Louisiana State Bar Ass'n v. Alker

491 So. 2d 1328, 1986 La. LEXIS 6765
CourtSupreme Court of Louisiana
DecidedJune 23, 1986
Docket85-B-0765
StatusPublished
Cited by7 cases

This text of 491 So. 2d 1328 (Louisiana State Bar Ass'n v. Alker) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana State Bar Ass'n v. Alker, 491 So. 2d 1328, 1986 La. LEXIS 6765 (La. 1986).

Opinion

491 So.2d 1328 (1986)

LOUISIANA STATE BAR ASSOCIATION
v.
Edward C. ALKER.

No. 85-B-0765.

Supreme Court of Louisiana.

June 23, 1986.
Rehearing Denied September 4, 1986.

Thomas O. Collins, Jr., Wood Brown, III, New Orleans, Carrick R. Inabnett, Monroe, Roland J. Achee, Shreveport, Robert J. Boudreau, Lake Charles, Frank J. Gremillion, Baton Rouge, Harvey Lewis, New Orleans, Alfred S. Landry, New Iberia, Philippi P. St. Pee, Metairie, Gerard F. Thomas, Jr., Natchitoches, for applicant.

Edward C. Alker, in pro. per.

WATSON, Justice.

This is a disciplinary proceeding brought by the Louisiana State Bar Association through its Committee on Professional Responsibility against attorney Edward C. Alker. The Supreme Court of Louisiana has original jurisdiction. LSA-Const. 1974, Art. V, § 5(B).[1]

The Committee on Professional Responsibility held four investigative hearings. Following the hearings, the Louisiana State Bar Association petitioned for disciplinary action, and Commissioner Jo Harriet Strickler was appointed to conduct an evidentiary hearing. She found Mr. Alker guilty on five of the seven specifications of misconduct and recommended disbarment. The Louisiana State Bar Association, through the Committee on Professional Responsibility, agrees with the Commissioner's findings of fact; disagrees with the Commissioner's conclusion as to Specification No. 2; and concurs with the recommendation for disbarment.

SPECIFICATION NUMBER ONE

Alker is charged with misconduct in connection with his representation of Mrs. Irma Stogner in a worker's compensation case. Mrs. Stogner agreed to settle her claim for a lump sum of $28,000. The maximum attorney's fee for a $28,000 settlement is $3,800.[2] The settlement was *1329 court approved on June 18, 1980. After receiving the check, Alker took Mrs. Stogner to his bank, the First National Bank of Covington, Louisiana. The bank was closed,[3] but Alker made arrangements with a bank officer, Curtis M. Carpenter, to be admitted to transact business. Mrs. Stogner endorsed the $28,000 settlement draft and, at Mr. Alker's request, Mr. Carpenter accepted the draft. The bank issued four cashier's checks: $17,000 to Irma Stogner; $9,500 to Irma Stogner; $1,196 to Edward Alker; and $300 to Max Scott, Alker's employee.[4] Since Alker received the use of $1,500,[5] he was entitled to an additional $2,300 in attorney's fees; he claims he accepted only the $1,500.

In fact, Alker retained the $9,500 check made out to Mrs. Stogner. The proof tapes of the bank show that the $9,500 check was involved in a transaction on June 19, 1980.[6] Although the check was not cashed,[7] Alker used the check to transact personal bank business. He made a loan payment of $7,200 and deposited $2,300 in his Golden Brush Farms, Inc. checking account; the two transactions total $9,500.[8]

Since Alker converted the cashier's check for $9,500, he received $11,000 from the $28,000 settlement. This is in excess of the statutory maximum award for attorney's fees in worker's compensation cases.[9] By converting Mrs. Stogner's funds to his own use, Alker was guilty of misconduct[10] and violated four disciplinary rules, as well as LSA-R.S. 23:1141. He collected an excessive fee;[11] attempted to exonerate himself *1330 from liability for personal malpractice;[12] damaged his client during their professional relationship;[13] and failed to deposit the client's funds in an identifiable bank account separate from his own.[14]

Prior to the Committee's hearings, Mrs. Stogner filed suit against Mr. Alker to regain the excess fee.[15] After judgment was rendered against Alker for $6,200, she settled for $4,500. Her attorney received $2,000 and she retained $2,500.

SPECIFICATION NUMBER TWO

Specification number two charges Alker with misconduct in connection with his representation of Mr. Harold Hoffman. Hoffman's personal injury case was settled for $12,000 in December, 1982. Alker retained a forty percent contingency fee plus $1,000. The additional $1,000 is the basis of the misconduct charge.

Mr. Hoffman requested that Alker use the $1,000 to settle a disputed chiropractic bill for $2,123. According to Alker, he put the money in an envelope and locked it in his desk drawer. Alker wrote two letters to the chiropractor, Dr. Michael Breen, dated November 9, 1982,[16] and September 1, 1983. Mr. Alker did not receive a response to the settlement proposals nor did a settlement take place. In December, 1983, Mr. Hoffman wrote to the Louisiana State Bar Association complaining about Alker's representation and failure to return the $1,000. After being contacted by the Committee, Alker sent a $1,000 cashier's check to Mr. Hoffman.

The Commissioner regarded the money as an advance for litigation expenses, which was not required to be placed in an identifiable bank account, but the Committee concluded that Alker should have placed the money in a separate bank account and maintained a complete record.

Retaining part of a client's settlement from one case to settle another is not equivalent to an advance for costs and expenses. Therefore, Alker was required to put the $1,000 in an identifiable bank account and maintain a complete accounting. Alker violated three disciplinary rules.[17]

*1331 SPECIFICATION NUMBERS THREE, FOUR, FIVE and SIX

These four specifications charge Alker with misconduct in connection with his representation of Douglas Ponson. Mr. Ponson hired Alker to represent him in a worker's compensation case which was settled for a lump sum of $40,000. Weekly benefits and medical expenses of $32,504.14 paid prior to the lump sum, brought the value of the settlement to $72,504.14. The maximum attorney's fee allowable on this amount is $8,250.42.[18] Alker had the Citizen's Bank and Trust Company in Covington, Louisiana, prepare money orders from the $40,000 settlement check as follows:

(1) Money Order 61640 to Douglas
        Ponson—                   $24,000
(2) Money Order 61641 to Edward
        C. Alker—                   4,000
(3) Money Order 61642 to Edward
        C. Alker—                     500
(4) Money Order 61643 to Edward
        C. Alker—                     500
(5) Money Order 61644 to Timothy
        Ellender—                     950
(6) Money Order 61646 to Edward
        C. Alker—                   8,000

The money orders total $37,950, including four money orders amounting to $13,000 and made payable to Alker. Alker is unable to account for $2,050.

Specification number three charges Alker made an unsatisfactory accounting to Ponson for the $2,050 and charged an excessive fee. It is undisputed that Ponson received $24,000 of the settlement. Alker contends he received only $1,500 as his fee and $950 went to Mr. Ellender, Ponson's former attorney. Alker in fact benefited from the remaining $14,500[19] of the settlement. According to Ponson, Alker said he would invest this balance and make Ponson "a rich young man";[20] Alker never accounted to Ponson for the money and now contends the money was paid to him for past legal representation.[21] This defense was not substantiated during the Committee hearings and the Commissioner's hearing. Alker's actions violated LSA-R.S. 23:1141 and four disciplinary rules.[22]

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Bluebook (online)
491 So. 2d 1328, 1986 La. LEXIS 6765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-state-bar-assn-v-alker-la-1986.