The Florida Supreme Court this week approved an emergency suspension order sought by the Florida Bar against Coral Gables attorney Scot Strems, whose firm has filed thousands of first-party property claims against insurers.
The bar has also filed other complaints against Strems and an associate in his law firm, Gregory Saldamando. The complaint against Saldamando alleges the attorney finalized a second financial settlement in a sinkhole case valued at $157,500 without allocating any of the increased settlement amount to the client. Instead, Saldamondo allegedly allocated a fee of $92,500 for the firm, while allocating only the client’s original authority - $65,000.
And the Florida Bar has leveled a similar allegation against Strems, alleging that he also neglected to turn over any funds from a second property settlement to an elderly client.
The high court’s June 9 order calls on Strems to take on no new clients and to stop representing any clients after 30 days. The complaints against the Strems Law Firm have been mentioned by insurance company executives and State Sen. Jeff Brandes (R-St. Petersberg) as an example of the litigation abuse insurers in Florida have faced in recent years, leading to excessive market losses and higher premiums for consumers.
Strems’ attorney, Mark A. Kamilar, said his client would fight the allegations in the Florida Bar’s complaints.
“Scot Strems strongly disputes the allegations and is working with the Bar to set a hearing for presentation of his defense,” Kamilar said in a statement emailed to the Florida Record.
The Florida Bar, however, said in its petition for an emergency suspension that the evidence against Strems was clear and convincing and that it shows the Strems Law Firm was causing great public harm in the state.
“As the evidence below shows, Mr. Strems sits at the head of a vast campaign of unprofessional, unethical and fraudulent conduct that now infects courts and communities across the state,” the petition states.
A former litigation manager for the firm, Christopher Aguirre, testified that the law firm oversees up to 10,000 files at the same time. This means that a firm with only 14 attorneys listed on its website is handling work for thousands of clients.
“Despite the professional veneer of the firm’s website, dockets across Florida are replete with orders sanctioning Mr. Strems and his subordinates for the delay, misrepresentation and bad faith that have become the hallmarks of their firm’s litigation practice,” the Florida Bar’s petition states.
The petition describes a pattern of litigation whereby the firm and a water mitigation company file individual lawsuits for alleged losses at the same property multiple times. A pattern of delay also was observed, leading to countless cancellations and rescheduled hearings.
And the petition found that courts have repeatedly sanctioned the law firm for violations of court orders, leading to months, if not years, of delays.
“The end result is a massive waste of judicial resources and defense costs, and – of course – nothing for Mr. Strem’s clients,” the petition states, adding that Florida homeowners ultimately pay for the law firm’s tactics through their insurance premiums.