In re Gordon

229 A.D. 142, 241 N.Y.S. 276, 1930 N.Y. App. Div. LEXIS 10322
Appellate Division of the Supreme Court of the State of New York·Decided April 11, 1930·Published·Cited by 1 cases

Opinion

Dowling, P. J.

Respondent was admitted to practice as an attorney and counselor at law in the State of New York at a term of the Appellate Division of the Supreme Court of the- State of New York, First Department, on May 13, 1907.

The petition charges respondent with misconduct as an attorney at law as follows:

1. On or about June 3, 1924, Caroline Zippert, an infant, sustained injuries in an accident, and her mother, Helen Zippert, retained the respondent as attorney for herself and for the infant. The respondent commenced an action in behalf of the infant and also an action on behalf of the mother against Camille Levy. A settlement for the infant in the sum of $400, and for the mother for $200, was effected about March 6, 1926, and the insurer for the defendant, Globe Indemnity Company, delivered two checks, one for $400 and one for $200, respectively, to the respondent, who indorsed the name of Helen Zippert on each check without her knowledge or authority, and collected the proceeds. About February 1, 1926, the respondent applied to the court for an order fixing his compensation for the services rendered in the infant’s case and on March 1, 1926, an order was entered directing that the respondent’s fee for the services which he rendered to the infant be fixed at $150. The respondent did not remit the money collected on behalf of Helen Zippert and Caroline Zippert until November 23, 1926, in the meantime converting the same to his own use. He retained the sum of $200 in the infant’s case, instead of $150; [143]*143and on November 23, 1926, he accounted for $350 of the money collected by him for the infant and converted the rest to his own use, namely $50.

2. About December 31, 1926, Rose Kaufman, an infant, was injured and her mother, Lillie Kaufman, retained the respondent as attorney, who thereupon commenced an action on behalf of the infant against the Shapiro Candy Company in the City Court, Bronx county. Thereafter the respondent settled the matter with the Ocean Accident and Guarantee Corporation, the insurer for the defendant, for $100, which was received by the respondent about May 27, 1927, Around May 26, 1927, the respondent applied to the court for an order fixing his compensation, and on the same day an order was entered fixing the respondent’s fee at thirty-five dollars. The respondent violated the terms of the order and instead of thirty-five dollars retained fifty dollars of the money collected by him on behalf of the infant. He thereupon accounted for eighty-five dollars and converted to his own use the balance, namely, fifteen dollars.

Respondent answered and the matter was referred to a referee to take testimony in regard to the charges and to report the same with his opinion thereon to this court. The learned referee has duly reported and the petitioners move for such action as the court may deem proper.

Disposing of the second charge first: It appears that, as alleged in the petition, Rose Kaufman was injured on December 31, 1926, in an automobile accident. On the recommendation of her employer, Lillie Kaufman, the mother of Rose Kaufman, retained respondent. Actions were brought in the City Court of the City of New York, Bronx county. The insurer of the defendant settled the infant’s claim for one hundred dollars, and the parent’s claim for one hundred and fifty dollars. The order allowing compromise of the infant’s claim fixed respondent’s compensation at thirty-five dollars. Under his retainer with the parent, he was entitled to one-half of the settlement, or seventy-five dollars. Respondent testified that he had paid thirty dollars for his investigation of the case, and had paid one dollar and fifty cents for the service of a summons, and twenty-five cents for a certified copy of the order, making his total disbursements thirty-one dollars and seventy-five cents; that when Mrs. Kaufman came to his office after the check, he said, u Mrs. Kaufman, here is the situation: All I was allowed was $35 in this particular case, and my expenses were over $31. I had $30 expense in investigating your case. It would not be fair that I should assume the responsibility of the entire payment of this investigation.’ I said, ‘ You stand half and I will stand [144]*144half.’ And she said, ' All right. Let it go at that.’ And that is why I gave her $125. She knew I charged her $15 and charged $15 to myself, but to take out the entire $31.75 out of this settlement I said would not be fair to me.”

The following is an extract from Mrs. Kaufman’s cross-examination: “ Q. Did Mr. Gordon tell you that it cost him $30 to investigate the case and for expenses? A. Yes, he told me that. Q. And did you agree to pay half of that? A. Yes. Q. Do you know that the Court order marked Exhibit 10 allowed Mr. Gordon $35 out of the $100 awarded to your daughter? He was supposed to get $35 and your daughter $65? A. Yes. ■ Q. And that out of the $150 that was allowed to you he was supposed to get $75 and you $75. Did you agree to deduct half of those expenses, half of the $30 from your allowance out of the $150? A. Yes. Q. So that you received $60 in your case and $65 in your daughter’s case? A. Yes.”

It appears that respondent received the settlement check from the insurer about May 27, 1927. Payment was not made to the Kaufmans until August 20, 1927. Mrs. Kaufman testified that after signing the release, which is dated May 27, 1927, she called respondent on the telephone and asked him if he had heard anything about the case, and respondent said as soon as he was ready to settle he would call her up. That he did call her up in a couple of weeks and she went down the same day. Respondent’s story is that he got in touch with Rose Kaufman twice on the telephone and wrote her a letter, and finally called the mother to come for the check.

The referee states in his report: “ While in my judgment there is not sufficient evidence to sustain the charge that respondent converted to his own use the sum of $15.00, I am of the opinion that respondent violated his obligations and duties as a member of the Bar in retaining his client’s money for a period of three months, and that he had failed to give a satisfactory explanation for this delay.” This conclusion we find justified upon the record.

On the first charge, the record discloses that on June 3, 1924, Caroline Zippert, an infant, was injured in an automobile accident. Her mother, Helen Zippert, retained respondent to prosecute their respective claims. Two actions were instituted in the Supreme Court, Queens county, against Camille Levy. The insurer of the defendant settled the actions, $400 for the infant, and $200 for the parent. March 1, 1926, an order was obtained granting leave to compromise the infant’s claim, and fixing respondent’s compensation at $150, “ for services rendered and disbursements.” The checks from the insurance company, one for $200 to the order of [145]*145Nathan Gordon, attorney, and Helen Zippert,” and the other for $400 to the order of “ Nathan Gordon, attorney, and Helen Zippert, individually and as guardian ad litem of Caroline Zippert, an infant,” are dated March 6, 1926. The bank indorsement shows they were paid on March 9, 1926. It appears that when they were received by respondent they were cashed by his office associate. Payment was not made to Mrs. Zippert until November 23, 1926, when respondent delivered to her a check for $300, but, Mrs. Zippert testified, he told her not to deposit it until he told her to do so. This check shows that it was deposited in the Bank of the Manhattan Company on December 21, 1926, and paid in due course.

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In re Gordon, 229 A.D. 142, 241 N.Y.S. 276, 1930 N.Y. App. Div. LEXIS 10322 (N.Y. Ct. App. 1930).

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