In re Mann

84 A.D.3d 149, 923 N.Y.S.2d 552
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 26, 2011
StatusPublished
Cited by2 cases

This text of 84 A.D.3d 149 (In re Mann) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Mann, 84 A.D.3d 149, 923 N.Y.S.2d 552 (N.Y. Ct. App. 2011).

Opinion

OPINION OF THE COURT

Per Curiam.

The Grievance Committee for the Ninth Judicial District (hereinafter the Grievance Committee) served the respondent with a verified petition dated October 20, 2009 containing 10 charges of professional misconduct. After a preliminary conference on March 29, 2010 and a hearing on June 3, 2010, the Special Referee sustained all 10 charges. The Grievance Committee now moves to confirm the Special Referee’s report and impose such discipline upon the respondent as the Court deems just and proper. The respondent has cross-moved to disaffirm the report insofar as it sustained charges four, five, seven, and ten. In view of the nature of the charges and the mitigation advanced, the respondent urges the Court to impose a discipline no greater than a public censure.

Charge one alleges that the respondent is guilty of misappropriating funds in his possession incident to his practice of law, which funds belonged to another person, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]).

The respondent represented Diana Valenzuela in connection with a claim for injuries she allegedly sustained in a motor vehicle accident on or about November 16, 2002. The claim was settled for the sum of $21,000 in or about December 2006.

By letter dated January 12, 2007, the respondent advised Doctors Joseph Barthko and Susan Seven-Sky, chiropractors who treated Ms. Valenzuela, of the settlement, and stated, inter alia, that he would hold the sum of $5,000 from the settlement in escrow pending conclusion of a no-fault arbitration commenced on their behalf against the relevant no-fault carrier to [151]*151recover reimbursement of unpaid bills relating to treatment they had provided to Ms. Valenzuela subsequent to the accident. If the arbitration were successful, the doctors agreed to take the amount awarded in full satisfaction of all outstanding charges but, if unsuccessful, the doctors agreed to accept the $5,000 held in escrow in full satisfaction of all outstanding charges. The doctors agreed to this arrangement by letter signed on or about February 23, 2007.

On or about January 3, 2007, the respondent deposited the $21,000 settlement check into his IOLA account with JP Morgan Chase Bank, N.A. (hereinafter Chase Bank). On or about January 9, 2007, the respondent disbursed check No. 1038 to himself in the amount of $6,000. On or about January 16, 2007, he disbursed check No. 1039 to himself in the amount of $2,050. On or about January 17, 2007, he disbursed check No. 1040 to Ms. Valenzuela in the amount of $7,946.23, leaving a balance of $5,003.77 on deposit in the IOLA account in connection with the matter.

Although the respondent was required to hold $5,000 in escrow pending resolution of the arbitration, he disbursed $4,950 to his firm via check Nos. 1041 and 1042, respectively, on January 24, 2007 and February 13, 2007, in the respective amounts of $4,500 and $450. On or about March 15, 2007, the respondent disbursed an additional $70 to his firm via check No. 1043 in connection with the Valenzuela matter, thereby disbursing more than he had on deposit in connection with the matter.

The respondent testified that he disbursed check Nos. 1041, 1042, and 1043 to his firm because he needed the funds, even though he was aware that the disbursements would cause the overall balance in his IOLA account to fall below the $5,000 he was required to hold.

Charge two alleges that the respondent is guilty of failing to properly title and identify his escrow account, in violation of Code of Professional Responsibility DR 9-102 (b) (2) (22 NYCRR 1200.46 [b] [2]). During the period from December 30, 2006 through October 31, 2008, the respondent maintained an IOLA account at Chase Bank, titled ‘TOLA-MANNBENT & ASSOCIATES PC,” even though, according to the respondent’s testimony, he was a solo practitioner with no support staff. During this period, the respondent’s IOLA checks and deposit slips were imprinted ‘ TOLA-MANNBENT & ASSOCIATES PC, ATTORNEYS AT LAW,” and did not include additional required [152]*152language stating “Attorney Special Account,” “Attorney Trust Account,” or “Attorney Escrow Account.”

Charge three alleges that the respondent is guilty of misappropriating funds in his possession incident to his practice of law, which funds belonged to another person, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]). On or about March 3, 2008, the respondent deposited into his IOLA account a check in the amount of $25,000, representing the settlement proceeds in connection with a personal injury case on behalf of a client named Cuthbert. The funds were disbursed to and/or on behalf of Cuthbert in or about December 2008. Although required to hold the settlement proceeds in his IOLA account, the balance on the account on September 5, 2008 fell to a low of $42.50.

Charge four alleges that the respondent is guilty of misappropriating funds in his possession incident to his practice of law, which funds belonged to another person, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]). On or about March 24, 2008, the respondent disbursed check No. 1093 from his IOLA account to Roland Simmons, his brother-in-law, in the amount of $5,000, to repay part of a $10,000 personal loan made to him by Mr. Simmons in 2006. At such time, there were no corresponding funds on deposit in the account, as the respondent had deposited the $10,000 loan proceeds from Mr. Simmons into his personal bank account at Chase Bank.

Charge five alleges that the respondent is guilty of commingling personal funds with funds he was holding for the benefit of others incident to his practice of law, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]). On or about March 17, 2007, the respondent deposited the sum of $3,040 into his IOLA account. According to the respondent’s testimony, part of the deposit, a check in the amount of $3,000, was a personal loan from his sister-in-law, Arlene Bent, to cover general business expenses. The respondent could not recall the source of the remaining $40 which was in cash. During the 30 days following the deposit, the respondent disbursed all the funds to himself.

Charge six alleges that the respondent is guilty of disbursing escrow checks made payable to “cash” instead of a named payee, in violation of Code of Professional Responsibility DR 9-102 (e) (22 NYCRR 1200.46 [e]). During the period October 2007 through September 2008, the respondent disbursed five escrow [153]*153checks payable to “cash” — check No. 1070 in the amount of $100, check No. 1075 in the amount of $300, check No. 1082 in the amount of $60, check No. 1099 in the amount of $800, and check No. 1116 in the amount of $125.

Charge seven alleges that the respondent is guilty of commingling earned legal fees, which are personal funds, with funds he was holding for the benefit of others incident to his practice of law, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]). During the period from March through September 2008, the respondent failed to timely disburse, from his IOLA account, earned legal fees totaling $62,738.25 in seven different legal matters.

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Related

In re Mann
111 A.D.3d 734 (Appellate Division of the Supreme Court of New York, 2013)

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Bluebook (online)
84 A.D.3d 149, 923 N.Y.S.2d 552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mann-nyappdiv-2011.