In re Schoepfer

687 N.E.2d 391, 426 Mass. 183, 1997 Mass. LEXIS 404
CourtMassachusetts Supreme Judicial Court
DecidedDecember 3, 1997
StatusPublished
Cited by29 cases

This text of 687 N.E.2d 391 (In re Schoepfer) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Schoepfer, 687 N.E.2d 391, 426 Mass. 183, 1997 Mass. LEXIS 404 (Mass. 1997).

Opinion

Wilkins, CJ.

In this appeal from an order of a single justice of this court indefinitely suspending the respondent, Stephen E. Schoepfer, from the practice of law, we are confronted with differing contentions concerning the appropriate discipline to impose. Bar counsel favors the indefinite suspension that the single justice ordered and a hearing committee (committee) of the Board of Bar Overseers (board) had recommended. The board recommends a suspension from the practice of law, preferably for a period of three years. The respondent urges a two-year suspension, which is the discipline that the board recommended in its vote of October 21, 1996.

[184]*184The disagreement between bar counsel and the board concerning the appropriate discipline in this case arises from differing views of this court’s characterization of the “standard” sanction that should be imposed when a lawyer intentionally misuses clients’ funds. It has been suggested, with reason, that this court has not articulated and adhered to a consistent position concerning the sanctions to be imposed when a lawyer has intentionally misused a.client’s funds. This opinion will attempt to provide guidance concerning the level of discipline in future cases and will conclude that an indefinite suspension is the appropriate discipline in this case.

We recite findings of the committee, which the board adopted, that bear on the allegation that the respondent commingled a client’s funds with his own and used the Ghent’s funds for his own expenses. The committee concluded that the respondent intentionally commingled his personal funds with those of an estate of which he was executor and intended, at least temporarily, to deprive the estate of the use of those funds. In 1986, the respondent became the executor of the estate of Ellen Leinonen, for whom he had acted as lawyer and guardian. In the middle of August, 1986, the respondent deposited $9,900 from the Leinonen estate in his personal money market account. Nine days later he withdrew that same amount and used it for his own purposes. In September, 1986, he again took $9,900 from the estate and deposited it in his personal money market account. Between that date and the end of the year, the respondent withdrew $9,700 from the money market account and again used the funds for his personal expenses. Late in December, 1988, the respondent deposited approximately $20,600 of his own funds in his money market account. Early in 1989, he transferred approximately $23,000 from the money market account to the Leinonen estate account, representing the funds that he had taken from that estate in 1986 plus interest.1

The evidence supports the hearing committee’s finding that [185]*185the respondent chose the amount of $9,900 in order to avoid reporting the transfer to the Internal Revenue Service. He testified that, if he had transferred $10,000 or more, he would have had to file a tax form, and he wanted to avoid that. The hearing committee was entitled to credit that testimony and not to credit the respondent’s explanation that he was only trying to avoid the expense and delay to the estate that filing the form would have caused. See Matter of Saab, 406 Mass. 315, 328-329 (1989). An inference of an intent not to disclose his action was warranted.

Our analysis begins with Matter of the Discipline of an Attorney, 392 Mass. 827 (1984) (known as the Three Attorneys case) in which we stated “principles which will be relevant in all cases concerning attorneys’ conduct which occurs after the date of this opinion.” Id. at 835. In that case, the board and bar counsel each proposed policy positions concerning the appropriate level of discipline to impose when a lawyer has commingled clients’ funds with his own and then used the commingled funds for his own purposes. Id. at 835-836. Although we stated that the two positions were consistent (id. at 836) and concurred generally with each statement of principles (id. at 836-837), bar counsel’s statement was more definite, as we noted (id. at 836), and thus had less “play in the joints” than did the board’s principles.* 2 The result of our undifferentiated indorsement of these two principles has been an occasional disagreement [186]*186between the board and bar counsel and the opportunity for respondents to argue, not unreasonably, that the discipline proposed to this court is inconsistent with the discipline imposed in other cases.

After the Three Attorneys opinion, this court has generally stated that disbarment or indefinite suspension is the presumptive sanction if a lawyer has intentionally deprived a client of funds. See Matter of Elias, 418 Mass. 723, 735 (1994); Matter of Luongo, 416 Mass. 308, 309 (1993); Matter of Carrigan, 414 Mass. 368, 374 (1993); Matter of Dawkins, 412 Mass. 90, 93 (1992); Matter of Bryan, 411 Mass. 288, 291 (1991). In deciding what discipline to impose, however, we have not applied that standard with consistency.

In 1986, bar counsel urged the indefinite suspension of Paul H. Deragon. Matter of Deragon, 398 Mass. 127, 129 (1986). The board argued for a suspension of two years. Id. at 129-130. A single justice imposed a public censure; bar counsel and the board appealed; and a divided court (four to two) affirmed the judgment imposing a public censure. Id. at 133. The author of this opinion and the author of the Three Attorneys opinion dissented because the evidence showed that Deragon had converted clients’ funds. Id. at 133 (Wilkins, J., dissenting, with whom Hennessey, C.J., joined).3

The court divided again in Matter of Driscoll, 410 Mass. 695 (1991), in which bar counsel sought a three-year suspension (id. at 695), the board argued for public censure (id.), and the court, divided four to three, imposed a public censure (id. at 702). The court concluded that there had been no dishonesty and little, if any, harm to clients (id.), although Driscoll had used clients’ funds for personal and office expenses. Id. at 696-697. The dissent urged a suspension of appropriate length because there was [187]*187a knowing and intentional misappropriation of clients’ funds (without an intent to steal). Id. at 703 (Greaney, J., dissenting, with whom Wilkins and Abrams, JJ., joined).

In Matter of Dawkins, 412 Mass. 90 (1992), the lawyer had deliberately misused a client’s funds for his own purposes and had temporarily deprived his client of those funds, causing harm to the client. Id. at 91-93. The board, by a bare majority, had sought only a public censure; bar counsel urged a period of suspension, not the indefinite suspension that his principles stated in the Three Attorneys opinion called for. Id. at 90 n.1, 92-93. This court ordered the imposition of a six-month suspension from the practice of law, not an indefinite suspension. Id. at 97. In retrospect, the failure to impose an indefinite suspension is hard to justify. There were no substantial mitigating circumstances.

In Matter of Carrigan, 414 Mass. 368 (1993), the parties debated whether the court should impose lesser discipline than the board and bar counsel’s recommendation of a suspension from the practice of law for one year. Id. at 374.

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Bluebook (online)
687 N.E.2d 391, 426 Mass. 183, 1997 Mass. LEXIS 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-schoepfer-mass-1997.