Lake County Bar Ass'n v. Ryan

109 Ohio St. 3d 301
CourtOhio Supreme Court
DecidedMay 31, 2006
DocketNo. 2005-2053
StatusPublished
Cited by4 cases

This text of 109 Ohio St. 3d 301 (Lake County Bar Ass'n v. Ryan) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lake County Bar Ass'n v. Ryan, 109 Ohio St. 3d 301 (Ohio 2006).

Opinion

Per Curiam.

{¶ 1} Respondent, Patrick T. Ryan of Waite Hill, Ohio, Attorney Registration No. 0022478, was admitted to the practice of law in Ohio in 1978.

{¶ 2} On May 16, 2005, relator, Lake County Bar Association, charged respondent in an amended two-count complaint with professional misconduct. Respondent answered, admitting many of the significant factual allegations but denying that he had violated the Disciplinary Rules or failed to cooperate in relator’s investigation as required by Gov.Bar R. V(4)(G). A panel of the Board of Commissioners on Grievances and Discipline heard the cause and made findings of fact, conclusions of law, and a recommendation, all of which the board adopted.

Misconduct

Count I

{¶ 3} The charges in Count I arose from respondent’s failure to act as promised in collection efforts to satisfy a multimillion-dollar consent judgment.

{¶ 4} In 1998, respondent represented John J. Zur Jr. and defended him against over 20 lawsuits that had been filed against several finance companies that Zur controlled, the “Ward Companies.” The lawsuits were consolidated, a $7,000,000 consent judgment was entered, and several creditors’ counsel formed the Zur Creditors’ Committee to collect the judgment. Under the terms of the consent judgment, Zur was permitted to continue business operations in an effort to pay creditors. Pursuant to this arrangement, the creditors’ committee agreed to allow Zur to collect accounts owed to and foreclose mortgages held by the Ward Companies, with the proceeds to be deposited in an escrow account for the creditors’ benefit.

{¶ 5} In January 1999, respondent advised the creditors’ committee that four large debts owed to the Ward Companies were in default and secured by mortgages subject to foreclosure. On January 28, 1999, respondent wrote to a member of the committee, attorney Donald A. Richer, and offered to pursue the four foreclosure actions on Zur’s behalf. Respondent first proposed that he be paid $2,000 per action, including trial, with half of the fee to be paid at inception [303]*303and half to be paid after judgment. Richer countered, on the committee’s behalf, offering to pay respondent $125 per hour, with a $1,500 cap on attorney fees in each case. Respondent accepted these terms, and the committee paid him a $3,000 retainer. Respondent failed to deposit the unearned $3,000 retainer in a client trust account and used the money instead for his personal expenses.

{¶ 6} In undertaking the committee’s representation, respondent agreed to prepare and file the necessary foreclosure papers and to make periodic progress reports to the committee. In April 1999, respondent represented to the committee that the foreclosure complaints would be filed. When Richer heard nothing more of respondent’s progress, however, he wrote to respondent on June 12, 1999, and asked that he provide by June 21, 1999, a promised status report, copies of pleadings, and an accounting of his fees. Respondent did not reply.

{¶ 7} On June 26,1999, Richer again wrote to respondent, this time demanding return of the $3,000 retainer by July 1, 1999. Respondent again did not reply. Jeffrey Lehman, another member of the creditors’ committee, wrote to respondent on July 15, 1999, also demanding a full refund. Lehman’s letter recounted an earlier conversation during which respondent had disclosed to Lehman that he and Zur had decided, without approval of the creditors’ committee, not to pursue the planned foreclosure actions. Respondent also did not reply to this letter.

{¶ 8} On July 23, 1999, Lehman wrote a second time to demand the $3,000, and respondent again did not reply. On February 26, 2000, Richer wrote to remind respondent of his promise several days earlier to account by March 6, 2000, for his time in the foreclosure cases. Respondent did not provide the accounting. On March 11, 2000, Richer again wrote to respondent, this time warning that if respondent did not provide the accounting and a refund by March 31, 2000, the creditors’ committee would file suit, a grievance, or both, against him. Respondent did not reply.

{¶ 9} Attorney Robert B. Weltman was appointed to oversee efforts to collect the judgment against the Ward Companies in June 1999, and when the creditors’ committee could not get respondent to repay his fee, the committee referred the claim to Weltman. Weltman wrote to respondent on April 19, 2000, and threatened legal action if respondent failed to return the committee’s retainer. Respondent did hot pay, and on May 22, 2000, Weltman sued respondent in the Cuyahoga County Common Pleas. The common pleas court awarded a $3,385.48 judgment, plus interest and court costs, to the creditors’ committee. In settlement of the committee’s claim, respondent eventually paid back the $3,000 retainer, but after paying Weltman’s $1,000 fee and $142 in costs, the committee received only $1,858 of the settlement amount.

{¶ 10} Richer filed a grievance against respondent. On May 24, 2000, relator’s investigator sent respondent a certified letter inquiring about the allegations. [304]*304Respondent telephoned the investigator nine days later, and the investigator promptly returned his call. Respondent did not contact the investigator again, nor did he respond to the investigator’s letter by the date requested.

{¶ 11} As to Count.I, the panel and board described respondent’s testimony as “self-serving and lacking candor” and Zur’s testimony as “flexibly vague and unpersuasive.” The panel and board found:

{¶ 12} “The evidence is clear and convincing that Respondent was retained by the Zur Creditors’ Committee to begin and complete proceedings to foreclose four mortgages. He falsely represented to his client that he had prepared the necessary documents and soon would file them, when he had not done and never did do the work he was retained to do. He repeatedly failed to respond to numerous communications from members of the Zur Creditors’ Committee to keep the committee informed and provide status reports as promised. He never provided statements for services rendered with supporting documents. He did none of the work for the Zur Creditors’ Committee for which he was retained. * * * Furthermore, Respondent ] fail[ed] to place the $3,000.00 retainer into an appropriate [trust] account and * * * fail[ed] to return the unused portion of said retainer to the Zur Creditors Committee, despite numerous requests to do so * * * »

{¶ 13} For these acts, the panel and board found respondent in violation of DR 1-102(A)(4) (prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation), 6-101(A)(3) (prohibiting a lawyer from neglecting an entrusted legal matter), 7-101(A)(2) (prohibiting a lawyer from intentionally failing to carry out a contract of professional employment), 9-102(A) (requiring a lawyer to preserve client funds in a separate, identifiable bank account), and 9-102(B)(4) (requiring a lawyer to return client funds promptly on request). Because respondent failed to respond to investigative inquiries, the panel and board also found respondent in violation of Gov.Bar R. V(4)(G).

Count II

{¶ 14} The charges in Count II arose from respondent’s representation of a couple who had been denied unsupervised visitation with their grandchild.

{¶ 15} On April 12, 1999, the couple met with respondent and paid him $2,500. Respondent did not place the unearned fee in a client trust account as required.

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Related

Columbus Bar Assn. v. Kizer
2009 Ohio 4763 (Ohio Supreme Court, 2009)
Lake County Bar Ass'n v. Ryan
2009 Ohio 4232 (Ohio Supreme Court, 2009)
State v. Brooks, 05 Ma 128 (5-14-2007)
2007 Ohio 2489 (Ohio Court of Appeals, 2007)

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Bluebook (online)
109 Ohio St. 3d 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-county-bar-assn-v-ryan-ohio-2006.