In Re Lally

1999 NMSC 003, 973 P.2d 243, 126 N.M. 566
CourtNew Mexico Supreme Court
DecidedJanuary 20, 1999
Docket25463
StatusPublished
Cited by4 cases

This text of 1999 NMSC 003 (In Re Lally) is published on Counsel Stack Legal Research, covering New Mexico 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 Lally, 1999 NMSC 003, 973 P.2d 243, 126 N.M. 566 (N.M. 1999).

Opinion

OPINION

PER CURIAM.

{1} This matter came before the Court upon recommendation of the disciplinary board to indefinitely suspend Frank J. Lally for multiple violations of the Rules of Professional Conduct, Rules 16-101 through 16-804 NMRA. For the reasons set forth below, we approve the recommended sanction and order that respondent be indefinitely suspended from the practice of law.

{2} In January 1990, Alfred Randolph was involved in a vehicular accident, and, in Spring 1990, asked respondent to represent him in recovering his damages from the accident. On November 12, 1991, respondent filed a complaint to recover damages for personal injury and property damage against the other driver. Respondent failed to provide his client with a copy of the complaint or any other pleading filed in the case. After summons was issued and the defendant’s answer was filed, the defendant served interrogatories on respondent; however, respondent failed to obtain information needed to answer and made no response to the interrogatories. Despite the filing of a motion to compel answers to interrogatories, respondent neither responded to the motion nor answered the motion to dismiss, which was subsequently filed. An order to dismiss was entered January 26,1994, dismissing the case with prejudice. The court file reflects that respondent’s only action in the suit was the filing of the complaint and causing a summons to be issued.

{3} At the beginning of the representation, respondent told his client that it would be best to wait “a couple of years” to see how well he recovered from his injuries. Because of this, from Spring 1990 until Summer 1993, the client contacted respondent on only a few occasions. He was assured each time that everything was fine and he should continue to be patient.

{4} In July 1993, the client retired from his employment, and, thereafter, inquired more frequently about the status of his case, telling respondent he wanted to pursue his case more vigorously. Respondent advised his client for the first time that suit had been filed in November 1991, but failed to disclose that the case had been dismissed. Respondent told his client to expect further delay because only one district judge sat in McKinley County and the judge was hearing only criminal, not civil, cases. From 1993 to Spring 1996, the client contacted respondent every few months to inquire about the status of his lawsuit. Respondent repeatedly assured his client that the case would be heard.

{5} In Spring 1996, as the client’s requests for information and action on his case became more frequent and insistent, respondent began an overt pattern of deception intended to convince his client that the case was being pursued. Respondent gave his client a set of instructions for deponents and told him he would have to answer questions for the insurance company’s lawyer. On one occasion, the client went to respondent’s office expecting to be deposed. No one appeared for the deposition (because the case had been dismissed with prejudice more than two years previously), however, respondent told his client that the deposition would have to be rescheduled. On another occasion, respondent called his client the night before his deposition was supposedly rescheduled and told him that the defense lawyers had canceled the deposition. Respondent also told his client several times in late 1996 and early 1997 that court hearings were scheduled in his case, and, on each occasion, respondent would then tell his client that the hearing had been canceled.

{6} In the second half of 1996, the client began pressing respondent for a copy of his file. Respondent stalled and then told his client that a settlement was being negotiated with the insurance company. Respondent subsequently told his client that a check was received, but that one of his former law partners refused to endorse the check for payment. Respondent stated there would be further delay while he returned the check to the insurance company to be re-issued without the former partner’s name on it.

{7} Shortly thereafter, the client called the defendant’s insurance company to inquire when the new check would be issued. He was told that the case had been dismissed and could not be reopened. In Spring 1997, the client went to the court clerk’s office in McKinley County and was advised that his case had been dismissed with prejudice in 1994. The client confronted respondent with this information and respondent told him it was a mistake and that he would straighten it out. Shortly thereafter, respondent called the client and told him the matter had been settled out of court with the defense lawyers. Respondent said the insurance company would settle for $100,000.00 if the client would agree to be paid $5,000.00 per month for 20 months.

{8} On May 9, 1997, respondent instructed his client to come to his office to pick up the initial $5,000.00 payment. The client openly recorded his meeting with respondent, placing a tape recorder on respondent’s desk when their conversation began. Nonetheless, during this meeting, respondent made additional misrepresentations by telling his client that the check was written on his trust account because when “attorneys handle money that belongs to somebody else, to go to the client it has to go through the trust account.” Respondent also told his client that future payments would come directly from the insurance company. Although respondent showed his client a document entitled “Settlement and Release Re: A. Randolph vs. D. Wood,” the document failed to identify who was paying the money or who would be released. Respondent told his client that the original of this document would be sent to “them” for execution and he would then receive a copy. Respondent agreed with the client, or did not correct him, when his client stated that he understood that respondent would be receiving $1,000 per month for 20 months as his attorney’s fee. These misrepresentations continued respondent’s deception, designed to conceal his failure to properly handle his client’s case.

{9} Although promised, respondent failed to provide any documentation to his client. The settlement and release was never returned to the client for signature and no other payments were made to the client. It is a matter of professional, if not personal, dishonor, for a lawyer to do nothing but make a client’s situation worse. Respondent not only abandoned his client’s claim but also did so in such a way that the claim was dismissed with prejudice. As egregious as his failings were in allowing the claim to be dismissed with prejudice, respondent’s subsequent resort to deceit to cover his misconduct was worse.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Frontino
2001 NMCA 010 (New Mexico Supreme Court, 2001)
In Re Romero
2001 NMSC 008 (New Mexico Supreme Court, 2001)
In Re Chavez
1 P.3d 417 (New Mexico Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
1999 NMSC 003, 973 P.2d 243, 126 N.M. 566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-lally-nm-1999.