In re Mayerhoff

213 A.D.2d 37, 630 N.Y.S.2d 564, 1995 N.Y. App. Div. LEXIS 8803

This text of 213 A.D.2d 37 (In re Mayerhoff) 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 Mayerhoff, 213 A.D.2d 37, 630 N.Y.S.2d 564, 1995 N.Y. App. Div. LEXIS 8803 (N.Y. Ct. App. 1995).

Opinion

[38]*38OPINION OF THE COURT

Per Curiam.

In this proceeding, the respondent was charged with 13 allegations of professional misconduct. The Special Referee sustained all 13 charges. The petitioner now moves to confirm the report of the Special Referee. The respondent cross-moves to disaffirm or, to publicly censure the respondent in the event the Court deems any discipline appropriate.

Charges One to Three of the petition are predicated upon the following set of allegations concerning Seymour and Berty Kreisler. In or about July 1986, Seymour Kreisler retained the respondent to represent him in a dispute involving an automobile rental agreement. The respondent wrote a letter to Alamo Rent-A-Car, Inc., in Fort Lauderdale, Florida, on behalf of Mr. Kreisler.

. In or about July 1987, Seymour and Berty Kreisler retained the respondent to represent them at a closing of title for premises at 1037 E. 4th Street in Brooklyn. The respondent represented Mr. and Mrs. Kreisler at the closing on July 29, 1987.

In or about April 1988, Mr. and Mrs. Kreisler retained the respondent to represent them in a real estate transaction involving their purchase of shares in a cooperative apartment corporation at 800 Ocean Parkway Apartment Corporation in Brooklyn. In or about April 1988, Mr. and Mrs. Kreisler agreed to lend the respondent $10,000. The respondent failed to disclose to them that the purpose of the loan was to assist another client, David Metri, to obtain financing from yet another client, James Megna, in order to purchase Abbey Transportation, Inc., a bus company.

The respondent failed to disclose to Mr. and Mrs. Kreisler that his own financial, business, property, or personal interests as their debtor might conflict with his professional responsibility to exercise independent judgment on their behalf. The respondent failed to advise Mr. and Mrs. Kreisler to seek the advice of independent counsel before entering into a business relationship with him.

On or about April 15, 1988, the respondent drafted and executed a promissory note whereby he personally guaranteed to repay the $10,000 loan on or before July 15, 1988, with interest at the rate of 20%. Mr. and Mrs. Kreisler thereafter delivered $10,000 in cash to the respondent to complete the loan. The respondent failed to repay any portion of the loan to [39]*39Mr. and Mrs. Kreisler on the due date of July 15, 1988, or at any time thereafter.

Based on the foregoing facts, Charge One alleged that the respondent improperly entered into a business transaction with his clients, Mr. and Mrs. Kreisler, in violation of Code of Professional Responsibility DR 5-104 (A) (22 NYCRR 1200.23 [a]).

Charge Two alleged that the respondent engaged in conduct involving dishonesty, fraud, deceit, and misrepresentation, in violation of Code of Professional Responsibility DR 1-102 (A) (4) (22 NYCRR 1200.3 [a] [4]).

Charge Three alleged that the respondent engaged in conduct which adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (now [8]) (22 NYCRR 1200.3 [a] [8]).

Charges Four through Six are predicated upon the following set of allegations. In or about April 1988, the respondent was retained by Alan Kreisler, Mr. and Mrs. Kreisler’s son, to draft an agreement reflecting that he would contribute $15,000 toward his parents’ purchase of shares of the aforementioned cooperative. On or about April 26,1988, the respondent drafted such an agreement which was executed by Alan, Seymour, and Berty Kreisler.

In or about April 1988, Alan Kreisler agreed to lend the respondent $15,000. The respondent failed to disclose to him that the purpose of the loan was to assist David Metri to obtain financing from James Megna, to purchase Abbey Transportation, Inc. The respondent failed to disclose to Alan Kreisler that his own financial, business, property, or personal interests as Mr. Kreisler’s debtor might possibly conflict with the respondent’s professional responsibility to exercise independent judgment on Mr. Kreisler’s behalf. The respondent failed to disclose to Alan Kreisler that the respondent’s continued representation of Mr. Metri and Mr. Megna in this business transaction might possibly conflict with the respondent’s professional responsibility to exercise independent judgment on Mr. Kreisler’s behalf. The respondent failed to advise Alan Kreisler to seek the advice of independent counsel before entering into a business relationship with the respondent.

On or about June 3, 1988, Alan Kreisler transferred $15,000 from his checking account to the respondent’s checking account to complete the loan. On or about July 17, 1988, the respondent drafted and executed a promissory note whereby [40]*40he personally guaranteed to repay the $15,000 loan on or before August 1, 1988, with interest at the rate of 20%. The respondent failed to repay any portion of the loan to Alan Kreisler on the August 1, 1988 due date or at any time thereafter.

Based on the foregoing facts, Charge Four alleged that the respondent improperly entered. into a business transaction with a client, Alan Kreisler, in violation of Code of Professional Responsibility DR 5-104 (A) (22 NYCRR 1200.23 [a]).

Charge Five alleged that the respondent engaged in conduct involving dishonesty, fraud, deceit, and misrepresentation, in violation of Code of Professional Responsibility DR 1-102 (A) (4) (22 NYCRR 1200.3 [a] [4]).

Charge Six alleged that the respondent engaged in conduct which adversely reflects upon his fitness to practice law in violation of Code of Professional Responsibility DR 1-102 (A) (7) (now [8]) (22 NYCRR 1200.3 [a] [8]).

Charges Seven through Nine are predicated upon the following set of allegations concerning David Metri. The respondent served as David Metri’s attorney in several matters in or about 1987 and 1988. In or about March 1988, Mr. Metri informed the respondent that he was attempting to obtain financing to purchase the bus company which employed him. The respondent agreed to represent Mr. Metri in obtaining the financing and negotiating the contract of sale. Mr. Metri offered the respondent an interest in the bus company and a position as general counsel upon completion of the purchase.

The respondent failed to disclose to Mr. Metri that his own financial, business, property, or personal interests in this business transaction might conflict with respondent’s professional responsibility to exercise independent judgment on Mr. Metri’s behalf. The respondent failed to advise Mr. Metri to seek the advice of independent counsel before entering into a business relationship with him.

On or about April 19,1988, the respondent delivered $10,000 in cash, which he had borrowed from Seymour and Berty Kreisler, to James Megna, who had agreed to provide financing for Mr. Metri’s purchase of the bus company. On or about June 4, 1988, the respondent delivered $15,000 in cash, which he had borrowed from Alan Kreisler, to an agent of Mr. Megna.

The respondent failed to disclose to Mr. Metri that his continued representation of the Kreislers and Mr. Megna in [41]*41this business transaction might conflict with his professional responsibility to exercise independent judgment on Mr. Metri’s behalf.

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Bluebook (online)
213 A.D.2d 37, 630 N.Y.S.2d 564, 1995 N.Y. App. Div. LEXIS 8803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mayerhoff-nyappdiv-1995.