In Re Nelson

450 P.2d 188, 79 N.M. 779
CourtNew Mexico Supreme Court
DecidedFebruary 3, 1969
Docket8533
StatusPublished
Cited by11 cases

This text of 450 P.2d 188 (In Re Nelson) 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 Nelson, 450 P.2d 188, 79 N.M. 779 (N.M. 1969).

Opinion

OPINION

PER CURIAM.

The Commissioners of the New Mexico State Bar, sitting as referees under the provisions of § 21-2-1(3), N.M.S.A.1953, 1967 Pocket Supp., recommended the suspension of respondent for an indefinite period.

The Commissioners made detailed findings of fact, the majority of which are not controverted. Respondent’s principal objection to the findings seemingly is that the Commissioners did not see fit to accept respondent’s explanation of the facts, and, of course, respondent strongly protests the conclusions drawn from the facts themselves.

We summarize the rather involved factual situation: From 1954 through most of January of 1963, respondent acted as attorney for a Mrs. Rosie Messinger, in connection with certain legal matters including the ancillary proceedings of Mrs. Mes-singer’s husband’s estate, clearing of certain mineral interests, matters in connection with the probate of the husband’s estate in Texas, and other general financial matters. On February 9, 1957, respondent prepared, and there was executed, an agreement between Mrs. Messinger and himself, respondent agreeing to perform legal service in exchange for a conveyance of certain real estate on condition that Mrs. Messinger would receive the rents and use for life. In connection with this agreement, the client executed a general warranty deed to respondent and his wife, but the deed contained no reference to any reservation of a life estate. On August 11, 1958, another agreement was prepared, providing that the February 9, 1957, agreement had been, fully performed. Thereafter on January 19, 1960, another agreement was executed, terminating the life estate previously mentioned, on condition that respondent would pay the client $50.00 a month for life. On October 27, 1960, another agreement was entered into relating to legal services, by which the client agreed to convey certain unimproved lots to respondent and a warranty deed was issued in conformity therewith. On June 19, 1962, the client executed a deed, prepared by respondent, to all her mineral interests in the State of Texas, and this deed was immediately recorded. On September 14, 1962, the client executed a warranty deed to certain real property to respondent and his wife, which was, by its terms, absolute. On September 25, 1962, the client executed an agreement, prepared by respondent, which set forth that the mineral deed executed in June, 1962, had been made in consideration of the cancellation of certain indebtedness owing from the client to respondent and in consideration of legal services. Also on September 25th, the client executed an agreement which stated that the September 14th deed was given as security for existing and future loans, and that if the property were not sold, it was to be in full payment of all loans outstanding and professional services due upon the death of the client. On this same date, respondent prepared a will for the client, which provided that one-third of the client’s property would go to respondent’s two daughters. Respondent admittedly disclosed the contents of this will to the grandson of the client, contrary to the specific instructions of the client not to do so. In January of 1963, respondent was discharged as attorney. In none of the agreements or the deeds did the client have independent legal advice, and in this connection the referees found that respondent did not make full and frank disclosure of all relevant information concerned therewith. The referees further found that, in all of the transactions mentioned, respondent put his own interests above those of his client.

Based upon the findings summarized above, the referees concluded that respondent had breached the confidential and fiduciary relationship between lawyer and client; that his acts were contrary to honesty, justice and good morals, and that his conduct placed his own interests above those of his client and was for his own personal benefit or gain.

This case involves an extremely tangled lawyer-client relationship which extended over several years, basically concerned with the property owned by an elderly, lady. Prior to this disciplinary proceeding, there was a civil action which was filed on September 12, 1963. This case is fully reported as Van Orman v. Nelson, 78 N.M. 11, 427 P.2d 896 (1967), and concerns us in this proceeding because the evidence in that case of dealings between respondent and his client, including approximately 700 pages of respondent’s testimony, was admitted in this proceeding and considered by the referees.

Respondent objected to the use of his own testimony in the prior case, and continues to protest in this court. In effect, the objection was that the prior testimony would reflect the bias and prejudice of the trial court in that' case, that the burden of the proof in the prior case was different from that in the disciplinary proceeding, and that the testimony was not admissible other than for impeachment, because respondent was present and available to testify.

The objection is not well taken. The transcript was admittedly correct and complete, it is fully proper, and, if admissible for no other reason, it is certainly admissible as an admission by a party against his interest and therefore competent evidence. In Re Ellis, 371 Ill. 113, 20 N.E.2d 96 (1939); and In Re Tuttle, 371 Ill. 153, 20 N.E.2d 98 (1939). Cf. State ex rel. Nebraska State Bar Ass’n v. Gudmundsen, 145 Neb. 324, 16 N.W.2d 474 (1944); Louisiana State Bar Association v. Sackett, 234 La. 762, 101 So.2d 661 (1958); In Re Pate, 232 Mo.App. 478, 119 S.W.2d 11 (1938); Simmons v. Westwood Apartments Company, 46 Misc.2d 1093, 261 N.Y.S.2d 736 (1965); anhot, 161 A.L.R. 898.

In connection with the use of this testimony, respondent also urges that it was error for the referees to read the testimony of the prior trial outside of his presence. No authority is given for this contention, nor do we believe it is well taken.

Respondent also urges that the complaint against him was not sufficiently definite to inform him of the charges. In this connection, respondent really claims that the whole difficulty merely concerned attorney’s' fees, and that therefore he should have been accused under § 2.07 (§ 21-2-1(3) (2.07), N.M.S.A.1953, 1967 Pocket Supp.), rather than being charged with a violation of §§ 2.01 and 2.04 (§§ 21-2-1(3) (2.01) and (2.04), N.M.S.A.1953, 1967 Pocket Supp.) and Canons 11 and 12 of the Canons of Professional Ethics. Canons 11 and 12 are well known to the Bench and Bar and need not be repeated here, other than to say that Canon 11 relates to lawyers’ dealing with trust property and Canon 12 relates to' fixing of fees and the considerations that may be' used in determining the amount of the feei 'The rules, however, as far as applicable to this case, are:

“2.01. All of the members of the bar have taken an oath to support the Constitution and the laws of this state and of the United States. As officers of the court, they are charged with obedience to these laws, both in and out of court, and to observe the high standards of professional conduct.

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Bluebook (online)
450 P.2d 188, 79 N.M. 779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-nelson-nm-1969.