Disciplinary Board of the Supreme Court of the State v. Rozan

2011 ND 71, 796 N.W.2d 384, 2011 WL 1313703
CourtNorth Dakota Supreme Court
DecidedApril 6, 2011
Docket20110031
StatusPublished
Cited by9 cases

This text of 2011 ND 71 (Disciplinary Board of the Supreme Court of the State v. Rozan) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Disciplinary Board of the Supreme Court of the State v. Rozan, 2011 ND 71, 796 N.W.2d 384, 2011 WL 1313703 (N.D. 2011).

Opinions

DISCIPLINE ORDERED

PER CURIAM.

[¶ 1] The Supreme Court has before it Findings of Fact, Conclusions of Law, and Recommendations by the Hearing Panel of the Disciplinary Board recommending Steven Jay Rozan be disbarred from the practice of law in North Dakota, he pay costs of the disciplinary proceeding, he pay restitution to the involved client, and other sanctions for violations of the North Dakota Rules of Professional Conduct. We conclude there is clear and convincing evidence Rozan violated N.D.R. Prof. Conduct 1.1, N.D.R. Prof. Conduct 1.3, N.D.R. Prof. Conduct 1.4(a) and (b), N.D.R. Prof. Conduct 1.5(a), N.D.R. Prof. Conduct 1.5(b); N.D.R. Prof. Conduct 1.15(b); N.D.R. Prof. Conduct 1.15(c); N.D.R. Prof. Conduct 1.15(h), N.D.R. Prof. Conduct 1.16(e); N.D.R. Prof. Conduct 5.5, and N.D.R. Prof. Conduct 7.2(d). We hereby bar Rozan from acts constituting the practice of law in North Dakota (in-[385]*385eluding pro hac vice admission) until further order of this Court. We order him to pay $595 in costs of the disciplinary proceeding, and order him to repay Ervin Praus $9,000 plus any and all fees paid to Rozan during 2009 and 2010, because he failed to pay pro hac vice fees during that time. We further order Rozan to provide an accounting of fees and expenses to Praus and refund any additional amounts collected from Praus for fees that have not been earned or expenses that have not been incurred.

[¶ 2] Steven Jay Rozan was admitted to practice in Texas on December 14, 1970, but suspended effective January 1, 2010. In December 2007, Rozan was retained by Ervin Praus to represent him with regard to divorce proceedings in Stark County, North Dakota. Rozan’s representation of Praus continued from December 2007 into 2010. Rozan was admitted pro hac vice in North Dakota in 2008. However, he failed to pay the annual pro hac vice fee in 2009 and 2010.

[¶ 3] Praus made a total of $39,000 in advance payments to Rozan. He wired $30,000 to Rozan and later paid an additional $4,000 to retain a psychiatrist to testify as an expert witness. Five thousand dollars of the funds were paid to another attorney for the referral. A settlement was reached in the divorce action in which Praus alleged he acquiesced to the settlement due to his confusion and poor mental state at the time. A final judgment was entered in the divorce proceeding based on the settlement. Praus appealed to the North Dakota Supreme Court.

[¶ 4] On November 29, 2009, the Clerk of the North Dakota Supreme Court notified Rozan he must pay the 2009 and 2010 pro hac vice fees before further filings would be accepted. On December 1, 2009, the Clerk of the North Dakota Supreme Court notified Rozan he was barred from making any further appearance due to his suspension from the practice of law in Texas effective January 1, 2010, and his failure to pay the North Dakota pro hac vice fees.

[¶ 5] On October 4, 2010, Rozan admitted service of a Summons and Petition for Discipline. The Petition asserts Rozan failed to adequately communicate regarding his client’s medical condition and mental functioning, his wishes with respect to disposition of the marital property in the divorce, the value of the property, and the restrictions on Rozan’s licensure in Texas and North Dakota. The Petition also asserts Rozan failed to provide the legal knowledge, skill, thoroughness, and preparation necessary for the representation; and, by his own admission, Rozan failed to understand the value of the property, resulting in an unequal distribution of property in a settlement agreement. Upon moving for relief from judgment due to mistake and/or inadvertence, Praus argued he acquiesced to the settlement agreement due to his confusion and poor mental state at the time. The Petition further asserts that, by his own admission, Rozan failed to understand Praus’ medical condition and functioning at the time of negotiations, even though Praus had paid $4000 for a psychiatrist.

[¶ 6] Rozan failed to answer the Petition, otherwise respond, or request to be heard in mitigation. Therefore, under N.D.R. Lawyer Discipl. 3.1(E)(2) Rozan is in default and the charges contained in the Petition for Discipline are admitted.

[¶ 7] The Hearing Panel concluded that Rozan’s conduct violated N.D.R. Prof. Conduct 1.1, regarding competence, and N.D.R. Prof. Conduct 1.3, regarding diligence, in that Rozan failed to act with reasonable diligence and failed to provide [386]*386the legal knowledge, skill, thoroughness and preparation necessary for the representation. Among other things, Rozan failed to take steps necessary to gain an understanding of the value of the marital property resulting in an unequal property distribution, with Praus’ wife receiving approximately $360,000 more of the parties’ marital property, and of Praus’ medical condition and mental functioning at the time of the negotiations. Rozan failed to present medical evidence with respect to Praus’ medical condition and mental functioning at the time of the negotiations, even though Praus had advanced $4,000 for a psychiatrist.

[¶ 8] The Hearing Panel concluded that Rozan’s conduct violated N.D.R. Prof. Conduct 1.4(a) and (b), regarding communication, which in pertinent part provide that a lawyer shall reasonably consult with the client about the means by which the client’s objectives are to be accomplished, make reasonable efforts to keep the client reasonably informed about the status of a matter, and explain a matter to the extent necessary to permit the client to make informed decisions regarding the representation. Rozan failed to reasonably consult with Praus about his medical condition and mental functioning, his wishes with respect to the disposition of the parties’ property in the divorce, the value of the property, and the restrictions on Rozan’s licensure status in Texas and North Dakota.

[¶ 9] The Hearing Panel concluded that Rozan’s conduct violated N.D.R. Prof. Conduct 1.5(a), regarding fees, which provides that a lawyer shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses, in that Rozan charged, collected and failed to refund unreasonable fees and costs, including $5,000 which Praus paid directly to another attorney, who referred legal work to Rozan; $4,000 which Praus paid to Rozan for a psychiatrist, when in fact Rozan presented no evidence as to Praus’ medical condition or mental functioning; and all fees which Praus paid to Rozan for work performed in 2009 and 2010 because Rozan failed to pay pro hac vice fees for those years and thus was prohibited from recovering fees relating to the unauthorized practice of law in North Dakota. Ranta v. McCarney, 391 N.W.2d 161, 166 (N.D.1986).

[¶ 10] The Hearing Panel concluded that Rozan’s conduct violated N.D.R. Prof. Conduct 1.5(b), regarding fees, which provides that when a lawyer has not regularly represented a client, the basis, rate or amount of the fee and expenses for which the client will be responsible shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation, in that Rozan failed to adequately and accurately describe the basis, rate or amount of the fees and costs for which Praus would be responsible.

[¶ 11] The -Hearing Panel concluded that Rozan’s conduct violated N.D.R. Prof.

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Disciplinary Board of the Supreme Court of the State v. Rozan
2011 ND 71 (North Dakota Supreme Court, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
2011 ND 71, 796 N.W.2d 384, 2011 WL 1313703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/disciplinary-board-of-the-supreme-court-of-the-state-v-rozan-nd-2011.