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Baum: You’ve Been Served

Filed under: Housing
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I actually interviewed at the Steven Baum foreclosure mill last year. I knew they did foreclosure and collections work, but didn’t know the full nature of what they did. I answered an ad for a litigation attorney, dressed up for it, and met with two women who were dressed in sweatshirts and jeans.

They asked what I liked about being a lawyer. I replied that I enjoy representing and helping a diverse roster of clients through a difficult time.  I like using my mind, my research and writing skills, and the fact that every day is different – some days you’re in court, some you’re in depositions, and on other days you’re just pushing papers around. As far as trying cases, it’s simply a fun thing to do, to direct your half of that production for a jury.

The women explained that they don’t try cases there, “litigation attorney” ad notwithstanding. Every day consisted of a lawyer drafting identical boilerplate documents and managing a huge roster of foreclosure actions, mostly from the comfort of their own office. You don’t meet your clients – you just deal with banks and roll the cases through the system, one by one.

Having indirectly expressed the fact that I hated that sort of daily sameness, I didn’t expect a call back, nor did I receive one.

With the news yesterday that the now-embattled Baum firm is closing in the wake of scandals involving not only a tasteless and hateful Halloween party, but an allegedly predatory way of doing business, the awkward failure of that job interview was retrospectively awesome.  The Baum firm appeared to be a bad actor, and its way of doing business was coming back to haunt it. A lawyer friend of mine sent this to me:

Several years ago, I had my first case with the Baum firm. The residents in a three or four unit apartment complex had found a notice of petition and petition for a post-foreclosure eviction on the foyer stairs in their building.  None of them were served with the pleadings, nor did they receive the 10-day notice of the pending action. All of the papers were made out as against the pre-foreclosure owner/landlord, naming him as a resident of the property, along with his wife, a neighbor and any number of “John Doe” respondents.

When I called the Baum firm, the lawyer I spoke with (I forget the name) was adamant that service was proper and wanted to focus solely on how we could get my people out with a minimum of fuss. They had affidavits of service showing someone served the property owner (who had moved to South Carolina about three years ago), his wife (ditto) and the woman who lived at a next door address for (I believe) at least a decade, all as residents of the subject property.

I objected to this purported service, in our conversation, stating that none of my people had received papers and none of the named people resided in the property. The attorney I spoke with stated, basically, that he had affidavits of service so the action was going forward.

It wasn’t, per se, improper. He did have the proof of his case and it was on me to make the objection. If we had gone to court, I would have, and I wonder how it might have worked out. Instead, all of my people ended up leaving for new housing as the landlord was letting utility service lapse prior to the scheduled court date.

As a lawyer, though, I feel that I can’t just plow ahead. My clients sometimes lie and sometimes they don’t know the truth. If someone brings up a major issue in the case I’m working on, I feel it’s my professional and ethical duty to react appropriately. That might include being noncommittal to opposing counsel but researching behind the scenes. But it shouldn’t mean disregarding what I’m told and turning a blind eye to alleged abuse of process service or improperly commenced proceedings. The willingness of this Baum attorney to base a case on clearly fraudulent affidavits of service gave me an initial impression of this firm that I feel is only proven by all the news stories I keep seeing about their ongoing conduct.

If you take a look at the images that accompany the linked-to stories about the now-infamous Halloween party, you’ll note that the Baum employees were specifically mocking foreclosure defendants who claimed not to have received service of process – a key issue in any such case.

However, I’m torn on this one. I’d rather have seen Baum enter into a deal with Attorney General Schneiderman to pay a fine and reform the way it does business – to work to modify notes to keep people in their homes, with the understanding that abandoned homes, bank-owned foreclosures, and homelessness are to be avoided if possible. Because ninety people are losing reasonably well-paying white-collar jobs here in western New York, I’m not cheering the demise of this firm – yes, there’s a poetic justice with respect to the heartless and unfunny people who mocked the homeless and the victims of the foreclosure crisis, but that wasn’t representative of all the Baum employees who work there now.

I guess I wish those individuals the best, and hope they learned something from the experience.


  • RaChaCha

    Part of my recent AmeriCorps service included tracking housing court cases in one of the Common Council districts. I recall at least a couple of eviction cases that were handled by Baum, and I remember thinking how odd it was that so many people in a multi-unit dwelling were referenced — including Jane Doe, John Doe, and other variations. Everyone but Mr. Moose and Mr. Greenjeans. If I recall correctly, in at least one case the same people were referenced for both the up and down units of a double. Needless to say I found it all a bit strange, but at the time assumed it was just standard legal practice in such cases. Now, to find out it was more like bottom-feeder practice.