Opinion ID: 2302531
Heading Depth: 1
Heading Rank: 36

Heading: Davis Actions Following Suspension on May 27, 2009

Text: 10. On May 27, 2009 at 9:40 p.m., Davis sent an email to an attorney who offered to cover a seminar for him in light of Davis's suspension. Davis replied that Davis's firm had the seminar covered and that FYIwe are operating business as usual. [10] 11. On May 28, 2009 at 8:19 a.m. Davis's counsel advised that he should be careful in this kind of response because it suggests that you intend to defy the Court Order. David replied at 8:20 a.m. o.k. but I have to be able to get my message out. [11] 12. Based on Davis's counsel's advice not to tell those who inquired that it was business as usual, Davis's staff stopped using that phrase. [12] 13. The Supreme Court appointed a receiver, Andrew Taylor, Esq., to take over Davis Law following Respondent's suspension. Taylor employed Tyler Nixon, Esq. as a contract attorney. [13] 14. Davis cooperated with the receiver by among other things, turning over all the bank accounts of Davis Law and meeting with him to provide information necessary for Taylor to complete closings that had been scheduled for clients of Davis Law prior to the suspension. 15. Davis ceased to be a title agent after his suspension. [14] 16. Davis ceased doing first-time homebuyer seminars after his suspension. [15] 17. On June 29, 2009, Mr. Davis formed Redwood Settlement Services, LLC d/b/a Redwood Real Estate Services (Redwood). [16] Redwood is owned 50% by Davis and 50% by Gary Bryde, Esq. [17] 18. Redwood is a real estate title and settlement services company that occupied the same offices, with a lease in the name of Davis Law, used the same phone number and the same staff, and relied on the same referral sources as Davis Law. [18] 19. Non-lawyers in Delaware own and operate similar companies. [19] 20. Respondent removed signage at the Davis law office, removed letterhead and business cards identifying Davis Law following Respondent's suspension [20] and Bryde never used signage, business cards or letterhead with the name Davis while he performed closings for clients referred by Redwood. [21] 21. Davis's responsibility at Redwood was to manage the staff including the paralegals on a day to day basis and to market Redwood to real estate agents, attorneys and lenders. In those roles he was unsupervised by an attorney. 22. If the staff at Redwood had questions about documents being prepared for closings, including questions about issues concerning title or a survey or encroachments, the staff at Redwood would discuss those issues with Davis. [22] 23. Bryde testified that it was his responsibility to review and approve all documents prepared by Redwood for a closing, including reviewing and approving the title search and the surveys. [23] 24. Apart from closings performed by the Receiver, and certain other attorneys immediately following Respondent's suspension, Bryde or attorneys under his direction generally performed closings for clients for whom Redwood prepared settlement packages. 25. Bryde employed Nixon after the formation of Redwood. [24] 26. Davis neither performed nor attended nor interacted with clients at closings and earned no legal fees from real estate closings or otherwise following his suspension; legal fees were earned entirely by Bryde. 27. Redwood received 80% of the title premium and those funds were used to pay the paralegals and office rent and expenses of Redwood. [25] 28. Although Davis testified that following his suspension he removed his email signature indicating Davis Law [26] , on July 13, 2009 he sent an email to Nixon signed Davis Law directing Nixon to refrain from providing direction to Redwood's paralegals. [27] 29. As late at July 26, 2009, Donna Marshall, an employee of Davis Law and then Redwood, sent an email to a referral source on which she copied Davis which identified her email address as donna@ davislawworks.com. [28]