In re Disciplinary Proceedings Against Arrieh

496 N.W.2d 601, 174 Wis. 2d 331, 1993 Wisc. LEXIS 344
CourtWisconsin Supreme Court
DecidedMarch 19, 1993
DocketNo. 92-0397-D
StatusPublished
Cited by4 cases

This text of 496 N.W.2d 601 (In re Disciplinary Proceedings Against Arrieh) is published on Counsel Stack Legal Research, covering Wisconsin 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 Disciplinary Proceedings Against Arrieh, 496 N.W.2d 601, 174 Wis. 2d 331, 1993 Wisc. LEXIS 344 (Wis. 1993).

Opinion

PER CURIAM.

Attorney disciplinary proceeding; license suspension imposed.

This is an appeal by Attorney Marshall Arrieh from the report of the referee concluding that he engaged in professional misconduct and recommending that the court suspend his license to practice law for six months as discipline for it. Attorney Arrieh's misconduct consisted of the following: failure to promptly notify a client of funds he received on the client's behalf, failure to maintain complete records of all funds and other property of the client coming into his possession and render appropriate accounts regarding them, failure to advise the client of deficits occurring in his management of the client's property, failure to provide the client an accounting of the disposition of funds he had received on the client's behalf. In addition, Attorney Arrieh attempted to have his client withdraw a grievance the client filed with the Board of Attorneys Professional Responsibility (Board) concerning Attorney Arrieh's conduct and knowingly made false statements to the Board concerning his client's intent to withdraw the grievance.

Attorney Arrieh's failure to properly account for his receipt and management of client funds and property over an extended period of time and his attempt to induce the client to withdraw a grievance filed with the Board in respect to that conduct constitute serious violations of the court's rules governing the professional conduct of persons licensed to practice law in the state. Further, his attempt to mislead the Board in respect to his client's grievance demonstrates that Attorney Arrieh is willing to violate his fundamental professional duty of honesty to clients and the courts he serves. The six-month license suspension recommended by the referee is an appropriate response to his professional misconduct.

[333]*333Attorney Arrieh was admitted to practice law in Wisconsin in 1946 and practices in Milwaukee. The court suspended his license to practice law for one year, effective January 1, 1990, as discipline for professional misconduct, including his conversion of client funds to his own use, failure to keep complete records of that client's funds coming into his possession, failure to produce trust account records and other documents subpoenaed in a civil action against him concerning that client's matter, giving false and misleading statements in the course of a deposition concerning his records of those dealings, making false and misleading statements in an affidavit and in testimony in the action concerning his handling of the client's funds and similar false and misleading statements to the district professional responsibility committee investigating his misconduct and failure to produce trust account records upon request of the Board. Disciplinary Proceedings Against Arrieh, 152 Wis. 2d 147, 448 N.W.2d 4 (1989). At the conclusion of that suspension, Attorney Arrieh sought reinstatement of his license to practice law. By order of January 7, 1992, the court denied his petition for license reinstatement on the grounds that during the period of Suspension he continued to practice law, continued to display signs and use stationery and telephone directory listings identifying him as an attorney, failed to timely notify the court in two pending matters that his license had been suspended and failed to inform a former client of his suspension when she asked him to represent her in a legal matter.

In this proceeding, the referee, Attorney Rudolph P. Regez, made the following findings of fact based on a stipulation of the parties and evidence presented at a disciplinary hearing. In 1985, a man retained Attorney Arrieh to handle an insurance claim arising out of the [334]*334theft of his automobile. Soon thereafter, the client and his wife moved to Puerto Rico but maintained contact with Attorney Arrieh, who was handling other legal matters for them. On February 2, 1986, the insurance company sent Attorney Arrieh a check payable to him and the client in the amount of $1,556.60, which Attorney Arrieh cashed. In October, 1989, after returning to Wisconsin, the client filed a grievance with the Board complaining that Attorney Arrieh had never reported the amount of money he had collected on the insurance claim or paid him the funds received.

In response to the client's grievance, Attorney Arrieh told the Board that he had settled the claim for $1,700 and, after deducting a chattel mortgage balance due, his expenses and attorney fees and a partial distribution to the client, he applied the balance of the settlement to upkeep on the client's property in Milwaukee he was managing during his client's absence. In 1989, Attorney Arrieh prepared and gave the client three separate accountings for his management of that property for calendar 1986 but included the credit for the insurance settlement only in the last of those accountings.

Between 1985 and 1988, while he was retained to manage the client's property, Attorney Arrieh did not provide his client with a written financial accounting of receipts and disbursements in connection with the property, despite his client's numerous requests for account-ings and a demand for funds the client believed were due him. Attorney Arrieh ultimately provided written financial accountings for the years 1985 to 1988, albeit incomplete and in summary form, after the client filed a grievance with the Board. Attorney Arrieh did not maintain a ledger to record receipts or disbursements in connection with the property; during the Board's investigation, he turned over a stack of receipts as the only documenta[335]*335tion of repairs made on the property, many of those for disbursements he had made in cash. Moreover, Attorney Arrieh did not use his trust account for all of the deposits and disbursements of his client's funds relating to the property he was managing nor did he keep contemporaneous records of the funds he received or disbursed while managing it.

When his client returned to Milwaukee, Attorney Arrieh told him that the operating deficit for the property he was managing had reached $24,000 and the client owed him that amount. Prior to 1989, Attorney Arrieh had given the client no written notice or accounting of the alleged deficit. Testifying before the district professional responsibility committee in August, 1991, Attorney Arrieh stated that he paid approximately $17,000 for building repairs with his own funds and showed those payments in the accountings he gave his client in 1989. Attorney Arrieh claimed he paid cash for a majority of the amounts spent for materials and labor for those repairs.

In a matter that preceded his managing the client's property, the client retained Attorney Arrieh to handle the sale of another property in Milwaukee in 1984. Attorney Arrieh acted in the matter both as real estate broker under his broker's license and attorney, charging an attorney fee as well as a broker commission for handling the sale and setting forth those two fees on the closing statement he prepared. Between 1984 and 1989, the client made a number of requests that Attorney Arrieh give him an accounting of the proceeds from the sale of the property but, as of 1989, had received neither a closing statement nor any other written statement setting forth charges against the amount due the client from the sale.

[336]

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Related

Office of Lawyer Regulation v. Crandall
2011 WI 21 (Wisconsin Supreme Court, 2011)
In the Matter of Disciplinary Proceedings Against Whitnall
2000 WI 131 (Wisconsin Supreme Court, 2000)
In re the Reinstatement of Arrieh
547 N.W.2d 194 (Wisconsin Supreme Court, 1996)
In Re Reinstatement of the License of Arrieh
522 N.W.2d 217 (Wisconsin Supreme Court, 1994)

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Bluebook (online)
496 N.W.2d 601, 174 Wis. 2d 331, 1993 Wisc. LEXIS 344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-disciplinary-proceedings-against-arrieh-wis-1993.