Attorney Grievance Commission v. Keister

607 A.2d 909, 327 Md. 56, 1992 Md. LEXIS 115
CourtCourt of Appeals of Maryland
DecidedJune 18, 1992
DocketMisc. (Subtitle BV) No. 4 September Term, 1991
StatusPublished
Cited by12 cases

This text of 607 A.2d 909 (Attorney Grievance Commission v. Keister) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attorney Grievance Commission v. Keister, 607 A.2d 909, 327 Md. 56, 1992 Md. LEXIS 115 (Md. 1992).

Opinion

ROBERT M. BELL, Judge.

The Attorney Grievance Commission, the petitioner, filed a Petition for Disciplinary Action against John William Keister, the respondent, in which it alleged both the respondent’s misconduct 1 and incompetency. 2 With regard to the former, violations of Rules 1.15 and 8.4 3 , of the Maryland *59 Rules of Professional Conduct, see Rule 1230, Appendix, as well as Maryland Code (1957, 1987 Repl.Vol.) Art. 10, § 44, 4 Maryland Code (1972, 1989 Repl.Vol.), §§ 10-301-307 of the Business Occupations and Professions Article 5 and the BU Rules 6 were charged. The allegations that the respondent was incompetent “as a result of his dependency on alcohol, cocaine, and possibly other drugs, during the time period set forth in this petition,” specified violations of Rules 1.1 and 1.16. 7 The petition was based on two complaints filed *60 against the respondent, both involving the respondent’s handling of his escrow account.

Judge Joseph F. Murphy, Jr., of the Circuit Court for Baltimore County, to whom the matter was referred pursuant to Maryland Rule BV 9b, held hearings on the petition. 8 Having requested, and received from each of the parties, proposed findings of fact and conclusions of law, Judge Murphy accepted the petitioner’s submittal and rejected the respondent’s. 9 He concluded that the respondent committed each of the violations alleged.

*61 I.

A.

At issue in the complaint of Susan Waranch was the respondent’s handling of funds acquired on behalf of Evan Shifren, whom he represented in connection with PIP and third-party liability claims arising out of an accident in which Shifren was involved. The respondent obtained a check for $278.00 from the Harleysville Mutual Insurance Company to pay Waranch Physical Therapy, P.A. for treatment it rendered to Shifren. On June 26, 1989, he placed that check, along with others totaling $1,055.09, into his First National Bank escrow account, which at that time, was overdrawn by $140.01. Between June 26 and June 28, the respondent wrote checks on that account. Judge Murphy found that, rather than being for the benefit of the client or Waranch Physical Therapy, P.A., however, the checks that cleared “were written in whole or in part for Respondent’s personal use without the knowledge, authority or consent of Evan Shifren”. On June 28, 1989, the account was overdrawn by $23.59. Judge Murphy did not believe, as the respondent contended, that the money in the account was actually the respondent’s; he rejected the respondent’s testimony that he gave Shifren cash in exchange for the checks. Waranch Physical Therapy, P.A. was ultimately paid, with different funds, in October 1989. The check the respondent issued to it on August 10, 1989 was returned twice, once for non-sufficient funds and the second time, because the account was closed.

Judge Murphy found that the respondent’s escrow account was used for business and personal use and for handling clients’ funds, thus, that he “continually co-mingled his funds with his clients’ funds.”

B.

David S. Pearl, Esq. filed a complaint against the respondent on behalf of his client, Edward Cohen, M.D. In payment for treatment given to his client, Barbara Spainh *62 our, the respondent, on or about January 10, 1990, wrote a check for $585.00, payable to Edward Cohen, M.D. on the respondent’s escrow account at the Commercial Bank. That account was used for client funds, as well as personal and business use, and, at that time, was overdrawn. The check was returned for non-sufficient funds, but ultimately paid from another source. Judge Murphy found that the respondent continually co-mingled his funds with his clients funds in violation of Rule 1.15, Article 10, § 44, § 10-301 et seq. of the Business Occupations and Associations Article, and the BU Rules.

Like the Inquiry Panel, with which the Review Board agreed, Judge Murphy expressly found that the respondent did not misappropriate any of his clients’ funds, as he “never intended to criminally deprive the clients of their funds.”

II.

Before the Inquiry Panel, and again in his answer to the Petition for Disciplinary Action, the respondent admitted having had a substance abuse—cocaine and alcohol—problem during the time when the charged violations occurred. Before the Inquiry Panel, he testified that his addiction, when at its worst from June, 1989 through the end of that year, cost him $500 to $1,000 per week. He denied, however, that it ever affected his professional life or competence. Richard E. Vincent, Director of Lawyer Counseling for the Maryland State Bar Association, testifying on the respondent’s behalf, offered that the respondent had received in-patient drug treatment at Changing Point and had continued out-patient treatment and counseling. He opined that, although the respondent was still addicted, he did not believe the respondent had used drugs since the end of 1989. Unlike the respondent, Mr. Vincent said that the substance abuse carried over into the respondent’s professional life.

*63 In its recommendation to the Review Board, the Inquiry Panel, referring to both complaints, stated its belief that “Respondent’s practice of law requires further supervision due to his addiction, and the Review Board and/or the court is the appropriate body to do so.”

The Review Board referred to the respondent’s substance abuse in both cases. In the Pearl case, under “General Information”, it summarized the testimony concerning its extent. 10 The reference in the Waranch case was less pointed; the Board mentioned the “General Information” section of the Pearl decision. It also wrote: “His failure to monitor his escrow account was a result of his substance abuse and ... during the period in question, he was in the worst part of his addiction.” In neither case did it explicitly find that the respondent was then, or had been, incompetent “as a result of his dependency on alcohol, cocaine, and possibly other drugs,” within the meaning of Maryland Rule BV1 i. On the contrary, in the Pearl Report and Decision, the Review Board stated:

[The Inquiry] Panel found no misappropriation of clients’ funds, that respondent adequately represented his clients and the handling of their cases, that he had made no misrepresentation to his clients, that he had given no satisfactory answer as to the bad checks in escrow accounts with insufficient funds and that he did not separate his monies from that of his clients or third parties. The Review Board did not disagree with those findings.

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Bluebook (online)
607 A.2d 909, 327 Md. 56, 1992 Md. LEXIS 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-commission-v-keister-md-1992.