Prince George's County Circuit Court awards $500K to victim of

Daily Record, The (Baltimore), Feb 17, 2006 by Ann W. Parks

An 83-year-old woman who nearly lost her Temple Hills home in a foreclosure scam two years ago is entitled to more than $500,000 in damages, Prince George's County Circuit Judge Steven I. Platt has ruled.Platt awarded compensatory and punitive damages to Tommie Mae Smith in her declaratory judgment action against Vincent Abell, whose agent showed up on her doorstep promising to save her home from imminent foreclosure.On a scale of one to ten as to its reprehensibility, one being slightly reprehensible and ten being super reprehensibility - the Court rates this an eleven, Platt wrote last week.

If the defendant sleeps at night, the Court can't help but wonder how.Melanie B. Simon, who is Smith's granddaughter and a South Carolina licensed attorney, said it was the first time she has heard of punitive damages being awarded in a foreclosure scam case.It's been a very harrowing experience, but she got her home back, Simon said. Hopefully this will be the beginning of the end for Vincent Abell and those like him.Simon filed suit on her grandmother's behalf in May. Abell never answered the complaint, and his default was taken in October.Abell, however, says he's looking to get the default judgment stricken, saying he wasn't given proper notice before the judgment or a Dec. 12 ex parte hearing on damages.The evidence given in the ex parte hearing was false, Abell said this week.Smith, who received $1,314 per month in retirement and Social Security benefits, purchased her home in 1993 with her daughter, who died 10 years later.After that, Smith fell behind on her monthly payments of $1,655.22 and her mortgage company commenced foreclosure proceedings.That's when Calvin Baltimore, acting on Abell's behalf, went to Smith's home to propose a solution, according to Platt's opinion. Baltimore offered to purchase the home, rent it back to Smith for $1,965 a month, and give her the option to repurchase it after a year.An agreement to that effect was reached between Baltimore and Smith's niece, who was living with Smith at the time. Smith says she never signed the agreement or gave her niece the power to act on her behalf, something Abell disputes.No closing ever took place, and the $168,000 mortgage was never paid off, the opinion states.In January 2005, Modern Management Inc., a corporation controlled by Abell, filed a complaint for possession of rental property against Smith for falling behind on her rent; two months later, Smith's mortgage company initiated foreclosure proceedings once more.Abell then recorded a deed to Smith's home, stating he had paid consideration of $174,000.If it had gone to foreclosure, because he was the record owner, anything over [the mortgage amount] would have gone to him, said Simon. She estimated her grandmother's equity in the property at $200,000. The value of the house had gone up, so he would get a nice little bit of money.When Simon learned of the situation, she helped her grandmother file for bankruptcy, staying the rental action, and was able to cure the deficiencies on the mortgage.Simon also filed the declaratory judgment against Abell, alleging fraud and misrepresentation.The contract was bogus, as was the deed, Simon said, claiming Abell never paid any consideration.Platt declared the deed and the contract void and awarded approximately $11,000 in actual damages to cover attorney's fees, as well as the punitive damage award.Abell is also facing other lawsuits, including one filed by the AARP.AARP staff attorney Jean Davis alleged that, like Smith, her clients have signed papers transferring property to Abell or a partner in the belief that their mortgages would be paid off. These people had trouble making payments before, she said. Most of them don't figure out what's happened until they're about to be evicted.Attorney Michael G. Morin, who has cases against Abell in Montgomery and Charles counties and testified at Smith's damages hearing, said Abell has served prison time for a variation of the same thing as Smith's case.The terms in which you can regain control of your house are impossible short of winning the lottery, he said, adding that the homeowners may be evicted from their rented house and the property sold. If it goes to a third party, you can kiss it goodbye.Legislation designed to address the problem passed the General Assembly last year. The new law regulates foreclosure consulting contracts, provides homeowners with the right to rescind and provides for criminal penalties.WHAT THE COURT HELDCase:Smith v. Abell, Prince George's No. CAL 05-09289. Opinion by Platt, C. J. Decided Feb. 7, 2006.Issue:Was a homeowner entitled to punitive damages after a default judgment in a mortgage foreclosure scam case?Holding:Yes. The harm was clearly foreseeable; the plaintiff proved that actual malice motivated the defendant's conduct; and compensatory damages were also awarded.Counsel:Joseph V. Knieb for the plaintiff; no attorney of record for the defendant.RecordFax 6- 0207-80 (21 pages)