Attorney Grievance Commission v. White

614 A.2d 955, 328 Md. 412, 1992 Md. LEXIS 173
CourtCourt of Appeals of Maryland
DecidedNovember 6, 1992
DocketMisc. (Subtitle BV) No. 18, September Term, 1991
StatusPublished
Cited by39 cases

This text of 614 A.2d 955 (Attorney Grievance Commission v. White) 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. White, 614 A.2d 955, 328 Md. 412, 1992 Md. LEXIS 173 (Md. 1992).

Opinions

MURPHY, Chief Judge.

On January 9, 1992, James J. White, III, a member of the Maryland Bar since 1963, was charged by the Attorney Grievance Commission, acting through Bar Counsel, with violations of Rule 1.15 (Safekeeping Property) and Rule 8.4 (Misconduct) of the Rules of Professional Conduct, as well as with violating Maryland Code (1989), §§ 10-306 to -307 of the Business Occupations and Professions Article. We referred the matter, pursuant to Maryland Rule BV9 b, to Judge Theodore R. Eschenburg of the Circuit Court for Worcester County to make findings of fact and conclusions of law.

On June 16, 1992, after an evidentiary hearing, Judge Eschenburg found that White represented Marlene E. Steward and her minor child, Larry, Jr., then fourteen months old, in connection with a motor vehicle accident which occurred on December 23, 1980 and which resulted in the [414]*414death of the father, Larry Steward, Sr. White settled the claims of the wife and minor child for $20,000. After deducting his fee and expenses, White disbursed the net sum of $11,982 to Mrs. Steward. Judge Eschenburg found that $5,000 of this amount was subsequently placed in a certificate of deposit in a local bank in the names of James J. White, III, as trustee for Larry, Jr. and Marlene, or the survivor of them. By February of 1989, that sum, with the addition of interest, had increased to $10,252.20. At that time, White transferred the funds to a money market account in The Chesapeake Bank, directing that the statements be sent to his home rather than to his office.

Judge Eschenburg found that Mrs. Steward died on March 19, 1989. Thereafter, an uncle of Larry, Jr. consulted White with respect to adopting the minor child, which White accomplished for him. White never advised the uncle of the existence of the money market account entrusted to him for Larry, Jr.

Between August 30, 1989 and May 5, 1990, as found by Judge Eschenburg, White, in a series of withdrawals, withdrew $10,450 from the trust account, leaving a balance of only $238.29. As a result of information received by Bar Counsel, White was asked to account for Larry’s money. Bar Counsel was told that $14,147.16 was then on deposit with The Chesapeake Bank. White did not at that time acknowledge that the money had been used by him for his own purposes and then replaced.

In his findings, Judge Eschenburg referred to a stipulation between White and Bar Counsel that White had testified falsely before an Inquiry Panel concerning his use of the trust account monies; and that these funds had actually been used by him “for personal and office expenses and that he knew at the time of the use of the funds that those funds were misused by him.” According to Judge Eschenburg, the evidence disclosed that White “hoped that the misuse of funds would escape detection and that ultimately, if called upon to account for the funds, he would replace the misused funds with other funds available to him.” Judge [415]*415Eschenburg found from the evidence that White replaced the misappropriated funds prior to the misuse coming to the attention of the Attorney Grievance Commission and that White had added an additional sum to these funds representing interest which would have been earned if the fund had remained untouched.

At the hearing, White testified, as did Richard B. Vincent, Director of Lawyer Counseling for the Maryland State Bar Association, that White “suffered from severe alcoholism until on or about January 1992” when he contacted Vincent for help. The evidence further disclosed that Vincent referred White to an in-patient alcoholism treatment facility where White underwent and successfully completed the treatment program from January 22 through February 21, 1992. Thereafter, according to Judge Eschenburg’s findings, White regularly attended meetings of Alcoholics Anonymous and related counseling and maintained complete abstinence from alcohol.

In his findings, Judge Eschenburg acknowledged White’s testimony that at the time he misappropriated the trust funds, he “rationalized his behavior or justified it as borrowing.” He also referred to Vincent’s “expert testimony that such rationalization or justification was consistent with alcoholic thinking” and that the prognosis for White’s conducting a successful recovery from alcoholism and complete abstinence was excellent.

Judge Eschenburg concluded that White had violated the “Safekeeping Property” provisions of Rule 1.15(a), (b), and (c) and Rule 8.4(b), (c), and (d).1 He also found that White [416]*416had violated §§ 10-306 and 10-307 of the statute, as charged in the disciplinary petition.2

In response to Judge Eschenburg’s findings, White states that “after almost thirty years of practicing law, without being the subject of any disciplinary proceeding, ... while in the throes of severe alcoholism, [he] misappropriated funds which he held in trust.” He invited our attention to the fact that he subsequently replaced those funds, with interest, before he had knowledge of any disciplinary proceedings against him. He acknowledged that he “compounded his misconduct, while still drinking alcoholically, by denying the misappropriation before the Inquiry Panel.” He maintained that after he voluntarily sought treatment for his alcoholism through Mr. Vincent, he admitted and accepted responsibility for his transgressions both in a prehearing deposition and in his testimony before Judge Eschenburg.

White urges that we find his misconduct to be causally related to his severe alcoholism and resultant alcoholic rationalization. He claims that Judge Eschenburg, based upon Mr. Vincent’s uncontroverted expert testimony, recognized that he “suffered from severe alcoholism until on or about January 19, 1992.”

Bar Counsel, in response, noted that White’s admission that he misappropriated the funds was not made until April 14, 1992, after his bank records were subpoenaed, and that it was only after that that he admitted his misconduct. As to sanction, Bar Counsel contends that disbarment is the appropriate disposition for White’s misconduct. He maintains that the suggested nexus between White’s use of alcohol and his misconduct in misappropriating the trust funds was “tenuous at best,” falling short of the requisite [417]*417proof that White’s alcoholism was a precipitating cause of the theft of his client’s funds.

Our review of the evidentiary record before Judge Eschenburg includes White’s prehearing deposition. It reveals that White acknowledged that from 1988 through 1990, when the funds were in the process of being misappropriated, he was “drinking alcoholically and gambling excessively.” He acknowledged lying to the Inquiry Panel when he said that he was sober and was not a recovering alcoholic. White also agreed with his lawyer’s proffer during the taking of his deposition that

“it would be [White’s] testimony that when he began taking the money from the account in question, ... he knew it was not his money, that like most people who set out on that course of conduct, he rationalized or lied to himself and told himself that he would borrow the money and pay it back with interest.

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Bluebook (online)
614 A.2d 955, 328 Md. 412, 1992 Md. LEXIS 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-commission-v-white-md-1992.