file/mader+law+group+cj.pdf · 7. defendant eric mader is the principal owner of mlg, and at all...
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IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA
STATE OF FLORIDA, ) OFFICE OF THE ATTORNEY GENERAL, )
) ) CASE NO. : ) 2013 CA 12592
Plaintiff, ) )
v. ) )
ERIC MADER, SEAN BATCHELER ) and MADER LAW GROUP, LLC )
) Defendants. )
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CONSENT FINAL JUDGMENT
THIS CONSENT FINAL JUOGMENT was entered upon stipulation
between Plaintiff, 'OFFICE OF TilE ATTORNEY GENERAL, DEPARTMENT
OF LEGAL AFFAIRS, STATE OF FLORIDA, (hereinafter referred to as the
"ATTORNEY GENERAL" or "DEPARTMENT'1 ), located at 107 W. Gaines
Street, Tallah~see, Florida, 32399, and Defendants, ERIC MADER ("MADER"),
SEAN BATCHELER ("BATCHELER") and MADER LAW GROUP, LLC
("MLG") (hereinafter collectively referred to as "DEFENDANTS"). All parties
have consented in writing to the jurisdiction of this Court and hereby consent to the
relief provided by this order.
,,
By express written consent of the aforementioned Defendants, this Court
does ORDER AND ADJUDGE:
I. JURISDICTION AND VENUE
1. This action commenced pursuant to Florida Deceptive and Unfair
Trade Practices Act, (hereinafter "FDUTPA") Chapter 501, Part II.
2. The complaint arose from an investigation wherein the ATTORNEY
GENERAL, an agency of the state and the enforcing authority under the FDUTP A,
determined that an enforcement action served the public interest. The
A ITORNEY GENERAL asserts it had full authority to bring this action.
3. This Court has jurisdiction over the subject matter of this action
pursuant to the provisions of FDUTP A. At all pertinent times, DEFENDANTS'
business activities· are and have been located in Palm Beach County, Florida and
Hillsborough County, Florida.
4. The award of injunctive relief and other equitable relief is within the
jurisdiction of the Circuit Court and the amounts in controversy meet the
jurisdictional threshold of the Circuit Court.
5. Venue is proper in Palm Beach County, Florida.
I
ADDITIONAL FACTUAL RECITATIONS
6. Defendant 1v1LG operated a for-profit law .finn that included
representation of clients related to loan modification services, which sometimes
resulted in a permanent change of one or more terms of a mortgagor's loan.
7. Defendant ERIC MADER is the Principal owner of MLG, and at all
relevant times was an attorney licensed to practice law in the State of Florida.
8. Defendant BATCHELER was an employee ofl\1LG.
9. The Department has investigated allegations that, including but not
limited to, Defendants were not fully compliant with provisions of§ 50 1.13 77 Fla.
Stat. (20 11 ), which prohibits the collection of client payments prior to completion
of foreclosure-related rescue services in certain circumstances, and which also
includes requirements for foreclosure-related rescue services written agreements.
This investigation has entailed the exchange of voluminous discovery documents
and pleadings, all ·of which the parties expressly rely upon in entering into this
Consent Final Judgment.
10. Generally, Defendant :MLG's contract for legal services provided for a
fee to be paid by clients commensurate with the start of services being rendered by
MLG.
11. DEFENDANT :MLG, at all times material hereto, provided goods or
serviCes within the 'State of Florida and Palm Beach County.
12. MADER and BATCHELER are over the age of 21.
13. MADER and BATCHELER at all pertinent times managed,
controlled or participated in the daily operations of MLG.
II. SCOPE OF CONSENT JUDGMENT AND RELEASES
14. The ATTORNEY GENERAL acknowledges by execution hereof that
this Consent Final Judgment constitutes a complete settlement and release of all of
the ATTORNEY GENERAL's civil claims against DEFENDANTS and their
insurers, which claims were asserted in the Complaint filed and amended in this
case. The ATTORNEY GENERAL agrees that it shall not proceed with or institute
any civil action or proceeding against DEFENDANTS which is inconsistent with
the provisions of this Consent Final Judgment.
