In Re the Discipline of Rude

221 N.W.2d 43, 88 S.D. 416, 1974 S.D. LEXIS 145
CourtSouth Dakota Supreme Court
DecidedAugust 28, 1974
Docket11186
StatusPublished
Cited by34 cases

This text of 221 N.W.2d 43 (In Re the Discipline of Rude) is published on Counsel Stack Legal Research, covering South Dakota 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 Discipline of Rude, 221 N.W.2d 43, 88 S.D. 416, 1974 S.D. LEXIS 145 (S.D. 1974).

Opinion

ORIGINAL PROCEEDING

WOLLMAN, Justice.

Following a report and recommendation by the Grievance Committee of the State Bar of South Dakota, which recommended that disciplinary proceedings be instituted against David O. Rude (hereinafter referred to as respondent) for alleged unprofessional conduct as an attorney, this court issued an order on August 16, 1972, pursuant to SDCL 16-19-8, directing the Attorney General to prepare and file a formal complaint against respondent. Subsequently, the Honorable Philo Hall, one of the judges of the Fifth Judicial Circuit, was appointed as Referee pursuant to SDCL 16-19-16 to take and hear the testimony in the *418 matter and to make and file with the court findings of fact and recommendations thereon.

The Referee conducted a hearing on December 20, 1972, at which respondent appeared with counsel. On May 30, 1973, the Referee submitted his findings of fact to this court, together with his recommendation that respondent be suspended from the practice of law.

On June 27, 1973, a hearing on the Referee’s findings and recommendation was held in this court. Respondent appeared at the hearing without counsel and attempted to dispute certain of the findings, although he had filed no written objections thereto.

While the matter was under advisement, we were informed that respondent may have committed acts constituting unprofessional conduct as an attorney subsequent to the date of the hearing before the Referee. We asked the Attorney General to investigate the report of additional acts of unprofessional conduct. Because it was necessary for us to ask that further investigation be made following the Attorney General’s initial investigation of the alleged additional acts of misconduct, it was not until April of 1974 that an amended complaint was filed against respondent. Such amended complaint, to which respondent filed no answer, was filed on April 17, 1974. A hearing on the amended complaint was held on June 12, 1974, before Judge Hall. Although full and adequate notice of this hearing had been given to respondent, he chose not to appear at the scheduled time and made a belated appearance after the Attorney General’s case had been presented. 1 On July 3, 1974, the Referee filed his supplementary findings of fact with this court, together with his recommendation that respondent be permanently disbarred. Respondent filed no objections to the supplementary findings. A hearing was held in this court, at which respondent appeared through counsel, on the supplementary findings and recommendation on July 24, 1974.

We summarize the original and the supplementary findings of the Referee, which we find to be amply supported by the evidence, as follows:

*419 ORIGINAL FINDINGS

Respondent, who was 32 years of age at the time of the December 1972 hearing, was graduated from the University of North Dakota School of Law in 1964; he was admitted by examination to the practice of law by this court on October 8, 1964. Following his graduation from law school, respondent worked for an insurance company in Sioux Falls, South Dakota, for approximately seven months, after which he moved to Rapid City, South Dakota, where he was employed as Deputy State’s Attorney of Pennington County until 1970. Since 1970 respondent has been engaged in the private practice of law as a sole practitioner in Rapid City. He was described by judges and fellow lawyers as a capable, talented, reliable lawyer.

Respondent represented one Van E. Harmon of Evansville, Wyoming in a claim arising out of contract. After commencing litigation, respondent agreed to settle the case for $800 on behalf of his client. Payment was made by a check in the amount of $800, dated April 26, 1971, and endorsed to the David O. Rude trust account. On April 28, 1971, the check was deposited in the First National Bank of the Black Hills, $550 thereof in the David O. Rude trust account and $250 in the David O. Rude office account in the same bank. The check was returned because of insufficient funds, and the David O. Rude trust account was charged by the bank for the amount of the check, thus overdrawing that account. Respondent promptly notified Mr. Harmon that the check had been returned because of insufficient funds. Although the same check was again deposited on May 11, 1971, and credited to the David O. Rude office account, Mr. Harmon was not notified of this fact. Respondent did not remit to Mr. Harmon his net portion of the settlement recovery and at subsequent times did not have sufficient funds to do so. Mr. Harmon made complaint to the Secretary of the State Bar and letters were sent to respondent by the Grievance Committee. Respondent did not respond to the communications from the Grievance Committee and did not pay Mr. Harmon until the day before the hearing of his disciplinary proceeding before the Referee, at which time he paid the entire $800 to Mr. Harmon without any deduction for attorney’s fees and costs.

*420 On November 19, 1971, respondent obtained $50 in cash from one Roman Kurylas of the Imperial 400 Motel in Rapid City by giving a personal check in that amount to Mr. Kurylas. After making many unsuccessful attempts to collect the $50 from respondent, Mr. Kurylas finally made complaint to the Grievance Committee. At the hearing before the Referee Mr. Kurylas testified that his wife had received a phone call from Mr. Kurylas’ attorney on the morning of the commencement of the Referee’s hearing, notifying her that the $50 check had been “made good.”

The trust account and business account of respondent with the First National Bank of the Black Hills in Rapid City, South Dakota, were on numerous occasions overdrawn and respondent’s checks on those accounts were charged as overdrafts or returned as insufficient fund checks. The trust account was closed by the bank on August 18, 1971, and the status of respondent’s business account with the bank in July and August of 1971 was such that checks presented for payment were almost universally returned for lack of sufficient funds; this account was dropped from the bank records on January 4, 1972. The records of respondent’s account with the National Bank of South Dakota in Rapid City, South Dakota, for the period from May 19, 1972 to December 15, 1972, reveal that on numerous occasions the account was overdrawn.

Respondent, who had been issued a South Dakota Retail Occupational Sales Tax license, failed to make quarterly returns of his gross receipts or to pay or remit the occupational sales tax for the July-August-September 1971 period and the October-November-December 1971 period. Respondent’s sales tax license was revoked as of November 15, 1971, and thereafter he continued to engage in the practice of law without such license and failed and neglected to file reports or returns of gross receipts or to pay any retail occupational sales tax. Proceedings were commenced by the Commissioner of Revenue of the State of South Dakota, as a result of which an order was issued by the circuit court restraining respondent from engaging in business as an attorney for the period from April 10, 1972 to May 1, 1972.

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Bluebook (online)
221 N.W.2d 43, 88 S.D. 416, 1974 S.D. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-discipline-of-rude-sd-1974.