Legal Question in Legal Malpractice in Maryland

Measure of Damages

I do not think there is any Maryland law on my question. Therefore, I would be interested in any state or federal law that relates to my question.

Facts: I notified my real estate settlement attorney that I wanted to rescind a refinancing settlement. He forgot. There is no dispute as to the facts - just the damages.

My original mortgage was 5.75% for 15 years. The new mortgage loan (which is the one I did not want to go through with) is 7.0% for 30 years.

What is the measure of my damages: Is it the diference in interest I will pay for 30 years as opposed to what I would have paid under my original mortgage? If so, do I have to prove that I will stay in my home for 30 years? Or is there some other way to measure the damages?

Thank you for any assistance you can provide.


Asked on 6/19/04, 6:58 pm

2 Answers from Attorneys
Robert Sher Wagshal and Sher

Re: Measure of Damages

When you went to settlement on the refinance, you should have been given a document called Notice of Right to Cancel (or rescind). The settlement attorney usually explains to the borrower how it works, but it's pretty self-explanatory. It tells you that if you decide you want to cancel the deal, you sign in a box that is clearly labelled "I want to cancel" and mail it back to the lender within three business days. As long as you meet that deadline, the loan transaction is cancelled; the settlement attorney is not involved, except that if you fail to also notify him of your decision to cancel, he will automatically send the papers back to the lender, as he's obliged to do. But that doesn't void the cancellation.

So I don't see where you would have a claim against the attorney in any event under the scenario you presented.

Read more
Answered on 6/21/04, 10:25 am
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Measure of Damages

Let me get your facts correct. You wanted to rescind a deal but then took it?? Or you wanted to rescind the deal and didn't get it? In either event you have no damages. If the deal wasn't what you were offered then you have another matter.

Once you sign on the deal then it is yours. Unless, of course, you are not a consenting adult of full capacity.

Read more
Answered on 6/19/04, 8:45 pm


Related Questions & Answers

More Legal Malpractice Law questions and answers in Maryland