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Alton attorney Emert Wyss thought he could make money in a Madison
County class action lawsuit, but he accidentally sued himself instead.
Now he has four law firms after his money - and he hired all four.
Wyss's boomerang litigation started in 2002, when he invited Carmelita
McLaughlin to his office at 1600 Washington St. in Alton. Acting as
her attorney when she bought a home in Alton and when she refinanced
it, on both occasions she had chosen Centerre Title--a company that
Wyss owned--to close her loans.
In the course of the attorney-client relationship, Wyss advised
McLaughlin she might have a claim against Alliance Mortgage, holder of
the first mortgage. Wyss believed Alliance Mortgage might have broken
the law by charging a $60 fax fee when she refinanced.
He produced a retainer agreement providing for his legal services and
those from the Lakin Law Firm of Wood River, Campbell and Brinkley of
Godfrey, Freed and Weiss of Chicago, and Diab and Bock of Chicago.
McLaughlin signed.
The Lakin firm filed a class action complaint against Alliance
Mortgage in 2003. The complaint identified the Chicago firms and
Campbell and Brinkley as other attorneys of record, but not Wyss.
According to the complaint, McLaughlin objected to the fax fee at
closing.
Alliance Mortgage retained attorney Don Brown of Weiner Brodsky Sidman
Kider, of Washington, D. C.
The deposition
In a deposition last year, Brown asked McLaughlin if she objected to
the fees in general or the fax fee. She said, "To the fees in
general."
Brown asked if she saw a payoff statement. She said she did not recall
it.
"If you didn't see this document at loan closing then how would you
have known that you were being charged a fax fee?" Brown asked.
"I knew I was being charged fees but I didn't know that it was
particular, you know, that it was a fax fee," McLaughlin responded.
"Did you review this complaint for accuracy before your attorneys
filed it?" Brown countered.
McLaughlin replied, "no."
"Centerre Title is the one that collected the fees from you that you
are now complaining about, is that right?" Brown questioned.
McLaughlin said, "yes."
"Mr. Wyss was suggesting to you that you might want to complain about
fees that his employee collected from you. That's right, isn't it?"
Brown questioned.
McLaughlin said, "yes."
Brown asked what Wyss said about the fax fee. But in the deposition,
attorney Paul Marks of the Lakin firm objected.
"Attorney client privilege," Marks said. "Confidential in nature."
Brown countered, "If he is her attorney maybe he should be here, but
he is not her attorney."
Directing his questions again to McLaughlin, Brown asked if she knew
how other law firms came to represent her. She said she did not.
"Were you ever asked whether you would consent to have any of these
other law firms represent you in this litigation?" Brown asked.
"I was told there, you know, might be other people, and I did not have
a problem with that," McLaughlin replied.
"The fax fee of $60 represents two payoff statements, is that right?"
Brown asked.
McLaughlin said she did not know.
"That would represent a fax fee of $30 per payoff statement, is that
right?" Brown asked.
McLaughlin said, "If you say so. I don't know."
Brown asked if she understood that her lawyers would seek compensation
for her as a class representative if the suit succeeded.
McLaughlin said, "That is my understanding."
"But you have no understanding of what amount might be involved, is
that right?" Brown asked.
McLaughlin said, "no."
Brown deposes Wyss
Turning his attention to Wyss, Brown asked if plaintiffs he referred
to the Lakin firm were told that he might receive part of the fees.
"They have signed an engagement, a retainer agreement which indicates
that I am one of the attorneys representing them," Wyss responded.
"You have retainer agreements then, in your possession, to give to
people that include the Lakin law firm as one of the firms that will
represent them, is that correct?" Brown asked.
Wyss said, "yes."
Brown asked what prompted him to refer mortgage cases to the Lakin
firm. Wyss said attorneys told him they were aware of lender abuse and
suggested that he review Centerre Title files to see if his clients
were victimized.
When asked who told him that, Wyss replied "Tim Campbell."
Brown asked what prompted Campbell to talk to him.
"I consider him a true consumer advocate," Wyss said. "I don't know
how he became aware, but he apparently was aware of other lender abuse
in the area that I was not privy to."
Brown asked if Campbell had a retainer agreement in the McLaughlin
case.
Wyss said, "yes."
"The true consumer advocate hopes to make some money out of this case,
doesn't he?" Brown asked.
Wyss said, "probably."
"You yourself hope to make some money out of this case, don't you?"
Brown asked.
Wyss replied, "I would like to."
Brown asked Wyss if he was McLaughlin's attorney for purposes of this
litigation.
Wyss said, "I am one of her attorneys."
Brown asked if he was her attorney at the time Centerre Title closed
the loan.
Wyss said, "no."
"Emert Wyss, wearing his hat of Centerre Title company, collects the
fees from Ms. McLaughlin, and now we have six, seven, eight months
later, Emert Wyss wearing his hat as Ms. McLaughlin's attorney
suggests she file suit over the very fees his title company collected
from her, is that right?" Brown asked.
Wyss replied, "That is right. It oversimplifies it, but that is
correct."
Brown asked Wyss if he had an agreement with the Lakin firm, and he
responded that he had a verbal agreement.
When Brown asked what it was, Wyss replied, "I am to receive 10
percent of the attorney fee collected on these cases."
"Since Ms. McLaughlin signed a written retainer that included your
name on it as one of her attorneys, can you tell me why your name is
not on her complaint?" Brown asked.
Wyss said, "I see no reason why it has to be on the complaint."
Brown asked if he reviewed the complaint before it was filed and Wyss
answered, "I do not believe I did, but I am not really sure. I may
have."
"You have no recollection of reviewing it before it was filed?" Brown
asked.
Wyss said, "No recollection at the moment, no."
Case status
After completing the depositions, Brown moved Circuit Judge Phillip
Kardis for summary judgment.