In Re Sedillo

498 P.2d 1353, 84 N.M. 10
CourtNew Mexico Supreme Court
DecidedJuly 7, 1972
Docket9254
StatusPublished
Cited by45 cases

This text of 498 P.2d 1353 (In Re Sedillo) 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 Sedillo, 498 P.2d 1353, 84 N.M. 10 (N.M. 1972).

Opinion

OPINION

PER CURIAM.

This matter is reported to the Supreme Court by the New Mexico Bar Association. It arises out of a complaint filed by the Association’s Ethics and Grievance Committee against Carlos Sedillo, an attorney and member of the State Bar of New Mexico, alleging various violations of the Canons of Professional Ethics. Pursuant to the Rule then in effect, a hearing before the Commission was held, at which time Mr. Sedillo and a prosecuting member of the Commission presented evidence. Following the hearing, the Commission entered findings of fact and conclusions recommending to this Court that, on the basis of the evidence adduced at the hearing, Mr. Sedillo be permanently disbarred. Mr. Sedillo, hereinafter referred to as “Respondent,” contends that the Commission committed error in certain findings and conclusions and that the Commission erred in not allowing him to examine a certain witness on the basis of privilege.

The complaint alleged violations of Canons 12, 15, 16, 22, 32 and 34, arising out of a series of transactions handled by Respondent involving the sale of certain assets of Fountain Mobile Homes, Inc., hereinafter referred to as “Fountain,” and All State Homes, Inc., hereinafter referred to as “All State.” The Commission found that, in arranging the sales of the assets of Fountain to All State, Respondent had knowingly misrepresented to one of the shareholders of All State that the sum paid by Fountain for the assets being transferred to All State was $65,000, when he knew the price to be $35,000. It further found that Respondent did not at any time reveal the discrepancy in purchase price to the shareholder, and that this resulted in a fraud upon the shareholder for the benefit of one or more of the other shareholders, who had formed All State for the purpose of purchasing the assets of Fountain.

The Commission found that Respondent had conspired with an officer of All State to charge an excessive fee for legal services rendered when he submitted to All State a bill for services in excess of the $100 per month retainer paid to him by All State. The fee charged by the Respondent was found to be fraudulent, excessive and unearned.

In a third group of findings, the Commission determined that Respondent had knowingly participated in efforts to fraudulently obtain duplicate certificates of title to two vehicles. Such efforts were ultimately successful and the title to one vehicle was transferred to a third party to whom Respondent was indebted, in part satisfaction of Respondent’s debt. The second vehicle was sold to another third party for a check which was negotiated and the proceeds divided between Respondent and an officer of All State.

Finally, the Commission found that Respondent was paid and retained moneys for title insurance premiums, which were to be disbursed by him for title insurance on the properties transferred from Fountain to All State.

On the basis of the findings, the Commission concluded that Respondent consistently, intentionally and without regard to propriety and the ethics of the profession of law, violated the Canons of Professional Ethics adopted by the New Mexico Bar Association. In light of this conclusion, the Commission recommended that this Court permanently disbar the Respondent.

In seeking to refute the Commission’s findings and recommendation, Respondent first contends that the Commission committed error when it found that Respondent was paid and retained money for title insurance premiums. Respondent asserts that the charge of retaining title insurance premiums was not included in the Grievance Committee’s complaint and, therefore,, was not an issue in the case. The allegation referred to was not included in the complaint.

The rules governing disbarment proceedings are contained in Supreme Court Rule 3, (§ 21-2-1(3), N.M.S.A., 1953 Comp.). Paragraph 1.10 of this Rule states in part:

“When not otherwise provided herein, the practice in disciplinary proceedings shall be governed by applicable rules or [sic] civil procedure.”

No reference is made in Supreme Court Rule 3, supra, to the situation when the evidence presented does not conform to the pleadings. However, Rule 15(b), Rules of Civil Procedure (§ 21-1-1(15) (b), N.M. S.A., 1953 Comp.), which governs in the absence of a provision in the disbarment rule, states in part:

“When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings. * * * but failure so to amend does not affect the result of the trial of these issues. * * * ”

It is true that the complaint of the Grievance Committee failed to allege Respondent’s wrongful retention of moneys disbursed for insurance premiums. This Court has held that, in the absence of any objection to evidence on an issue raised by the pleadings, the party failing to object has impliedly consented to the amendment of the pleading to conform to the evidence. Luvaul v. Holmes, 63 N.M. 193, 315 P.2d 837 (1957). The record does not indicate that Respondent offered any objection to the evidence brought out in the testimony of several witnesses concerning the retention of insurance premium money. Respondent cross-examined the witness concerning the premium money and, in his final statement to the Commission, made reference to the money.

We hold that Respondent impliedly consented to the amendment of the pleadings to conform to the evidence adduced at the hearings and Respondent’s contention is without merit.

Respondent also contends that, even if the issue of wrongful retention of the premiums was properly tried, the finding that he wrongfully retained premium funds is not supported by clear and convincing evidence.

The standard of proof in disbarment proceedings is prescribed by Supreme Court Rule 3, supra, which states in paragraph 1.10:

“To warrant a finding of misconduct in contested cases, the facts must be established by clear and convincing evidence, * * * ”

This court has held that clear and convincing evidence is something stronger than a mere “preponderance” and yet something less than “beyond a reasonable doubt.” In re Palmer, 72 N.M. 305, 383 P.2d 264 (1963). For evidence to be clear and convincing, it must instantly tilt the scales in the affirmative when weighed against the evidence in opposition and the fact finder’s mind is left with an abiding conviction that the evidence is true. See Hockett v. Winks, 82 N.M. 597, 485 P.2d 353 (1971); Lumpkins v. McPhee, 59 N.M. 442, 286 P.2d 299 (1955).

Respondent argues that the evidence of his wrongful retention of moneys for the payment of title insurance premiums is not clear and convincing. We are inclined to agree.

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Bluebook (online)
498 P.2d 1353, 84 N.M. 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-sedillo-nm-1972.