Matter of Atencio

742 P.2d 1039, 106 N.M. 334
CourtNew Mexico Supreme Court
DecidedSeptember 3, 1987
Docket17234
StatusPublished
Cited by1 cases

This text of 742 P.2d 1039 (Matter of Atencio) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Atencio, 742 P.2d 1039, 106 N.M. 334 (N.M. 1987).

Opinion

OPINION

PER CURIAM.

This matter comes before the Court after disciplinary proceedings were conducted pursuant to SCRA, 1986, Rules Governing Discipline, and attorney Lorenzo E. Atencio was found to have committed violations of those rules. Pursuant to SCRA 1986, 17-316(D), we adopt the Disciplinary Board’s findings, conclusion and recommendation with one modification, and suspend Atencio from practice of law for an indefinite period of no fewer than six months.

Atencio was retained to represent Steve Casias in a cause of action against Chama Valley Board of Education and others, in a civil rights action in the United States District Court. Casias paid Atencio a $1500 retainer and also agreed to pay a contingency fee of one-third of any recovery. Atencio had never previously handled a civil rights action, and neither he nor his client was aware at the time they entered into this agreement that Atencio’s fees could be assessed against the defendants if the action was successful. Casias also advanced money for costs in the amount of $1025.

On January 31, 1984, a jury verdict was entered against several of the defendants which awarded Casias $42,000 plus attorney fees and costs. Atencio, now aware that he could receive attorney fees, submitted an itemized request for fees in the amount of $27,262.50, and a less detailed request for reimbursement of costs in the amount of $3102.42. Atencio failed to advise the court that he had already been paid $1500 in fees by his client. The court awarded Atencio fees in the amount of $21,262.50 plus gross receipts tax. Costs were awarded to Casias in the amount of $804.50 and assessed against him (on behalf of the defendants against whom he had not prevailed) in the amount of $1775.22.

Defendants appealed the judgment to the Tenth Circuit Court of Appeals. The case was affirmed and remanded to the trial court on January 23, 1986. Atencio then requested and was awarded an additional $9519 for fees on the appeal, and Casias was awarded additional costs as requested by Atencio in the amount of $617.96 to cover the purchase of a copy of the trial transcript. Casias had previously advanced Atencio another $1000 for costs and fees on appeal.

In May of 1986, the defendants paid Atencio the money awarded to him in fees for his work at trial ($22,272.74) plus an additional $5296.96 in interest. Shortly thereafter he received a second check for $10,589.11, representing his fees and the costs on appeal, bringing the total amount paid to him to $38,158.54.

Defendants sent Atencio a check for the judgment in the amount of $42,000 payable to Atencio and Casias. The trial costs awarded to and assessed against Casias were waived by way of settlement. Atencio advised his client of the receipt of the check but refused to release the money to Casias unless he paid one-third of the award as an additional fee. Casias was forced to retain new counsel in an effort to resolve this problem.

On June 26, 1986, the federal judge ruled that Atencio could not collect a second fee and ordered that the check be endorsed and forwarded to Casias’ new attorney forthwith. Atencio, who had been subpoenaed and paid a witness fee to attend this hearing, was not present. An order reflecting the ruling was entered; after contempt proceedings, a second order was issued on July 22, 1986, to the same effect. Atencio, however, did not forward the check to Casias’ attorney until August 15, 1986. Despite his awareness of the orders of the federal court, Atencio enclosed a letter with the check wherein he offered “to resolve the matter of contingent fees” for ten percent of the $42,000, plus interest. Subsequently, Atencio was found to be in criminal contempt of court for his failure to promptly comply with the June 26 and July 22 orders.

The hearing committee concluded that Atencio attempted to collect more from his client in costs than he ever expended in this litigation, but the Board panel rejected this conclusion on the basis that it was impossible to determine from Atencio’s “records” what costs were actually incurred. It is clear that Atencio never placed any of the funds advanced by Casias in his attorney trust account nor did he account for them to his client, or to the hearing committee. Atencio’s requests to disciplinary counsel and also to his client for additional cost reimbursements bore little resemblance to his requests filed with the federal court (or even to one another) and were not accompanied by substantiating documents. Although Atencio was paid $1000 by his client and $670 by the defendants for the cost of the transcript for use in the appeal (the only cost noted by him in connection with the appeal), Atencio advised the court reporter to seek payment directly from Casias. Sometime after the contempt citation from the federal judge, Atencio tendered a check to the reporter drawn against his personal account (rather than his trust account); the check was returned because of insufficient funds.

Atencio’s argument to this Court that the above matters constitute nothing more or less than a well-meaning attempt by him to be paid in accordance with what he believed to be a valid contract, indicate that he has little understanding of either contract law or of his professional obligations to his clients or the courts. The fees awarded to him by the federal judge were far in excess of what he could have collected from his client under the terms of the contingency agreement, and represent complete payment for his services. Atencio’s subsequent efforts to collect amounted to a clearly excessive double fee and violated NMSA 1978, Code of Prof.Resp.Rule 2-106 (now SCRA 1986, 16-105). The conduct which necessitated Casias’ having to retain a second attorney in order to collect the money he had been awarded, and Atencio’s subsequent delays in forwarding the money to his client (even after having twice been ordered to do so by a federal judge) violated NMSA 1978, Code of Prof.Resp. Rule 7-101(A)(3) (now SCRA 1986, 16-103 and 16-302). Atencio’s failure to reveal in the affidavit attached to his request for attorney’s fees that he had already been paid $1500 in fees by his client, and his issuing of a worthless check to the court reporter, constitute a misrepresentation, and is conduct that is dishonest and violates NMSA 1978, Code of Prof.Resp.Rule 1-102(A)(4) (now SCRA 1986, 16-804).

Even absent all of the aforementioned violations, Atencio’s complete ignorance of (or indifference to) his responsibilities as a fiduciary would warrant discipline. Atencio argued to this Court that his failure to deposit the monies received from his client in his trust account should be excused because he had made cost expenditures prior to receiving the funds and they (the monies) were simply reimbursements. There is no client ledger sheet to support this contention, and Atencio’s rhetoric is not persuasive. Atencio’s conduct violated NMSA 1978, Code of Prof.Resp.Rule 9-102(A) (now SCRA 1986, 16-115). Furthermore, Atencio’s position that such bookkeeping and accounting tasks would be overly burdensome and should not be required of a busy attorney like himself is absurd, and raises serious questions in our minds about Atencio’s abilities to appreciate the duties inherent in the position of trust which is conferred upon one licensed by this Court to practice law.

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Cite This Page — Counsel Stack

Bluebook (online)
742 P.2d 1039, 106 N.M. 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-atencio-nm-1987.