15. This Consent Final Judgment shall not be construed as, nor deemed to
be evidence of,. an admission or concession on the part of DEFENDANTS of any
liability, guilt, or· Wrongdoing, which is hereby expressly denied and disclaimed by
DEFENDANTS.
16. Nothing herein constitutes approval by the ATTORNEY GENERAL
of any person or corporation's past or future business practices. DEFENDANTS
shall not make any representation contrary to this paragraph.
III. INJUNCTIVE TERMS
17. Final judgment is hereby entered in favor of the Department and
against illG, MADER and BATCHELER, for acts and practices relating to loan
modifications and foreclosure-related rescue services as alleged in the Second
Amended Complaint filed in this matter.
18. Further DEFENDANTS are immediately and permanently enjoined
from personally offering, or owning or being employed by, any entity offering:
a) "foreclosure-related rescue services" as defined by Florida
Statutes §501.1377(2)(c) (including but not limited to any law
finn or law office offering such services);
b) "consumer debt relief services," which shall mean any program
or offer that claims directly, or implies, that it can renegotiate,
settle, or in some way change the terms of a consumer's debt,
owed to an unsecured creditor or debt collector, which debt is in
default or in arrears for more than 180 days.
c) As to subsection 18(a) and 18(b), the prohibitions contained
within this paragraph 18 do not preclude the DEFENDANTS
from disengaging or withdrawing . from lawful business
activities relating to the existing clients of his current employer.
Withdrawal from these activities shall be completed by July 1,
2015. This provision shall not act as a finding that any such
activities by the DEFENDANTS comply with ·any State or
federal statutes, rules or regulations, nor shall it be construed as
a limitation upon the ATTORNEY GENERAL as set forth in
paragraph 29, below.
d) As to subsection 18(b ), above, the prohibitions contained
within this paragraph 18 do not preclude DEFENDANTS from
working for a Finn or entity where the DEFENDANTS are not
directly involved in any of the above referenced activities, or
receive compensation that is derived in any material way from
such activities performed by · DEFENDANTS. The
DEFENDANTS shall notify the Attorney General in the event
. that they become employed by such a finn or entity engaged in
those activities within 30 days of employment or the
commencement of such activities by the Finn or entity. This
reporting requirement shall last for . 7 years from the date of this
Consent Judgment.
e.) Paragraph 18 also does not preclude DEPENDENTS from
defending or otherwise responding to any claims complaints or
disputes, including providing and producing relative records
thereto and or defending or responding to any such claims
complaints or disputes by any private person, business,
govenunentorenticy.
19. DEFENDANTS will not affect any change in the foim of doing
business or organizational identicy as a method of avoiding the terms and
conditions set forth in· this Consent Final Judgment.
20. This Consent Final Judgment shall apply to and continuously bind
DEFENDANTS and their affiliated entities, successors, assigns and each of their
officers, directors, agents, servants, employees, and in-house attorneys, whether
acting directly or through any corporation, subsidiary, division, or other entity.
IV. MONETARY TERMS
21. DEFENDANTS are therefore liable and are ordered to pay consumer
restitution by making refunds to consumers, the total of which is SIXTY
1HOUSAND ($60,000) ("Restitution Amount"). The Restitution Amount shall
be paid to the Department of Legal Affairs, State of Florida, as follows: a payment
of $50,000 shall be made on behalf of the DEFENDANTS within ~0 days of the
date of this Order; and furthermore defendant BA TCHELER shall pay the sum of
$10,000 by making four equal installment payments of $2,500 each, to be paid
within 30, 60, 90 and 120 days of this Order. The Office ofthe Attorney General
shall endeavor to contact all consumers that were brought to its attention prior to
February 1, 2015 and who may be entitled to restitution in this matter. The
Attorney General shall distribute the Restitution Amount received from the
·DEFENDANTS on a claims basis to those cons-umers detennined to be eligible for
restitution.
