In Re Steffensen

78 P.2d 531, 94 Utah 436, 1938 Utah LEXIS 22
CourtUtah Supreme Court
DecidedApril 19, 1938
DocketNo. 5946.
StatusPublished
Cited by1 cases

This text of 78 P.2d 531 (In Re Steffensen) is published on Counsel Stack Legal Research, covering Utah 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 Steffensen, 78 P.2d 531, 94 Utah 436, 1938 Utah LEXIS 22 (Utah 1938).

Opinion

HANSON, Justice.

Thomas C. Bevan complained to the Utah State Bar that attorney Steffensen, employed by Bevan to collect a sum of money due the latter, had received and appropriated to his own use the sum of $60 thereof and had refused to pay the same to Bevan on demand. A formal complaint was filed. In answer thereto the accused admitted the employment and collection as charged, but claimed certain set-offs for fees earned in other matters wherein he had been employed by Bevan and also laches and delay to complain during more than four years, with full knowledge, whereby the attorney was prejudiced in his defense by his loss of files and a failing memory of the facts.

From admissions in the answer and the undisputed testimony, it appears that Bevan employed Mr. Steffensen in September, 1930, to sue for, if necessary, and collect a demand for damages against Pauline Pingree and her father, whose automobile she drove, for injuries to Bevan’s automobile in a collision between the two cars. The Continental Agency Company was either insurer or agent for the insurer of the Pingree machine. Bevan paid the attorney a retainer fee of $25 and $6.50 costs to bring suit. A summons was issued and served on the Pingrees. Immediately the insurer offered $50 in settlement, to which Bevan consented. However, the attorney held out and a little later, on November 11, 1930, the claim was settled for $60, which was paid on that date by the insurer’s check to the attorney. It is admitted that the attorney did not immediately notify his client of the settlement and also that he never has in fact paid over to the client any part of the money so collected. Bevan testified that frequently during the months of No *438 vember, 1930, to March, 1931, inclusive, he visited or met the attorney and inquired about the claim and that every time he so inquired he was informed by the attorney that nothing had been done, no money collected, no progress made. Sevan’s wife corroborated her husband as to one or more of these inquiries and the response thereto-. The attorney denies this particular testimony and claims that he never saw or met Bevan, and was never able to communicate with him from the time he collected the money until some time after May 5, 1931, and he never met Mrs. Bevan before the time of the hearing. That he made inquiries for Bevan after collecting the money, but was never able to come in touch with him. In this connection, the following, from a voluntary statement by the attorney at the hearing before the investigating committee, is enigmatic to say the least:

“Now, when I received the check, — and this is the matter in dispute, and I won’t go through the whole story, — but when I received the check I cashed it, and immediately I went to see Tom at Lettieri’s at lunch, and we played ‘smooker’.
“I went to the post office. I didn’t know where he lived, but I think I went to the post office and was informed that he was out of town, and I never heard a thing from Mr. Bevan and never got a chance to tell him that I had accepted the check for $60 instead of $60.”

It appears that Bevan was a letter carrier employed by the post office department, which explains the resort thither for information. But why the pains to inquire at all for Bevan’s whereabouts when the attorney had met him personally at lunch and played “smooker” with him immediately after receiving the check, and had not availed himself of the opportunity then afforded to tell Bevan of the receipt of the check? And why not then have offered to settle with Bevan for the collection made on his behalf? But the attorney persevered further in stating that:

“In the early part of 1931 I had to go to California in relation to business of a company I was secretary and treasurer of. I was gone from January 7th until around March 27th. Right after Conference *439 I went down again and I didn’t get back until the 5th of May. And around the time I got home, Mr. Bevan came to the office and asked about the Pingree case. I told him I had received a check for $60 and he asked me for the money.”

Here was an express admission that the money was demanded of him by his client as early as May 5, 1931, and no settlement followed. There was also undisputed testimony that the money was repeatedly demanded on Bevan’s behalf by other attorneys whose efforts were invoked by him, and also that prosecution from the county attorney’s office was threatened for a time. All without avail.

To the solicitations of payment from other attorneys, Mr. Steffensen made no denial of liability. On the contrary, he frankly admitted to Attorney Edgar C. Jensen that he had collected the money, put it in his safe, and kept it for a time, when financial stress had compelled him to use it. He offered at different times to give his note for the amount, and to begin small monthly payments, which he never performed. In fact, on the hearing before the Disciplinary Committee he frankly stated:

“My position is this. Since I have become better versed in the matter I believe I am guilty of what you would call today unprofessional conduct. What I should have done when I saw Bevan was to bill him for what I claimed. I believe I should be punished, but I don’t believe I am of the type of person who has the attitude of beating clients out of money. I am willing to submit this, if it meets your approval: I am willing to accept a suspension of ninety days, beginning June 1st.”

In so far as the defense of laches pleaded in defendant’s answer is concerned, we do not find it sustained by the facts in the record. As soon as the collection by the attorney was known to the client, the latter was reasonably active thereafter in bringing forward his insistence upon a settlement from the attorney. When his own efforts failed, he enlisted the friendly efforts of other attorneys and the county attorney’s office. When a man has employed and paid one attorney to make a collection, he does *440 not need employ and pay another attorney to collect from the fiist in order to demonstrate an earnestness and sincerity in desiring to get possession of his own money. The matter was kept before Mr. Steffensen’s attention, if not constantly, at least with reasonable continuity from the time it was known he had collected on the Pingree claim. Such delay as occurred, in pressing the claim, was due to or contributed to by the attorney’s own necessitous circumstances and was largely in his interest. If he lost files, or his memory has dimmed because of the delay, it would seem to be a misfortune against which he might have guarded by a reasonable appreciation of the outcome of his failure to account for and pay what was due to his client.

As regards the matters of set-off claimed by defendant in his answer, we have carefully considered the testimony of both parties and are of the opinion that the matters relied on were inconsequential and that whatever was done had no appreciable value. No charge was made at the time, and no notice given that a fee was expected. Concerning one of them — a small claim against Be-van’s father’s estate in Chicago — Mr. Steffensen wrote perhaps two letters to attorneys which accomplished nothing and Bevan finally wrote a letter himself which gained some recognition.

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Bluebook (online)
78 P.2d 531, 94 Utah 436, 1938 Utah LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-steffensen-utah-1938.