A HIGH Court judge has set aside a deed of conveyance and deed of mortgage in a bizarre land-fraud case involving the sale of land in Barataria, not by its owner but by a “fraudster” with the same name.
Justice Frank Seepersad’s ruling on Tuesday reversed the land sale and the eventual mortgage agreement between the buyer and a local bank, with the biggest payback coming from the attorney and firm that facilitated the transactions.
The judge’s ruling for the law firm and its principal to repay some $1.2 million, which includes interest and costs, could possibly be the largest sum ever awarded in this jurisdiction to be paid by lawyers for professional negligence.
The case before the judge involved legal challenges by the land’s owner, Robert John, against the person who bought the land, Keelan Aaron Hunte; First Citizens Bank (FCB); attorney Richard Beckles and his firm, The Legal Consultancy; and Robert Ferguson John, who was named as the “fraudster” and identity thief.
In the end, Beckles and the Legal Consultancy had to pay FCB, Hunte, and Robert John.
According to the evidence at the trial, the “fraudster,” Robert Ferguson John, impersonated Robert John, the land’s true owner, and entered into a sale agreement with Hunte in December 2019. The land in Barataria was sold to Hunte for $840,000.
Hunte then mortgaged the property, using the land as security with FCB for a loan.
The deed of conveyance and the mortgage were executed by the Legal Consultancy.
Robert John discovered the fraud when his estate agent noticed her “For sale” sign had been removed from the property. She did a title search and found the fraudulent deed and mortgage.
The matter was reported to the Fraud Squad but Robert Ferguson John has not yet been arrested or charged, the judge pointed out.
Robert John lives in Minnesota in the US. He was adamant he did not sell his land to Hunte.
In his ruling, the judge said the trial proceeded on the acceptance that it was the fraudster and not Robert John who executed the deed, and since the former did not own the land, and had no legal interest in it, he could not sell it. This, the judge said, raised the
nemo dat principle, which says a person who does not have adequate ownership of goods or property cannot transfer the ownership of those goods.
“Accordingly, the court is resolute in its view that the deed must be set aside. As a logical consequence, the mortgage effected over the subject property must also be discharged.”
In finding against The Legal Consultancy, the judge held the firm was negligent in the conveyance and when it advised FCB to take the mortgage.
“Lawyers have a duty of care towards their clients and they must exercise a reasonable degree of caution and skill in the discharge of their professional obligations.
“When they act for purchasers, they must ensure that the legal and full equitable ownership of the acquired land is transferred to their client.”
He said lawyers were paid significant fees to look after the legal interests of their clients.
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