Florida Attorney General Pamela Bondi and her investigation into Florida "Foreclosure Mills" has taken a bad turn. On February 1, the Fourth District Court of Appeal denied the Office of the Attorney General's request to certify that its recent decision in Law Offices of David Stern, P.A. v. State of Florida passes upon a question of great public importance. The refusal by the 4th DCA to certify the question means that the AG's office is now precluded from seeking further review of the Stern decision.
Three of the biggest firms at the center of the "fraud-closure" scandal are now calling for the cases against them to be dismissed. Bondi's office has struggled from the start to find legal grounds to hold the firms accountable. It is unlikely that Bondi's office is going to develop a solid legal theory under their current strategy, which is being investigating the offices under the Florida Deceptive and Unfair Trade Practices Act. But that Act governs trade and commerce, so it is unclear how it applies to law firms, if at all. Attorneys for the fraud-closure firms claim that what the law firms are accused of did not qualify as trade or commerce and that the statute in question exists to protect consumers. The consumers in question, those attorneys said, were the banks.
This deals a significant blow to the homeowners of Florida, and is a disappointment for the AG's office. This may not be the end of the story as it has yet to be seen if Bondi's office will attempt to bring criminal charges against the firms.
