Matter of Dwight

573 P.2d 481, 117 Ariz. 407, 1977 Ariz. LEXIS 377
CourtArizona Supreme Court
DecidedDecember 12, 1977
DocketSB-110
StatusPublished
Cited by8 cases

This text of 573 P.2d 481 (Matter of Dwight) 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 Dwight, 573 P.2d 481, 117 Ariz. 407, 1977 Ariz. LEXIS 377 (Ark. 1977).

Opinion

HAYS, Justice.

On February 22, 1977 the Disciplinary Board of the State Bar of Arizona submitted to this court Findings of Fact and Recommendations, as amended, concerning the respondent, James J. Dwight. Briefs were filed and oral argument was heard on November 17, 1977.

The complaint in this matter arose from a civil action filed in the Superior Court of Maricopa County by the plaintiff, Clara B. Medland, against the respondent and his wife. This complaint was assigned to a local administrative committee on February 10, 1975. After considerable delay, hearings were held on May 8, June 14 and September 10, 1976; Mrs. Medland appeared as a witness, and respondent also testified. Thereafter, on September 30, 1976 the Findings of Fact and Recommendations of the local committee were forwarded to the State Bar, recommending disbarment.

The Disciplinary Board of the State Bar conducted a hearing on January 15, 1977. Prior to the hearing, respondent had sub *408 mitted a Response and Statement of Opposition, and a request to submit the affidavits of James J. Dwight, Dorothy J. Kilpatrick and Clara B. Medland. The hearing was attended by respondent and his counsel and by bar counsel. The Disciplinary Board unanimously adopted the Findings of Fact, Conclusions and Recommendations of the local administrative committee except for three minor amendments.

When disciplinary action against an attorney is recommended, it is the court’s duty to determine for itself the facts. In re Johnson, 106 Ariz. 73, 471 P.2d 269 (1970). An examination of the record in this matter indicates that Clara B. Medland was referred to the respondent in early 1960. The services rendered included legal services, accounting services, and investment counseling services. The respondent, in addition to engaging in the practice of law, did accounting work in his capacity as a Certified Public Accountant, and participated in a number of investment ventures. The testimony of Mrs. Medland and the respondent indicate that the primary purpose of their association was for respondent to invest her funds in various ventures in which he and some of his friends and clients participated. Over a period of approximately ten years this investment relationship continued, with respondent, on occasion, also providing legal and accounting services. The investments culminated in a loss of Mrs. Medland’s funds in an amount in excess of $50,000. Early in the relationship, respondent apparently had indicated to Mrs. Medland that he would reimburse her if the ventures resulted in losses.

A very small portion of Mrs. Medland’s losses have been repaid to her by respondent. On February 1,1974 respondent executed a promissory note in the amount of $100,000 and on February 2, 1974 he signed an agreement which became one basis for the lawsuit filed by Mrs. Medland against the Dwights.

As is apparent from the record, the local administrative committee had some difficulty reconstructing the details of a number of financial transactions spread over a long period of time. Bar counsel initially requested records from respondent and got a few. Thereafter, through three hearings spread over a period of time, more records were made available and more information came to light.

It would serve no useful purpose to attempt to summarize the various items of evidence which give rise to the recommendations of the local administrative committee and the Disciplinary Board. Suffice it to say there is ample evidence in the record to support those recommendations under the clear and convincing quantum of proof required. In re Wilson, 106 Ariz. 34, 470 P.2d 441 (1970).

The following are the Findings of the local administrative committee as amended and adopted by the Disciplinary Board:

“From the foregoing facts, the committee finds and concludes that respondent engaged in unprofessional and unethical conduct in violation of the Code of Professional Responsibility and of Rule 29(a) and (b), Rules of the Supreme Court, as follows (all references ‘DR’ are to the Disciplinary Rules of the Code of Professional Responsibility of the American Bar Association):

“1. From 1962 until on or about the year 1972 the respondent undertook the representation of Mrs. Clara B. Medland with respect to the investment of her funds.

“2. During the period of time the respondent represented Mrs. Medland, he failed to maintain proper accounting records with respect to such funds and the investment thereof and further failed to provide Mrs. Medland with truthful and accurate information with respect to the status of such funds from time to time thereby constituting a course of misrepresentation in violation of DR 1-102(A)(4) and 9-102(B)(3).

“3. In connection with funds received by Mrs. Medland from the proceeds of the DeRosa loan respondent placed such funds in his own checking account. In comingling his personal financial affairs with those of Mrs. Medland he was in violation of Canon 9 and DR 9-102(A).

*409 “4. Respondent’s representation of other persons, including Mr. Euel Britton, with respect to the investment of a portion of the DeRosa proceeds was in violation of DR 5-105(A) and DR 1-102(A)(4).

“5. Respondent used funds entrusted to him by Mrs. Medland in May of 1962 to purchase stock for another client, Mr. Euel Britton, in violation of DR 9-102.

“6. Respondent without properly advising and clearly explaining the consequences thereof invested certain of Mrs. Medland’s funds into ventures in which he had a direct economic interest thereby constituting a potential conflict of interest with his client, Mrs. Medland, in violation of DR 5-104. The investments include, without limitation, Michigan-Arizona Development Company, Desert Flame Motels, Inc., Jet Development, Inc., Sequoia Investment Co., University Income Properties, Anchor Investment Development Company and Trans-East Air Inc.

“7. Respondent failed to prepare, keep and maintain sufficient documentation to establish his relationship with Mrs. Medland with respect to such investments and his actions arising out of and the result of the above-mentioned matters constitute violation of Canon 9 and DR 1-102(A)(4), 1-102(A)(6) and 5-104(A).

“8. Respondent took for his own personal use from Mrs. Medland the total sum of $12,900, most of which has never been repaid. In addition, respondent cashed a $10,-000 check made payable to Mrs. Medland by Barnes Construction Company dated April 30, 1969 for which he has been unable to account. Such action constitutes a violation of Canon 9 and DR 1-102(A)(4), 1-102(A)(6) and 5-104(A).

“9. Mrs. Medland testified that respondent assumed responsibility for the payment of certain life insurance policy premiums insuring her life under policies issued by Bankers Life Insurance Company of Des Moines, Iowa. Respondent denied assuming such responsibility. The committee credits the testimony of Mrs. Medland in that regard and not the testimony of respondent. Respondent failed to take necessary action to reinstate the policy or send sufficient proceeds to avoid the final lapse of such policy.

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Cite This Page — Counsel Stack

Bluebook (online)
573 P.2d 481, 117 Ariz. 407, 1977 Ariz. LEXIS 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-dwight-ariz-1977.