughes' advice and agreed to go into business with him. From September 1997 to March 1998, Hughes purchased twenty-one properties *157 for Barbour using land trust agreements. Hughes found the properties for Barbour, attended the closings on his behalf, prepared the land trust agreements, collected the rents, and made the mortgage payments. Barbour paid Hughes $3500 commission per property and a yearly $250 trustee fee per property. In 1999, when their business relationship deteriorated, Barbour filed a lawsuit against Hughes seeking to force Hughes to transfer the beneficial interest in the properties back to Barbour.

The Behr Property. In November 1997, Ms. Benita Pagac, a licensed real estate salesperson, represented Mr. and Mrs. Behr in the sale of their home in Pinellas Park, Florida. Pagac received a purchase agreement indicating that Hughes would purchase the Behrs' property and transfer it into a land trust. In her discussion with Hughes, he held himself out as an expert in land trusts and explained how the land trust agreement would operate. Pagac relied on Hughes' representations regarding land trusts and subsequently recommended to the Behrs that they enter into a land trust agreement. Hughes attended the real estate closing wherein the Behrs entered into a land trust agreement with him. Hughes then assigned the Behrs' interest in the land trust to a corporation owned by Barbour.

Hughes told Mrs. Behr that he was acting as a trustee to purchase her property, that he would take over making the payments on the Behrs' home, and that in two years everything would be out of their names. At the closing, Hughes told Mrs. Behr that he could represent the Behrs as an attorney if anything ever happened. As a result of the land trust agreement with Hughes, Mrs. Behr's credit rating dropped drastically and she was denied a second mortgage because the payments on her Pinellas Park property were not made.

Having made the aforementioned findings of fact, the referee determined that Hughes was not and is not a member of The Florida Bar and, therefore, he was not licensed to engage in the practice of law. Based on these findings, the referee found Hughes guilty beyond a reasonable doubt of engaging in the unlicensed practice of law in violation of the injunction. The referee also found that Hughes used the designation of trustee as a means to practice law in Florida by engaging in conduct that included buying, selling, managing, and conveying real property and representing individuals in legal matters when he was not licensed or otherwise authorized to do so.

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824 So. 2d 154, 27 Fla. L. Weekly Supp. 680, 2002 Fla. LEXIS 1477, 2002 WL 1476284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-florida-bar-v-hughes-fla-2002.