In Re the Disciplinary Proceeding Against Eddleman

389 P.2d 296, 63 Wash. 2d 775, 1964 Wash. LEXIS 545
CourtWashington Supreme Court
DecidedFebruary 13, 1964
DocketC.D. 2504
StatusPublished
Cited by8 cases

This text of 389 P.2d 296 (In Re the Disciplinary Proceeding Against Eddleman) 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 Eddleman, 389 P.2d 296, 63 Wash. 2d 775, 1964 Wash. LEXIS 545 (Wash. 1964).

Opinions

Hale, J.

When Anton R. Johansen of Fairbanks, Alaska, consulted William R. Eddleman, a Seattle attorney, in June of 1951, neither could foretell the strange series of events soon to follow, much less that their transactions engendered disciplinary proceedings of the gravest nature.

Johansen, a certified aviation mechanic, owned a two-motored commercial airplane, designated either as a C-47 [777]*777or a DC-3, which was parked at Boeing Field, Seattle. Hard pressed by numerous creditors, some of whom held liens against his plane, he had talked with Mr. Richard H. Keatinge, a Los Angeles attorney. Since the plane and most of the creditors were in the Seattle area, Mr. Keatinge referred Johansen to respondent Eddleman.

At the time of the first meeting between Johansen and Eddleman, the airplane had not flown for some 22 months, needed mechanical overhaul and maintenance, and repairs to the aileron to cure the damage caused when the wing had been struck by a forklift operated by Pan American Airlines. This last damage Pan American had agreed to mend.

Following their first meeting in 1951, a number of conversations between Johansen and Eddleman occurred, at some of which John Sweet, a young attorney in respondent’s office, was present. These conversations culminated in a definitive plan. Johansen agreed to deliver title of the plane to respondent, who, in turn, undertook to raise some money, using both the plane and his personal bank accounts as collateral. Eddleman said he would place the plane in operating condition, pay off all of Johansen’s personal creditors, discharge the liens against the plane and obtain repayment of his own funds by chartering the plane out. The plan was explicit except for one salient point: How were Johansen’s rights in the plane to be preserved so that, when the time came that both he and it were free of debts and Eddleman had been paid for his services, the airplane would revert to him?

Johansen assented to the plan in general but demurred to its details when he learned that he was to transfer title to Ed-dleman and receive nothing in writing for it. John Sweet likewise informed both of them that the agreement ought to be put in writing. Respondent said that, since he would be advancing money on his personal credit, he had to be free from the claims of Johansen’s creditors. He would not place himself in the position where he could be forced to show a document estabhshing Johansen’s ownership of or. [778]*778claims in the airplane. He insisted that Johansen’s ownership be extinguished of record. Mr. Eddleman’s refusal to reduce the agreement to writing makes the first item of complaint with which respondent was charged.1

Johansen remained unconvinced and reluctant to part with title to the airplane until John Sweet, in a private interview with him, assured him that he would, if the situation so required, testify that Johansen was entitled to a return of the airplane upon repayment of all sums advanced by Eddleman together with a reasonable fee for Eddleman’s services. Thus assured by Mr. Sweet, Johansen gave Ed-dleman title to the airplane.

They made these arrangements with knowledge that the Korean conflict, then a year old, had changed the airplane, if flyable, into a valuable property and a likely revenue producer. Mr. Eddleman has never explained how Johansen or his survivors could ever prove any interest in the plane in event of the death of either Eddleman, Johansen or Sweet. Respondent’s refusal to reduce his agreement with Johansen to writing violated the ethics of the profession, Canons of Professional Ethics 15, 22, 29, 32, RCW Yol. O. He assumed the leadership in a plan to deceive Johansen’s creditors and the public and to pave the way for further misconduct.

Respondent, Mr. Johansen and Mr. Sweet compiled a list of Johansen’s creditors and lien claimants and the [779]*779amounts of their claims. Respondent borrowed $24,000 from the National Bank of Commerce on both the strength of his title to the airplane and two $5,000 personal bank accounts as collateral. Since he was about to leave Seattle for several weeks, he assigned Mr. Sweet the job of negotiating with the creditors and their attorneys to compromise the claims and reach a final settlement with each of them. Mr. Sweet says that Mr. Eddleman gave him categorical authority to settle each claim for a prescribed amount, and upon this basis he gave the creditors and their attorneys his personal assurances that the money would be paid on the agreed amounts. Upon his return from the trip, Mr. Eddleman repudiated the settlements, disclaiming authority in Mr. Sweet to reach final compromise. Thereupon, Mr. Sweet resigned from Mr. Eddleman’s office. This latter incident becomes material only in the light of Eddleman’s subsequent assertions that his transactions with Mr. Johan-sen were not those of attorney and client and that he acted merely as a business manager and investor.

Upon his return to Seattle, Eddleman paid all of the listed debts by disbursing $24,604.33. Eddleman said that the airplane, in its then disabled condition, was worth about $41,000 or $42,000, and he bases this estimate on an actual offer made him.

Through Mr. Keatinge, respondent formed a California corporation named “Kearn, Inc.” and purchased all of the stock in it. Mr. Keatinge’s office associates were carried on the company books as the incorporators, directors and officers, but their functions were purely nominal as Mr. Eddleman was, in fact, the corporation. He transferred title to the airplane to Kearn, Inc., receiving no consideration therefor, and the plane, now free from all liens and rehabilitated mechanically through respondent’s efforts and funds, was flown to California where its base of operations remained during respondent’s period of control.

In this fashion, any physical evidence of Johansen’s claims to or ownership in the plane were extinguished by the transfer to Kearn, Inc., and the removal of the airplane [780]*780from Boeing Field to California. In California, the plane was leased out through respondent’s efforts under three separate successive agreements to different lessees. In September or October, 1951, the first revenue derived from these leases, the sum of $5,000 was repaid to the National Bank of Commerce on its loan to Eddleman.

Out of respondent’s refusal to give written evidence of Johansen’s rights in the plane comes the next incident for which respondent is held to answer in this disciplinary proceeding. It took place in June, 1952.

Eddleman assumed that he had discharged all of Johan-sen’s debts from the funds advanced to him by the National Bank of Commerce, but discovered otherwise when served with a writ of garnishment in the case of Blattman v. Jo-hansen, issued out of the Superior Court of King County, cause No. 446298, demanding answer under oath as to “what amount, if any, you are indebted to . . . and what effects, if any, . . . you have in your possession or under your control” of A. R. Johansen and wife. To this writ, respondent made formal answer in writing saying that he was “not indebted to defendants, A. R. Johansen and D. Y. Johansen . . . and . . . did not have . . . any effects belonging to said A. R. Johansen and D. V. Johansen”. The answer prayed for dismissal of the writ and for a reasonable attorney’s fee.

This answer, deliberately made under oath, was false and intentionally misleading.

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Related

In Re the Disciplinary Proceeding Against Vetter
711 P.2d 284 (Washington Supreme Court, 1985)
In Re the Disciplinary Proceeding Against Stock
704 P.2d 611 (Washington Supreme Court, 1985)
In Re Eddleman
461 P.2d 9 (Washington Supreme Court, 1969)
In Re the Disciplinary Proceeding Against Eddleman
389 P.2d 296 (Washington Supreme Court, 1964)

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Bluebook (online)
389 P.2d 296, 63 Wash. 2d 775, 1964 Wash. LEXIS 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-disciplinary-proceeding-against-eddleman-wash-1964.