Louisiana State Bar Ass'n v. Pasquier

545 So. 2d 1014, 1989 La. LEXIS 1485, 1989 WL 66387
CourtSupreme Court of Louisiana
DecidedJune 19, 1989
Docket88-B-0263
StatusPublished
Cited by6 cases

This text of 545 So. 2d 1014 (Louisiana State Bar Ass'n v. Pasquier) 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. Pasquier, 545 So. 2d 1014, 1989 La. LEXIS 1485, 1989 WL 66387 (La. 1989).

Opinion

545 So.2d 1014 (1989)

LOUISIANA STATE BAR ASSOCIATION
v.
Paul R. PASQUIER.

No. 88-B-0263.

Supreme Court of Louisiana.

June 19, 1989.

*1015 Thomas O. Collins, Jr., G. Fred Ours, New Orleans, Gerard 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. Pé, Trevor G. Bryan, Elizabeth A. Alston, New Orleans, Christine Lipsey, Baton Rouge, Edmund McCollam, Houma, for applicant.

Paul R. Pasquier, Gretna, Philip R. Johnson, New Orleans, for respondent.

DISCIPLINARY PROCEEDINGS

MARCUS, Justice[*]

The Louisiana State Bar Association, through its Committee on Professional Responsibility, instituted disciplinary proceedings against Paul R. Pasquier, a member of said association. The committee had previously conducted an investigation of respondent's alleged misconduct in accordance with article 15, section 3 of the articles of incorporation of the association. Notice of two specifications of misconduct was sent to respondent by certified mail dated November 4, 1987.

A formal investigative hearing was held on December 4, 1987, as provided by article 15, section 3(b) of the articles of incorporation. Respondent appeared and was represented by counsel. Based on its investigation at the hearing, the committee by unanimous vote was of the opinion that respondent had been guilty of a violation of the laws of this state relating to the professional conduct of lawyers and to the practice of law of sufficient gravity as to evidence a lack of moral fitness for the practice of law; that, specifically, respondent was guilty of misconduct as described in Specifications 1 and 2.

On January 29, 1988, the committee filed a petition for disciplinary action against respondent in this court under the provisions of article 15, section 4(c) of the articles of incorporation. Respondent filed an answer to the petition. The court, by order, appointed Robert E. Rougelot as commissioner to take evidence and file a report with this court setting forth his findings of fact and conclusions of law.[1] Louisiana State Bar Association Articles of Incorporation, article 15, section 6(b) and (d).

Hearings before the commissioner were held on June 14, 1988 and November 17, 1988. Respondent and his attorney were present at both hearings. The committee introduced in evidence the entire record of the earlier investigative hearing, whereupon the committee rested its case subject to any cross-examination. Respondent called several witnesses, introduced documentary evidence, and testified on his own behalf. Thereafter, on February 3, 1989, the commissioner filed his written report with this court wherein he stated his findings of fact and conclusions of law and recommended a two-year suspension from the practice of law. The committee concurred in part and opposed in part the commissioner's findings of fact and concurred generally with the commissioner's recommendation as to discipline. After oral argument before this court, the matter was submitted for our determination on the record before the commissioner.

The bar association has the burden of establishing by clear and convincing evidence *1016 that respondent was guilty of the alleged specifications of misconduct. Louisiana State Bar Association v. Dowd, 445 So.2d 723 (La.1984).

Specification No. 1

Specification No. 1 alleged:

That in your capacity as Attorney at Law and Notary Public, you did pass an Act of Sale involving the sale of Moulin Rouge Lounge by Harry J. Rivere to Linda Hargrove, wife of/and William G. Barr on August 6, 1986. That in connection with this Act of Sale, you did receive the sum of $2,500.00 from the proceeds due to the seller which were held in escrow by you and were to be held until September 20, 1986. That you did fail, neglect, and refuse to deposit said funds into an attorney trust account; that you have commingled these escrow funds with your own funds and have converted the escrow funds to your own use; all in violation of Disciplinary Rules DR 9-102(A)(B),[[2]] and DR 1-102(A)(4)
(5)(6)[[3]] of the Code of Professional Responsibility of the Louisiana State Bar Association, and Rule 1.15[[4]] and *1017 Rule 8.4(a)(c)][5]] of the Rules of Professional Conduct of the Louisiana State Bar Association.

Evidence submitted at the investigative hearing established that respondent was retained by Mr. and Mrs. Barr in August 1986 in connection with their purchase of the Moulin Rouge Lounge from Mr. and Mrs. Harry J. Rivere. Respondent was unable to meet the requirements of the Bulk Sales Law prior to the sale. In order to protect his clients, he decided to withhold a portion of the purchase price from the sellers, pending a determination that all creditors and taxes had been paid and that the Barrs acquired the lounge free and clear. The purchase price of the lounge was $35,000. The Barrs gave the sellers a check for $32,500 and respondent a check for the balance, $2,500. Respondent cashed the Barrs' check and testified that he kept part of the money at his office and part at his home. The sellers subsequently filed a complaint against respondent with the committee and also filed a civil suit for recovery of the money owed them. In December 1987, respondent gave the $2,500 to his attorney, who placed the money in his own trust account and eventually into the registry of the court where the suit was pending.

Respondent admitted that prior to the sellers' complaint and suit, he never placed the money in a trust account. He claimed he could not place the money in a bank account because there were outstanding federal tax liens against him and he feared that any money in his account might be seized. Respondent put on extensive testimony to show that some taxes were owed on the Moulin Rouge Lounge by the sellers and that he was therefore justified in retaining the money.

The commissioner found that respondent violated DR 9-102(A), (B) and DR 1-102(A)(4), (5), (6) of the Code of Professional Responsibility as well as Rule 1.15 and Rule 8.4(a), (c) of the Rules of Professional Conduct. We agree. Respondent admitted that he failed to place the money in an identifiable bank account. When the bar association proves that an attorney has failed to deposit his client's funds in an identifiable bank account separate from the attorney's own funds, the burden is on the attorney to show there was no commingling or conversion of the client's funds. Louisiana State Bar Association v. Williams, 512 So.2d 404 (La.1987). Respondent offered no evidence to show he did not commingle or convert the funds. Although respondent's motive in retaining funds for the protection of the purchasers was proper, this does not excuse him from complying with rules on managing these funds.

Specification No. 2

Specification No. 2 alleged:

That in connection with the Committee's investigation in the complaint of Harry J. Rivere, you were requested to supplement your response within fifteen (15) days by letter dated March 25, 1987.

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Bluebook (online)
545 So. 2d 1014, 1989 La. LEXIS 1485, 1989 WL 66387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-state-bar-assn-v-pasquier-la-1989.