Louisiana State Bar Association v. Ruiz

259 So. 2d 895, 261 La. 409, 1972 La. LEXIS 5784
CourtSupreme Court of Louisiana
DecidedMarch 27, 1972
Docket51202
StatusPublished
Cited by8 cases

This text of 259 So. 2d 895 (Louisiana State Bar Association v. Ruiz) 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 Association v. Ruiz, 259 So. 2d 895, 261 La. 409, 1972 La. LEXIS 5784 (La. 1972).

Opinions

DIXON, Justice.

This disbarment proceeding was duly instituted against Donald B. Ruiz. After a full hearing, the Committee on Professional Ethics and Grievances found respondent guilty of violations of sufficient gravity to warrant disciplinary ■ action. Hearings were held before H. Martin Hunley, Jr., whom we appointed Commissioner. Commissioner Hunley found against the respondent on each of the three specifications against him.

The specifications involved commingling of funds, failure to account, and failure to represent a client competently and efficiently.

The Commissioner found that the respondent had overcharged his clients, had commingled their funds, had failed to account to his clients, and had failed to perform legal services for them competently; he recommended the return of certain monies to the clients, a suspension from practice for ninety days, and reprimands.

The first of the three specifications was the most serious. The respondent’s client, Joseph B. Pressner, made a deposit of $1660.00 with a real estate agency in preparation for the purchase of some property. The transaction was to have been consummated on February 6, 1969 in respondent’s office, but was abandoned. Respondent undertook to obtain the return of the deposit. The deposit was returned to respondent by check dated March 7, 1969. It appeared in one of respondent’s bank accounts on April 15, 1969. The check from the real estate company was made payable to respondent’s client, whose endorsement on the check appears to be a forgery. Respondent’s wife, who served as his secretary admitted that she might have endorsed the client’s name on the check.

On June 16, 1969 respondent’s wife issued a check to the client for $1150.00 ($1660.00 less a fee of one-third and certain unitemized costs). On three occasions when the client presented the check for $1150.00 to the bank for payment, it was dishonored for lack of sufficient funds.

A complaint was lodged with the district attorney’s office. Nine days later the cli[414]*414ent received a certified check from the respondent for $1150.00, and the charges were subsequently dropped by the district attorney.

Respondent testified that he knew nothing of this transaction until weeks after the criminal charges had been dropped. He said he was neither aware of the receipt of the check from the real estate firm nor its deposit. Respondent produced no evidence concerning instructions he had given his wife in the use of clients’ funds. How his wife knew how much to deposit as fee is not explained. The check had been deposited in an account which was used to pay operating expenses.

The Commissioner found: “Mrs. Ruiz appeared to this commissioner to be a woman of intelligence and of education. She had completed part of the work toward a law degree. She very valiantly assumed all of the blame in connection with the Pressner check. Her husband, respondent herein, was content to have her assume this blame. Respondent even pretended to believe that his wife deliberately deceived him ... It seems incredible to this commissioner that respondent did not know” that the check had been received, deposited and commingled with funds that were used to pay office expenses. Further, respondent’s testimony before the committee was at variance with that before the Commissioner.

The Commissioner further found that the $553.00 charge made for obtaining the refund from the real estate agency was excessive.

For this clear violation of Article XIV, Section 11 of the charter of the Louisiana State Bar Association in effect at the time, the Commissioner concluded that respondent should be suspended from the practice of law for three months and ordered to return $300.00 of the fee withheld from Mr. Pressner.

Commissioner Hunley’s findings are amply supported by the evidence. We are impressed with the obvious disregard by respondent of established ethical standards. In his testimony, he related that He no longer had any bank accounts, that ’’ he liad purchased a safe, converted all checks received to cash or money orders, and put the cash in his safe to be disbursed by himself. Respondent’s testimony, if sincere, exhibited a surprising ignorance of Canon 9 (and the disciplinary rules under the Code of Professional Responsibility in effect at the time of the hearing before Commissioner Hunley), which requires the lawyer to preserve the identity of the funds and property of his clients.

Specification No. 2 grew out of the settlement of a workman’s compensation case. Respondent received checks in settlement of the case on May 22, 1969 in the amounts of $4000.00, $1167.00 and $115.00. [416]*416Those checks were negotiated by respondent within a day dr so from the date received. It was not until December of 1969 that respondent’s wife (his secretary) gave the client a statement showing that there was a balance due her of only $302.00. Respondent claimed credit for numerous advances made to his client and bills and expenses paid for the client with the funds.

The Commissioner was satisfied that medical expenses, a furniture bill and rent owed by the client, Irene Burrell, were paid by the respondent out of the funds received in settlement of the compensation claim. Although the client denied receiving cash advances, the Commissioner was unable to conclude under the evidence before him that the respondent defrauded his client.

The record does establish that, although the compensation case was settled on May 22, 1969, the respondent did not pay certain expenses of his client, which he said he had agreed to pay, until December of 1969. There is no plausible explanation by the respondent for this delay. Nor is there plausible explanation for his failure to account to his client between May and December of 1969. His excuse was that part of the settlement involved payment for'future medical expenses, that his client needed a second operation, and he was afraid she would not get the second operation unless he kept the money for her, advancing it to her only as she needed it. The record establishes, however, that the money for the second operation was not to be paid-unless his client actually underwent the second operation.

The Commissioner further found that the respondent overcharged his client in the amount of $100.00 and failed to give her credit for $115.00 which he received for costs on the day the case was settled. In addition to recommending the return of these funds, the Commissioner recommended a reprimand for this further violation of Article XIV, Section 11 of the charter of the Louisiana State Bar Association, in which finding we concur.

The third specification against respondent arose out of employment to file a petition in bankruptcy. His clients, Mr. and Mrs. Henry T. Wester, paid him $100.00 on June 23, 1970 and another $100.00 about July 15, 1970. Respondent stated that he told his clients the fee would be $250.00-plus costs of about $100.00. The clients testified that they were unable to get the respondent to file the petition. Respondent’s position was that he intended to file the petition after his clients had resided in Louisiana for six months. The clients testified that they signed the bankruptcy petition forms in blank. This the respondent denied. Respondent testified that December 8, 1970 was the date typed on the bankruptcy petition and schedules, and that [418]*418that date was typed on June 23, 1970.

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Louisiana State Bar Association v. Ruiz
259 So. 2d 895 (Supreme Court of Louisiana, 1972)

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Bluebook (online)
259 So. 2d 895, 261 La. 409, 1972 La. LEXIS 5784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-state-bar-association-v-ruiz-la-1972.