Louisiana State Bar Ass'n v. Summers

379 So. 2d 1065, 1980 La. LEXIS 8255
CourtSupreme Court of Louisiana
DecidedJanuary 28, 1980
Docket61905
StatusPublished
Cited by7 cases

This text of 379 So. 2d 1065 (Louisiana State Bar Ass'n v. Summers) 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. Summers, 379 So. 2d 1065, 1980 La. LEXIS 8255 (La. 1980).

Opinion

379 So.2d 1065 (1980)

LOUISIANA STATE BAR ASSOCIATION
v.
William A. SUMMERS, III.

No. 61905.

Supreme Court of Louisiana.

January 28, 1980.

Harold J. Lamy, New Orleans, Chairman, Roland J. Achee, Shreveport, Wood Brown, III, New Orleans, Sam J. D'Amico, Baton Rouge, Leonard Fuhrer, Alexandria, Edgar H. Lancaster, Jr., Tallulah, Alfred S. Landry, New Iberia, A. Russell Roberts, Metairie, John B. Scofield, Lake Charles, Thomas O. Collins, Jr., New Orleans, Executive Counsel for Louisiana State Bar Association, Committee on Professional Responsibility for petitioner.

Emile Carmouche, Gretna, for respondent.

Disciplinary Proceeding

BLANCHE, Justice.

This matter comes before us on a petition of the Committee on Professional Responsibility of the Louisiana State Bar Association seeking disciplinary action against one of its members, William A. Summers, III. Following a formal investigatory hearing, the Committee instituted this suit and we appointed Mr. James J. Davidson, III as Commissioner to take evidence and file a report with this Court stating his findings of fact and conclusions of law.

In its petition filed March 28, 1978, the Louisiana State Bar Association made the following four specifications of misconduct:

SPECIFICATION NO. 1

Respondent was retained in 1974 by Josephine Russo Aiavolasiti and Vincent E. Aiavolasiti to assist and advise them concerning certain financial problems. With respect to this representation, Respondent did fail to advise them of a conflict of interest created by the fact that certain parties with whom Respondent would have them transact business were, in fact, also Respondent's clients. Specifically, Respondent, in concert with Pontchartrain Mortgage Investment Corporation, also Respondent's client, a fact not made known by Respondent to his clients, Mr. and Mrs. Aiavolasiti, arranged the following business transactions with the resulting consequences. Mr. and Mrs. Aiavolasiti owned a residence located at 6066 Bellaire Drive in New Orleans, in which they had an equity *1066 valued at approximately Twenty-Five Thousand ($25,000.00) Dollars. Acting on Respondent's advice, Mr. and Mrs. Aiavolasiti executed a promissory note and collateral mortgage in favor of Pontchartrain Mortgage Investment Corporation on December 13, 1974, in the principal amount of $20,000, with interest at the rate of ten (10%) percent per annum from maturity and due sixty (60) days from date. Mr. and Mrs. Aiavolasiti only received $6,913.00 from the proceeds of this loan after $7,000 was deducted as a discount, $1,087 was deducted as closing costs, and Respondent deducted $5,000 as his fee. Again, acting upon Respondent's advice after the loan was in default and executory proceedings were filed, Mr. and Mrs. Aiavolasiti executed a dation en paiement for their property to Pontchartrain Mortgage Investment Corporation for cancellation of the mortgage and the sum of $500.00. Respondent never disclosed his relationship with Pontchartrain Mortgage Investment Corporation to Mr. and Mrs. Aiavolasiti, including being agent for service of process and attorney for the corporation. All of the foregoing being in violation of Disciplinary Rule 1-102 of the Code of Professional Responsibility of this Association.

SPECIFICATION NO. 2

Respondent was retained by Josephine Russo Aiavolasiti and Vincent E. Aiavolasiti to provide legal counsel in an effort to obtain a lessee for their business known as Swanson's Seafood Restaurant. Thereafter, he advised his clients that The Omni Corporation would execute such a lease of the Restaurant. Respondent did not advise his clients of his proprietory interest in The Omni Corporation and that he was an officer thereof. On December 31, 1974, Respondent presented a document to Mr. and Mrs. Aiavolasiti for their signature. Respondent represented this document to be a lease-purchase agreement when, in fact, the document, which Respondent had his clients execute, was an Act of Sale and Assumption with the stated consideration being $2,000.00 cash, the delivery of a $15,000.00 note to be paid in sixty (60) equal installments of $315.03 by The Omni Corporation (which note was never delivered), assumption by The Omni Corporation of that certain mortgage executed by Respondent's clients in favor of Mrs. Frank Swanson in the original amount of $62,300.00, and assumption by The Omni Corporation of all outstanding obligations of Swanson's Restaurant, not to exceed $50,000.00. That Respondent's failure to properly and clearly disclose his conflict of interest and the true nature of the instrument he advised Mr. and Mrs. Aiavolasiti to sign, all as set out above, were in violation of the Code of Professional Responsibility, specifically, DR 1-102.

SPECIFICATION NO. 3

A few months after Omni had assumed title to Swanson's Restaurant through the transaction set out in Specification No. 2 above, Mr. and Mrs. Aiavolasiti became aware of the fact that various obligations they were led to believe by Respondent were assumed by The Omni Corporation were not being paid. They consulted Respondent and he assured them he would handle such matters. Thereafter, however, Respondent failed to properly handle their legal and financial problems. On February 26, 1975, suit was filed by George Aiavolasiti against Mr. and Mrs. Vincent E. Aiavolasiti individually d/b/a Swanson's Restaurant, on a promissory note in the amount of $25,000, executed by Vincent Aiavolasiti in favor of the Whitney National Bank and purchased by George Aiavolasiti. Suit was under docket number 587-868 of the Civil District Court for the Parish of Orleans. Respondent undertook the defense of this claim on behalf of Mr. and Mrs. Aiavolasiti, without identifying to them his proprietory interest and official position in The Omni Corporation which was in conflict with their interest. This note was one of the obligations assumed in the transfer of the business described in *1067 Specification No. 2, above. Thereafter, Respondent failed to third-party his company, The Omni Corporation, or to otherwise seek relief from it, and ultimately permitted a judgment by default to be entered on July 2, 1975, against his clients, all in violation of Disciplinary Rules 1-102(A)(4), 5-101(A), 6-101(A)(3), and 7-101(A) of the Code of Professional Responsibility of this Association.

SPECIFICATION NO. 4

Mr. and Mrs. Aiavolasiti consulted LeRoy A. Hartley, Attorney, about their plight and on July 13, 1975, terminated Respondent's services. Thereafter, T. Allen Usry, Esq., instituted legal proceedings against Respondent on behalf of Mr. and Mrs. Aiavolasiti seeking a return of their property and other legal and equitable relief. Thereafter, Respondent ignored letters, eluded process servers, and generally attempted to escape the responsibilities of his misconduct in violation of Disciplinary Rule 6-102 of the Code of Professional Responsibility of this Association.

The Commissioner held his hearing and thereafter, on August 22, 1979, filed his report and recommended that respondent be suspended from the practice of law for six months. Both respondent and the Committee concurred in the findings and conclusions. However, the Committee seeks a period of suspension greater than that recommended by the Commissioner. Following are the facts and conclusions of the Commissioner as adopted by this Court.

"Respondent, William A. Summers, III, was retained in 1974 by Josephine Russo Aiavolasiti and Vincent E. Aiavolasiti to advise them with reference to certain financial problems ...

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379 So. 2d 1065, 1980 La. LEXIS 8255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-state-bar-assn-v-summers-la-1980.