In Re Michal

112 N.E.2d 603, 415 Ill. 150, 1953 Ill. LEXIS 331
CourtIllinois Supreme Court
DecidedMay 20, 1953
Docket32528
StatusPublished
Cited by8 cases

This text of 112 N.E.2d 603 (In Re Michal) 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 Michal, 112 N.E.2d 603, 415 Ill. 150, 1953 Ill. LEXIS 331 (Ill. 1953).

Opinion

Mr. Justice Daily

delivered the opinion of the court:

This is a disciplinary proceeding which brings to our consideration a report of the Board of Managers of the Chicago Bar Association, acting as commissioners of this court, wherein it is recommended that Charles J. Michal, the respondent, be suspended from the practice of law for a period of three years because of conduct and practices tending to bring the legal profession into disrepute.

The complaint made against respondent stemmed from his relationship with his client Joseph Fakan, a lifelong friend whom respondent represented and advised in legal matters for a period extending from 1912 to Fakan’s death in 1948. The sequence of events which have come under scrutiny date from October 31, 1928, when Fakan’s first wife died. At that time Fakan was engaged in a successful undertaking and garage business and was the owner of seven parcels of unencumbered real estate. On November 24, 1928, respondent prepared a partnership agreement between Fakan and his daughter Lillian, which recited that they were to be partners in the undertaking and garage business, that each was to furnish an equal amount of capital and that the profits were to be shared in the same manner. There is some evidence in the record that the agreement was entered into in order to placate Lillian in her hostility to her father’s intention to remarry. Besides preparing the agreement, respondent was also a witness to its execution. On December 13, 1928, Fakan executed three trust deeds on his property which were made to secure accompanying notes in the sum of $40,000. These instruments were also prepared by respondent and were acknowledged before one of his employees. The trust deeds were not recorded until March 18, 1929, and, after recording, were placed in respondent’s box at the recorder’s office.

On the day following the execution of the trust deeds and notes, Fakan and one Stefanie Janous, a domestic thirty years his junior who neither read, wrote nor understood English, entered into an antenuptial agreement which had been prepared by respondent at Fakan’s request. The agreement recited that Fakan had established an undertaking business with the aid of his children and that he was the owner of seven parcels of real estate; that Stefanie was possessed of no property and that she was aware that Fakan’s property was encumbered to secure debts and loans; that Fakan would furnish her with a home and necessities and that she in turn would accept the sum of $5000 upon his death in lieu of all rights of dower and in full settlement of any and all rights she might have in his estate by virtue of the laws of descent. In addition, the agreement contained a signed statement by Stefanie that its contents had been explained to her, that she understood the agreement and would abide by it. An employee in respondent’s office acknowledged the signatures of the parties. On December 15, 1928, the day following, Fakan and Stefanie were married, and lived together until his death in April, 1948. Sometime subsequent to his death, Stefanie found the trust deeds and the notes they secured among decedent’s papers and delivered them to the respondent. The notes had never been negotiated.

While there are other incidents of respondent’s conduct yet to be related, we pause here to consider the events up to this point. The inescapable conclusion to be reached from the evidence related is that Fakan executed the trust deeds, notes and the antenuptial agreement with the intention of defrauding Stefanie Janous, who was to become his wife. As we view the report and findings of the commissioners, a determination of whether respondent’s conduct involved moral turpitude depends greatly upon when it can be said he became aware of the fraud that had been practiced upon Stefanie. Respondent insists that he did not acquire such knowledge until after Fakan’s death, when Stefanie brought him the unnegotiated notes and in support of his position points out that, prior to Stefanie’s discovery, he had filed an inventory in Fakan’s estate showing that the real estate was encumbered by the trust deeds. The amicus curiae, however, interprets the evidence, and respondent’s testimony in particular, as showing that respondent was either a party to the fraud or had knowledge of it from the beginning. We shall not belabor the evidence on this point, for the conclusions to be reached from it are entirely circumstantial and do not, in our opinion, establish to a moral certainty either that respondent was a party to Fakan’s scheme or that he was patently aware of its fraudulent purpose. Only clear and satisfactory proof can justify a decision from which flows the grave consequence of disbarment of an attorney and destruction of his professional life. In re Donaghy, 402 Ill. 120; People ex rel. Deneen v. Matthews, 217 Ill. 94.

It does emerge clearly from the evidence, however, that respondent was aware that the trust-deed notes had not been negotiated and that Fakan’s property was not in fact encumbered when the antenuptial agreement was entered into. Respondent knew, therefore, or should have known, that the disclosure of Fakan’s property was not such a bona fide disclosure as is necessary to a valid antenuptial agreement. He defends his conduct by saying that he fully relied upon Fakan’s assurance that the notes were to be negotiated. While we are not constrained to Say that his act made him a party to fraud, it is our opinion that his loose handling of legal documents in such a manner that his client could bend them to fraud is practice which merits censure.

Continuing with the facts pertinent to the complaint against respondent, we return to a date seventeen years after Fakan and Stefanie were married. On that day, October 15, 1945, Fakan executed his last will and testament, which document was drawn for him by the respondent. By its provisions, Fakan bequeathed his personal property and household effects to Stefanie and directed that she have the use of his home, rent free, for three years. There followed a bequest to her of $5000 reciting that it was in full settlement of all her rights of dower and descent and that it was made in conformity with, and in discharge of, their antenuptial agreement. By other provisions, Fakan’s business was bequeathed to his daughter Lillian in trust for three grandchildren; a daughter, Anna, was given a small bequest and it was directed that Lillian was to receive the residue of the estate. An additional provision was that the legal services of respondent be retained by Lillian, the trustee, and by Stefanie, the executrix.

Fakan died in April, 1948, and soon thereafter respondent, representing Stefanie as executrix, caused the will to be admitted to probate and letters testamentary to be issued to her. He also prepared and filed an inventory and, thereafter, a petition for a widow’s award which was allowed in the sum of $2000, although it was later set aside on Lillian’s petition. Sometime after the award was allowed, specifically in December, 1948, is when Stefanie purportedly found the unnegotiated notes and turned them over to respondent. In January, 1949, Stefanie filed a renunciation of the will and respondent thereupon presented a petition praying that she be appointed administratrix with will annexed.

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Bluebook (online)
112 N.E.2d 603, 415 Ill. 150, 1953 Ill. LEXIS 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-michal-ill-1953.