Garlow v. State Bar

749 P.2d 1307, 44 Cal. 3d 689, 244 Cal. Rptr. 452, 1988 Cal. LEXIS 76
CourtCalifornia Supreme Court
DecidedMarch 3, 1988
DocketL.A. 32331
StatusPublished
Cited by12 cases

This text of 749 P.2d 1307 (Garlow 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
Garlow v. State Bar, 749 P.2d 1307, 44 Cal. 3d 689, 244 Cal. Rptr. 452, 1988 Cal. LEXIS 76 (Cal. 1988).

Opinion

Opinion

THE COURT.

The Review Department of the State Bar Court (hereafter Review Department) unanimously recommends that petitioner Gerald G. Garlow be disbarred. The recommendation is based on findings of the hearing panel of the State Bar Court (hereafter Hearing Panel), adopted in substantial part by the Review Department, that Garlow wilfully refused to turn over client funds, misappropriated disputed client-trust-account funds, refused to provide an accounting to clients, refused to communicate with clients, failed to perform certain services for clients, testified falsely before the Hearing Panel and induced his secretary to testify falsely, and made material misrepresentations on documents filed in the United States Bankruptcy Court.

Garlow bears the burden of demonstrating that the State Bar’s findings are not supported by the record. (Trousil v. State Bar (1985) 38 Cal.3d 337, 341 [211 Cal.Rptr. 525, 695 P.2d 1066].) After independently reviewing the evidence in this case, we adopt the Review Department’s findings of fact and conclusions of law. Moreover, the seriousness of *698 Garlow’s misconduct in the matters now before us and the fact that he has been privately reproved twice, publicly reproved once, and suspended by this court for prior serious misconduct leads us to conclude that disbarment is warranted and necessary for the protection of the public, the maintenance of high professional standards and the preservation of public confidence in the legal profession.

I. The Evelyn Perez Matter

A. Findings of Fact

The record supports the Review Department’s findings that Garlow (1) wilfully refused to turn over money to his client which he had in his control and to which he had no claim, (2) wilfully withdrew money for his personal use from his client trust account which should have been held until a fee dispute was resolved, and (3) testified falsely before the Hearing Panel regarding the status of his client trust account.

In October of 1974, Evelyn Perez retained Garlow to handle the dissolution of her marriage. Garlow and Perez orally agreed that she would pay him $175 for the entire dissolution proceeding, but that more fees would be charged if the dissolution became complicated. Perez paid the $175, plus an additional $75 billed by Garlow.

The court ordered Perez’s husband, Jimmy, to pay her attorney fees stemming from the dissolution action. Thereafter Garlow billed Jimmy directly for any additional fees and did not send Perez another bill. The final statement sent by Garlow to Jimmy indicated a balance due of $355.

A settlement agreement entered into by the Perezes provided that Jimmy would purchase the family home from Perez and that she would pay the $355 balance due on Garlow’s attorney fees. The $355 amount was rounded off to $400 to cover any escrow charges arising from the sale of the house. Garlow signed the agreement without contesting the balance due him.

Pursuant to the settlement agreement, the purchase of the Perez home was placed in escrow. 1 Upon close of escrow, an escrow check made payable to Garlow and Perez in the amount of $24,000 was sent to Garlow’s office. Perez intended to pay Garlow’s $400 fee out of the proceeds of this check.

*699 At the time Perez came to Garlow’s office to pick up the check and pay Garlow his $400 fee, there was nothing further to be done in her case. Nevertheless, Garlow refused to endorse the $24,000 check to her unless she paid him $2,100. Perez was surprised by Garlow’s request and asked him if he had documentation to support his increased fee. Garlow said he did not have such documentation, but added that if he had to provide her with an accounting he would charge her $5,000. Perez left Garlow’s office without indorsing or obtaining the escrow check.

Perez sought advice from another attorney, E. Belmont Herring. Herring wrote several letters to Garlow requesting that Garlow endorse the $24,000 check over to Perez. Garlow refused, indicating that he planned to bring a motion in the family law court for resolution of the fee dispute. Herring advised Garlow that the family law court lacked jurisdiction to resolve the fee dispute. Nevertheless, Garlow brought a motion in that court. The court determined that it did not have jurisdiction to resolve the dispute.

Outside the courtroom, Herring and Garlow entered into an oral agreement whereby Garlow gave Herring the $24,000 check; Herring then gave $19,000 to Perez and the remaining $5,000 was given to Garlow to hold in his client trust account until the fee dispute was resolved. Herring advised Garlow that he should seek arbitration of the fee dispute through the State Bar. Herring did nothing further in the matter for two years, believing that Garlow and Perez had initiated arbitration. When Perez subsequently informed Herring that arbitration had never been sought and that Garlow had never forwarded any of the $5,000 to her, Herring initiated a civil suit against Garlow to recover the disputed sum. That suit has not resolved the dispute and no money has as yet been forthcoming from Garlow.

Garlow testified before the Hearing Panel that he deposited the $5,000 amount immediately in his client trust account at Pan American National Bank. He admitted, however, that he withdrew $2,100 from his trust account while the $5,000 was still in dispute, because he believed Perez owed him that amount. Garlow then testified that his trust account balance never fell below $2,700. Bank records, however, reveal that Garlow’s testimony regarding the balance of his trust account was false. On numerous occasions his balance fell below $100, sometimes even below $10.

B. Conclusions of the Review Department

The Review Department concluded that Garlow’s wilful withdrawal of disputed client funds for personal use violated rule 8-101(A) of the Rules of *700 Professional Conduct. 2 Moreover, the Review Department concluded that his withdrawal of funds and wilful refusal to pay over to his client those funds to which he had no claim violated Business and Professions Code section 6103, 3 and that Garlow’s culpable conduct involved moral turpitude and dishonesty within the meaning of Business and Professions Code section 6106. 4

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Cite This Page — Counsel Stack

Bluebook (online)
749 P.2d 1307, 44 Cal. 3d 689, 244 Cal. Rptr. 452, 1988 Cal. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garlow-v-state-bar-cal-1988.