Attorney Grievance Commission v. Payer

38 A.3d 378, 425 Md. 78, 2012 Md. LEXIS 79
CourtCourt of Appeals of Maryland
DecidedFebruary 22, 2012
DocketMisc. Docket AG No. 8, Sept. Term, 2011
StatusPublished
Cited by11 cases

This text of 38 A.3d 378 (Attorney Grievance Commission v. Payer) 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. Payer, 38 A.3d 378, 425 Md. 78, 2012 Md. LEXIS 79 (Md. 2012).

Opinion

*81 WILNER, J.

On April 1, 2011, Bar Counsel, on behalf of the Attorney Grievance Commission, filed a Petition for Disciplinary or Remedial Action against respondent, Michele Payer. The petition alleged the violation of numerous Maryland Lawyers’ Rules of Professional Conduct (MLRPC) arising from two complaints — one by Abby Berow and her husband, Jeffrey Berow, and one by Makbul Mughal. Pursuant to Rule 16-757, we referred the petition to Judge Robert E. Cahill, Jr., of the Circuit Court for Baltimore County, to hear evidence and prepare and transmit findings of fact and proposed conclusions of law.

After a three-day hearing, Judge Cahill filed a memorandum of his findings and conclusions. With respect just to the Berow complaint, Judge Cahill concluded, by clear and convincing evidence, that respondent had violated MLRPC 1.1 (duty to provide competent representation), 1.3 (duty to act with reasonable diligence), 1.4(b) (duty to explain a matter to the extent necessary to permit the client to make informed decisions), and 1.7 (conflict of interest). With respect to both complaints, Judge Cahill concluded, by clear and convincing evidence, that respondent had violated MLRPC 1.15 and Rule 16-607 (commingling funds), MLRPC 8.1(a) and (b) (knowingly making false statements to Bar Counsel and failing to provide truthful information to Bar Counsel), and MLRPC 8.4(c) and (d) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation and engaging in conduct prejudicial to the administration of justice). Through an attorney, Harold Link, respondent filed extensive exceptions to Judge Cahill’s findings and conclusions.

Judge Cahill’s Findings Regarding Berow Complaint

The Initial Retainer

The Berows initially retained respondent to file a Chapter 13 bankruptcy, which she did. Within a short period *82 of time, two other matters arose which folded into the bankruptcy case — the consequences of a creditor’s temporary repossession of Mr. Berow’s automobile and a separate action against Ms. Berow’s employer, Sinai Hospital, and her supervisor, Diane Bongiovanni. The charges against respondent arose from all three matters which, to an extent, overlapped in time, as well as from respondent’s replies to inquiries by Bar Counsel that were triggered by them.

In mid-2009, the Berows were having financial difficulties. On June 3, 2009, Ms. Berow met with respondent, who maintained a solo practice concentrating in bankruptcy cases. At that meeting, respondent was retained to file a Chapter 13 bankruptcy petition. Ms. Berow signed a retainer agreement that called for a fee of $4,500, of which $1,000 and an additional filing fee of $274 was to be paid immediately and $3,500 was to be paid “through the Plan from the Trustee.” The next day, Ms. Berow paid respondent $1,274, 1 and a day later, on Friday, June 5, 2009, respondent filed a joint Chapter 13 petition on behalf of the Berows in the U.S. Bankruptcy Court for the District of Maryland.

Repossession Of The Car

The following Monday, June 8, 2009, Mr. Berow’s automobile was repossessed by Citizens Automobile Finance. Ms. Berow said that she or her husband notified Citizens of the bankruptcy, and the car was returned immediately, without any intervention by respondent. Indeed, Ms. Berow said that she did not advise respondent of the event until after the car had been returned. Respondent informed Bar Counsel that it was respondent’s law clerk who arranged to have the car returned. On June 15, respondent, on behalf of the Berows, filed a motion for sanctions against Citizens for attempting to *83 repossess the car in violation of the automatic stay that took effect under § 362 of the Bankruptcy Code. In her motion, respondent also claimed that the towing company had done $3,825 in damages to the car. She asked for sanctions in the amount of $9,445 in compensatory damages, $3,000 in attorneys’ fees, and $10,000 in punitive damages. She claimed that she filed the motion because of the damages to the car and that, if she was not able to recover her fees from Citizens, the Berows would have to pay an additional fee of $1,500.

Respondent testified that, after the motion was filed, Ms. Berow called her and advised that she and her husband had “rethought” things and that the damages to the vehicle existed before the car was repossessed. Respondent said that Ms. Berow instructed her to call Citizens and offer to drop the motion for sanctions if Citizens would reduce the monthly payments on the car. Whether as part of that conversation or one that followed, respondent added that Ms. Berow told her that she and her husband had decided to surrender the car to Citizens and that one of them had brought the car to her office without informing her and without leaving the keys. After somehow learning that the engine was “blown,” respondent concluded that the Berows purposely had attempted to deceive her.

Ms. Berow told a quite different story. She said that, after informing respondent that the vehicle had significant engine problems, respondent, on August 10, 2009, recommended that they surrender the car by leaving it at her office where it would be picked up by Citizens. According to Ms. Berow, respondent told her that she (respondent) had spoken with the attorney representing Citizens and that Citizens had agreed to abandon its claim for a deficiency balance on the loan in exchange for a surrender of the car and dismissal of the motion. Ms. Berow added that respondent never, in fact, contacted Citizens and never reached an agreement concerning the deficiency balance. Instead, Citizens notified the Berows of its intent to pursue a claim against them for the balance of the loan.

*84 Faced with this conflict, that seemed to permeate the entire matter, Judge Cahill found that “[Respondent’s version of the facts was not credible” — that she “was not a credible witness in her own defense,” that “[h]er testimony was sometimes internally contradictory and confused,” that “her demeanor was combative and argumentative,” and that “[Respondent was not truthful when she informed Ms. Berow that Citizens Automobile had agreed to abandon its claim for a deficiency balance as consideration for return of the vehicle and dismissal of the Motion for Sanctions.” In contrast, Judge Cahill found that “Ms. Berow’s version of what happened was logical, and consistent” and that her testimony “generally was both clear and convincing.”

Complaint Against Sinai Hospital

Shortly after retaining respondent for the bankruptcy matter, Ms. Berow informed respondent about an incident that occurred at her work. She missed several days and was disciplined for failing to notify the hospital in advance that she would not be at work, and she was anxious to have the reprimand removed from her record. On June 10, 2009, Ms. Berow met with respondent and, in anticipation of an action being filed against the hospital, she signed another retainer agreement calling for an additional deposit of $1,500. Ms. Berow testified that she believed the total additional fee would be $3,500 and that the $1,500 was just to get started.

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Cite This Page — Counsel Stack

Bluebook (online)
38 A.3d 378, 425 Md. 78, 2012 Md. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-commission-v-payer-md-2012.