In re Newman

211 A.D. 654, 208 N.Y.S. 140, 1925 N.Y. App. Div. LEXIS 10671
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 6, 1925
StatusPublished
Cited by2 cases

This text of 211 A.D. 654 (In re Newman) 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 Newman, 211 A.D. 654, 208 N.Y.S. 140, 1925 N.Y. App. Div. LEXIS 10671 (N.Y. Ct. App. 1925).

Opinion

Clarice, P. J.:

The respondent was admitted to practice as an attorney and counselor at law in the State of New York at the July, 1900, term of the Appellate Division, First Department, and has practiced as such attorney since his' admission.

The petition charges that the respondent has been guilty of misconduct as an attorney at law as follows:

“ In April, 1917, the respondent acted as attorney for one Gardner, who claimed to be the owner of a cottage located at [655]*655Rye, Westchester County, N. Y. While acting as attorney for Gardner, the respondent discussed with one Roth a proposed lease of the cottage for the summer months of 1917. Roth finally agreed to lease the cottage and to pay in advance a total rent of $700 for the season. Before Roth executed a lease he discovered that there was litigation pending involving Gardner’s title to the property and that one Magill had brought an action to eject Gardner from the premises. Roth then refused to execute a lease unless he was furnished with some security to protect him in the event that he paid the rent in advance and was subsequently deprived of possession. The respondent then stated to Roth that his client Gardner was out of town and he was, therefore, unable to procure a bond but that if Roth would give the entire rent, amounting to $700 to the respondent, he would agree to hold the same as agent for Roth and to pay Gardner $175 at once and $175 monthly thereafter so long as Roth’s possession was not disturbed. In accordance with this arrangement, Roth gave to the respondent the sum of $700 on April 28, 1917, and the respondent then delivered to Roth a letter signed by him in which he stated as follows:
Owing to the fact that there is certain litigation now pending between Urwin J. Magill and Harold D. Gardner, which litigation is in the form of an action in the Supreme Court and certain phases thereof are now on appeal to the Appellate Division, I beg to state that in order to protect your possession thereof so that the same will not be disturbed by reason of this litigation, that the $700 which you are turning over to me is to be paid out by me as follows: $175 a month to Mr. Gardner, the first month to be paid now, and in addition thereto the brokerage for renting said premises to be paid out of said fund as well as such moneys as may be necessary to place the house in condition, the balance thereof to be held in my possession and to be paid by me $175 a month to Gardner as long as your possession is not disturbed by reason of the above litigation.
“ ‘ This letter shall be read and construed in conjunction with the lease dated the 28th day of April, 1917, for the premises in question, and the covenant to pay the rent of $700 in advance is to be modified to the extent of providing that said $700 shall be paid only by the said Phineas Roth in installments in the manner aforesaid, and I do hereby acknowledge that I have received said $700 and that I hold the same as agent for said Phineas Roth for the purposes aforesaid.’
When Roth tried to enter the premises at Rye he found that the same were occupied by Magill, the person who questioned Gardner’s title, and Roth did not obtain possession of the cottage [656]*656at any time during the summer season of 1917. When Roth learned that it would be impossible for him to occupy the leased premises he demanded of the respondent that the money which he had deposited as aforesaid be returned to him. The respondent has failed to return any part of the moneys.
“ After the respondent had failed and refused to return the moneys deposited Roth caused an action to be brought against the respondent in the Municipal Court of the City of New York in which he charged that the respondent had converted the moneys deposited with him pursuant to the terms of the letter above set forth to his own use. The respondent filed an answer to the charges then made against him containing, among other defenses, a general denial, and after a trial the Court found and decided that Roth was entitled to recover damages against the respondent in the sum of $478 and costs,- and that the respondent was liable to arrest and imprisonment on execution against his person and a judgment in- accordance with said decision was thereafter duly entered. Upon appeal by the respondent to the Appellate Term of the Supreme Court this judgment was affirmed. Motion thereafter made at the Appellate Term and at the Appellate Division of the Supreme Court for leave to appeal to the Appellate Division was subsequently denied. An execution was thereupon issued and the respondent having failed to pay the judgment, he was arrested by one of the marshals of the City of New York. Immediately upon his arrest the respondent gave a jail liberty bond and was released. He has not paid any part of the judgment and has converted to his own use the. sum of $478 of the moneys received by him from Roth for the purpose of paying the rent of the cottage at Rye as above set forth.”

The learned official referee has reported the facts as follows: The respondent was the attorney for one Gardner who Cairns to be the owner of a house at Rye. The record title was not in Gardner; Gardner had a contract to purchase on the installment plan, he defaulted in the payment of one installment. Magill, the record owner, brought an action of ejectment against Gardner, which in the early part of June had not been tried. Gardner was desirous of leasing the house to one Roth for the summer months from June 1, 1917, to October and Roth agreed to take the house. A lease dated April twenty-eighth was entered into between Gardner and Roth. The term was to begin June 1, and to end October 1, 1917. The lease permitted Roth to take possession any time before June first. Under the terms of the lease the entire rent of $700 was to be paid in advance. The respondent advised Mr. Roth, the proposed tenant, that the ejectment suit could not [657]*657be tried or disposed of before the term of the lease would expire, and, therefore, Roth was safe in paying the $700 in advance. Roth, however, was unwilling to pay the $700 under the circumstances, and for his protection instead of paying the $700 to Gardner, the landlord, deposited the $700 with the respondent upon the terms set forth in the following letter: „ ,Nmr YoEK> April 2S: 1917.

“ 'Mr. Phineas Roth,
" '535 West 135th Street,
“ 'New York City:
“ ' Dear Sir.— In consideration of your renting the premises of Harold D. Gardner, at Rye, New York, and for which you are to pay $700 cash for the summer season of 1917, and owing to the fact that there is certain litigation now pending between Urwin J. Magill and Harold D. Gardner, which litigation is in the form of an action in the Supreme Court, and certain phases thereof are now on appeal to the Appellate Division, I beg to state that in order to protect your possession thereof, so that the same will not be disturbed by reason of this litigation, that the $700 which you are turning over to me is to be paid out by me as follows:
“ ' One hundred and seventy five dollars ($175) a month to Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
211 A.D. 654, 208 N.Y.S. 140, 1925 N.Y. App. Div. LEXIS 10671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-newman-nyappdiv-1925.