Bercovich v. State Bar

785 P.2d 889, 50 Cal. 3d 116, 266 Cal. Rptr. 341, 1990 Cal. LEXIS 519
CourtCalifornia Supreme Court
DecidedFebruary 8, 1990
DocketS009891
StatusPublished
Cited by5 cases

This text of 785 P.2d 889 (Bercovich v. State Bar) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bercovich v. State Bar, 785 P.2d 889, 50 Cal. 3d 116, 266 Cal. Rptr. 341, 1990 Cal. LEXIS 519 (Cal. 1990).

Opinion

Opinion

THE COURT. *

This is a proceeding pursuant to Business and Professions Code section 6083, subdivision (a) and rule 952(a) of the California Rules of Court to review a unanimous recommendation by the Review Department of the State Bar Court that petitioner Clifford Dale Bercovich be disbarred for having willfully violated an order of this court that required him to comply with rule 955 of the California Rules of Court while on interim suspension for conviction of grand theft.* 1

Petitioner contends disbarment is unwarranted because his failure to comply with rule 955 was caused by chronic diarrhea and related medical ailments, which resulted in or exacerbated emotional difficulties that prevented him from complying with our order.

We reject petitioner’s belated and unsupported claim of emotional paralysis caused by diarrhea. The State Bar’s finding that he willfully violated our order is amply supported by the evidence. Moreover, petitioner’s conduct throughout the lengthy proceedings against him reflects an inability to practice law. If his alleged chronic diarrhea and emotional problems are so severe that they have rendered him unable to comply with the simple requirements of rule 955, the most reasonable conclusion is that his ailments also render him unable to practice law, especially in light of the absence of credible evidence that his problems have been resolved. We conclude petitioner must be disbarred to protect the public.

Facts

In September 1985, the State Bar Court issued a notice to show cause based on allegations that petitioner had misappropriated client funds. (Bar Misc. No. 5622.) Before the decision of the review department in that proceeding, petitioner was convicted in March 1987 of violating Penal Code *120 sections 487 (grand theft) and 12022.6, subdivision (b) (taking, damaging, and destroying property of a value greater than $100,000). The conviction was based on the same facts that had given rise to Bar Misc. No. 5622. The superior court sentenced petitioner to three years of formal probation subject to conditions including payment of a $2,000 restitution fine and three hundred and twenty hours of community service. 2

The conviction gave rise to the present State Bar proceeding (Bar Misc. No. 5453). On May 20, 1987, after receiving notice of the conviction, we ordered pursuant to Business and Professions Code section 6102, subdivision (a) that petitioner be suspended from the practice of law pending final disposition of the proceeding. Our order required petitioner to comply with rule 955, subdivisions (a) and (c). On June 17, 1987, we denied his petition to vacate our interim suspension order, but, for good cause shown, delayed the effective date of his suspension to August 17, 1987. On August 12 and 17, 1987, we denied his two applications for further delay of the effective date.

While the interim suspension in Bar Misc. No. 5453 was in effect, the review department in September 1987 adopted the decision of the referee in the original proceeding (Bar Misc. No. 5622) that petitioner had willfully misappropriated more than $100,000 of a client’s funds and had rendered false and misleading accountings to the client. Briefly stated, the State Bar found as follows; From March 1980 to September 1980, petitioner received a total of $145,166.19 from a client. Petitioner was to hold this sum for the benefit of the client in furtherance of the client’s tax avoidance plan. (These funds are hereafter referred to as the client’s funds.) Petitioner deposited only $9,278 of the total into the client’s trust account.

Without the knowledge or consent of the client, petitioner made various loans and investments with the balance of $135,888.19, including loans to petitioner’s relatives. None of the loans were evidenced by promissory notes.

Between March 1980 and December 1982, petitioner made several partial payments of the client’s funds to him at his request. At no time after April 1980, however, was petitioner able to return all the client’s funds. In the fall of 1982, the client first demanded return of the total balance of his funds. Petitioner did not comply with the demand, and the client was forced to sue to recover his funds from petitioner and the borrowers. The suit was settled in November 1985, and the client was made whole.

*121 Shortly after the review department’s decision in the original proceeding (Bar Misc. No. 5622), petitioner’s criminal conviction became final, and we referred the conviction proceeding (Bar Misc. No. 5453), in which we had previously ordered an interim suspension, to the State Bar on November 12, 1987, for a hearing, report, and recommendation as to the discipline to be imposed for the conviction. Our referral order noted that petitioner had failed to file an affidavit pursuant to rule 955(c), as required by our interim suspension order of May 20, 1987. We therefore also referred Bar Misc. No. 5453 to the State Bar for a hearing and report as to whether petitioner had willfully failed to comply with our prior order and, if so, for a recommendation as to the appropriate discipline to be imposed for that violation.

While the referral was pending, petitioner failed to seek timely review of the review department’s September 1987 decision in the original proceeding (Bar Misc. No. 5622). On April 6, 1988, we denied petitioner’s request for relief from default, and we adopted the review department’s discipline recommendations. We suspended petitioner from the practice of law for five years effective May 6, 1988, stayed execution of the suspension, and placed petitioner on probation for five years subject to various conditions including compliance with rule 955 and actual suspension for the first two years of the probation period.

In the referral matter (Bar Misc. No. 5453), petitioner and the State Bar stipulated that no further proceedings should be held or discipline imposed as a result of his criminal conviction because the facts that gave rise to it were the same as those dealt with in the original proceeding (Bar Misc. No. 5622). The State Bar and petitioner agreed that it would be unfair to discipline him both in the original and referral proceedings based on the same facts. The stipulation did not address his failure to comply with rule 955.

The State Bar held a hearing on August 16, 1988, in Bar Misc. No. 5453 regarding the rule 955 matter. Petitioner was present and represented by counsel. Petitioner admitted he was aware that our May 20, 1987, order required compliance with rule 955 but that he did not send written notices to any clients informing them of his suspension. Petitioner testified that he failed to comply with rule 955 because, as of the effective date of our orders in Bar Misc. No. 5453, he had no clients or pending matters. According to petitioner, he began full-time employment as a nonlawyer on May 1, 1987, and had disposed of his client matters by then.

The referee found petitioner’s testimony to be contradicted by two clients, Gutman and Moline, whom he represented in 1987 in their capacities as conservators of their mother.

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Related

In Re Morse
900 P.2d 1170 (California Supreme Court, 1995)
Colangelo v. State Bar
812 P.2d 200 (California Supreme Court, 1991)
Dahlman v. State Bar
790 P.2d 1322 (California Supreme Court, 1990)

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Bluebook (online)
785 P.2d 889, 50 Cal. 3d 116, 266 Cal. Rptr. 341, 1990 Cal. LEXIS 519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bercovich-v-state-bar-cal-1990.