V. BUSINESS RECORDS
22. From the date of the entry of this CONSENT JUDGMENT, all of
Defendants' records must be retained for a minimum of two (2) years. The
Department recognizes that Defendants assert that the records related to the clients
and consumers. represented through MLG were records maintained in the practice
of law, and as sucli, Defendants assert that all of the records contain work product,
attorney client and other privileged and confidential communications and
information. Therefore, in order to inspect any records, the Department must first
obtain written consent from any respective client or consumer that specifically
waives all work product, attorney client privilege and other confidential and
privilege protections. Defendants shall maintain and make available to the
Department's representative, upon written request and demonstration of a written
consent and waiver of work product, privilege, and confidentiality, all books,
records and other documents which reflect the implementation of the terms of this
CONSENT JUDGMENT and compliance with its terms as applied to' any specific
client consumer that has provided written waiver and consent. Any such records
requested by the Department shall be made available for inspection within twenty
(20) business days of Defendants' receipt of the written request and demonstration
of written consent and waiver from a specific client or consumer. The Defendants
shall honor any request from the Department to make such records available
without legal process, unless Defendants perceive that, under the applicable Rules
of Professional Conduct or Florida law, legal process should be pursued,
whereafter the Department shall be required to pursue access to the specific
records requested through legal process.
VI. FUTURE VIOLATIONS
23. Notwithstanding any other provision of this Consent Final Judgment,
the parties further recognize that future violations of this Consent Final Judgment
or of Chapter 501, Part II, Florida Statutes, may subject DEFENDANTS or their
officers, directors and employees to any and all civil penalties and sanctions
provided by law, including attorney's fees and costs.
24. Any DEFENDANT's failure to comply with the terms and conditions
of this Consent Final Judgment is by statute prima facie evidence of a violation of
Chapter SOl, Part II, Florida Statutes, and will subject that DEFENDANT to any
and all civil penalties and sanctions authorized by law, including attorney's fees
and costs. The Department reserves the right to seek Chapter SO 1 penalties for any
future violation(s) of Chapter SOl, Part II, Florida Statutes.
VII. MISCELLANEOUS PROVISIONS
25. Nothing herein shall be construed as a waiver of any private rights,
causes of action, or remedies of any private person, business, corporation,
government or legal entity other than the OFFICE OF TilE FLORIDA
ATTORNEY GENERAL against the DEFENDANTS arising from the facts and
circumstances at issue in the Action. Similarly, nothing contained herein shall
waive the right of the DEFENDANTS to assert any lawful defenses in response to
a claim of a consumer.
26. Notwithstanding any other provision of this Consent Final Judgement,
nothing herein shall be construed to impair, compromise or affect any right of any
government agency other than the OFFICE OF TilE FLORIDA ATTORNEY
GENERAL.
27. Jurisdiction is retained for the purpose of enabling any party to this
Consent Final Judgment to apply to the Court at any time for such further orders
and directions as might be necessary or appropriate for the modification,
construction, or implementation of the injunctive provisions of this Consent Fin:al
Judgment, or, for the enforcement and punishment of violations of any provisions
hereof. The parties by stipulation may agree to a modification of this Consent
Final Judgment, which agreement shall be presented to this Court for
consideration, provided that the parties may jointly agree to a modification only by
a written instrument signed by or on behalf of both the ATTORNEY GENERAL
and DEFENDANTS.
28. Notwithstanding the foregoing, the ATTORNEY GENERAL may
institute an action or proceeding to enforce the terms and provisions of this
Consent Final Judgment or to take action based on future conduct by the
DEFENDANTS. The fact that such conduct was not expressly prohibited by the
terms of this Consent Final Judgment shall not be a defense to any such
enforcement action.
29. Nothing in this Consent Final Judgment will be construed to limit the
authority of the ATTORNEY GENERAL to protect the interests of the State of
Florida or the people of the State of Florida. Accordingly, nothing herein relieves
DEFENDANTS of their continuing duty to comply with applicable laws of the
State of Florida nor constitutes ·authorization by the A TIORNEY GENERAL for
DEFENDANTS to engage in acts and practices prohibited by such laws. This
Consent Final Judgment shall be governed by laws of the State of Florida.
30. This Consent Final Judgment will not be effective until executed by
Richard P. Lawson, Director, Consumer Protection Division, Office of the
.. Attorney General, or his designee, at the signature line indicated below.
