Louisiana State Bar Ass'n v. Babovich

515 So. 2d 1070, 1987 La. LEXIS 10692, 1987 WL 4524
CourtSupreme Court of Louisiana
DecidedNovember 30, 1987
Docket86-B-1204
StatusPublished
Cited by2 cases

This text of 515 So. 2d 1070 (Louisiana State Bar Ass'n v. Babovich) 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. Babovich, 515 So. 2d 1070, 1987 La. LEXIS 10692, 1987 WL 4524 (La. 1987).

Opinion

515 So.2d 1070 (1987)

LOUISIANA STATE BAR ASSOCIATION
v.
Wayne M. BABOVICH.

No. 86-B-1204.

Supreme Court of Louisiana.

November 30, 1987.

Thomas O. Collins, Jr., New Orleans, Anne LaCour Neeb, New Orleans, Gerald F. Thomas, Natchitoches, Roland J. Achee, Shreveport, Robert J. Boudreau, Lake Charles, Robert M. Contois, New Orleans, Frank J. Gremillion, Baton Rouge, Carrick R. Inabnett, Monroe, Harvey Lewis, New Orleans, Alfred S. Landry, New Iberia, Philippi P. St. Pe', Metairie, for applicant.

Wayne M. Babovich, Ralph S. Whalen, Jr., New Orleans, for respondent.

DIXON, Chief Justice.

The Louisiana State Bar Association instituted this disbarment proceeding against Wayne M. Babovich based upon his conviction in the United States District Court for the Eastern District of Louisiana. On August 30, 1985 Babovich pleaded guilty to a federal indictment charging a conspiracy to "use and cause to be used the United States Mails in furtherance of a scheme and artifice to defraud the citizens of New Orleans, Louisiana by depriving those citizens of their right to have the City of New Orleans' business conducted openly, honestly, impartially, and free from corruption and undue influence, in violation of Title 18, United States Code, Section 1341."[1]

*1071 On January 14, 1986 Babovich was sentenced to two years' incarceration with all but the first six months suspended and eighteen months' probation. On April 23, 1986 the United States District Court for the Eastern District of Louisiana granted Babovich's motion for a reduction of sentence—reducing Babovich's incarceration time from six months to seventy-five days and mandating that the first four months of probation were to be spent doing community service work forty hours per week and thereafter four hours per week for six months. On June 30, 1986 this court, pursuant to § 8(a)(4) of Article XV,[2] issued an order suspending Babovich from the practice of law and required the Committee on Professional Responsibility to institute the necessary discipline proceedings. The committee petitioned for disciplinary action. We appointed a commissioner, who conducted a hearing on January 26 and 27 and February 3, 1987. The commissioner found that Babovich was convicted of a serious offense and recommended that he be disbarred. The committee concurred in the commissioner's findings of facts and conclusions of law.

When a disciplinary hearing is based on conviction of a crime, the sole issue to be determined by this court is whether the crime warrants discipline and if so, the extent thereof. Louisiana State Bar Association v. Price, 495 So.2d 1311, 1313 (La.1986). The discipline to be imposed in a particular case depends on the seriousness of the offense, the circumstances of the offense, and the extent of aggravating and mitigating circumstances. Price, supra, citing Louisiana State Bar Association v. Paige, 456 So.2d 990, 991-92 (La.1984), Louisiana State Bar Association v. Brumfield, 449 So.2d 1017, 1018 (La.1984).

In this case, the offense consisted of a plan devised by Babovich, who at the time was a New Orleans City Councilman, representing District E-New Orleans East, and Nelson Chatelain, a real estate developer. The two planned that Chatelain would acquire title to a 3-½ acre tract of land, zoned commercial, in New Orleans East and later sell it. Babovich and Chatelain would split the anticipated profits.

This tract of land was adjacent to a 26-½ acre tract, at that time zoned residential. An individual, Cleo Pelleteri, owned the larger tract and had an ownership interest in the smaller. In the summer of 1982, Pelleteri had given Medicorp Development Company an option to purchase the 26-½ acre tract.[3] This option was contingent upon a zoning change from residential to commercial to permit the building of a hospital on the site. A petition was presented to the City Planning Commission and later to the New Orleans City Council to have the 26-½ acre tract rezoned. If the zoning change succeeded, the value of the 3-½ acres was expected to increase.

In August, 1982, while this petition was pending and before Babovich had acted on *1072 it in his official capacity, he met with Chatelain and David Warner, an attorney, to discuss the acquisition of the 3-½ acre tract. Warner was not to reveal that the interested parties were Babovich and Chatelain.

On September 29, 1982, Babovich, already an acquaintance of Pelleteri's, arranged for her to meet Warner at a luncheon date. During the luncheon meeting, Babovich explained to Pelleteri that he was encountering opposition from groups such as environmentalists and Methodist Hospital to the rezoning of the 26-½ acre tract. Babovich then told Pelleteri that Warner was representing a group of doctors who wished to remain anonymous, but who were interested in purchasing the 3-½ acre tract. Pelleteri left the luncheon meeting with the impression that the sale of the option to purchase the smaller tract "had something to do with the rezoning of the larger 26-½ acre tract."

In October, 1982, Warner presented Pelleteri with a typed option to buy the 3-½ acres. He also gave her $1000 earnest money. At one point, Warner told Pelleteri, "if you grant me an option on the 3-½ acres, your zoning will sail through." Pelleteri refused to grant the option. She then visited Babovich at his home on November 16, 1982 and related to him what Warner had told her. Babovich responded that there was no connection between the rezoning and the option on the 3-½ acres.

Eight days before Pelleteri visited Babovich, the clerk of the city council had mailed notices to individuals within the city advising them of the date that Babovich had set for the public hearing on the rezoning. Two days after Pelleteri's visit to Babovich, the rezoning passed. After the rezoning, Warner did not approach Pelleteri again about the option on the 3-½ acre tract; this tract has not been sold to date.

Pelleteri never made any formal complaint about the incident. It was not until nearly three years afterward that Pelleteri learned that Warner had not represented a group of doctors, but rather Babovich and Chatelain.

We agree with the commissioner's finding that this was a serious offense involving a violation of two rules of the Code of Professional Responsibility. Disciplinary Rule 1-102(A)(3) states that a lawyer shall not "[e]ngage in illegal conduct involving moral turpitude." Disciplinary Rule 1-102(A)(4) provides that a lawyer shall not "[e]ngage in conduct involving dishonesty, fraud, deceit, or misrepresentation." Babovich misrepresented to Pelleteri the identity of the persons interested in acquiring the 3-½ acre tract. As councilman for the district in which the rezoning was to take place, he could be influential in seeing that the rezoning was successful. He planned to acquire an interest in land that would substantially increase in value if the rezoning was successful and planned to substantially profit from the resale. We agree with the commissioner that this conduct does warrant discipline; the remaining question is the extent of the discipline.

In deciding the appropriate sanction, the circumstances of the offense must be considered. Price, supra. At the time of the offense, Babovich had been on the city council for only three months; the pending zoning change was the first in which he had ever been involved.

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Related

Louisiana State Bar Ass'n v. Warner
576 So. 2d 14 (Supreme Court of Louisiana, 1991)
Louisiana State Bar Ass'n v. Perez
550 So. 2d 188 (Supreme Court of Louisiana, 1989)

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