In Re the Disciplinary Proceeding Against Allper

617 P.2d 982, 94 Wash. 2d 456
CourtWashington Supreme Court
DecidedFebruary 24, 1981
DocketC.D. 5105
StatusPublished
Cited by12 cases

This text of 617 P.2d 982 (In Re the Disciplinary Proceeding Against Allper) is published on Counsel Stack Legal Research, covering Washington 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 the Disciplinary Proceeding Against Allper, 617 P.2d 982, 94 Wash. 2d 456 (Wash. 1981).

Opinions

Wright, J.

This is an attorney disciplinary proceeding referred to the court pursuant to Discipline Rule for Attorneys (DRA) 5.6(h) on a recommendation that respondent Stanley B. Allper be disbarred for mishandling clients' funds. We also shall determine if Allper should be held in [458]*458contempt of court for failure to observe the suspension from practice order of this court dated November 17, 1978. That order resulted from his noncompliance with Continuing Legal Education (CLE) requirements for 1977 under Admission to Practice Rule (APR) 11.

I

The central question is: Should Allper be disbarred? We adopt the recommendation of the Disciplinary Board (board) of the Washington State Bar Association (bar) and, accordingly, order disbarment.

On June 27, 1979, a complaint was filed by the bar charging respondent Allper with unfitness to practice law as a result of an alleged mishandling of a client's funds, neglect of another client's affairs and his previous disciplinary record. Prior discipline included: (1) censure for conduct prejudicial to the administration of justice and neglect of a legal matter (June 6, 1975); (2) censure for neglect of a legal matter, placing himself in a conflict of interest situation and failing to cooperate in a disciplinary investigation (August 29, 1977); (3) reprimand for neglect of a legal matter and intentional failure to carry out a contract of employment (August 11, 1978).

Allper filed an answer July 20, 1979, and a hearing was set for August 17, 1979. At Allper's request the hearing was postponed until September 28, 1979. His September 24, 1979, request for another continuance was denied. He was notified of the hearing and was under subpoena but did not appear personally or by counsel. He has not filed a brief contesting the board's findings, conclusions and recommendations.

The findings of the hearing board officer (hearing officer) adopted by the board indicate that in August 1975, Allper was employed by Robert and Ann Neal, who were selling a residence, to act as closing attorney in the transaction. Because of potential disputes over a real estate commission, the sellers' closing statement provided that $2,520 was "to [459]*459be retained in escrow until instructed by the sellers to disburse." On September 2, 1975, Allper received $16,451.79 from the purchaser which he deposited into his account. He subsequently closed the transaction, disbursing necessary funds from the account.

Following the closing, the Neals were sued by one Sheehan, who claimed that the Neals should have sold the residence to him. Allper successfully defended the Neals and a judgment was entered in May 1977. During the handling of the real estate closing and the lawsuit, respondent earned substantial fees, but the amount was not determined, nor paid.

In May 1977, Allper advised Robert Neal that the $2,520 should be left in his attorney trust account because the realtor might sue for a commission. Neal met with Allper September 22, 1978, and urged that Allper state the fees due and that a settlement be made. Respondent, however, claimed that some of his records had been stolen, making it difficult to determine the time spent on the Neals' behalf. There was a discussion to the effect that Allper should pay Neal interest because of the delay, but Neal did not intend to give Allper authority to use the trust funds for his. own purposes.

After the September 22, 1978, meeting, Neal attempted several times to contact Allper and obtain a settlement. Allper repeatedly promised immediate resolution and payment, which was not forthcoming.

Allper forwarded a letter to Neal January 31, 1979, stating that the amount owing for services was $1,530 and indicating that payment of the account balance would be made upon receipt of a save harmless agreement. Neal refused to agree to the propriety of the fee but nonetheless furnished the save harmless agreement. The dispute concerning fees has continued and was unresolved at the time of the hearing.

The hearing officer further found that Allper failed to maintain funds equal to the unpaid $2,520 in his trust account and that on a number of occasions in 1976, 1977 [460]*460and 1978, trust checks in smaller amounts were returned by the bank "NSF". On January 31, 1979, the trust account had a zero balance and was closed. Allper has not paid the money due the Neals.

The hearing officer and the board concluded that Allper's conduct in handling the Neal funds violates (CPR) DR 9-102(A) and (B). They also concluded that Allper's delay in signing and returning a notice of substitution and withdrawal constitutes a technical violation of (CPR) DR 2-110(B)(4), which requires a lawyer to withdraw from employment when discharged by a client.

Based upon his conclusion that Allper mishandled the Neals' funds and that respondent's disciplinary record indicated a general unfitness to practice law, the hearing officer recommended a 1-year suspension.

At its November 16, 1979, meeting, the board unanimously adopted the findings of the hearing officer. However, the board modified the conclusion regarding the accumulation of discipline to provide that Allper's prior disciplinary record, including the conduct giving rise to a 90-day suspension recommendation already before the court, and the conduct involved in the instant proceeding, "constitutes a general unfitness to practice law as proscribed by (CPR) DR 1-102(A)(6), and warrants disbarment." The board unanimously recommended disbarment, both for nonretention of the Neal funds in his trust account and for his general unfitness evidenced by the cumulative discipline.

The earlier disciplinary action resulting in the 90-day suspension recommendation was initiated by a 3-count complaint filed by the bar. Count 1 alleged that Allper had given false testimony under oath and filed a false affidavit with the bar; count 2 alleged the mishandling of clients' funds; count 3 alleged unfitness to practice law.

After a disciplinary hearing, the hearing officer found no misconduct under count 1. As to count 3, he concluded that the earlier disciplinary sanctions against Allper together with the instant action did not show unfitness to practice [461]*461law. The hearing officer concluded with reference to count 2 that Allper used funds belonging to four clients, failed to promptly pay and account to said clients and commingled the clients' funds with his own, contrary to DRA 1.1(c) and (i), and (CPR) DR 9-102(A) and (B) of the Code of Professional Responsibility. These conclusions were based on Allper's handling of the funds of Lyn Foster, Paul Beck-man, Fidelity Finance and the Metropolitan Health Club.

In. June 1977, Allper began collecting rent for Foster. He properly received and deposited in his attorney trust account the June payment of $75 and remitted $50 to Foster, her two-thirds share. In July 1977, however, he failed to deposit the second payment, a check for the $200 balance due. Allper nevertheless wrote a trust account check to Foster for her $133.33 share of the $200, which was returned for insufficient funds.

On August 12, 1977, Allper wrote to himself and cashed a $375 trust account check to transfer funds to himself. His trust account records on that day showed an insufficient balance to cover the check, which was returned for insufficient funds.

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617 P.2d 982, 94 Wash. 2d 456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-disciplinary-proceeding-against-allper-wash-1981.