In Re Melnick

48 N.E.2d 935, 383 Ill. 200, 1943 Ill. LEXIS 547
CourtIllinois Supreme Court
DecidedMay 20, 1943
DocketNo. 27034. Respondent disbarred.
StatusPublished
Cited by11 cases

This text of 48 N.E.2d 935 (In Re Melnick) 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 Melnick, 48 N.E.2d 935, 383 Ill. 200, 1943 Ill. LEXIS 547 (Ill. 1943).

Opinion

Mr. Justice Thompson

delivered the opinion of the court:

The committee on grievances of the Chicago Bar Association, as commissioners under Rule 59, has filed a report charging respondent with unprofessional, unethical, and dishonorable conduct, denoting a lack of good moral character and tending to bring the profession of law and the ¡courts of justice into disrepute and contempt. They recommend he be disbarred and his name stricken from the roll of attorneys. To this report the respondent has filed exceptions.

The report of the commissioners is based upon six separate complaints filed with the bar association by six different parties, all clients of respondent. Each complaint charges respondent with converting funds given him to pay to the Department of Finance on account of the retailers’ occupation tax. The first complaint was filed April 6, 1939, and the last on October 29, 1941. After the filing of the complaints respondent, through his attorney, who was also a relative, made settlement with the claimants, paying them various sums and taking from each a written release of all claims. Respondent filed one answer to all complaints, admitting in each case his employment and receipt of the moneys mentioned, and claiming he had rendered legal service and had made settlement in full with the parties to their entire satisfaction. He further set up in his answer that, due to illness, it became necessary for him to procure the assistance of Maurice Rose, a competent public accountant; that he turned over to Rose, from time to time, various sums of money to be applied toward the claims of the Department of Finance against the complainants; that Rose died, leaving no estate and no records or material available to determine what, if any, payments had been made by him, as requested by respondent, on behalf of such claims; and that respondent made the adjustments with the claimants because, although he had turned the matters over to Rose for final disposition, he feels and has been advised that he has a personal responsibility to his clients.

The record in this proceeding is quite lengthy. It has received our careful attention, but it would serve no useful purpose to set out in detail the various accusations against respondent contained in the complaints or the evidence concerning the same. We will mention only four instances of his receipt of moneys in trust, specifically designated to be paid to the Department of. Finance. On June 25, 1937, he received from his client, William Landwer, the sum of $750, for which he issued to him the following receipt:

“This is to acknowledge receipt of $200.00 in cash, and $550.00 check making a total of $750. for the following purposes: $250.00 as retainer and fee for the purpose of investigating and appearing for you at Waukegan Court House, on Monday in connection with sales tax investigation, and $500.00 for the purpose of paying all or any part thereof if, as and when I reach an' agreement with the finance department of the State of Illinois.”

On August 10, 1937, respondent received from Conzelman Motor Company the sum of $1800 and gave the company the following receipt:

“Received of Conzelman Motor Co. Waukegan, Illinois; Eighteen Hundred & no/ioo Dollars for the purpose of paying Sales Tax and attorneys fees as and when determined by Ill. Finance Department.”

May 2, 1938, respondent received from Henry Schad the sum of $500, for which he issued to Schad the following receipt:

“Received of Schad Brothers the sum of Five Hundred Dollars ($500.00) to be retained by the undersigned in connection with the defense of the assessment levied against the said Schad Brothers by the Department of Finance, Retailers’ Occupation Tax Division, #17539 and #17540.
It is understood that if a hearing is not granted by the Department, that the said amount be returned to the said Schad Brothers.”

And, on January 16, 1939, respondent received from Gunnar Swenson the sum of $1000, for which he issued to him the following receipt:

“Received of Gunnar Swenson the sum of One Thousand Dollars $(1000.00) as deposit, for the purpose of negotiating with the Department of Finance, Retailers’ Occupation Tax Division, State of Illinois, in connection with its alleged claim against him. It is understood that the Department’s claim against him does not exceed the sum as set forth above; that the foregoing sum or any part thereof is to be paid if, as and when the figures of its claim does not exceed the foregoing sum, otherwise the deposit is to be returned to the said Mr. Gunnar Swenson. The foregoing sum the undersigned received in two (2) checks: one in the sum of Three Hundred Dollars ($300.00) dated January 7, 1939, and the second check in the sum of Seven Hundred Dollars ($700.00) dated January 16, 1939, both drawn on the North Shore National Bank, Chicago, Illinois.”

Respondent admits that he received these moneys for the specific purposes set out in the four written receipts. The evidence, including respondent’s own testimony, shows without the slightest contradiction that none of this money was at any time paid to the Department of Finance, that respondent retained the same until after charges had been made against him and disbarment seemed imminent, when a part, only, was returned to each client.

Respondent, to justify the retention of these funds, answered generally that he had entrusted these matters to the accountant Rose and had turned over to him the moneys to be transmitted to the Department. At the hearing held on April 15, 1942, respondent testified that there were no receipts or canceled checks to show the payment of money to Rose, that he always paid him in cash, that he had no records of the various payments, that he did not know whether Rose kept any records of the various payments, that Rose died in January, 1941, and he had made no inquiry of his widow in regard to any records. Considering this testimony of respondent in its most favorable light, it is incredible, to say the least, that in a matter of such grave importance, upon the result of which depended the existence or destruction of his professional career, he should have been so unconcerned as to make no inquiry either of Rose in his lifetime or of his widow subsequent to his death, although complaints in these matters had been pending prior to Rose’s death and more than two years before the hearing in these cases. There is no evidence that the accountant Rose kept no records of these payments, if any such were made, or that such records, if kept, are not available to the respondent. This was the defense asserted by respondent in his answer. In somewhat analogous situations this court has twice said in disbarment cases that the burden is upon the attorney to prove or disprove. (People ex rel. Chicago Bar Ass’n v. Templeman, 363 Ill. 152; People ex rel. Chicago Bar Ass’n v. Pace, 354 Ill. 111.) Here, respondent, by his own admission, has made no attempt to furnish the proof to sustain the matters set up in his answer as an affirmative defense.

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Bluebook (online)
48 N.E.2d 935, 383 Ill. 200, 1943 Ill. LEXIS 547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-melnick-ill-1943.