In Re Complaint as to Conduct of Murdock

968 P.2d 1270, 328 Or. 18, 1998 Ore. LEXIS 1019
CourtOregon Supreme Court
DecidedNovember 27, 1998
DocketOSB 96-68; SC S43613
StatusPublished
Cited by22 cases

This text of 968 P.2d 1270 (In Re Complaint as to Conduct of Murdock) 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 Murdock, 968 P.2d 1270, 328 Or. 18, 1998 Ore. LEXIS 1019 (Or. 1998).

Opinion

*20 PER CURIAM

The issue in this lawyer disciplinary case is straightforward: Should a lawyer who embezzles money from his or her law firm be disbarred? We hold that disbarment generally is the appropriate sanction for such dishonesty.

The Oregon State Bar (Bar) charges that the accused violated Code of Professional Responsibility Disciplinary Rules (DR) 1-102(A)(2) and (3), which provide:

“It is professional misconduct for a lawyer to:

“(2) Commit a criminal act that reflects adversely on the lawyer’s honesty, trustworthiness or fitness to practice law;
“(3) Engage in conduct involving dishonesty, fraud, deceit or misrepresentation^ ]”

The Bar also charges that the accused violated ORS 9.527(1) and (4), which provide:

J

“The Supreme Court may disbar, suspend or reprimand a member of the bar whenever, upon proper proceedings for that purpose, it appears to the court that:

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“(1) The member has committed an act or carried on a course of conduct of such nature that, if the member were applying for admission to the bar, the application should be denied;
“(4) The member is guilty of willful deceit or misconduct in the legal profession[.]”

The Bar’s complaint alleged in part:

“3.
I “At all times material hereto, the Accused was employed as an associate in the Lane County law firm of Thorp, Purdy, Jewett, Urness & Wilkinson, P.C. (hereinafter ‘the *21 firm’). As part of his duties with the firm, the Accused provided contract indigent criminal defense to the firm’s clients through an agreement with the State Court Administrator (hereinafter ‘SCA’). In addition, he provided certain services to the firm’s clients on a flat fee basis.
“4.
“Between September 1993 and September 1995, and while employed by the firm, the Accused diverted payments from the SCA intended for payment for ongoing indigent defense cases and converted those payments to his own use without the firm’s consent or knowledge. These payments totaled $6,917.78. During this same time, the Accused had flat fee clients of the firm pay their fees directly to him without the firm’s consent or knowledge, and thereby converted the sum of $2,525.00 to his own personal use.
“5.
“During an investigation by the firm into the SCA’s failure to pay certain indigent defense accounts, the Accused represented that these particular cases were being handled by a local circuit court judge and that the Accused was one of several lawyers who would soon be reimbursed by court order. This representation was false, and the Accused knew it was false when he made it.”

Pursuant to State Bar Rule of Procedure (BR) 3.1, the Bar also filed a petition for interim suspension dining the pendency of the proceedings on the above charges. This court appointed a special master to conduct a hearing to determine whether the accused should be suspended temporarily. The accused personally appeared at the temporary suspension hearing and represented himself.

At the BR 3.1 hearing, the accused stipulated that he had violated all the disciplinary rules and statutes alleged by the Bar. After the hearing, the special master found facts in accordance with the accused’s stipulation. The special master concluded:

“1. By intentionally depriving the firm of fees and retainers rightfully due the firm and appropriating those funds for his own use, the Accused may have committed the crime of Theft in the First Degree, a Class C felony, as defined by ORS 164.055.
*22 “2. The Accused had a fiduciary duty to act honestly in his dealings with the firm and had an obligation to give it all profits earned for the firm while an employee of the firm. His failure to do so clearly was an act of dishonesty.
“3. Although the Accused is an alcoholic and was addicted to drugs at the time that he converted the funds as described above, the Accused was not laboring under such a defect of reason, from disease of the mind, as not to know the nature and quality of his acts or that what he was doing was wrong. To the contrary, at all times the Accused recognized the unlawful and dishonest nature of his acts and consciously chose to convert firm funds.
“4. At no time material to his complaint did the Accused exhibit any inability to function that would excuse his conduct.” (Emphasis in original.)

As to the question of interim suspension, the special master concluded that the Bar had failed to establish by a preponderance of the evidence that the accused’s continued practice of law during the pendency of the proceedings would, or was likely to, result in substantial harm to any person or the public. Notwithstanding, after considering the special master’s report, this court found that the accused’s continued practice of law was likely to result in substantial harm to the public and, accordingly, temporarily suspended him. BR 3.1(e).

At the hearing before the trial panel, the accused stipulated that he had violated all the disciplinary rules and statutes alleged by the Bar. The trial panel accepted and adopted the special master’s findings of fact with the following changes and additions:

“(1) [The special master’s] finding No. 11 [that the accused made no effort to reimburse the converted funds until his firm discovered his misconduct] is not accepted. Instead, we find that the repayment of a part of the diverted funds to his employer caused the accused’s employer to confront him.
“(2) When confronted, the accused initially denied any alcohol or drug problems; but shortly thereafter he acknowledged that he has a long-term addiction to alcohol and drugs and that he embezzled money from his employer.
*23 “(3) The accused was suspended by the Oregon Supreme Court on March 1, 1997, and remains suspended at this time.
“(4) The accused voluntarily extended his treatment program at Serenity Lane [a drug and alcohol abuse treatment facility] because of his suspension.
“(5) The accused continues to attend weekly group therapy counseling sessions for approximately one and a half hours. He also occasionally receives one-on-one counseling. He expects this program to continue for at least two more months.
“(6) The money converted by the accused belonged to his employer.
“(7) No client was harmed by any of the improper behavior which the accused committed.”

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Bluebook (online)
968 P.2d 1270, 328 Or. 18, 1998 Ore. LEXIS 1019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-complaint-as-to-conduct-of-murdock-or-1998.