Attorney Grievance Commission v. Zodrow

19 A.3d 381, 419 Md. 286, 2011 Md. LEXIS 223
CourtCourt of Appeals of Maryland
DecidedApril 27, 2011
DocketMisc. Docket AG No. 40, September Term, 2009
StatusPublished
Cited by9 cases

This text of 19 A.3d 381 (Attorney Grievance Commission v. Zodrow) 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. Zodrow, 19 A.3d 381, 419 Md. 286, 2011 Md. LEXIS 223 (Md. 2011).

Opinion

BARBERA, J.

This reciprocal discipline action arises out of a disciplinary proceeding initiated in Colorado against Respondent, attorney John Joseph Zodrow. 1 On June 10, 2009, Respondent was suspended from the practice of law in Colorado for one year and one day, following the Colorado Supreme Court’s acceptance of Respondent’s “Conditional Admission of Misconduct,” 2 whereby Respondent admitted under oath that he had *289 engaged in conduct that violated Colorado Rules of Professional Conduct 3.3(a)(1), 3 3.4(c), 4 and 8.4(c). 5

*290 On October 1, 2009, the Attorney Grievance Commission (“Petitioner”), acting through Bar Counsel, filed a Petition for Disciplinary Action or Remedial Action against Respondent. See Maryland Rules 16-773 6 ; 16-751 (stating that, “[u]pon *291 approval of the Commission, Bar Counsel shall file a Petition for Disciplinary or Remedial Action in the Court of Appeals”). Attached to the Petition were a certified copy of the Colorado Supreme Court’s disciplinary order and the “Stipulation, Agreement, and Affidavit Containing the Respondent’s Conditional Admission of Misconduct.” Pursuant to the disciplinary order, the Colorado Supreme Court approved Respondent’s “Stipulation, Agreement and Affidavit Containing the Respondent’s Conditional Admission of Misconduct,” by which Respondent affirmed under oath, and the Colorado Supreme Court accepted, that the “following facts and conclusions are true and correct:”

Real Estate Transaction
a. In Spring 2005, respondent decided to purchase a condominium from the father of a friend. The condominium was located at 10680 W. 63rd Ave., Arvada, CO 80004 (hereinafter referred to as the “Arvada property”). The sellers were Clifford and Daisy Whitehill. The parties agreed on a purchase price of approximately $156,000.
b. Respondent executed a promissory note in the face amount of $136,062.08, dated April 30, 2005. The note *292 obligated respondent to pay Clifford Whitehill monthly payments of $1,079.51 commencing May 1, 2005. The note stated that it was secured by a deed of trust dated June 30, 2005 for the Arvada property.
c. Respondent also executed a Quitclaim Deed transferring his rights in the Arvada property to his long-time friend and legal assistant, Susan K. Boyer (“Boyer”). The Quitclaim Deed was dated April 30, 2005.
d. Boyer executed a Bill of Sale, also dated April 30, 2005. In the Bill of Sale, Boyer agreed to assume respondent’s obligations related to the Arvada property. Boyer did not provide respondent any security for her agreement to assume respondent’s obligations.
e. Respondent did not inform Mr. Whitehill that he had quitclaimed his interested in the Arvada property to Boyer or that Boyer had agreed to assume respondent’s obligations under the promissory note.
f. Respondent executed a Deed of Trust, dated June 30, 2005. By the Deed of Trust, respondent conveyed the Arvada property to the Jefferson County Public Trustee along with a power of sale, to be exercised for the benefit of Mr. Whitehill to secure respondent’s indebtedness under the promissory note. In the Deed of Trust, respondent warranted that he owned the Arvada property.
g. Mr. Whitehill—who lives in Florida—understood that respondent would be recording the Deed of Trust. Respondent did not do so. Respondent claims that he mailed the Deed of Trust to Mr. Whitehill and that Mr. Whitehill did not return it to respondent. However, respondent did not follow up to ensure the Deed of Trust was recorded.
h. In consideration of respondent’s promissory note, secured by the Deed of Trust, and an additional payment of $20,000 (discussed below), Clifford L. Whitehill and Daisy M. Whitehill executed a Warranty Deed dated June 30, 2005, conveying the Arvada property to respondent for $156,062.08. The Whitehills executed the Warranty Deed on July 25, 2005.
*293 i. The Whitehills sent the Warranty Deed to respondent with the understanding that he would record it. Respondent did not do so. Respondent claims that he did not receive the Warranty Deed from Mr. Whitehill. Respondent did not follow up with the Whitehills to learn what had happened to the Warranty Deed.
j. In late June and early July 2005, Boyer issued several checks to Mr. Whitehill. The memos of the checks indicate that they are intended to be monthly payments on the promissory note.
k. As the down payment for respondent’s purchase of the Arvada property (the difference between the sale price and the face amount of the promissory note), Boyer issued a check for $20,366.68 to Mr. Whitehill. The check was dated July 30, 2005. The check was returned for insufficient funds. Respondent (and Boyer) failed to timely cure this default.
l. On November 8, 2005, Mr. Whitehill filed suit against respondent. [] (the “civil litigation”). Mr. Whitehill requested judgment against respondent in the amounts due under the note, and for rescission of the sale of the Arvada property.
m. During September 2005, Boyer made additional payments to Mr. Whitehill to satisfy respondent’s monthly obligations on the promissory note. In late November and early December, Boyer made three additional payments. On December 22, 2005, Mr. Whitehill’s counsel returned these checks to respondent. Mr. Whitehill was unwilling to accept Boyer’s payments as a partial cure of the deficiency that had resulted from Boyer’s tendering an insufficient-funds check for the down payment.
n. On January 5, 2006, the Whitehills filed an amended complaint in the civil litigation, seeking relief based on breach of contract and under the forcible entry and detainer statute. The Whitehills continued to seek damages and rescission of the sale.
*294 o. On or about January 6, 2006, respondent caused his law firm, Zodrow et al., P.C., to loan $99,000 to Boyer. Boyer did not provide any security for the loan to Zodrow et al., P.C. Boyer transferred $99,000 from the Zodrow et al, P.C. payroll account to purchase an Official Check, payable in that amount to Mr. Whitehill. The memo line of the check referenced “Zodrow, P.C.”
p. Respondent mailed to Mr. Whitehill a cashier’s check in the amount of $20,740.42. The purpose of this check was to cure the breach of contract occasioned by Boyer’s issuing an insufficient funds check for the down payment.

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Bluebook (online)
19 A.3d 381, 419 Md. 286, 2011 Md. LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-commission-v-zodrow-md-2011.