In Re Disbarment Proceedings Against German

156 S.W.2d 678, 348 Mo. 859, 1941 Mo. LEXIS 566
Supreme Court of Missouri·Decided October 25, 1941·Published·Cited by 2 cases

Opinion

LEEDY, J.

This is a proceeding to disbar an attorney at law, Charles W. German, who appeals from a judgment of the Circuit Court of Jackson County finding him guilty, as charged, on seventeen of the nineteen counts in the information, and suspending him from the practice for a period of one year, with leave to apply for reinstatement at the expiration of that time, conditioned upon future good conduct, and making restitution to certain of the complainants.

By stipulation the case was submitted in the trial court, without arguments or briefs, solely on the evidence adduced before the Bar Committee of the 16th Circuit at its several hearings preliminary to the filing of the formal accusation. Nearly sixty pages of the abstract were required to set forth the trial'court’s findings of fact, with which findings, upon a careful and laborious examination of the evidence, we are in thorough accord. It would serve no useful purpose to summarize the facts as to each particular charge. Those involving embezzlement and misappropriation of his clients’ funds (fourteen in number, and recent as to date) are so nearly uniform in pattern and so often repeated as to justify the conclusion that the practice amounted-to custom or routine. In brief, the modus operandi was this: A matter involving the recovery of money would be entrusted to appellant in his professional capacity; the funds thus sought would come into his possession; he would deposit them in his own bank account, and use the same for his own purposes, and thereafter deceive his client, over long periods of time, by falsely and fraudulently representing that the matter was being diligently prosecuted, but he ' had not been able to effect collection. In such situation, if a client became too impatient or persistent, he would pay over a portion of the money — frequently by checks which were subsequently dishonored. Some of his clients found it necessary to employ other counsel and resort to suit to recover funds so embezzled or misappropriated. The following are typical examples, and for present purposes will suffice:

Count 13 relates to certain dealings of appellant as attorney for Prof. Phillip' B. Perry, an aged teacher who lived in Kansas City. Prof. Perry was Administrator of the estate of his sister, Kate P. Gregg, who died in Massachusetts. The estate was administered through the Probate Court of Jackson County, of which county deceased was a legal resident at the time of her death. Among her effects were passbooks indicating she had on deposit with certain Massachusetts banks substantial sums of money, to-wit: In the State Street Trust Co., of Boston, $1,907.72; in Boulevard Trust Co., of Brookline, $10,699.35. This was confirmed by correspondence between appellant and those institutions. In May, 1934, having collected the sum on deposit with State Street Trust Co., (less certain deductions *861 for taxes, etc.) appellant remitted the same to Prof. Perry. But he had theretofore received from Boulevard Trust Co., its draft dated April 25, 1934, payable to the order of Kate P. Gregg, Phillip B. Perry, Administrator, for the sum of $10,699.35. It was admittedly endorsed by-appellant in the name of the payees to which he appended the endorsement of his firm, “German & German.” The draft was cleared through Commerce Trust Co., whose endorsement is dated April 28, 1934, and was paid April 30, 1934, by First National Bank of Boston, on which it was drawn! Prof. Perry did not authorize the endorsement, nor have knowledge either of the existence of said draft, or that the full amount of said deposit had been collected by appellant until a year later. His statement was to the further effect that on or-about June 4, 1934, appellant called at his hotel, and delivered to him a check of German & German for $2500, stating at the time that Massachusetts law forbade savings banks to pay more than $2500 a month outside the state, but that the bank had agreed to pay the full amount in such monthly installments. Later, although no suit had ever been filed, he’told his client the bank “had appealed the case.” Prof. Perry made repeated requests of appellant throughout a period of nearly one year, but each time he was told by German that he had not heard anything further'from the Massachusetts bank. Finally, about April 1, 1935, after being unable to get satisfaction from appellant, he employed the firm of Byland, Stinson, Mag and Thomson for that purpose. Mr. Boy B. Thomson, of that firm, after corresponding with the bank in Boston, and obtaining a photostatic copy of the draft hereinaboye described, called on appellant at his office. What happened in that interview is revealing, and is shown by the following excerpts from Mr. Thomson’s testimony:

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In Re Disbarment Proceedings Against German, 156 S.W.2d 678, 348 Mo. 859, 1941 Mo. LEXIS 566 (Mo. 1941).

156 S.W.2d 678 (In Re Disbarment Proceedings Against German) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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