In Re Blank

585 N.E.2d 105, 145 Ill. 2d 534, 165 Ill. Dec. 709, 1991 Ill. LEXIS 119
CourtIllinois Supreme Court
DecidedNovember 27, 1991
Docket71189
StatusPublished
Cited by18 cases

This text of 585 N.E.2d 105 (In Re Blank) is published on Counsel Stack Legal Research, covering Illinois 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 Blank, 585 N.E.2d 105, 145 Ill. 2d 534, 165 Ill. Dec. 709, 1991 Ill. LEXIS 119 (Ill. 1991).

Opinions

JUSTICE CLARK

delivered the opinion of the court:

On February 24, 1988, the Administrator of the Attorney Registration and Disciplinary Commission (Administrator) filed a seven-count complaint against respondent, Gary Lee Blank, who was admitted to the practice of law on November 16, 1970. The respondent was charged with violating Rules 1—102(a)(3), (a)(4) and (a)(5), 6—101(a)(3), 7—101(a)(1), (a)(2) and (a)(3), and 7—102(a)(8) of the Illinois Code of Professional Responsibility (107 Ill. 2d Rules 1—102(a)(3), (a)(4), (a)(5), 6—101(a)(3), 7—101(a)(1), (a)(2), (a)(3), 7-102(a)(8)). The Hearing Board recommended that the respondent be suspended for a period of two years and respondent filed exceptions. The Review Board adopted the Hearing Board’s findings of fact and conclusions of law with respect to counts II through VII of the complaint and reversed the Hearing Board’s findings regarding count I. The Review Board agreed with the Hearing Board’s recommendation, and this court allowed the respondent’s petition for leave to file exceptions to the report and recommendation of the Review Board (94 Ill. 2d R. 753(e)(6)). The issues for review are as follows: (1) whether the findings and recommendations of the Review Board of the Commission are supported by the evidence adduced at the hearing; (2) whether the admission into evidence of Administrator’s Exhibit 58 was within the Hearing Board’s discretion; and (3) whether the misconduct proven warrants that the respondent be suspended for a period of two years.

The facts as to the allegations contained in count I are as follows. On February 14, 1980, Marshall Teichner was suspended from the practice of law for a period of two years. At that time, Teichner tendered many of his remaining files to the respondent to work on during his suspension. After Teichner returned to practice in February 1982, a dispute arose between the two attorneys over fees on cases in which both claimed an interest. The dispute resulted in a lawsuit (Teichner lawsuit).

On November 1, 1983, during the pendency of the Teichner lawsuit, the respondent caused an account to be opened at the Gladstone-Norwood Bank, entitled the “Gary L. Blank, Ltd., Marshall I. Teichner Ltd., client fund account” (Gladstone account). The respondent and his office manager, Andrea Michna, were the only signatories on the account.

On December 29, 1983, pursuant to an order entered on the court’s .own motion, a trustee was appointed in the Teichner lawsuit to receive “sole custody of all attorneys fees collected on each case either previously assigned to or to be assigned to Gary Blank or Marshall Teichner by order of [the] court.” The trustee was to deposit the funds into an account at the American National Bank (American account).

Thereafter, between December 30, 1983, and February 15, 1984, the respondent deposited six settlement checks into the Gladstone account (settlement checks). The settlement checks were made payable to the respondent, Teichner and others. The respondent disbursed the proceeds from the settlement checks to clients, paid any costs due, and took the balance as his fees.

The judge presiding over the Teichner lawsuit became aware of the settlement checks when he saw copies of them in the court file and noted the stamped endorsement on the settlement checks was that of the principals in the case before him. Believing the respondent’s actions in depositing the settlement checks in the Gladstone account were in violation of the court’s December 29 order, the judge brought the matter to the attention of the Administrator.

Subsequently, the Teichner lawsuit was settled. Part of the settlement included stipulations (Teichner stipulations) whereby Teichner acknowledged that the respondent had apparent authority to endorse the settlement checks and deposit them into the Gladstone account. Teichner relinquished any claim that he had in these checks.

At the hearing, the respondent testified that the settlement checks were not related to the Teichner litigation because the cases which were related to the settlement checks had not been assigned to either Teichner or the respondent pursuant to the December 29 order. In his answer to the complaint filed by the Administrator, however, the respondent admitted that the settlement checks were the subject of the Teichner lawsuit.

Moreover, the respondent testified that the Teichner stipulations acknowledged his apparent authority to deposit the settlement checks into the Gladstone account. However, he testified on cross-examination that at no time did Teichner authorize him to open the Gladstone account and that all the arrangements for settlement and disbursement for the Gladstone account were handled by Michna.

The judge presiding over the Teichner lawsuit testified at the hearing that the respondent’s actions were “a direct violation” of the court’s December 29 order. He testified on cross-examination, however, that the December 29 order included only those lawsuits which the respondent and Teichner brought to his attention and that were in controversy, and not all lawsuits the respondent had been handling at the time of the Teichner lawsuit. He did not know whether he had entered an order on those cases that involved the settlement checks.

Count II alleged that client John Taylor retained the respondent to represent him in a malpractice action against Christ Hospital and Dr. Barbara McCreary (Taylor lawsuit). An action was filed on June 15, 1981. Christ Hospital was served with summons on January 4, 1982, and Dr. McCreary was served on January 21,1982.

The action was dismissed with prejudice on September 2, 1982, pursuant to this court’s Rule 103(b) (107 Ill. 2d R. 103(b)). On November 4, the respondent filed a motion to vacate the dismissal, which was denied. On December 20, the respondent filed a motion to reconsider the dismissal, but the court refused to hear the motion, finding that it did not comply with section 2—1401 of the Code of Civil Procedure (Ill. Rev. Stat. 1981, ch. 110, par. 2—1401) and that it was not timely filed. In January 1983, the respondent filed a petition for relief of judgment, which was denied. Taylor’s claims are now time-barred.

At the hearing, the respondent testified that he had nothing to do with the Taylor lawsuit until September 1982 when he filed the motion to vacate the dismissal. The respondent testified that although the original complaint bears his signature, it was signed by someone other than himself. On cross-examination, the respondent testified that he signed the affidavit of compliance filed with the complaint.

Count III concerned a personal injury lawsuit filed by Teichner on behalf of Donald and Nancy Singer (Singer lawsuit). The lawsuit was filed on June 24, 1983.

On October 24, 1983, Teichner was served with interrogatories. On December 23, the trial court entered an order that all written discovery in the Singer lawsuit was to be completed within 28 days.

On April 26, 1984, the respondent was assigned the Singer lawsuit in compliance with the court’s December 29, 1983, order. On that date, the respondent entered his appearance personally on behalf of the Singers. He then met with the Singers and attempted to reconstruct the file, which he maintains Teichner retained.

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Cite This Page — Counsel Stack

Bluebook (online)
585 N.E.2d 105, 145 Ill. 2d 534, 165 Ill. Dec. 709, 1991 Ill. LEXIS 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-blank-ill-1991.