In re Naphtaly

7 Cal. Unrep. 378
CourtCalifornia Supreme Court
DecidedDecember 30, 1881
DocketNo. 8025
StatusPublished
Cited by1 cases

This text of 7 Cal. Unrep. 378 (In re Naphtaly) is published on Counsel Stack Legal Research, covering California 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 Naphtaly, 7 Cal. Unrep. 378 (Cal. 1881).

Opinions

MYRICK, J.

This is an application made to this court that Joseph Naphtaly, an attorney and counselor of this court, be removed. The information is laid and the prosecution made by a committee of the Bar Association of the city and county of San Francisco, appointed for that purpose. In proceedings had before the association for the purpose of determining whether it would institute measures for his removal, Mr. Naphtaly had leave to make such statement as he desired; and in pursuance thereof he made a statement in writing, which was introduced in evidence on the hearing of this matter, and from which we hereinafter copy.

The charges made against the respondent are:

“That the said Joseph Naphtaly has violated his duties as a member of the bar of this court and as an attorney and counselor at law as aforesaid, by employing, for the purpose of maintaining a cause confided to him, means which he knew were false and inconsistent with truth.
“The said Joseph Naphtaly has violated his duty as a member of the bar of this court and as an attorney and counselor as aforesaid, by his failure and neglect to support the laws of the United States and of this state.
“That the said Joseph Naphtaly has violated his duty as a member of the bar of this court and as an attorney and counselor as aforesaid, in counseling and maintaining an action and proceeding grossly unjust.
[379]*379“That the said Joseph Naphtaly has violated his duties as a member of the bar of this court and as an attorney and counselor at law as aforesaid, in not maintaining the respect due to the courts of justice of the state of California.”

The specifications accompanying the charges embrace the facts hereinafter stated, and relate to advice given and steps talien by the accused in and about certain matters of business intrusted to his care, conduct and management as an attorney and counselor at law.

First. By section 282 of the Code of Civil Procedure of this state it is made the duty of an attorney and counselor:

To counsel and maintain such actions, proceedings or defenses only as appear to him legal or just, except the defense of a person charged with a public offense; to employ, for the purpose of maintaining the causes confided to him, such means only as are consistent with truth, and never seek to mislead the judge or any judicial officer by an artifice or false statement; nor to encourage either the commencement or the continuance of an action or proceeding from any corrupt motive of interest.

The oath of an attorney and counselor is that he will support the constitution of the United States of this state, and that he will faithfully discharge the duties of an attorney and counselor at law to the best of his ability.

By section 287, Code of Civil Procedure, an attorney and counselor may be removed or suspended by this court for any violation of the oath taken by him or of his duties as such attorney and counselor.

Under the constitution of the United States, Congress has power to pass a general bankrupt law. Under that power a law was passed (see U. S. Rev. Stats., p. 969, amended June 22, 1874, Supp. Vol. 1, p. 71), which was in existence at the time of the transactions herein referred to. By section 5021 it was provided that if any person, being insolvent, shall procure his property to be taken on legal process, with intent to give a preference to one or more of his creditors, or with the intent by such disposition of his property to defeat or delay the operation of the act, or who, being a banker, broker, merchant, trader, manufacturer, or miner, has stopped, suspended, and not resumed payment of his commercial paper within a period of forty days, he shall be deemed to have committed an act of bankruptcy, and to have become liable to be [380]*380adjudged a bankrupt, and the assignee may recover the property, and the creditor shall not be allowed to prove his debt in bankruptcy. The adjudication might be had on the petition of creditors, constituting one-fourth in number, with provable debts at least one-third in amount. It was also provided that the title to the property of a bankrupt shall vest in the assignee as of the commencement of the proceedings, although the same was then attached on mesne process, and any attachment made within four months next preceding the commencement of the proceedings should be dissolved.

Second. As to the facts. Schoenfeld, Cohn and Newman were partners in business, merchants, under the firm name of Schoenfeld, Cohn & Co., in the city and county of San Francisco. In 1874 one Lewis, as appears from the evidence, lent to said Newman, for the use of the firm, the sums of $5,000, $3,000, $2,000 and $8,000, in all $18,000, for which sums the notes of the firm were executed, payable on demand, to the order of Newman, which notes were indorsed by Newman and delivered to Lewis. In September, 1876, Newman became embarrassed by reason of stock speculations, and requested of Lewis the use of the notes to pledge with the London and San Francisco Bank, Limited, for his individual debt of $6,000, which request was complied with, and the notes were accordingly pledged. In December, 1876, Lewis demanded of Newman the delivery of the notes pledged, but Newman declared his inability to comply with the demand. It was then agreed that Lewis should be paid $1,000, and should have another note of the firm for $17,000, payable on demand. This $17,000 note was drawn by Schoenfeld, and was delivered to Lewis December 23, 1876, bearing date that day payable on demand, and is in this opinion denominated the “demand” note. The pledged notes remained with the bank as a pledge. About June 10,1877, Lewis was informed by the partners that the firm was insolvent, and in a conversation had between them, it was agreed to save first all confidential claims, and then the California creditors; the danger of eastern creditors putting the firm into bankruptcy was discussed, and it was agreed between the parties, Lewis and the partners, that Mr. Naphtaly should be consulted with reference to the matter; and on the 27th of June, 1877, Lewis, Newman and Schoenfeld consulted with Mr. Naphtaly, and “he was retained to manage the affairs so that no proceedings in bankruptcy could [381]*381be instituted, and if instituted, that they should not be sustained.” The firm was at that time insolvent, and was indebted largely to California as well as eastern creditors, of which facts Mr. Naphtaly was informed. Another note was involved in the transaction, viz.: A Mrs. Alexander had placed $5,000 in the hands of Newman, to loan for her benefit, and the amount was taken by Schoenfeld, he giving his note and placing the money in the business of the firm. Mrs. Alexander did not have the custody of Schoenfeld’s note, but had received monthly payments of interest from the firm.

Mr. Naphtaly, in the statement above referred to, says:

“He [Lewis] informed me that the firm, Schoenfeld, Cohn & Co., owed him $31,000, on the following notes: Note for $17,000, dated December, 1876, payable on demand, made by Schoenfeld, Cohn & Co.; note for $2,000, made by said firm; note for $8,000, made by S. Schoenfeld, payable to order of Schoenfeld, Cohn & Co., and by the payees duly indorsed; note for $4,000, payable to Mrs. Alexander’s order and drawn by said firm. He requested me to sue on these notes and attach the store of the defendants, and if possible make the money.

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Related

Bryant v. State Bar
131 P.2d 523 (California Supreme Court, 1942)

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Bluebook (online)
7 Cal. Unrep. 378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-naphtaly-cal-1881.