In Re Brumund

44 N.E.2d 833, 381 Ill. 139, 1942 Ill. LEXIS 501
CourtIllinois Supreme Court
DecidedNovember 17, 1942
DocketNo. 26688. Rule discharged.
StatusPublished
Cited by4 cases

This text of 44 N.E.2d 833 (In Re Brumund) 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 Brumund, 44 N.E.2d 833, 381 Ill. 139, 1942 Ill. LEXIS 501 (Ill. 1942).

Opinion

Mr. Justice Wilson

delivered the opinion of the court:

A report filed by the board of governors and the committee on grievances of the Illinois State Bar Association, as our commissioners under Rule 59, concerning a complaint by Meyer Lipschutz charging Frank G. Brumund with unprofessional conduct, recommends his suspension for two years. In making their recommendation the commissioners overruled the recommendation of the committee on grievances of the seventh judicial district “that the circumstances of this complaint do not warrant disbarment proceedings” and the affirmative recommendation that Brumund be censured by the board of governors and expelled from membership in the State association. Respondent has filed exceptions to the report of the commissioners, and the cause is submitted upon the record and proofs.

Frank G. Brumund, the respondent, was licensed to practice law on December 13, 1918. He has since been engaged in the practice of his profession in Joliet, where he has held responsible positions as an assistant to the probate judge of Will county, an assistant State’s Attorney, and a special master in chancery. He has also been active and held high office in several civic organizations. From the complaint made by Lipschutz, respondent’s answer, complainant’s reply thereto, and the evidence adduced, pertinent facts appear. September 8, 1926, Benjamin C. Litchfield, executed his promissory note for $1175 payable six months from date to the order of Meyer Lipschutz, in New York City. Lipschutz was a letter carrier employed by the postal department of the city and Litchfield was then engaged in business in New York. Afterwards, Litchfield came to Joliet where he established himself in the women’s apparel business. Lipschutz eventually traced Litchfield to Joliet and, in the summer of 1933, visited the city incident to his efforts to collect the debt owing him. He retained respondent to represent him in the collection of the note for $1175. Respondent orally agreed to undertake the collection on a contingent-fee basis of thirty-three and one-third per cent. Litchfield, it appears, had assumed the name of Robert Litchfield for business purposes in Joliet and, when respondent first visited him, denied his identity as the maker of the note. Subsequently, Litchfield admitted that he was the debtor and thereafter paid respondent twenty dollars on each of five separate ocasions to apply on his indebtedness to Lipschutz. Correspondence between respondent and the complainant in 1933 relates, among other things, to an attempt by Litchfield to obtain a reduction in the amount of his obligation. September' 18, 1933, respondent wrote to Lipschutz saying, “He has employed an attorney by the name of Mr. Krusemark and they contend that the only amount ever borrowed from you was $750.00 and not $1175.00 as set out in the note. He further states that you agreed that if he would get you a job working in the Postal Department that you would cancel the obligation.” In this letter, respondent stated that Litchfield was willing to pay twenty dollars monthly provided Lipschutz reduced the amount of the debt to $750. September 20, Lipschutz wrote respondent declining to make the requested reduction, adding “Kindly sue for the $1175 plus $1.30 for the stoppage of the note. $20.00 I give you to investigate the deeds to his mother’s property, which I believe he has hidden in his mother’s name, $60 for the trip to Joliet, outside of the days I lost trying to find him and your expense. * * * I want every cent of my money.” Respondent, in obedience to these directions, prepared a complaint to be filed in the circuit court of Will county and forwarded it to Lipschutz who acknowledged the attached affidavit. About December 1, 1933, Lipschutz advised respondent that he did not see the wisdom of a lawsuit, and the complaint was not filed. The payments made, amounting to $100, were not reported to Lipschutz and his inquiries from time to time in 1933 and 1934 concerning the status of the collection were not answered by respondent. The latter stated that some collectors remitted to their clients immediately upon making collections, but that others did not do so, and that he had hoped to obtain more money before remitting. It appears that Hayes Kennedy, a lawyer practicing in Chicago, on June 22, 1934, wrote a letter to respondent informing him that attorney Norman L. Marks, New York, had asked him to obtain information concerning Lipschutz’ claim against Litchfield. Neither this nor two letters to respondent in August, 1934, were answered. Respondent testified that in November, 1934, he furnished Kennedy with a detailed statement of the transaction and that the latter did not think his charges of $100 for services rendered unreasonable. He assumed, according to his testimony, that Kennedy reported to Marks and that the latter, in turn, advised Lipschutz. Respondent also said that at a later date attorney James W. Faulkner, Joliet, inquired with respect to the progress of the collection and, when advised that Kennedy had reviewed the transaction, said: “If Hayes Kennedy had been in and has gone over everything, I will have nothing to do with it.” Neither Kennedy nor Faulkner was called as a witness at the hearings.

In the meantime, in September, 1934, Litchfield filed a voluntary petition in bankruptcy. The claim of Lipschutz was not listed among his liabilities. According to Litchfield, he did not list Lipschutz as a creditor “because I owed that money in New York, and, it had nothing to do with the business which had caused me to go into bankruptcy.” Respondent learned of the proceedings and spent considerable time in the office of the referee in bankruptcy, John P. Haley, examined the schedules, attended the first meeting of creditors and conferred with Albert FI. Krusemark, attorney for Litchfield. Haley corroborated respondent, adding that he conferred with him relative to the unscheduled claim of a creditor. The rendition of these services was not specifically authorized by Lipschutz but respondent took the view that he was under a duty to follow the bankruptcy proceedings. Litchfield was hopelessly insolvent and, since it appeared there would be no payments to creditors, respondent did not file a claim and did not advise Lipschutz of the pendency of the proceedings. Lipschutz, the record discloses, learned from Litchfield that the latter had paid money to respondent to apply on his indebtedness, a letter stating that he had paid $120 on account. Litchfield, at the hearings, had no recollection as to whether he had paid $100 or $120. In any event, Lipschutz, admittedly, had notice, in 1934, of payments from Litchfield to respondent. He also learned of the bankruptcy proceedings, in 1934, and communicated with Litchfield who had left Joliet and gone to Champaign where he remained for five years, returning to Joliet in 1939. According to respondent, he attempted to locate Litchfield during this period, but without success. At no time during the five-years’ period, 1934 to 1939, did Lipschutz seek to obtain from respondent any portion of the money he had collected. Krusemark testified that respondent made frequent inquiries between 1934 and 1940 concerning Litchfield’s whereabouts. It appears that Litchfield departed without notifying his attorney and, we note, without paying him for services rendered in the bankruptcy matter. In August, 1939, Lipschutz again came to Joliet and effected an arrangement with Litchfield, reducing the latter’s debt to $500, the debtor having paid $100 direct to Lipschutz in payments of $10 each. Litchfield gave Lipschutz two post-dated checks for $250, neither of which was paid.

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Bluebook (online)
44 N.E.2d 833, 381 Ill. 139, 1942 Ill. LEXIS 501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-brumund-ill-1942.