In re Sneed

191 A.D.2d 118, 600 N.Y.S.2d 453, 1993 N.Y. App. Div. LEXIS 7194
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 13, 1993
StatusPublished
Cited by2 cases

This text of 191 A.D.2d 118 (In re Sneed) 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 Sneed, 191 A.D.2d 118, 600 N.Y.S.2d 453, 1993 N.Y. App. Div. LEXIS 7194 (N.Y. Ct. App. 1993).

Opinion

OPINION OF THE COURT

Per Curiam.

Petitioner, Departmental Disciplinary Committee for the First Judicial Department, moves for an order pursuant to section 603.4 (d) of the rules governing the conduct of attor[119]*119neys of the Appellate Division, First Judicial Department (22 NYCRR), confirming a report of a Hearing Panel (Panel) which includes findings of fact, conclusions of law and a recommendation that respondent, Benjamin Sneed, be suspended from the practice of law for a period of five years. By cross motion, respondent seeks an order disaffirming the Panel’s majority report and confirming the dissenting member’s report, which recommends that the charges be dismissed.

Respondent was admitted to practice in the First Judicial Department on March 31, 1952. At all times relevant herein, respondent has maintained an office for the practice of law within the First Judicial Department.

On or about October 9, 1990, respondent was served with a notice and statement of second amended charges, which consisted of seven charges involving five separate clients and which alleged conversion, neglect and fraud. Petitioner ultimately withdrew Charge Seven.

Specifically, Charge One alleged that respondent forged a payee’s name on checks executed by a client in order to fraudulently convert those monies in violation of Code of Professional Responsibility DR 1-102 (A) (4), (5) and (6).

Charge Two alleged that respondent neglected a legal matter entrusted to him which resulted in a delay of over six years in moving the matter to trial. Respondent also failed to obtain default judgments against three nonappearing defendants. This conduct violated DR 6-101 (A) (2) and (3), and DR 7-101 (A) (1). Respondent was further charged with failing to timely withdraw from the matter in violation of DR 2-110 (B) (4).

Charges Three, Four and Five alleged that respondent intentionally converted monies tendered to him by the buyer of a property being sold by his client in violation of DR 1-102 (A) (4). Respondent also failed to maintain proper books and records of his escrow accounts in violation of DR 9-102 (A) and 22 NYCRR 603.15 (c).

Charge Six alleged that respondent neglected a legal matter entrusted to him by failing to file a note of issue for over seven years in violation of DR 6-101 (A) (3).

The Panel conducted hearings on the charges on 17 separate hearing days, commencing in December 1990 and continuing throughout 1991, concluding on April 29, 1992.

As to Charge One, respondent was charged with 15 acts of forgery of a payee’s name to personal checks made payable to [120]*120the payee, and with the fraudulent conversion of each check to his own account, all in violation of DR 1-102 (A) (4), (5) and (6). Respondent could offer no proof, documentary or testimonial, other than his own assertions that as of July 1983 he was authorized to take checks made out to a law firm and deposit the checks in his own account. The Panel majority sustained eight violations of both DR 1-102 (A) (4) and (6) for a total of 16 Code violations.

As to Charge Two, respondent was charged with neglect of a legal matter regarding James Whitfield. Respondent instituted a suit on behalf of Whitfield on March 18, 1981. Only Citibank answered the complaint. The other three defendants did not appear or answer. In November 1982, respondent moved for a default judgment, which was denied without prejudice in December 1982 on the ground of lack of proof of proper service of the summons and complaint on the three defendants. Respondent made another motion in May 1983, which was denied in June 1983 on the ground that no affidavit of merit and no affidavit of service was annexed to the moving papers. Thereafter no further effort to obtain a default judgment was made: Although Citibank was examined on March 30, 1983 and Whitfield deposed on October 3, 1983, respondent did not file a note of issue until June 10, 1985.

Following Whitfield’s deposition, respondent undertook settlement negotiations with Citibank, resulting in an offer of $1,200. Respondent testified that Whitfield never communicated to respondent his response to the settlement offer and that this resulted in the delay in filing a note of issue. However, at the hearing, a letter dated January 4, 1984, signed by Whitfield and addressed to respondent, was produced. In the letter, Whitfield indicated complete dissatisfaction with the offer. When confronted with the letter, respondent stated that he did remember the letter and did not remember receiving it. In October 1984, respondent was involved in an automobile accident resulting in an amputation of his leg. He was hospitalized until December 29, 1984 and did not return to full-time practice until August or September 1985.

The action finally appeared on the trial calendar on November 4, 1985 when respondent did not appear, allegedly due to the destruction of all his car windows by children.

In the spring of 1986, Whitfield demanded the return of his files and then complained to petitioner. The majority of the [121]*121Hearing Panel found that respondent’s actions in the Whitfield matter constituted neglect of a legal matter in violation of DR 6-101 (A) (3), conduct prejudicial to the administration of justice in violation of DR 1-102 (A) (5), conduct adversely reflecting on his fitness to practice law in violation of DR 1-102 (A) (6) and conduct in violation of DR 2-110 (B) (4), requiring an attorney to withdraw from employment on being discharged by a client. The majority found that respondent did not violate DR 6-101 (A) (2), which provides that a lawyer shall not handle a legal matter without preparation adequate in the circumstances, and DR 7-101 (A) (1), which provides that a lawyer shall not intentionally fail to seek the lawful objectives of his client. The majority of the Panel concluded as follows:

"Respondent had represented Mr. Whitfield for over 6 years and had not moved the matter to trial. Even allowing several months of incapacity due to his accident and for the endemic lethargy of Civil Practice in the Supreme Court before the introduction of the IAS system, this is a snail’s pace.
"The Panel majority has concluded that under the circumstances respondent provided wholly inadequate counsel and advocacy to Mr. Whitfield; and in particular, by his failure to obtain default judgments against three nonappearing defendants, one of them an individual, probably deprived Mr. Whitfield of any chance of recovery for what appeared on the face of the papers to be a meritorious claim for damages, however modest.”

The dissenting member of the Hearing Panel found that respondent’s actions in the Whitfield matter did not constitute a violation of any of the Code provisions charged. According to the dissenting member of the Panel, there was no neglect of the Whitfield case by respondent, and respondent’s actions or lack of action was justified under the circumstances involved.

As to Charges Three, Four and Five, respondent was retained in connection with the sale of a residence. Pursuant to the contract, the down payment was to be held in escrow by respondent. Respondent deposited the check in his own account, which was not a special account for the funds of clients. On the date of deposit, respondent’s account was overdrawn. Respondent was further to arrange for the clearance of environmental liens concerning the property, on which title could not be closed until the liens were cleared.

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Related

In re Mahoney
56 A.D.2d 169 (Appellate Division of the Supreme Court of New York, 2008)
In re Sneed
238 A.D.2d 74 (Appellate Division of the Supreme Court of New York, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
191 A.D.2d 118, 600 N.Y.S.2d 453, 1993 N.Y. App. Div. LEXIS 7194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-sneed-nyappdiv-1993.