Tax firm owned by Anne Arundel lawyer found liable in unjust enrichment case

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An accounting firm owned by Glen Frost, the founder of one of Anne Arundel County‘s largest law firms, was found liable for unjust enrichment and ordered to pay more than $680,000 after a jury trial last month.

Frost, owner of Strategic Tax Planning and managing partner of Frost Law, was sued in August 2023 by three men who referred clients to Strategic Tax Planning with the understanding that they would be paid commissions.

A jury found the company liable in three counts on March 24, and ordered payment of $434,025 to George Divel III, $233,565 to Gary Stastny and $16,353 to Chris Callaway, for a total of $683,943. The damages for Divel and Stastny were for unjust enrichment, while Callaway’s damages were for breach of contract.

Callaway lives in Anne Arundel County; Divel and Stastny live in Florida.

Anne Arundel County Circuit Court Judge Pamela Alban presided over the four-day trial.

Frost, his firm, and former Frost Law partner Eli Noff filed a joint motion to partially vacate the verdict on April 4. They argued the judge had dismissed the claims against them individually, or had found in their favor, and were therefore no longer party to the case. They said the verdict sheet incorrectly added “et al” after Strategic Tax Planning.

That left Frost’s accounting company as the only defendant subject to the judgment. According to Maryland Judiciary Case Search, the company paid the fines on April 2.

The plaintiffs helped Strategic Tax Planning recruit clients seeking the Employment Retention Credit, a federal tax refund available to businesses that were affected by the COVID-19 pandemic.

Text messages showed Frost offered a cut of the company’s fees. The defendants argued they didn’t sign contracts and weren’t subject to the Maryland Wage Protection and Collection Law, court records show. The plaintiffs argued they didn’t need contracts for work that took less than a year to complete.

The plaintiffs originally sued in 2023, bringing claims of unjust enrichment, breach of contract, fraud, defamation, failure to pay wage, and civil conspiracy against Frost, his law firm and tax company, Noff and Benjamin Dorsey, former president of Strategic Tax Planning. They amended the complaint three times, and over the course of the litigation, most of the defendants and claims were dismissed.

Timothy Mummert represented the plaintiffs. The defendants were represented by Lydia Lawless, a principal at Kramon & Graham, and Richard Berwanger, Jr., a partner at Frost Law.

Berwanger declined to comment on behalf of the defendants.

Mummert said the independent contractor agreement offered to his clients was inadequate, and that the parties agreed to “figure this out later.” He also said the commission percentage was “constantly changing.”

“(The jury) saw this case for what it was, and we believe justice was served,” he told The Daily Record.

This story has been updated with a comment from Mummert.