In Re Martin

1999 NMSC 022, 980 P.2d 646, 127 N.M. 321
CourtNew Mexico Supreme Court
DecidedMay 10, 1999
Docket18,539
StatusPublished
Cited by5 cases

This text of 1999 NMSC 022 (In Re Martin) 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 Martin, 1999 NMSC 022, 980 P.2d 646, 127 N.M. 321 (N.M. 1999).

Opinion

OPINION

PER CURIAM.

{1} This matter came before the Court upon recommendation of the disciplinary board to adopt the conditional agreement not to contest and consent to discipline, as modified, and to impose the sanctions set forth therein. For the reasons that follow, the consent agreement hereby is adopted and Rudy Martin is indefinitely suspended from the practice of law due to incapacity for a minimum period of one year.

{ 2} On July 25, 1997, the office of disciplinary counsel received a complaint against respondent from an office manager for a chiropractic clinic, who alleged that respondent had provided the clinic with letters of protection for the treatment of two clients injured in an automobile accident on July 22, 1994. The office manager stated that each time she called respondent’s office, she was told that respondent was still working on the cases. On April 7, 1997, the office manager wrote to respondent that she had been informed by his clients that their cases had settled more than eighteen (18) months previously and demanded payment from respondent within ten (10) days. When payment was not made, a complaint was filed with the office of disciplinary counsel.

{3} In his initial response to the complaint, respondent stated that a former employee had failed to disburse funds to pay the clinic, and that, although it was his practice to have copies of the insurance draft, release, disbursement checks and other necessary documents retained in the file and given to the clients, that was not done in this case. Respondent also told disciplinary counsel that, upon discovering payment had not been made, he promptly remitted the past due amounts.

{ 4} On September 3, 1997, disciplinary counsel asked respondent for copies of the checks issued when it was determined payment had not been made, copies of respondent’s trust account bank statements for the period from April 1995 through August 1997, copies of the deposit slips for both clients’ settlement checks, copies of the disbursement cheeks, copies of the trust account ledgers, and copies of the quarterly reconciliations of trust account checkbook balances, bank statement balances, and client trust ledger sheet balances from April 1995 through August 1997. All of the requested documents should have been regularly maintained by respondent pursuant to the requirements of Rules 16-115 and 17-204 NMRA.

{ 5} Respondent requested and received an extension of time, but failed to provide the requested information. In response to a reminder letter, respondent informed disciplinary counsel that the requested documents would be hand-delivered on November 12, 1997, and also stated that missing bank documents for three months in 1997 had been ordered from the bank and would take an additional week for him to obtain. Because more than bank documents for three months in 1997 were missing from the correspondence and documents delivered on November 12, 1997, disciplinary counsel wrote to respondent on December 8, 1997, and asked him to provide all previously requested trust documents not produced on November 12, 1997, to wit, trust account bank statements for April through December 1995 and February through August 1997, deposit slips for the settlement checks, and copies of certain disbursement checks.

{ 6} The documents provided by respondent included reports entitled “Trust Account Analysis.” Disciplinary counsel’s December 8, 1997, letter told respondent that it was unclear if those reports were intended to be client ledgers or the reconciliations required by Rule 17-204(A)(7). Respondent was informed that even if the reports were intended to be reconciliations, they were incomplete. Properly performed reconciliations of the trust account bank statements, client trust ledgers, and checkbook balance would have alerted respondent of trust account discrepancies, which could have been detected and cured.

{7} Disciplinary counsel’s December 8, 1997, letter also informed respondent that a review of the trust account bank statements for the period of January 1996 through January 1997, revealed two very serious problems. Respondent’s initial response stated that payment to the clinic was overlooked at the time of settlement, thus the amount owed to the clinic should have remained continuously on deposit in the trust account. Nonetheless, in six of thirteen months for which respondent produced bank statements, the ending monthly balance in his trust account was less than the total amount of the clinic’s bill. Additionally, the “Trust Account Analysis” reports for May and June 1995 showed disbursements made for one client before any funds were deposited for that client. In September 1995, additional disbursements were shown for the client, without a deposit, resulting in a negative balance in the trust account. The December 8, 1997, letter also informed respondent that evidence of misuse of trust funds compelled an audit of his trust account, the cost of which would be respondent’s responsibility and which would commence upon receipt of the remaining requested documents. Respondent was asked to respond on or before December 19, 1997.

{ 8} When no response was received, a second letter was sent on January 22, 1998, with another copy of the December 8, 1997, letter. Respondent was advised that in order to avoid disciplinary charges being filed against him, a response was due by February 2, 1998. As of the date charges were filed, neither a response nor a request for an extension of time to reply had been received from respondent. None of the letters sent to respondent was returned to the office of disciplinary counsel by the postal service.

{ 9} After charges were filed, disciplinary counsel continued efforts to obtain the bank and trust records needed to complete an audit of the trust account. Respondent provided some additional information, but stated he could not afford to pay the bank charges for copying his trust account records. Disciplinary counsel subpoenaed the bank records. 1 No evidence of conversion of funds was found; respondent admitted recordskeeping violations, commingling, and unintentional misuse of client funds.

{ 10} Respondent’s physical and emotional health became an issue as it had during a prior disciplinary proceeding. In his answer to the formal charges, respondent alleged, inter alia, that he suffered from chronic fatigue syndrome. Respondent’s discovery responses indicated he suffered from depression. Similar health issues had been raised by respondent during a 1995 disciplinary proceeding. At one point in this proceeding, a question was raised about respondent’s ability to assist his counsel in the presentation of a defense to the charges. Also during this time, respondent closed his practice; disciplinary counsel and the committee were notified that he had obtained employment in a non-attorney position.

{ 11} In November 1998, respondent and disciplinary counsel tendered a consent agreement to the hearing committee for consideration pursuant to Rule 17-211 NMRA. The consent agreement contained respondent’s agreement not to contest charges that he had violated Rules 16-101 (competence), 16-103 (diligence), 16-115(A) (trust account requirements), 16-803(D) (cooperation with disciplinary counsel), and 16~804(H) (engaging in conduct reflecting adversely on fitness to practice law).

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Related

In re Ortiz
2013 NMSC 027 (New Mexico Supreme Court, 2013)
State v. K Jordan
New Mexico Court of Appeals, 2009
In the Matter of Yalkut
2008 NMSC 009 (New Mexico Supreme Court, 2008)
In Re O'Brien
2001 NMSC 025 (New Mexico Supreme Court, 2001)

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Bluebook (online)
1999 NMSC 022, 980 P.2d 646, 127 N.M. 321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-martin-nm-1999.