In re the Discipline of Lizama

2 N. Mar. I. 360, 1991 N. Mar. I. LEXIS 25
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
DecidedDecember 16, 1991
DocketAPPEAL NO. 90-037; DISCIPLINARY ACTION NO. 90-01
StatusPublished

This text of 2 N. Mar. I. 360 (In re the Discipline of Lizama) is published on Counsel Stack Legal Research, covering Supreme Court of The Commonwealth of The Northern Mariana Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Discipline of Lizama, 2 N. Mar. I. 360, 1991 N. Mar. I. LEXIS 25 (N.M. 1991).

Opinion

OPINION

VILLAGOMEZ, Justice:

Respondent, Juan T. Lizama, ("Lizama") appeals the trial court decision which found that he:

1. Violated Rule 1.15, of the ABA-Model Rules of Professional Conduct,1 by placing a client’s trust fund [364]*364in his personal account and commingling it with his own money, without the client's knowledge and consent.
2. Violated Rule 1.7(a) and Rule 2.2 by simultaneously representing himself, Teresita T. Camacho ("Teresita"), and his mother while they had conflicting interests.
3. Violated Rule 1.8(a) by entering into a business transaction with a client, without clearly explaining the nature of the transaction and without advising the client to seek the advice of an independent counsel.
4. Violated Rule 1.8(e) by providing financial assistance to a client in connection with a pending or contemplated litigation.
5. Violated Rule 1.8(f) by receiving fees from his client (administratrix) and a third person (Teresita) in a probate case.

Lizama contends that clear and convincing evidence2 do not support the factual findings of the trial court, as to each of the above violations found, and that the court erred as a matter of law in concluding that the above rules were violated.

I.

On January 10, 1990, Teresita submitted to Charles K. Novo-Gradac (chairperson of the disciplinary committee of the CNMI Bar [365]*365Teresita Association) a letter of complaint against Lizama. complained that Lizama had taken $9,000.00 of her money, placed it in a trust account, and had refused to return it to her.

The disciplinary committee, through David A. Webber (a committee member) , investigated the complaint. Mr. Webber reported his factual findings to Mr. Novo-Gradac by letter dated February 14, 1990. In his letter, Mr. Webber concluded that Lizama had technically violated Rule 1.7 and recommended that he be given a letter of admonishment.

The bar committee reviewed Mr. Webber's report and decided instead to recommend to the Superior Court that it appoint disciplinary counsel to file a formal complaint with the court.

The court appointed attorney Jane Mack, who filed a formal complaint against Lizama on April 9, 1990. Ms. Mack subsequently filed an amended complaint which alleged ten (10) specific violations of the Model Rules.

The matter went to trial in which both parties presented evidence. The trial court concluded that Lizama violated Rules 1.15, 1.7(a) and 2.2, 1.8(a), (e) and (f) , and imposed disciplinary sanctions as follows:

The respondent is suspended from the practice of law for three (3) years, thirty (30) months of which are suspended on the following conditions:
(a) the respondent take and pass the Multi-State Professional Responsibility Examination within eight (8) months from this date.
(b) The respondent pay to Teresita Camacho $2,000 for attorney fees collected on October 14, [366]*3661988 and February 3, 1989. This is to be paid within 60 days from this date.
(c) The respondent allow an independent audit of all trust account deposits and withdrawals made within the past three (3) years. The respondent shall be responsible to pay for said audit. The bar association disciplinary counsel shall select the auditor.
(d) The respondent shall pay the costs of this proceeding including attorney fees within 60 days from the date of the billing. This is pursuant to Rule 19 of the Disciplinary Rules.
(e) The respondent not be found in violation of any acts giving grounds for discipline pursuant to Rule ?, Com.R.Disc.Pro.
(f) Although not made mandatory, it is recommended the respondent institute a retainer agreement policy in his office to reflect at a minimum (1) the fact of the representation, (2) legal work to be done, and (3) fee arrangements.
Should respondent fail to comply with conditions (a) , (b) , (c) , (d) and (e) , the suspension of the remaining 30 months shall be vacated and respondent shall be suspended from the practice of law for the full three year term.
Since the suspension of the respondent is for a definite term, Rule 16, Com.R.Disc.Pro. will not apply and this court will monitor the conditions imposed herein.
In order to effectively monitor the six month suspension, the respondent shall comply with Rule 15 of the Disciplinary Rules.
Pursuant to Rule 15(c), this order shall be effective 30 days after entry.

We subsequently issued a stay of the above disciplinary sanctions, pending appeal.

[367]*367II

The facts that led to this disciplinary matter are intricate and confusing. The intricacy derives from several subsets of events occurring simultaneously which eventually merged and became intertwined into one complex set of facts. Unless the separate events are carefully viewed separately, they could be misinterpreted.

There are two main sets of facts which are relevant. First, the probate of the estate of Isidro S. Tudela, deceased. Second, Teresita's sale of her share of inherited land to Francisco C. Wabol ("Wabol"). An integral part of the facts include those surrounding the "short-exchange" claim and the sale by Teresita of her share of that claim.

To set forth these events clearly, we shall present the two main sets of facts separately and show how and when they intertwine.

A. Probata of Tudela1s Estate:

Isidro S. Tudela ("Tudela") died.intestate on June 17, 1965, on Saipan. At the time of his death, he owned several parcels of land in Saipan. Between 1973 and 1976 Tudela's ten children (including Teresita) and his wife agreed to the partition and distribution of Tudela's land among themselves. They had the various lands surveyed and partitioned. They subsequently executed mutual deeds of conveyance transferring the subdivided lands among themselves in accordance with their agreement.

[368]*368By virtue of the mutual deeds of conveyance, each individual heir received his/her share of Tudela's land and obtained a certificate of title (from the land commission office) to his/her individual share. (Tr. at 208-209, 215-216)3 The lands distributed in accordance with the family agreement included Lot E.A. 112, part of which was designated for and transferred to Teresita (Lot E.A. 112"A").4

On January 19, 1988, Inocencia T. Apatang ("Inocencia"), one of the ten children of Tudela, filed a petition for letters of administration in order to probate the estate of Tudela. At that time, Inocencia was occupying Tudela's land in Chalan Kanoa (Lot 017 H 44) . Such lot apparently was not subject to the mutual deeds of conveyance which distributed Tudela's lands among the heirs.

Inocencia petitioned the court to probate only the lands that had not been distributed mutually among the heirs.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
2 N. Mar. I. 360, 1991 N. Mar. I. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-discipline-of-lizama-nmariana-1991.