Matter of Carroll

602 P.2d 461, 124 Ariz. 80, 1979 Ariz. LEXIS 398
CourtArizona Supreme Court
DecidedSeptember 13, 1979
DocketSB-124
StatusPublished
Cited by15 cases

This text of 602 P.2d 461 (Matter of Carroll) is published on Counsel Stack Legal Research, covering Arizona 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 Carroll, 602 P.2d 461, 124 Ariz. 80, 1979 Ariz. LEXIS 398 (Ark. 1979).

Opinions

[81]*81HOLOHAN, Justice.

This is an original proceeding for disciplinary action against James W. Carroll, Jr., a member of the State Bar of Arizona.

An investigation was undertaken by Local Administrative Committee 2B which resulted in the filing of an eight-count complaint against respondent, James W. Carroll, Jr., formally charging him with ethical violations resulting from his conduct toward clients and potential clients in King-man, Phoenix and Henderson, Nevada, during the period of time immediately after the 1973 Kingman tank car explosion. The complaint charged, inter alia, violations with regard to advertising, soliciting, self-recommendation, self-laudation, and the acquiring of a proprietary interest in the claims of certain clients through the advancement to them of monies for cars, trucks, and other expenses. The complaint concluded with a count which charged that the totality of Carroll’s conduct was not compatible with a lawyer’s obligation to avoid even the appearance of impropriety. Carroll denied all of the allegations.

Extensive formal hearings were held by the Administrative Committee which resulted in its Findings of Fact and Conclusions of Law being issued on May 19, 1977. The committee’s recommendation was that Carroll be suspended from the practice of law for a period of one year.

Respondent Carroll filed an opposition to the findings and conclusions of the Administrative Committee, and the matter was heard on review by the Disciplinary Board. The board modified the Administrative Committee’s findings and conclusions, but the board approved the recommendation for suspension from the practice of law for a period of one year.

Respondent filed with this court timely objections to the findings and recommendations of the Disciplinary Board. The matter was briefed, argued and submitted for decision.

When disciplinary action against an attorney is recommended by the Disciplinary Board, it is this court’s duty to determine for itself the facts. In the Matter of Stewart, 121 Ariz. 243, 589 P.2d 886 (1979); In the Matter of Dwight, 117 Ariz. 407, 573 P.2d 481 (1977). Most of the ultimate facts are not in serious dispute.

On July 5, 1973, a violent gas explosion occurred in Kingman, Arizona. The explosion took the lives of many people and injured scores of others. The news of the explosion received wide media coverage. On July 11,1973, a free-lance private investigator, Ronald Augustinovich, left Phoenix for Kingman, Arizona. Augustinovich had, for at least one year prior to July 5, 1973, done occasional investigative work for respondent’s law firm, Kleinman, Carroll and Kleinman. Augustinovich stated at the hearing that his main reason for going to Kingman was that he wanted to investigate the explosion privately with the idea of being hired as an investigator either by potential defendants or potential plaintiffs. David Vandiver

Upon arrival in Kingman, Augustinovich went to the scene of the accident, where he came upon David Vandiver, a person who had suffered minor injuries as a result of the explosion. He engaged Vandiver in a conversation concerning the explosion and the facts surrounding it. During the conversation, Vandiver invited Augustinovich to his trailer home where he lived with his mother. In response to a question, Vandiver advised Augustinovich that he had not yet engaged an attorney, but that he did not want to hire a Kingman attorney. Augustinovich recommended to Vandiver that he seek the services of one of three Phoenix lawyers. Respondent was one of those named. Augustinovich urged Vandiver to engage the services of Carroll.

Vandiver, who was nineteen years of age, had never hired a lawyer before this occasion. Augustinovich assisted Vandiver to reach Carroll by telephone in Phoenix. Augustinovich represented to Carroll that Vandiver was Augustinovich’s personal friend. Although Vandiver’s injuries were minor in scope, Carroll nevertheless responded that he would journey to Kingman that very day to discuss the possibility of representing Vandiver.

[82]*82Within two or three hours later, Carroll arrived with his partner, Jan Kleinman, in a plane flown by one Michael Sansone, a business partner of the senior partner of the firm of Kleinman, Carroll and Kleinman.

At the Kingman airport, Augustinovich met the Carroll party and drove them to Vandiver’s trailer. Thereafter, Carroll and Kleinman engaged in a conversation with Vandiver concerning their representation of him. Vandiver signed a retainer agreement presented by Carroll. In addition to the standard clause regarding client responsibility for costs and expenses, the following language appeared in Carroll’s own handwriting:

“ . . . The client further agrees to repay to said attorney any and all costs and expenses that may be advanced or paid by said attorney for the client, only if there is a settlement or judgment obtained. The client will owe nothing if there is no settlement or judgment.” (Emphasis supplied.)

This was followed by Carroll’s signature and dated.

The change of the contingency fee agreement was a departure from the firm’s usual contingency fee agreement. The handwritten changes in the Vandiver agreement were used only in fee agreements for clients in the Kingman explosion.

Vandiver mentioned his friend, Steve Mitchell, who was a patient in the Rose De Lima Hospital in Henderson, Nevada. Vandiver telephoned Mitchell to inquire whether Mitchell wanted to retain an attorney before Carroll and Kleinman left the trailer, but he was unsuccessful in reaching him.

The attorneys agreed that they would contact Vandiver the next morning to determine whether Mitchell wanted to retain Carroll.

Carroll, Kleinman and Augustinovich traveled to the site of the explosion where they discussed with Augustinovich the circumstances under which he had met Vandiver. During this conversation, Augustinovich admitted to Carroll and Kleinman that Vandiver was not his friend as he had previously asserted, but that he had come upon him at the accident scene. Carroll and Kleinman discussed the ethical propriety of representing Vandiver under these circumstances and concluded that it was appropriate for them to represent him.

The next day, July 12, 1973, Carroll, Kleinman and Sansone returned to King-man. Carroll talked to Vandiver by telephone, and Vandiver advised him that Mitchell wanted to retain Carroll’s services.

Augustinovich arrived at the airport and drove Carroll, Kleinman and Sansone to the Hertz Rent-A-Car office in Kingman so that they could rent a car to drive to Henderson, Nevada, to see Mitchell. While at the Hertz Rent-A-Car office, the manager asked Carroll and Kleinman whether they were the same law firm which had placed an announcement on Station KAAA offering rides to victims and families of the Kingman disaster to hospitals in Las Vegas, Nevada, and/or Phoenix, Arizona.1 When Carroll learned of the radio announcement he asked Augustinovich exactly what had occurred. Augustinovich admitted that he had placed the ad on the radio and Carroll, who appeared to be very agitated, demanded that Augustinovich stop further broadcasting of the radio advertisement.

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Bluebook (online)
602 P.2d 461, 124 Ariz. 80, 1979 Ariz. LEXIS 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-carroll-ariz-1979.