31. The parties jointly participated in the negotiation of the terms which
are set forth within this Consent Final Judgment. No provision of this Consent
Final Judgment shall be construed for or against either party on the grounds that
one party or another was more heavily involved in the preparation of the Consent
Final Judgment, or had control over the provisions included.
32. This document is signed in anticipation of the Con&ent Final Judgment
being submitted to the Court for approval, without necessity of hearing, which is
hereby WAIVED by all parties.
The signatures below confirm the parties' consent and agreement to this
Consent Firial Judgment.
BY MY SIGNATURE, I hereby affirm that I am acting in my capacity
and within my authority, and in my individual capacity, and that by my
signature I am binding myself and the business to the terms and conditions of this
Consent Final Judgment.
SIGNATURES ON FOLLOWING PAGE.
MADER LAW GROUP, LLC.
Agreed to and signed thi£ day of tlar J , 2015, by the below-
stated person who stated and affirmed as follows:
BY MY SIGNATURE I hereby affirm that I am acting in my capacity and
within my authority as the Managing Member of MADER LAW GROUP, LLC.,
and that by my signature I am binding MADER LAW GROUP, LLC., to the terms
and conditions of this Consent Final Judgment.
By: RIC MADER
MADER LAW GROUP, LLC.,
STATE OF FLORIDA ) COUNTY OF lf"a llsborqjh.J )
BEFORE ME, this Ol day of rY\ (J.ltb , 2015, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared ERIC MADER, who acknowledged before me that he executed the foregoin instrument for the purposes therein stated.
~ '. ~ .
(print, type name ofNotary Public)
Personally known L_ or Produced Identification \I (check one) . Type ofidentification Produced: Or1vUS L~~U\.S(J
ERIC MADER
Agreed to and signed this..£._ day of~ 2015~ by !he below-
stated person who stated and affirmed as follows:
BY MY SIGNATURE I hereby affirm that my signature below binds me
both personally and individually to the terms and conditions of this Consent Final
Judgment.
By: r~ '(_ 4i~ ERIC MADER, IND:i\TID ALLY
STATE OF FLORIDA ) COUNTYOF )
BEFORE ME, this fJ...r-J day of Ji/a.a.A , 2015, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared ERIC MADER, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated.
~~-E~ NOTARYPl~m~oT~T~~-------------
. (iJ:&~!.~\ SHANNON E. HAMMER i;,_l z..G_i MY COMMISSION #FF185082 \~~='if.:/ "" · ~ ~1 D
(print, t)rpe o t .._.., ~ ..1 .com
name ofNotary Public)
Personally known or Produced Identification ::({check one) . , Type of Identification Produced: fjr 1 Ju-s Lr eU\5<..,
SEAN BATCHELER
Agreed to and signed this_2_ day of f"19r-~ \ , 2015, by the below
stated person who stated and affirmed as follows:
BY MY SIGNATURE I hereby affirm that I previously executed this
Consent Final Judgment on March 11, 2015 and my signature was notarized at that
time, and I reaffirm that my signature below binds me both personally and
By:
STATE OF FLORIDA ) COUNTYOF~
(print, type or stamp commissioned name of Notary Public)
Personally known_ or Produced Identification (check one) Type of Identification Produced:
ACCEPTANCE BY ATIORNEY{iENIRAL'S OFFICE
The Office of"the Attorney General approves the entry of this Consent .Final
Judgment as to the Defendants. ERIC MADER. SEAN BATCHELER and MADER
LA.W GROUP, LLC..
Sipdthb!~dayof ~ ,2015
;KJ~~iUll'Q Lawson· Director.· C()nsuiner Pioteetlcm Dtvisj~n ·Fl~ B~N~.: 1650.85 . · Prba•ry email: [email protected]. Office of the AttOiney ·General :1()7 W. ~es SU. Tallabass~ FL 32399 (8SO) 414-3300 (Telephone) (~50) 488-4483 (Faxl
DONE AND ()RDEREDi this._day of_. ----· 2015 .• . SIGNED& DATED
MAY -.1 2015 CIRCUIT JUDGE . :t!SSI61<TIG4GIN
PALM BEACH COUN1Y CIRCUIT COURT 1UDGE