Kwasnik v. State Bar

791 P.2d 319, 50 Cal. 3d 1061, 269 Cal. Rptr. 749, 1990 Cal. LEXIS 2117
CourtCalifornia Supreme Court
DecidedMay 31, 1990
DocketS010199
StatusPublished
Cited by18 cases

This text of 791 P.2d 319 (Kwasnik v. State Bar) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kwasnik v. State Bar, 791 P.2d 319, 50 Cal. 3d 1061, 269 Cal. Rptr. 749, 1990 Cal. LEXIS 2117 (Cal. 1990).

Opinions

[1064]*1064Opinion

THE COURT.

Petitioner Richard E. Kwasnik seeks review of the refusal of the State Bar to certify him to this court for admission to the bar on the ground that he lacks the requisite good moral character. (Bus. & Prof. Code, § 6066; Cal. Rules of Court, rule 952(c); Rules Regulating Admission to Practice Law, rule I, § 11.)1 For the reasons set forth below, we conclude petitioner should be admitted to the bar.

Facts

Petitioner graduated from Brooklyn Law School in June 1966. He was admitted to the practice of law in New York in 1967.

In November 1970 petitioner was involved in an automobile accident that resulted in the death of Steven Smilanich, a husband and father of three children. Although a grand jury investigated the accident, no criminal charges were filed. Petitioner pleaded guilty to “driving while impaired,” a traffic infraction, and was fined $50.

The decedent’s widow (hereafter Smilanich) and decedent’s three minor children filed a wrongful death action against petitioner in a New York court, which resulted in a judgment against him in the amount of $232,234.16 in July 1974. Petitioner’s automobile insurance carrier paid the policy limit of $10,000 to Smilanich. In 1975 Smilanich filed attachment proceedings against petitioner to enforce the judgment by garnishing his wages; he previously had made no payments on the judgment. Once he received a notice of levy, petitioner began making payments of approximately $42 every two weeks. Between 1975 and January 1980, petitioner paid $4,685. He has paid nothing since January 1980.

In November 1980, after Smilanich’s attorney rejected a settlement offer of $15,000, petitioner filed a petition for bankruptcy in the United States Bankruptcy Court for the Southern District of Florida. (See Florida Bd. of Bar Examiners Re: Kwasnik (Fla. 1987) 508 So.2d 338, 339 (hereafter Kwasnik).) The only debt scheduled for discharge in the bankruptcy petition was the Smilanich judgment; petitioner listed none of his other then-existing debts. The Smilanich judgment was discharged by the bankruptcy court in March 1981.

[1065]*1065A. Florida Bar Proceedings

In response to petitioner’s 1979 application to the Florida State Bar, the Florida Bar Examiners (Florida Bar) found that he failed to meet the standards of conduct and fitness and concluded that he should be denied admission. In a 1980 hearing regarding petitioner’s admission to the Florida State Bar, he was charged with three instances of wrongful conduct that he does not dispute. First, in a deposition taken during the wrongful death suit, petitioner testified falsely that he had no joint interest in any checking account or other item of personal property. In fact, he was a signatory on a joint account with his wife at the time. Second, in his Florida State Bar application petitioner stated that following the wrongful death judgment $10,000 was paid to Smilanich, “which represented all the assets available,” and that he paid approximately $1,200 per year toward the judgment. He concluded, “I fully intend to continue all payments in the future.” Actually, petitioner paid as much as $1,200 only in 1979, and completely stopped payment in January 1980, five months after filing the application. In addition, the record suggests that other assets were available to petitioner. Third, after petitioner moved to Florida in February 1980 he earned $27,000 per year, yet refused to make any further payments under the judgment after January 1980. The record suggests that petitioner discontinued the payments because of a Florida statute that exempts salaries from garnishment. Petitioner was denied admission to the Florida Bar in 1980. In February 1981 the Florida Supreme Court denied his petition for review.

In March 1983, petitioner applied for reevaluation. Because he did not pay the required deposit until April 1986, it was not until January 1987 that the Florida Bar again found that petitioner failed to meet the moral character requirements. In June 1987, however, the Florida Supreme Court rejected the Florida Bar’s recommendation, holding that petitioner met the moral character requirements and ordering that he be admitted on passing the Florida Bar Examination. The court noted that he had already been denied admission because of the aforementioned three instances of misconduct. (Kwasnik, supra, 508 So.2d at p. 339.) Accordingly, it focused on whether the Florida Bar could deny petitioner admission for failing to make any effort after bankruptcy to provide assistance to the Smilanich family, although he had no legal obligation to do so. (Ibid.) It held that because the bankruptcy laws were designed to provide a fresh start for those who are overburdened with debt, it could not allow any continuing moral obligation to the Smilanich family to be considered in his petition for admission to the Florida State Bar. (Ibid.) The court further noted that petitioner had performed as a “competent” lawyer working at modest pay for the New York Legal Aid Society and otherwise had led an “exemplary life” since his first application in Florida. Accordingly, the court held he had demonstrated [1066]*1066sufficient rehabilitation to qualify for admission. (Id. at p. 340.) In May 1988 petitioner was admitted to the practice of law in Florida.

B. California Bar Proceedings

In July 1987 petitioner passed the Attorney’s Examination of the California Bar Examination. His certification to practice was delayed, however, pending a moral character investigation. In June 1988 a formal hearing was held before a three-member hearing panel of the State Bar Court. Prior to the hearing petitioner entered a stipulation of facts with the State Bar. The hearing panel found that he had sustained his burden of proof that he is of good moral character and recommended that he be admitted to the California Bar.

Pursuant to a request for reconsideration, the hearing panel again recommended that he be admitted to the practice of law and issued a finding of facts that closely tracked the stipulation between the parties. First, it concluded that petitioner’s description on his California Bar application of the disposition of the Smilanich suit as a “verdict for defendant” was not an intentional misstatement made to deceive. Second, it found that he accepted full responsibility for the three acts considered by the Florida Bar. Third, it concluded that the discharge of the Smilanich judgment in bankruptcy discharged both the legal and moral obligations of petitioner. Finally, it noted that except for the Smilanich matter petitioner’s record is unblemished; that his conduct, as evidenced by the testimonial letters he submitted, established he is of a good moral character; and that he has an excellent reputation in the community for honesty, reliability, fairness and integrity. The hearing panel concluded that if he were admitted to the practice of law petitioner would be able to meet the professional and fiduciary duties of his practice.

The Review Department of the State Bar Court (hereafter the review department), however, made its own findings and disagreed with the hearing panel’s conclusions.

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Kwasnik v. State Bar
791 P.2d 319 (California Supreme Court, 1990)

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Bluebook (online)
791 P.2d 319, 50 Cal. 3d 1061, 269 Cal. Rptr. 749, 1990 Cal. LEXIS 2117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kwasnik-v-state-bar-cal-1990.