Inr re Carlisi

189 A.D.2d 346, 596 N.Y.S.2d 78, 1993 N.Y. App. Div. LEXIS 3388

This text of 189 A.D.2d 346 (Inr re Carlisi) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inr re Carlisi, 189 A.D.2d 346, 596 N.Y.S.2d 78, 1993 N.Y. App. Div. LEXIS 3388 (N.Y. Ct. App. 1993).

Opinion

[347]*347OPINION OF THE COURT

Per Curiam.

In this proceeding, the respondent was charged with eight allegations of professional misconduct. The Special Referee sustained the eight charges of misconduct. The petitioner moves to confirm the report of the Special Referee. The respondent cross-moves to disaffirm the report of the Special Referee.

Charge One alleges that the respondent wrongfully converted client funds to his own use and benefit. In or about December 1988 the respondent represented clients in a personal injury action. In or about December 1988 the respondent settled the case in his clients’ favor with one of the defendants, for the sum of $137,500. On or about December 27,

1988, the respondent received a settlement check from the attorney for the settling defendant in the amount of $137,500, and deposited the check into his escrow account. The respondent did not make any disbursement of the settlement proceeds to his clients until March 13, 1989, at which time the respondent disbursed a sum total of $97,500 to his clients, or to third parties upon their instruction, in a series of checks drawn against the respondent’s escrow account.

From on or about December 27, 1988, through March 13,

1989, the respondent had the duty and obligation to preserve and identify the sum of $97,500 in his escrow account on behalf of his clients. Between December 27, 1988, and March 13, 1989, from time to time the balance of funds in the respondent’s escrow account fell below the minimum sum of $97,500 which the respondent was required to preserve therein, as follows:

January 23, 1989 $90,014.86
January 31, 1989 $80,247.42
February 27, 1989 $77,241.42.

By reason of the foregoing, the respondent violated DR 1-102 (A) (1), (4), (5), and (6) and DR 9-102 of the Code of Professional Responsibility.

Charge Two alleges that on or about September 15, 1980, the respondent filed a retainer statement with the Judicial Conference of the State of New York, in connection with the personal injury matter that is the subject of Charge One. Following settlement and recovery in the matter, the respondent failed to ever file a closing statement with the Office of Court Administration. By reason of the foregoing, the respon[348]*348dent violated 22 NYCRR 691.20 and DR 1-102 (A) (1), (5), and (6) (now [7]) of the Code of Professional Responsibility.

Charge Three alleges that the respondent wrongfully converted escrow funds to his own use and benefit. On or about March 2, 1989, the respondent represented a client in the sale of real property. On or about March 2, 1989, the parties duly executed a contract of sale prepared by the respondent. The contract required the purchaser to tender a down payment in the sum of $20,000, to be held in escrow by the respondent as seller’s attorney until closing. On or about March 3, 1989, the respondent received the contract down payment from the purchaser in the amount of $20,000, which the respondent then deposited into his escrow account. Closing of title occurred on May 1, 1989.

Between March 3, 1989, and May 1, 1989, from time to time the balance of funds in the respondent’s escrow account fell below the minimum sum of $20,000 which the respondent was required to preserve therein, as follows:

March 22, 1989 $7,418.61
April 3, 1989 $ 268.61
April 13, 1989 $4,218.61
April 28, 1989 $9,689.96.

By reason of the foregoing, the respondent has violated DR 1-102 (A) (1), (4), (5), and (6) and DR 9-102 of the Code of Professional Responsibility.

Charge Four alleges that the respondent failed to promptly disburse and account for client funds. Upon closing of title in the real estate transaction referred to in Charge Three, the respondent was instructed and authorized by his client to pay himself the sum of $3,820 from the $20,000 down payment, as and for his legal fee, and to withhold the sum of $2,500 from the $20,000 escrow to pay for future legal services in connection with obtaining a discharge of a mortgage which remained a lien against the property. A balance of $13,680 was due to the client from the $20,000 escrow upon closing and after the aforesaid deductions by the respondent.

The respondent failed to disburse the remaining balance of $13,680 to his client until March 22, 1991. From on or about May 1, 1989, to March 22, 1991, the respondent failed to render proper accounts to his client regarding the disbursement of the $20,000 held in escrow. From on or about May 1, 1989, through March 22, 1991, the respondent failed to respond to the repeated requests of his client and others on his [349]*349client’s behalf for payment and an accounting of the balance of the $20,000 escrow. By reason of the foregoing, the respondent violated DR 1-102 (A) (1), (4), (5), and (6) (now [7]) of the Code of Professional Responsibility.

Charge Five alleges that the respondent wrongfully converted client funds to his own use and benefit. From on or about May 1, 1989, through March 22, 1991, the respondent had the duty and obligation to preserve and identify the sum of $13,680 in his escrow account for the benefit of his client. Between May 1, 1989 and March 22, 1991, from time to time the balance of funds in the respondent’s escrow account fell below the minimum sum of $13,680 which the respondent was required to preserve, as follows:

June 6, 1989 $1,756.65
August 7, 1989 Account Overdrawn
September 6, 1989 Account Overdrawn
October 16,1989 Account Overdrawn
November 20,1989 $2,507.06
December 18, 1989 Account Overdrawn
January 18, 1990 Account Overdrawn
February 9, 1990 $ 498.20
March 7, 1990 $ 986.69
April 11, 1990 $1,758.69
May 17, 1990 $1,500.59
June 13, 1990 Account Overdrawn
July 3, 1990 Account Overdrawn
August 31, 1990 Account Overdrawn
September 28, 1990 $ 164.29
October 10, 1990 Account Overdrawn
November 20, 1990 Account Overdrawn
December 3, 1990 Account Overdrawn
January 14, 1991 Account Overdrawn
February 28, 1991 $ 122.54
March 15, 1991 $ 72.54.

By reason of the foregoing, the respondent violated DR 1-102 (A) (1), (4), (5), and (6) (now [7]) and DR 9-102 of the Code of Professional Responsibility.

Charge Six alleges that from on or about December 1988 to the date of the petition, the respondent wrongfully commingled his personal funds with client or escrow funds by failing [350]*350to promptly disburse to himself fees or other funds due him from the escrow account, and by leaving fees or other funds due him on deposit within the escrow account.

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Bluebook (online)
189 A.D.2d 346, 596 N.Y.S.2d 78, 1993 N.Y. App. Div. LEXIS 3388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inr-re-carlisi-nyappdiv-1993.