In Re Complaint as to Conduct of Martin

970 P.2d 638, 328 Or. 177, 1998 Ore. LEXIS 1130
CourtOregon Supreme Court
DecidedDecember 17, 1998
DocketOSB 94-157, 94-158; SC S44004
StatusPublished
Cited by20 cases

This text of 970 P.2d 638 (In Re Complaint as to Conduct of Martin) is published on Counsel Stack Legal Research, covering Oregon 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 Complaint as to Conduct of Martin, 970 P.2d 638, 328 Or. 177, 1998 Ore. LEXIS 1130 (Or. 1998).

Opinion

*179 PER CURIAM

In this lawyer disciplinary proceeding, the Oregon State Bar filed a complaint charging that the accused had violated Code of Professional Responsibility Disciplinary Rules (DR) 1-102(A)(3) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation) (three counts); DR 9-101(A) (failure to deposit client funds in trust account) (three counts); DR 9-101(A)(2) (failure to deposit disputed funds in trust account) (two counts); DR 2-110(A)(2) (failure to take reasonable steps to avoid foreseeable prejudice to client before withdrawing from employment); DR 9-101(0(3) (failure to maintain records of client funds and to account for those funds) (two counts); and DR 1-103(C) (failure to respond fully and truthfully to investigatoiy inquiries).

A trial panel of the Disciplinary Board found that the accused had committed two of the alleged violations of DR 1-102(A)(3), but not the third; all three alleged violations of DR 9-101(A); a violation of DR 2-110(A)(2); and one of the alleged violations of DR 9-101(0(3), but not a second. The trial panel also found that the accused did not violate DR 9-101(A)(2) or DR 1-103(C). Based on its findings that the accused had converted client funds, DR 1-102(A)(3), the trial panel determined that the appropriate sanction was disbarment.

The matter comes before us pursuant to ORS 9.536(2) and Bar Rules of Procedure (BR) 10.1 and 10.4. On review, the accused challenges only the trial panel’s conclusion that twice he converted client funds and thereby violated DR 1-102(A)(3). The Oregon State Bar (Bar) contends that the accused’s conduct was at least knowing, that he therefore committed both violations, and that he should be disbarred.

This court reviews the trial panel’s decision de novo. ORS 9.536(3). The Bar had the burden of proving misconduct by clear and convincing evidence. ORS 9.536(2); BR 5.2. For the reasons that follow, we conclude that the accused committed the violations of DR 9-101(A), DR 2-110(A)(2), and DR 9-101(0(3), as found by the trial panel, and that the accused converted client funds on one occasion in violation of DR *180 1-102(A)(3). We further conclude that the appropriate sanction is disbarment.

We find the following facts. The accused was admitted to the practice of law in 1992. When he began practicing law, he worked during the day at a full-time, manufacturing job and attempted to manage a solo law practice in the evening. The charges in this case arise out of the accused’s handling of two separate client matters in 1993 and 1994.

In February 1993, the accused was appointed by the United States District Court to represent Rosemarie Murphey on a pro bono basis. Murphey, one of the accused’s first clients, was an indigent plaintiff in a federal discrimination case. Under the program pursuant to which the accused was appointed, he was to be paid only if Murphey prevailed and the trial court awarded attorney fees. Murphey paid the accused $1,000 for costs (with fees to be provided only if Murphey prevailed and fees were awarded) and the accused promised to provide a monthly accounting to Mur-phey. The accused then put Murphey’s money in an envelope in his desk, because he did not yet have a trust account.

When the accused later opened a trust account on March 1,1993, he did not deposit Murphey’s money. Instead, he withdrew money from the envelope from time to time, noting on the envelope the purpose of the withdrawal. At the time of the hearing on the disciplinary charges, the accused had lost the envelope and had no other record of expenses incurred on Murphey’s behalf.

Several months after their first meeting, the accused filed an amended complaint on Murphey’s behalf. In late August 1993, the accused was injured in an automobile accident. Two weeks later, he discussed the case with Murphey, but did not mention his accident, even though he later would represent to the district court that the injury affected his ability to work on her case. A few days later, Elizabeth Clark, a lawyer who was associated with the accused, informed Murphey about the accused’s accident and requested Murphey’s permission to work on the case. At that time, Clark informed Murphey that the accused had spent $816 of the $1,000 and that the accused needed $500 more to cover *181 discovery and settlement expenses. Murphey responded that she did not have an additional $500 and that she never had received an accounting for her original deposit.

Meanwhile, in September 1993, the defendant had filed a motion to dismiss or, alternatively, for summary judgment, in Murphey’s case. The accused did not send a copy of that motion to Murphey. In late October 1993, the accused moved to withdraw from his representation of Murphey, purportedly as a result of the injuries that he had sustained in the accident. The accused sent a copy of that motion to withdraw to Murphey, but with no additional explanation. In November 1993, the district court granted the defendant’s motion to dismiss and the accused’s motion to withdraw.

Murphey first learned of the defendant’s motion to dismiss when she received a copy of the court’s order granting it in November 1993. She later was able to revive the action by filing a pro se objection to the defendant’s motion to dismiss, together with a request for new counsel. A new lawyer, Hutchinson, eventually was appointed.

Later in November, Murphey complained to the Indigent Representation Supervisory Committee of the United States District Court about the accused’s use of her funds and his failure to provide an accounting. In February and March 1994, Hutchinson repeatedly requested an accounting from the accused. Eventually, she complained to the Bar on Murphey’s behalf. In late March 1994, the accused sent Hutchinson a brief letter, reporting that there were four entries on Murphey’s “account” that totaled $816. The expenditures were for payments to Clark and to a law clerk for legal research. The accused enclosed a check for $184, marked as full and final settlement. Hutchinson deemed the accounting inadequate and requested further details. She also returned the check and demanded that the $816 be returned to the accused’s trust account, because it was in dispute.

In April 1994, the accused sent Murphey a check for $184 with no restrictions. In October 1995, while the Bar’s investigation was pending, the accused returned $816 directly to Murphey.

*182 A Local Professional Responsibility Committee investigator interviewed the accused in November 1994. The accused told the investigator that, several months after receiving Murphey’s deposit, he had placed the then-remaining funds into his client trust account. The accused could not verify the deposit, however. He also told the investigator that, after receiving Hutchinson’s letter, he did not deposit $816 into his trust account as disputed funds, because he did not have the money.

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Cite This Page — Counsel Stack

Bluebook (online)
970 P.2d 638, 328 Or. 177, 1998 Ore. LEXIS 1130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-complaint-as-to-conduct-of-martin-or-1998.