Haunstein v. State Bar of Oklahoma

46 P.2d 558, 172 Okla. 610, 1935 Okla. LEXIS 1482
CourtSupreme Court of Oklahoma
DecidedJune 18, 1935
DocketNo. 25005.
StatusPublished
Cited by1 cases

This text of 46 P.2d 558 (Haunstein v. State Bar of Oklahoma) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haunstein v. State Bar of Oklahoma, 46 P.2d 558, 172 Okla. 610, 1935 Okla. LEXIS 1482 (Okla. 1935).

Opinion

CORN, J.

This is an action to review disbarment proceedings against Paul R. Haunstein had before the Board of Governors of the State Bar of Oklahoma, wherein disbarment was recommended.

The complaint was first filed before the administrative committee of section 20 of the State Bar by Levi McCalister, a resident of Kingfisher county, and the charges were investigated by said committee and the committee reported to the Board of Governors recommending dismissal of the complaint. Later a new complaint covering the same charge was filed by the said LeVi McCalister with the Board of Governors, and said board referred the matter to Hon. F. B. H. Spellman, one of its members, who held hearings upon the complaint, and submitted his findings of fact, together with a complete transcript of the record of said hearing, to the Board of Governors, before whom oral arguments were heard. The Board of Governors thereupon also made findings of *611 fact, conclusions of law, and recommendations. The accused filed herein h'is petition for a review of said proceedings.

The complaint grew out of a controversy between Haunstein and McCalister oyer an attorney’s fee charged by ' Haunstein for representing McCalister in a bankruptcy proceeding. The facts as disclosed by the record show that McCalister, who possessed considerable property, both real and personal, above his lawful exemptions, undertook to evade the payment of a judgment in favor of one Ella Hubbard upon which an execution had been issued, and in order to do so filed a voluntary petition in bankruptcy. He employed Paul IÍ. Haunstein, an attorney at Enid, to represent him in the proceedings and paid him a fee of $150 for his services.

Without the knowledge of his attorney, McCalister made false schedules of his property and also listed certain bogus creditors’ claims in favor of his relatives, and transferred and secreted assets to defraud his creditors. T. R. Blaine, attorney for the judgment creditor, discovered the fraud, and at the meeting of creditors before the referee in bankruptcy gave McCalister a very severe examination, in which BfcCal-ister gave conflicting testimony regarding his property and particularly in regard to a certain property in Enid, which he had recently transferred to his wife and son, claiming that the property was purchased with funds belonging to them. The referee was not satisfied with the testimony and continued the hearing and appointed a trustee and ordered a thorough investigation. Haunstein, discovering what his client had done, arranged a meeting with him at the office! of Lee Gray in the town of Hennessey. Mr. Gray had been McCalister's attorney for several years, and they discussed the matter with Mr. Gray, and Gray informed McCalister that it would be necessary for him to establish proof at the next hearing in regard to the Enid property. McCalister made a trip to Nebraska for a conference with his son and brought back a canceled express receipt and a letter purporting to have been written several years previously to prove his statements as to how he received the money which he claimed his son advanced to purchase the Enid property. Haunstein doubted the genuineness of this evidence and again took his client to Gray’s office to go over the matter with him. The express receipt and letter showed upon their face that they were bogus and Mr. Gray advised McCalister that he would get himself and his son into serious trouble if he attempted to deceive the court with such evidence, and McCalister admitted that they were bogus, and also admitted that he had made out some notes to relatives and listed them as claims in the bankruptcy matter and that those claims were false.

At this time, Haunstein informed McCal-. ister that • he would not represent him in the matter any longer, but was withdrawing from the case. McCalister insisted that Haunstein stay with him and get him out of his difficulty. Blaine had told Gray that he had evidence against McCalister to prove several criminal offenses against the federal statute and that when he collected his judgment he intended to turn the evidence over to the U. S. district attorney’s office. Gray had told McCalister and Haunstein the threat Blaine had made and McCalister feared criminal prosecution. Finally Haun-stein agreed to continue to represent him on condition that he pay the judgment and go no further with the bankruptcy proceedings. Haunstein proposed that McCal-ister give him $3,500, and he would settle the Hubbard judgment in the sum of $1,-150, that being the on’y bona fide claim filed against the bankrupt estate, and that the balance of the money was to be Haunstein’s attorney fee for procuring a dismissal of the bankruptcy proceedings and for defending McCalister on any criminal charges which might be filed against him in connection with the! bankruptcy matter. McCalister agreed to the proposition and borrowed $3,-500, giving a mortgage on the farm to secure the debt, and gave the money to Haun-stein, who settled the judgment, procured waivers of the bogus claims, and made a proper showing that all creditors were satisfied and procured a vacation of the order adjudicating McCalister a bankrupt, and finally the dismissal of the proceedings.

After determining- that no criminal charges were likely to be filed against him, McCal-ister asked Haunstein for a refund of a part of the attorney’s fee which he had paid him, and Haunstein refused to make any adjustment of the fee. McCalister filed a civil action in the district court of Garfield county to recover all of the fee, claiming that the money was entrusted to Haun-stein to pay all listed claims in the bankruptcy matter and if any remained after paying same it was to be returned to him, but that Haunstein had converted the same to' his own use. This was the basis of his complaint before the State Bar.

*612 At the trial of the civil action Haunstein proved his contract with McCalister for the attorney fee and the jury found 'in favor of Haunstein, but, under a quantum meruit instruction by the court, allowed him only about half of the fee charged, and rendered judgment for McCalister in the sum of $1,-259.15. The court rendered judgment according to the verdict, and Haunstein appealed therefrom to this court. The record of civil case was received in evidence at the trial of the disbarment proceedings before the Board of Governors and Is a part of the record in this case.

The petitioner presents his case under four different propositions attacking the findings, conclusions of law, and recommendations of the'Board of Governors on grounds of procedural irregularities in the disbarment proceedings. We deem it unnecessary to a proper determination of the matter to discuss in the opinion all the questions raised by petitioner. It is contended by petitioner that the judgment in the district court of Garfield county in the civil action between Levi McCalister, as plaintiff, and Paul R. Haunstein, as defendant, involving the same ground of complaint as involved herein, is binding and conclusive as against Levi McCalister and the Board of Governors of the State Bar, so long as the judgment remains unreversed and unmodified, and that the Board of Governors were without authority to disregard said judgment.

The jury having found in the civil case that Haunstein had not misapplied the funds of his client as charged, but that said money was paid to him by McCalister as a fee for services to be rendered, and the same being case No.

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State ex rel. Oklahoma Bar Ass'n v. Hatcher
1949 OK 175 (Supreme Court of Oklahoma, 1949)

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Bluebook (online)
46 P.2d 558, 172 Okla. 610, 1935 Okla. LEXIS 1482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haunstein-v-state-bar-of-oklahoma-okla-1935.