In Re Hamilton

58 N.E.2d 449, 388 Ill. 589
CourtIllinois Supreme Court
DecidedNovember 22, 1944
DocketNo. 27892. Respondent suspended.
StatusPublished
Cited by7 cases

This text of 58 N.E.2d 449 (In Re Hamilton) is published on Counsel Stack Legal Research, covering Illinois 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 Hamilton, 58 N.E.2d 449, 388 Ill. 589 (Ill. 1944).

Opinion

Mr. Justice Smith

delivered the opinion of the court:

In September, 1941, the Board of Governors of the Illinois State Bar Association authorized the General Committee on Grievances to institute such investigation and proceedings as it might deem advisable, and .to conduct such hearings as might be necessary, to the end that proper prosecution of respondent and others might be conducted if the investigation by said committee should justify further disciplinary action.

As the result of the investigation of the General Committee on Grievances, a complaint was filed by that committee charging respondent with unprofessional conduct tending to bring the courts and the profession into disrepute. Respondent filed a sworn answer to the complaint. Hearings were had before the committee. The matter was submitted upon the testimony of respondent, and a photostatic copy of a transcript of his testimony given before a Federal grand jury in Springfield in November, 1940.

On February 24, 1943, the committee made a report to the Board of Governors of the State Bar Association. This report contained findings of fact, based upon the evidence which had been heard by the committee. Upon the facts, as found, the committee concluded that while the conduct of respondent was not commended, it did not show such moral ’turpitude as to justify his disbarment.

On April 21, 1943, a hearing was had before the board of governors on this report. At this hearing respondent was present in person and by counsel. After hearing arguments by respondent and his counsel, and counsel for the association, the matter was referred back to the committee on grievances for a more detailed statement of its findings of fact, and for the hearing of any further evidence or testimony that might possibly be brought forward either by respondent or counsel for the association.

At a meeting of the board of governors held on December 2, 1943, the General Committee on Grievances made a report to the board in which it made the following findings of fact:

“1. That Elisha Bentley Flamilton, an attorney at law was admitted to practice by the Supreme Court of the State of Illinois in the year 1904, and has since his admission to practice been actively engaged in the practice of law in the City of Chicago and later in the City of Peoria. During all times relevant respondent was engaged in the general practice of law at Peoria.

“2. Some, time either in the year 1928 or 1929 respondent was retained and engaged by one Frank J. Boehm, then First Vice President of the Union Electric Company, a Missouri corporation, to act as attorney for this corporation and eleven or twelve of its Illinois subsidiaries. At the time of the engagement the compensation to be paid respondent was discussed. Respondent represented that in his opinion his compensation should be approximately $50,000.00 a year. Boehm felt that his services would not be worth nearly that amount. It was finally agreed that the company would pay to respondent $40,000.00 per year with the understanding that respondent should refund to the company the amount remaining at the end of each year after deducting therefrom the amount of his reasonable compensation for services rendered and expenses incurred upon behalf of the company. It was agreed, if not at the time of the original employment, but a short time thereafter, that respondent’s minimum fee would be $7500.00 a year. At the time of the employment of respondent the officials of the company advised him that the company was building Bagnell Dam at very large expense; that they proposed to build (and subsequently did build) a clubhouse and establish fishing and sports and other recreational facilities there in the interest of the public relations of the company; that the expense of establishing and maintaining these recreational facilities would not be regarded as deductible expense for the purpose of determining the rates to be charged by the company for electricity, and they therefore would expect him to refund the amount of the unearned portion of the annual payment in currency and that the company could use the refunded money on the Bagnell Dam project.

“3. From that time up to and including the year 1939 respondent represented the Illinois subsidiary companies of Union Electric Company and rendered numerous services for them varying in extent from year to year depending upon the requirements of the company.

“4. During these years respondent billed the company quarterly for the amount of $10,000.00. The company paid him by check upon the receipt of each quarterly bill. Respondent reported in his yearly income' tax returns the receipt of $40,000.00 from the company and took credit as expense for all amounts paid out of the fund to associate counsel and for traveling, office and other expense incurred in connection with the company’s business. Respondent testified and there is no. competent evidence to the contrary that he made no political contributions upon behalf of the company out of this fund.

“5. About every six months respondent refunded to the company, in currency, the unearned portion of the annual payment after deducting therefrom, in addition to fees and expenses, an amount equal to that part of the Federal income tax paid by respondent which related to the amount returned to the officials of the company. Refunds were made either by respondent taking the currency to the company’s St. Louis office in person or by paying it to an official of the company who would call upon respondent at his office in Peoría. The amounts returned to the company or its officials averaged $20,000.00 a year.

“6. The officials of the company did not consult respondent at any time with reference to the propriety or advisability of using the funds in the manner in which they stated the funds were to be used. Respondent kept no book account of the money received from the company or of the amount refunded to its officers, but merely made up a memorandum from time to time from his bank statement, cancelled checks and other memoranda. Respondent did not know if the refunds were recorded upon the records of the company and made no inquiry of any official of the company relative to the way in which they were handling the refunds. Respondent had no knowledge of the use of the money refunded to the company other than the explanation made to him at the time of his employment.

“7. During the latter part of January, 1939 certain representatives of the Securities and Exchange Commission called upon respondent at his office and demanded that he turn over to them for examination all his files relating to the business of Union Electric Company or its subsidiary corporations. Respondent refused until he had been given permission by his client so to do. After respondent had been given permission by his client to make the files available to the investigators he did so. During the week in which the investigation continued at his office, respondent was asked under oath certain questions relating to the disposition of the proceeds of certain checks. Respondent stated to the representatives of the Securities and Exchange Commission that no part of the proceeds of the checks were returned in cash to Frank J. Boehm or any other officer or agent of Union Electric Company of Missouri.

“8.

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Bluebook (online)
58 N.E.2d 449, 388 Ill. 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-hamilton-ill-1944.