Matter of Wade

526 A.2d 936
CourtDistrict of Columbia Court of Appeals
DecidedMay 29, 1987
Docket84-1161
StatusPublished
Cited by9 cases

This text of 526 A.2d 936 (Matter of Wade) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Wade, 526 A.2d 936 (D.C. 1987).

Opinions

PRYOR, Chief Judge:

In this disciplinary matter, Hearing Committee Number Seven (Hearing Committee) found that respondent Hugh M. Wade had violated DR 1-102(A)(3),1 (4),2 and DR 9-103(B)(4)3 by misappropriating and converting to his own use money entrusted to him by a client. The Hearing Committee recommended a sanction of disbarment, and further recommended that Mr. Wade be ordered to make restitution to his client in the amount of $4,531.72.4 The Board on Professional Responsibility (the Board) agreed with the findings and recommenda[937]*937tions of the Hearing Committee, and recommended that respondent be disbarred.5 Before this court, respondent asserts that the Board lacks jurisdiction in this matter and, in the alternative, that the Board’s findings are unsupported by substantial evidence, and the recommended sanction of disbarment is unwarranted. We disagree with respondent’s contentions, and, accordingly, we adopt the Board’s recommendation.

I

The evidence against respondent before the Hearing Committee consisted of the testimony of respondent’s client, supported in part by documentary evidence. Respondent’s client testified that she and respondent had been romantically involved in 1975 and 1976 while both were living in Boston, Massachusetts, but that their relationship ended in 1976. While she and respondent did not share bank accounts or living quarters, they did share some expenses.

In April 1979, respondent’s client’s mother died, and it became respondent’s client’s responsibility to sell her mother’s car as well as the house in which her mother had been living. Since she was about to move to North Carolina to attend graduate school, she consulted respondent concerning the money she expected to receive. Respondent agreed to handle the sale of the house and car, and suggested that his client establish a trust with the money she was to receive from the sale of the house. He refused to accept a retainer for his services, but did accept $332, allegedly for administrative expenses in setting up the trust.

At respondent’s suggestion, his client transferred all her savings from her account in one Boston bank to respondent’s bank also in Boston and gave him power of attorney to handle deposits and withdrawals at that bank. According to their agreement, respondent was to send his client money in North Carolina as she needed it.

When his client’s mother’s car was sold, respondent, in his capacity as her attorney, received $600 in proceeds which he deposited in his client’s savings account. The sale took place in Massachusetts. Soon thereafter, however, respondent withdrew $500. Respondent neither sent his client the money nor expended it on her behalf. In September 1979, when she questioned respondent about the $10 balance of her account, respondent’s client was told that he deposited the money in another account that paid higher interest.

When the house in which respondent’s client’s mother had been living was sold, the buyer made no down payment, but agreed instead to make monthly payments on a second mortgage. The house was located in Massachusetts; the sale took place there as well. Because of this arrangement, no trust was established, and respondent, acting as her attorney, never sent his client the $500 deposit or several monthly payments on the mortgage he received.

In January and August 1980, respondent closed out his client’s high interest accounts of more than $1,000 each by executing withdrawal slips in his own handwriting. When his client discovered the accounts had been closed, she asked respondent about the matter. He stated that he had changed the accounts to new accounts that yielded higher interest. Still, except for $300 respondent sent his client in 1980, his client received no money from her attorney.

In January 1981, respondent’s client asked respondent to send her all of her money, and to return an insurance policy she had left with him for the purpose of changing the beneficiary. Respondent did not comply with the request and did not respond to subsequent letters seeking the return of the funds.

In January 1982, respondent’s client obtained a judgment against him in Massachusetts for more than $8,000, and agreed to accept respondent’s offer to pay $4,000 [938]*938in settlement of the judgment. Respondent never paid his client the $4,000.

In 1983, a disciplinary proceeding was instituted against respondent based on his alleged misconduct.

II

Before reviewing the Board’s Report and Recommendation, we address respondent’s challenge to the disciplinary authority of the Board. Respondent contends that the Board lacks jurisdiction to proceed against him because the interplay among D.C.Code §§ 11-2501, -2502 (1981) and D.C.Bar R. XI must be interpreted by this court as meaning that the Board may only proceed against attorneys who are practicing law in the District, whether the alleged violation is related to that practice or not, and that “practicing law in the District” is not synonymous with “member of the D.C. bar.”

The record reveals that all of the conduct complained of occurred in the Commonwealth of Massachusetts, that neither the complainant nor the respondent were residents of the District of Columbia, and that respondent neither maintained a law office nor actively represented clients in the District of Columbia. It is also clear that none of the property alleged to have been misappropriated by respondent was located in the District of Columbia.6

D.C.Code § ll-2501(a) provides:

The District of Columbia Court of Appeals shall make such rules as it deems proper respecting the examination, qualification and admission of persons to membership in its bar, and their censure, suspension, and expulsion.

D.C.Code § 11-2502 provides in part:

The District of Columbia Court of Appeals may censure, suspend from practice, or expel a member of its bar for crime, misdemeanor_ [Emphasis added.]

While these Code provisions create in the court the power to establish rules for managing its bar, it is D.C.Bar R. XI, § 1 that actually creates and defines the scope and duties associated with the disciplinary authority of this court and the Board on Professional Responsibility. Rule XI, § 1 reads in relevant part:

Any attorney who engages in the practice of law within the District of Columbia as defined in Rule [49(b)(1)] of the General Rules of the Court ... is subject to the disciplinary jurisdiction of this Court and its Board on Professional Responsibility. [Emphasis added.]

Accordingly, while it may be true that this court could have created broader authority for the Board without thereby overstepping the congressionally established bounds, this court, by adopting Rule XI, limited the authority of the Board to disciplinary actions against attorneys who are “engaged in the practice of law within the District of Columbia.”

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Matter of Wade
526 A.2d 936 (District of Columbia Court of Appeals, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
526 A.2d 936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-wade-dc-1987.