In re Complaint as to the Conduct of Harris

741 P.2d 890, 304 Or. 43, 1987 Ore. LEXIS 1576
CourtOregon Supreme Court
DecidedAugust 24, 1987
DocketOSB 86-23, 86-24, 86-47; SC S34290
StatusPublished
Cited by1 cases

This text of 741 P.2d 890 (In re Complaint as to the Conduct of Harris) 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 the Conduct of Harris, 741 P.2d 890, 304 Or. 43, 1987 Ore. LEXIS 1576 (Or. 1987).

Opinion

PER CURIAM

Before us is a document entitled “STIPULATION FOR DISCIPLINE” (“stipulation”) signed and verified by the accused, Edwin D. Harris. Following his verification is a statement signed by the General Counsel of the Oregon State Bar (Bar), from which we infer that the “stipulation” has been reviewed by the General Counsel and approved by the State Professional Responsibility Board. The “stipulation” has been filed with the State Court Administrator for review by this court together with a letter signed by an Assistant General Counsel of the Bar stating that the accused and the Bar have entered into the “stipulation.”

BR 3.6, in pertinent part, provides:

“(a) Application. Any formal disciplinary complaint may be disposed of * * * by a stipulation for discipline, entered into at any time after the service of the formal complaint upon the accused.
<<* * * * *
“(c) Stipulation for Discipline. A stipulation for discipline shall be verified by the accused and shall include:
“(i) A statement that the stipulation has been freely and voluntarily made by the accused;
“(ii) A statement that explains the particular facts and violations to which the Bar and the accused are stipulating;
“(iii) A statement that the accused agrees to accept a designated form of discipline in exchange for the stipulation;
“(iv) A statement of the accused’s prior record of reprimand, suspension or disbarment, or absence of such record.
“(d) Approval of SPRB. * * * [Stipulations shall be reviewed by General Counsel and approved by the SPRB. The * * * stipulation, if acceptable to the SPRB and the accused, shall be filed by General Counsel with the state chairperson of the Disciplinary Board if the discipline to be imposed does not exceed a 60-day suspension, otherwise it shall be filed with the State Court Administrator for review by the court.
“(e) Review by Disciplinary Board or Court. The Disciplinary Board or the court, as the case may be, shall review the [46]*46* * * stipulation. * * * If * * * the court approves the * * * stipulation an opinion shall be issued so stating. * * *”

The Bar filed and served a formal complaint against the accused. During the pendency of the proceedings flowing therefrom, the Bar and the accused discussed the resolution of the matter, and the “stipulation” is the result of those discussions.

Despite the implication of BR 3.6(c)(ii) that a stipulation is a two-party instrument between the Bar and the accused, the present “stipulation” submitted for approval by the court is signed only by the accused. The body of the “stipulation” does not contain a statement by the accused that the stipulation is freely and voluntarily made; only the verification following the accused’s signature to the document contains the statement required by BR 3.6(c)(i). BR 3.6(c)(iii) and (iv) are met.

We construe the verification and the Bar’s cover letter stating that the Bar has entered into the “stipulation” to satisfy the requirements of BR 3.6(c) (i) and (ii), but we believe that it would be better were the instrument proper to contain the required statement about voluntariness and that a stipulation be a two-party instrument. See In re Heath, 292 Or 562, 566, 640 P2d 617 (1982), for a similar enjoinder to follow a former rule dealing with discipline by consent. The foregoing explains why we have placed quotation marks around the word “stipulation” for the instrument before us; henceforth, we shall refer to it without quotation marks.

The Bar’s formal complaint alleged seven causes. The stipulation provides that the Bar withdraws the charges in the second and fourth causes, and we shall not address them at all. The stipulation also provides that a part of the third cause is withdrawn, and we shall note that when addressing that cause. The accused stipulates that the allegations in the first, fifth, sixth, seventh and part of the third causes are true.

FIRST CAUSE

The accused entered into a contract with one Rogers for Rogers to remodel the accused’s office. The accused drafted a promissory note in Rogers’ favor for $13,356.05, the cost of remodeling, bearing interest at the rate of 12 percent per annum until paid. The accused had in his clients’ trust account money that had come from Rogers’ former partners. [47]*47The accused undertook to represent Rogers regarding the completion of a legal action between Rogers and his former partners. During the course of that representation, the accused executed another promissory note to Rogers for $6,000, supposedly evidencing an obligation for money lent by Rogers to the accused. The money actually came from the accused’s clients’ trust fund, and the money on deposit therein was that which came from Rogers’ former partners. Still later during his representation of Rogers, the accused borrowed $2,000 from Rogers and drafted and executed a promissory note to Rogers for that amount with interest at 12 percent per annum. The accused and Rogers had differing interests with respect to the loans, and Rogers expected the accused to exercise his professional judgment for Rogers’ protection. At no time during this course of events did the accused make to Rogers full disclosure of their differing interests, and at no time did the accused recommend that Rogers seek independent legal advice before the loans were made.

The accused accepted and continued employment as a lawyer for Rogers when the exercise of his independent professional judgment on behalf of Rogers could reasonably be expected to be affected by his own business, property or personal interests, without making full disclosure of their differing interests, without obtaining informed consent of Rogers to that employment and without recommending that Rogers seek independent legal advice.

The accused admitted to the Bar that his financial dependence on Rogers impaired his ability to advise Rogers as to the proper legal action to be taken by Rogers in these matters.

This conduct by the accused violated DR 5-101 (A) and 5-104(A) of the Code of Professional Responsibility.1

[48]*48THIRD CAUSE

The Bar charged that the accused violated DR 5-101(A), 5-104(A) and 5-105(A) and (B) by his conduct now described but has withdrawn the charge of violation of DR 5-105 (A) and (B).

During his representation of Rogers already described above, the accused solicited Rogers to invest in the purchase and rental of an apartment house to be rented on a cash basis to migrant farm workers. The accused formed a corporation, which held the property on behalf of the accused, Rogers and the partners. The accused was president and legal counsel for the corporation. The accused and Rogers had differing interests in that business transaction, and Rogers expected the accused to exercise his professional judgment for Rogers’ protection. The accused did not explain to Rogers how their interests differed and did not advise him to seek independent legal advice before entering into the transaction. It follows that the accused could not obtain informed consent by Rogers to represent Rogers in these circumstances.

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In re Complaint as to the Conduct of Fitting
742 P.2d 609 (Oregon Supreme Court, 1987)

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Bluebook (online)
741 P.2d 890, 304 Or. 43, 1987 Ore. LEXIS 1576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-complaint-as-to-the-conduct-of-harris-or-1987.