Louisiana State Bar Ass'n v. Schmidt

506 So. 2d 1186, 1987 La. LEXIS 9230
CourtSupreme Court of Louisiana
DecidedMay 18, 1987
Docket86-B-0821
StatusPublished
Cited by3 cases

This text of 506 So. 2d 1186 (Louisiana State Bar Ass'n v. Schmidt) 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. Schmidt, 506 So. 2d 1186, 1987 La. LEXIS 9230 (La. 1987).

Opinion

506 So.2d 1186 (1987)

LOUISIANA STATE BAR ASSOCIATION
v.
Daniel R. SCHMIDT.

No. 86-B-0821.

Supreme Court of Louisiana.

May 18, 1987.

Thomas O. Collins, Jr., G. Fred Ours, New Orleans, Gerard F. Thomas, Jr., 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 St. Pee, Metairie, for applicant.

Daniel R. Schmidt, William D. Beck, Jr., Baton Rouge, for respondent.

DISCIPLINARY PROCEEDINGS

MARCUS, Justice.

The Louisiana State Bar Association, through its Committee on Professional Responsibility, instituted a proceeding against Daniel R. Schmidt, a member of said association. Prior to the commencement of this proceeding, the committee had conducted investigations of respondent's alleged misconduct in accordance with article 15, section 3 of the articles of incorporation of the association. Notice of the proceeding, which involved three specifications of misconduct, was sent to respondent by certified and regular mail dated October 3, 1985.[1] Mr. Schmidt was also personally served with a subpoena duces tecum requiring him to appear at the proceedings and furnish the committee with his financial records for the period of the alleged misconduct.

*1187 The committee held formal investigative hearings on these specifications on November 4 and 25, 1985, as provided in article 15, section 3(b) of the articles of incorporation. Respondent was present at both hearings. He appeared without counsel.

Based upon its investigation conducted at these hearings, the committee, by a majority vote, was of the opinion that respondent was 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. Specifically, the committee found that respondent was guilty of the misconduct described in all three specifications. On April 30, 1986, the committee instituted in this court a suit for disciplinary action against respondent 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, then appointed Mr. Leon J. Berggreen as commissioner to take evidence and file a report with this court setting forth his findings of fact and conclusions of law. Louisiana State Bar Association Articles of Incorporation, article 15, section 6(b) and (d). On September 5, 1986, the Louisiana State Bar Association petitioned this court to appoint a curator ad hoc to represent respondent because it appeared that respondent had left the state and his current address was unknown. The court ordered that William D. Beck, Jr. be appointed curator ad hoc for respondent, Daniel R. Schmidt.

A hearing before the commissioner was held on December 29, 1986. Respondent was not present at the hearing but was represented by Mr. Beck, the curator ad hoc.[2] The committee introduced in evidence the entire record of disciplinary proceedings, including the original pleadings filed into the record and the transcripts and original exhibits from the committee hearings, whereupon the committee rested its case. The curator ad hoc did not contest the factual allegations and offered no evidence of mitigating circumstances. Upon termination of the hearing, the commissioner filed with this court his written report wherein he stated his findings of fact and conclusions of law and recommended that respondent be disbarred. The committee concurred with the commissioner's findings and his recommendation of disbarment. Respondent did not file an opposition to the commissioner's report. 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 that respondent was guilty of the alleged specifications of misconduct. Louisiana State Bar Association v. Dowd, 445 So.2d 723 (La.1984). The following allegations of misconduct have been made against respondent.

Specification No. 1 alleged:
That in your capacity as Attorney at Law, you were retained by Christine Stoetzner on or about October the 1st, 1984, to represent her in a matter involving personal injury. That on about February 6, 1985, you did negotiate a settlement with All State [sic] Insurance Company in the amount of $18,000.00. That you had no authority from your client to settle the matter for that sum. That you did endorse said draft with your own and your client's name and did deposit it into your bank account. That you did sign you [sic] client's name to the release in this matter without the authority to do so. That you have engaged in conduct involving dishonesty, fraud, deceit, or misrepresentation. That you have engaged *1188 in conduct that is prejudicial to the administration of justice. That you have engaged in conduct that adversely reflects on your fitness to practice law in violation of Disciplinary Rules DR 1-102(A)(4)(5)(6)[[3]] of the Code of Professional Responsibility of the Louisiana State Bar Association.
Specification No. 2 alleged:
That by settling your client's case without your client's authority, by sending the releases back to the insurance company, and by negotiating the draft, all without the authority of your client and when settlement was not in an amount agreed to by your client you have caused the insurance company to take the position that the case was settled when in fact your client had not agreed to any settlement. That you have caused prejudice or damage to your client during the course of your professional relationship in violation of Disciplinary Rule DR 7-101(A)(3)[[4]] of the Code of Professional Responsibility of the Louisiana State Bar Association.
Specification No. 3 alleged:
That you did deposit the $18,000.00 draft into a bank account which is not an attorney's trust account and which contains funds belonging to yourself as well as funds of client's [sic]. That on or about March 7, 1985, you did tender to your client a check on said account in the amount of $5,000.00 in partial settlement of the client's cause of action, and said check was rejected by your client. That said $18,000.00 was not deposited into a trust account until June 22, 1985. That said $18,000.00 has never been returned to the insurance company and that you have commingled and converted to your own use all or part of said $18,000.00 in violation of Disciplinary Rules DR 1-102(A)[[5]] and DR 9-102[[6]] of the Code of Professional Responsibility of the Louisiana State Bar Association.

Evidence submitted at the investigative hearings established that Daniel Schmidt was hired by Mrs. Christine Stoetzner to represent her in connection with personal injuries which she sustained in an automobile accident. Mrs. Stoetzner and her husband, Glen Stoetzner, signed an employment contract dated October 1, 1985, which granted Schmidt a power of attorney to "endorse, deposit and disburse any draft or *1189 other payments." The contract did not give respondent the authority to settle and release his client's claim.

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Related

State v. Brooks
661 So. 2d 1333 (Supreme Court of Louisiana, 1995)
Louisiana State Bar Ass'n v. Riley
555 So. 2d 984 (Supreme Court of Louisiana, 1990)
Louisiana State Bar Ass'n v. Schmidt
539 So. 2d 622 (Supreme Court of Louisiana, 1989)

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Bluebook (online)
506 So. 2d 1186, 1987 La. LEXIS 9230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-state-bar-assn-v-schmidt-la-1987.