Springfield Financial Company, L.L.C., dba SFC, L.L.C, Fairfax Station, Virginia filed a civil action in a Maryland Federal Court naming as defendants First American Title Insurance Company, Homemaxx Title & Escrow, L.L.C., Hampstead, Maryland, Daniel E. Fink Jr., Hampstead, Maryland (alleged to be a principal of Homemaxx) and J. Scott Morse, Esquire, Elkridge, Maryland (alleged to be a principal of Homemaxx). According to the complaint, Homemaxx’s charter was “revoked by the State of Maryland for failure to comply with the laws and regulations governing its operation.”

The complaint alleges that beginning in October 2002, First American issued title policies in connection with One Hundred One (101) Maryland properties in which Springfield held a security interest and Homemaxx, Fink, and Morse were the closing and issuing agents in each of these transactions. The lawsuit alleges that Homemaxx, among other things, failed to record deeds or mortgages, failed to collect and pay funds owed to Springfield, failed to comply with written closing instructions and engaged in other acts and omissions as impaired and destroyed the security interests of Springfield. Springfield alleges that it has suffered at least $2.5M in damages.

The lawsuit includes causes of action for breach of contract, conversion, fraud, detrimental reliance, breach of fiduciary duty, civil RICO, breach of closing protection letter, and legal malpractice. Click here to view a copy of the complaint

According to media reports, First American has filed a lawsuit against Fink in Baltimore County Circuit Court, with respect to title insurance and closings on over 75 properties in Baltimore City. Further details of that action were reported in a July 8, 2005 article in the Baltimore Business Journal.