Louisiana State Bar Ass'n v. Orpys
This text of 427 So. 2d 842 (Louisiana State Bar Ass'n v. Orpys) 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.
Opinion
DISCIPLINARY PROCEEDINGS
This is a disciplinary proceeding brought by the Louisiana State Bar Association through its Committee on Professional Responsibility against one of its members, Ralph E. Orpys.
Orpys settled the tort claim of a client, Hubert M. Fedison, a stevedore, against a vessel for $10,000. As part of the settlement agreement, Employer’s National Insurance Company, which had paid Fedison $6,821.90 in compensation benefits, was to receive a $2,000 reimbursement. This agreement was signed by Orpys, Fedison and Dwight LeBlanc for the vessel’s owners. Orpys also verbally agreed to the payment. On November 21,1978, Orpys deposited the $10,000 check in his sole personal bank account. Fedison was paid $5,000. Employer’s National Insurance Company was unsuccessful in obtaining payment of its $2,000 from Orpys and in July or August of 1980 they referred the matter to their attorney, Paul B. Deal. Orpys’ bank account contained less than $2,000 on many occasions in the interim. Deal made repeated efforts to collect the amount due from Orpys, but was finally forced to file suit. On June 25,1981, a default judgment was obtained in Employers National Insurance Company v. Ralph E. Orpys. Orpys failed to pay the judgment and entered a motion for new trial which was set for hearing on September 11, 1981. The hearing was continued after Orpys contacted Deal and said that he would make payment on Monday, September 14. Orpys gave Deal a check for $2,170.83, which was the principal amount plus court costs. Although Deal spent more than $2,000 worth of time on the matter, he waived his attorney’s fee in order that the insurance company would not have a further loss.
At a formal investigatory hearing on September 18,1981, three other matters involving Orpys were considered, but he was found guilty only in connection with his neglect and refusal to pay Employer’s National Insurance Company the $2,000 which he had converted to his own use. A petition for disciplinary action was filed and a hearing was held before Val A. Sehaff, III, commissioner, on May 18, 1982.
Orpys has claimed throughout these proceedings that he had paid Employer’s National Insurance Company the $2,000, and made a second payment after judgment was rendered against him. He has never produced any documentary evidence. At the commissioner’s hearing, Orpys said he might have paid the money through a Cincinnati bank when he was in Ohio in connection with his mother’s illness and his aunt’s fatal illness. Orpys was given two weeks to produce evidence of payment. None was ever produced. The commissioner concluded that Orpys was guilty of violating Disciplinary Rules 9-1021 and 1-[844]*8441022 of the Code of Professional Responsibility. The commissioner recommended suspension of Orpys’ license to practice law for a period of one year. The Committee on Professional Responsibility of the Louisiana State Bar Association concurs in the commissioner’s recommendation.
Commingling and conversion of clients’ funds can result in disbarment. Louisiana State Bar Association v. Armagnac, 424 So.2d 996 (La., 1982). Although Employer’s Mutual Insurance Company was not Orpys’ client, he had a fiduciary relationship with them and held the company’s funds. He was obligated by written and oral agreements to surrender the company’s share of the settlement money. Although Orpys’ failure to pay this obligation is a serious matter involving a substantial sum of money, he has not shown a pattern of misconduct. Compare Louisiana State Bar Association v. Mayeux, 249 La. 7, 184 So.2d 537 (1966). However, the insurance company was deprived of its money for almost three years, and attorney Deal lost valuable work hours. A one year’s suspension is an appropriate penalty. Compare Louisiana State Bar Ass’n v. Rivette, 368 So.2d 1045 (La., 1979).
For the reasons assigned,
IT IS ORDERED, ADJUDGED AND DECREED that Ralph E. Orpys be suspended from the practice of law and his license to practice law be revoked for a period of one year, and that he pay all costs herein.
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Cite This Page — Counsel Stack
427 So. 2d 842, 1983 La. LEXIS 9916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-state-bar-assn-v-orpys-la-1983.