In re a Member of the State Bar of Arizona Carragher

756 P.2d 316, 157 Ariz. 219, 10 Ariz. Adv. Rep. 5, 1988 Ariz. LEXIS 79
CourtArizona Supreme Court
DecidedJune 7, 1988
DocketNo. SB-87-0016-D
StatusPublished
Cited by2 cases

This text of 756 P.2d 316 (In re a Member of the State Bar of Arizona Carragher) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re a Member of the State Bar of Arizona Carragher, 756 P.2d 316, 157 Ariz. 219, 10 Ariz. Adv. Rep. 5, 1988 Ariz. LEXIS 79 (Ark. 1988).

Opinion

CAMERON, Justice.

Respondent, Michael Anthony Carragher, was charged with unethical conduct arising out of his representation of Linnette A. Peterson and her estate.1 Specifically, it is alleged that:

1. During the course of Respondent's representation of Linnette A. Peterson, Respondent failed to maintain records of funds of Linnette A. Peterson which came into the possession of the Respondent. In so doing, Respondent violated the Code of Professional Responsibility, DR 9-102(B)(3).
2. Following termination of the attorney-client relationship between Respondent and Linnette A. Peterson, the Respondent failed to render appropriate accountings to Linnette A. Peterson regarding funds which came into Respondent’s possession, despite demand by Linnette A. Peterson and her attorney for such an accounting. As such, Respondent violated the Code of Professional Responsibility, DR 9-102(B)(3).
3. The Respondent failed promptly to pay or deliver to Linnette A. Peterson, or her estate, the $15,000 (approximate) which Linnette A. Peterson and/or her estate were entitled to receive and, as such, violated the Code of Professional Responsibility, DR 9-102(B)(4) and Rule 29(B)(6) of the Rules of the Supreme Court.
4. The pleading entitled “Summary of Accounting” in Graham County Superb or Court, Cause No. 10246, captioned “In re the Estate of: Linnette A. Peterson, a protective arrangement” materially misrepresented a fact when at page 12, paragraph C, subparagraph (a), it characterized a $40,000 payment to Michael Carragher as “the balance of attorney’s fees due under the fee agreement.” As such, the pleading violates the Code of Professional Responsibility, DR 1-102(A)(4) and (5).
5. With regard to the $15,000 received by Respondent upon close of the Chandler property, Respondent failed to deposit said funds in an identifiable bank account separate from the funds of Respondent, in violation of the Code of Professional Responsibility, specifically DR 9-102(A).

[220]*220The Local Administrative Committee found Respondent violated the Code of Professional Responsibility and recommended a six-month suspension from the practice of law. The Disciplinary Commission of the Supreme Court agreed with the Local Administrative Committee and made the same recommendation to this court. We have jurisdiction pursuant to Ariz.R.S.Ct. 46 and 53(e), 17A A.R.S.

FACTS

As the Local Administrative Committee noted, this case involved the representation of Linnette A. Peterson, who resided alone in Safford and lived a modest lifestyle. Her grandson, Steven Craig, and his wife, looked after her needs, which were the normal needs of an 80-year-old woman in fair health. Steven Craig was evidently quite close to his grandmother and was the one who introduced Mrs. Peterson to Respondent, Michael Carragher. It appeared that Mr. Craig remained vitally interested, both through counsel and personally, in Mrs. Peterson. Mrs. Peterson died in 1983.

Mrs. Peterson was the owner of a 160 acre farm in Chandler which was leased to a farmer for approximately $30,000 per year. She survived solely on the income from the farm. At the time of the events in this case, the property had increased in value as subdivision land worth over $4,000,000 dollars.

Mrs. Peterson had two daughters, one of whom resided in Yuma, Arizona. In 1973, Mrs. Peterson’s daughter in Yuma had her attorney draft a “Living Trust” for Mrs. Peterson. The corpus of the trust was the farm.- An “amendment” was subsequently drafted. In early 1979, Mrs. Peterson’s other daughter and Craig sought the services of Respondent in Safford, Arizona to evaluate the effect of the “amendment.” Respondent did so and, shortly thereafter, met with Mrs. Peterson. Respondent disagreed with the approach that the Yuma attorney had taken regarding the trust. He believed that the so-called “family farm exemption” was not available to protect the estate from taxes when Mrs. Peterson passed away. In this regard, he received help from others, including accountants and tax planners. By this time the Chandler land had been sold.

Respondent began to represent Mrs. Peterson and, over the course of several months, put together a rather extensive estate plan. At this time Mrs. Peterson paid Respondent $10,000 for fees and costs. Respondent submitted two fee proposals to Mrs. Peterson for future work he felt had to be accomplished in carrying out the estate plan he had created. On February 14, 1980, Mrs. Peterson opted for one of the proposals and entered an agreement with Respondent for future legal services.

The agreement indicated that Respondent would continue to represent Mrs. Peterson in her legal problems and in managing her property. Respondent also expected to remain as Mrs. Peterson’s personal representative under her will, billing “only and in no event any amount greater than the statutory fee a personal representative would otherwise be entitled to.”

On 7 January 1981, Mrs. Peterson went to Yuma, Arizona, with her daughter. She was ill and had been recently hospitalized prior. On 30 January 1981, Respondent received a letter from Mrs. Peterson revoking a previously granted Power of Attorney with instructions not “to act on my behalf unless given specific written instructions to do so by me or by another person who holds a current power of attorney executed by me.” Shortly thereafter, Respondent received a second letter from Mrs. Peterson, requesting a complete accounting of all sums received by Respondent.

Respondent believed that his client had been “stolen” by the daughter’s Yuma attorney. He was unable to communicate with his client after receiving the two letters, and he and Steven Craig were “convinced” that the client had literally been “kidnapped” and was being held against her will in Yuma by her daughters.

A Petition for Writ of Habeas Corpus was brought in Graham County Superior Court by Steven Craig with a supporting affidavit by E’-espondent. The Writ sought to have Mrs. Peterson returned to Safford [221]*221so that the Graham County Superior Court Judge might make a decision as to whether or not she was being held against her wishes by her daughters in Yuma.

When Craig’s attorney, through the Yuma County Sheriff, attempted to execute the Writ, they were prevented from doing so. Allegations and cross-allegations of ex parte influence by the Yuma attorney, and denials thereof, were rampant. All of the “interested parties” then met in Safford and it was agreed that Valley National Bank would be appointed to control the financial affairs of Mrs. Peterson. Valley National Bank accepted the appointment. Subsequently, the Graham County Superior Court Judge entered an order, without a hearing, terminating the conser-vatorship, and allowing Valley National Bank to withdraw. Again, the parties made allegations and cross-allegations of ex parte influence. After the conservator-ship was terminated in Graham County, a new proceeding was instituted in Yuma and, after a hearing, the Court ordered that the two daughters be appointed co-conservators of the estate of Mrs. Peterson. As the Local Administrative Court noted:

As one can see from the foregoing, a very wealthy, very elderly, woman was being figuratively pulled apart by competing interests.

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Related

In Re Crimson Investments, N.V.
109 B.R. 397 (D. Arizona, 1989)
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775 P.2d 1080 (Arizona Supreme Court, 1989)

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Bluebook (online)
756 P.2d 316, 157 Ariz. 219, 10 Ariz. Adv. Rep. 5, 1988 Ariz. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-a-member-of-the-state-bar-of-arizona-carragher-ariz-1988.