In Re Cadwell

543 P.2d 257, 15 Cal. 3d 762, 125 Cal. Rptr. 889
CourtCalifornia Supreme Court
DecidedDecember 22, 1975
DocketDocket Nos. L.A. 30449, 30450
StatusPublished
Cited by9 cases

This text of 543 P.2d 257 (In Re Cadwell) 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
In Re Cadwell, 543 P.2d 257, 15 Cal. 3d 762, 125 Cal. Rptr. 889 (Cal. 1975).

Opinion

15 Cal.3d 762 (1975)
543 P.2d 257
125 Cal. Rptr. 889

In re DAVID R. CADWELL on Suspension.
DAVID R. CADWELL, Petitioner,
v.
THE STATE BAR OF CALFORNIA, Respondent.

Docket Nos. L.A. 30449, 30450.

Supreme Court of California. In Bank.

December 22, 1975.

*764 COUNSEL

Harland W. Braun for Petitioner.

Herbert M. Rosenthal and Ronald W. Stovitz for Respondent.

OPINION

THE COURT.

This is a proceeding to review a recommendation of the Disciplinary Board of the State Bar of California in L.A. 30449 that David R. Cadwell be suspended from the practice of law for five years commencing March 11, 1970,[1] and its recommendation in L.A. 30450 *765 that he be suspended for two months upon "the effective date of the termination of the order" in L.A. 30449.[2] Cadwell was admitted to practice in 1960 and has no prior disciplinary record.

L.A. 30449

In 1969 Cadwell was convicted on two counts of grand theft (Pen. Code, §§ 484, 487) and was sentenced to prison. On March 11, 1970, we filed an interim suspension order since the offenses involved moral turpitude (see Bus. & Prof. Code, § 6102). In 1972, after the judgment was affirmed on appeal (People v. Cadwell, 4 Crim. 4191 [unpub. opn.]) and final, we referred the matter to the State Bar on the issue of discipline.

Following an evidentiary hearing by the local committee, the board received additional evidence. The board then made findings of fact, which may be summarized as follows with certain supplementary facts added thereto in brackets:

The criminal charges resulted from Cadwell's misappropriation of funds delivered to him in trust by his client, the Jack Fisher Chapter of the Disabled American Veterans (hereafter called the chapter).

The California Attorney General notified the chapter, which had not been qualified as a charitable institution, that it could not legally continue to operate certain thrift stores and that only an independent charitable organization could legally do so. The Attorney General demanded that all funds which the chapter had derived from the thrift store operation be transferred to a charitable organization and threatened to impose a receivership.

About August 23, 1967, Cadwell was retained by the chapter and paid a $7,500 retainer fee. No agreement was made as to the basis upon which fees would be charged by him for services rendered to the chapter.

At a meeting on September 5, 1967, Cadwell explained to the chapter membership the legal problems confronting the chapter and recommended that a charitable foundation be organized to operate the thrift *766 store business. At that meeting he was asked about his fees, and he stated that he would be unable to set a specific fee at that time and that there would be no fee unless the case was won or until the court authorized that he receive a fee.

The chapter's officers turned over to Cadwell $17,000 on September 11, 1967, and $38,000 on September 13, 1967, to prevent the funds from being tied up in a receivership. According to the officers, when the funds were delivered to him there was no discussion concerning the possibility of his receiving a fee from those funds, and they assumed that the funds would be deposited in a trust account.

On September 11, 1967, Cadwell opened a client's trust account and deposited therein $14,500 out of the $17,000. The remaining $2,500 was taken by him in cash. [The findings are silent as to what was done with the $2,500, and the record filed with us does not clearly establish where that money ultimately went.] Cadwell also deposited the additional $38,000 in his trust account. At various times between September 25, 1967, and March 4, 1968, he drew checks on the trust account payable to himself, cash or his office. None of the withdrawals were authorized by his client.

On January 8, 1968, at his client's request Cadwell rendered an accounting, listing legal fees, court costs, and expenses of $36,312.68. The chapter did not accept the accounting and directed Cadwell to surrender all its funds. Instead he submitted another accounting, in which he showed funds received as $62,500 (including his $7,500 retainer) and deducted, among other things, legal fees of $34,000.

In February 1968 the chapter terminated Cadwell's legal services, but he continued to be retained by a charitable foundation that had been organized to operate the thrift stores.

In his testimony before the local committee, Cadwell tried to justify his conduct on the ground that the amount taken did not exceed the reasonable value of the legal services rendered.

A civil action was brought against Cadwell to recover the money he had withdrawn from his trust account for attorney's fees. The action was brought by the Attorney General on behalf of a charitable foundation which acquired the assets of the chapter derived from the thrift store operations. Cadwell cross-complained for fees allegedly owed him. In *767 September 1974 a judgment by stipulation was entered against Cadwell for $34,000 on the complaint and in his favor for $29,000 on the cross-complaint, leaving a net judgment of $5,000 plus interest payable to the plaintiff.

During the time of the offenses, Cadwell was under considerable emotional stress as a result of his wife's suffering from severe emotional problems and becoming addicted to drugs. She attempted suicide on more than one occasion and had to be admitted to psychiatric hospitals for treatment. As a result, it became necessary for Cadwell to manage his household and care for his six children as well as carrying on his practice, which at that time was devoted entirely to representing the chapter. The increased financial responsibilities resulted in Cadwell's having no emergency funds, and he had no source of income other than from his current practice.

[Cadwell served 22 months in prison. After his release in November 1973, he worked as a paralegal in a Los Angeles law firm. A member of that firm wrote favorably in Cadwell's behalf, stating in part that he has known Cadwell about 15 years, that the offenses appeared "grossly out of character," and that Cadwell has worked for the firm about 10 months and has been "honest and trustworthy." Others, including two members of the California Legislature who have known Cadwell for many years, also wrote favorably on his behalf.]

Cadwell does not dispute any of the foregoing findings.

L.A. 30450

A notice to show cause was filed charging Cadwell with holding himself out to attorney N. Crowley as an attorney who represented John Rocha while under suspension, practicing law on Rocha's behalf while under suspension in violation of Business and Professions Code sections 6125 and 6126, and the commission of acts involving moral turpitude within the meaning of Business and Professions Code section 6106. Cadwell denied the charges.

The Evidence

Cadwell was aware at all relevant times of the suspension order filed March 11, 1970, which order has remained in effect.

*768 At the time of the alleged misconduct Cadwell was employed as a law clerk on a modest monthly salary by Lester Blanchard, an attorney who practiced with several other lawyers. John Rocha made an appointment with Blanchard's office for April 19, 1971, after Rocha's wife retained attorney N. Crowley to represent her in a dissolution of marriage proceeding.

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Cite This Page — Counsel Stack

Bluebook (online)
543 P.2d 257, 15 Cal. 3d 762, 125 Cal. Rptr. 889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-cadwell-cal-1975.