In the Matter of Brown

735 A.2d 774, 1999 R.I. LEXIS 176, 1999 WL 718462
CourtSupreme Court of Rhode Island
DecidedAugust 19, 1999
DocketNo. 98-328-M.P
StatusPublished
Cited by10 cases

This text of 735 A.2d 774 (In the Matter of Brown) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of Brown, 735 A.2d 774, 1999 R.I. LEXIS 176, 1999 WL 718462 (R.I. 1999).

Opinion

OPINION

PER CURIAM.

This disciplinary matter is before the Court pursuant to a decision and recommendation of the Supreme Court Disciplinary Board (board) that the respondent, John H. Brown, be suspended from the practice of law. Article III, Rule 6(d), of the Supreme Court Rules of Disciplinary Procedure provides in pertinent part:

“If the [Disciplinary] Board determines that a proceeding *** should be concluded by public censure, suspension or disbarment, it shall submit its findings and recommendations, together with the entire record, to this Court. This Court shall review the record and enter an appropriate order.”

The respondent was before the board pursuant to a five-count petition for disciplinary action alleging misconduct in his representation of five clients who had retained his services for the prosecution of personal-injury claims. In his answer to the petition, respondent admitted all of the facts charged and the rules violations alleged. He appeared before the board to [775]*775present evidence in mitigation only. The undisputed facts are as follows.

John Venditti (Venditti) retained respondent to represent him in a personal-injury claim arising from a motor vehicle accident. The respondent negotiated a settlement of the claim with the insurance carrier for the other party to the accident in the amount of $23,000 and received the settlement funds on March 25, 1995. He deposited the proceeds from that settlement into a business checking account in which he also maintained personal funds.

On March 30, 1995, he disbursed to his client the sum of $11,696.70 as his portion of the settlement proceeds after making deduction for respondent’s fee and for payment of a $215 medical bill incurred by Venditti. Additionally, respondent withheld $2,550 to be held by him in escrow to pay a potential subrogation claim asserta-ble by Venditti’s own insurance carrier for medical payments made on his behalf. The respondent failed to pay the medical bill, maintain the escrow funds, or the funds for the payment of the medical bill in his account, and converted those funds to his own use.

The respondent continued to represent Venditti regarding a possible claim against his own insurance carrier based on the uninsured/underinsured provisions of his policy. In March of 1997 Venditti retained new counsel to pursue that claim, and requested that respondent transfer the file to his new counsel. The respondent did not comply with his client’s directive, and Venditti filed a complaint against respondent with the Office of Disciplinary Counsel on February 10, 1998. The investigation of that complaint led to the discovery of the other incidents set forth in this opinion.

On February 25, 1998, after the disciplinary investigation had commenced and two years and eleven months after receipt of the settlement proceeds, respondent paid the outstanding medical bill and delivered the purportedly escrowed subrogation funds to Venditti.

On June 23, 1995, Michelle LeBrun was involved in a motor vehicle accident. She retained respondent to represent her in a claim for damages for personal injuries resulting from that collision. In June of 1996 respondent settled her claim with the insurance carrier for the other party to the accident, cashed the check and paid Le-Brun her proceeds in cash, less an amount for attorneys fees, costs, and outstanding medical bills. He paid one medical bill but did not pay LeBrun’s outstanding debt to another health care provider until July 31, 1998, one year and eleven months after receipt of the settlement proceeds, and while he was under investigation by disciplinary counsel. The respondent did not maintain those funds in a separate account and had converted those funds to his own use.

The respondent also represented Anthony Faella in a claim for personal injuries incurred by him in a motor vehicle accident on November 27, 1995. On February 15, 1997, respondent received a settlement check in the amount of $25,000 on behalf of Faella, The respondent cashed the check. The respondent withheld from Faella’s settlement $825 to pay a claim owed to Fael-la’s accountant. He did not maintain those funds in a separate client’s account and converted those funds to his own use. On March 6, 1998, after disciplinary counsel’s investigation had begun, he paid the accountant.

Moira Vestri (Vestri) was involved in a motor vehicle accident on December 24, 1994, and she also retained the services of respondent. He negotiated a settlement of her case, and on August 30, 1996, respondent received a check in the amount of $9,000 on her behalf. He deposited the settlement proceeds into a business checking account. The respondent withheld funds from Vestri’s portion of the settlement to pay the hospital bill and a separate bill owed to her physician for treatment of her injury. He did not pay those [776]*776bills on her behalf and converted the funds to his own use.

On November 6, 1998, two years and three months after receipt of the settlement proceeds, and while under investigation by disciplinary counsel, respondent paid the hospital bill. On December 18, 1998, respondent forwarded to Vestri the funds which had been purportedly set aside for payment of the doctor’s bill.1

The final claim in this disciplinary proceeding arose from respondent’s representation of Anne Olson, who was injured in an automobile accident on July 27, 1992. That case was settled by negotiation, and respondent received a settlement check which he deposited into his business account on January 5, 1993. From the settlement he withheld $3,206 for payment of medical bills owed by his client. Those funds were not paid by respondent until November and December of 1998, almost six years later. Those funds did not remain in a separate account in the interim, and had been converted to his own use.

At the hearing before the board, respondent offered the following evidence in mitigation. The respondent is a sole practitioner, and operated his law office out of his home, which he shared with his mother. He has a long history of alcohol and other substance abuse, which predates his admission to law school. In February of 1996 his mother passed away after a long illness. In February of 1997, he was involved in a serious motor vehicle accident, and he acknowledged that his alcohol abuse was a contributing factor to that accident.

After that accident, and prior to the filing of any disciplinary complaint leading to the instant proceedings, respondent voluntarily sought hospitalization for treatment of his alcohol and substance abuse. He successfully completed a residential detoxification program. He is presently active in rehabilitation groups including Alcoholic’s Anonymous, mental health group counseling, the Rhode Island Employee Assistance Program, and his church. He has fully and freely admitted his misconduct, and the board found his statements of remorse to be “sincere, heartfelt, and insightful.”

The board rightfully concluded that the factors mitigating respondent’s conduct do not excuse his failure to comply with the ethical standards promulgated by this Court. Accordingly, the board determined that respondent has violated Article V, Rules 1.15(a) & (b), 1.17(d), and 8.4(c), of the Supreme Court Rules of Professional Conduct. We agree.

Rule 1.15(a) requires an attorney to segregate funds of clients or third persons in a separate client account.

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

Related

In the Matter of William F. Holt
103 A.3d 147 (Supreme Court of Rhode Island, 2014)
In the Matter of Leonard L. Bergersen
99 A.3d 993 (Supreme Court of Rhode Island, 2014)
In re Rocha
86 A.3d 383 (Supreme Court of Rhode Island, 2014)
In re Gladstein
37 A.3d 128 (Supreme Court of Rhode Island, 2012)
In Re Press
29 A.3d 1244 (Supreme Court of Rhode Island, 2011)
In the Matter of Amaral
981 A.2d 1027 (Supreme Court of Rhode Island, 2009)
Aetna Bridge Co. v. Carrillo, 98-0235 (2001)
Superior Court of Rhode Island, 2001

Cite This Page — Counsel Stack

Bluebook (online)
735 A.2d 774, 1999 R.I. LEXIS 176, 1999 WL 718462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-brown-ri-1999.