Matter of Williams

711 S.W.2d 518, 1986 Mo. LEXIS 292
CourtSupreme Court of Missouri
DecidedJune 17, 1986
Docket67096
StatusPublished
Cited by17 cases

This text of 711 S.W.2d 518 (Matter of Williams) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Williams, 711 S.W.2d 518, 1986 Mo. LEXIS 292 (Mo. 1986).

Opinion

RENDLEN, Judge.

The Bar Committee of the Thirty-first Judicial Circuit instituted disciplinary proceeding against respondent and following formal hearing found probable cause to believe respondent was guilty of profes *519 sional misconduct. An Information was filed in this Court charging violation of Rule 4 DR 9-102(A) and (B) 1 in that respondent failed to make timely, accurate and adequate accounting of funds to a client. Respondent answered admitting the violation but seeking dismissal of the Information because his conduct did not constitute a knowing and intentional violation. The Honorable L. Thomas Elliston, Presiding Judge, Twenty-ninth Judicial Circuit, was appointed Master, and after plenary hearing the Master in his findings of fact and conclusions of law determined that respondent had violated Rule 4 DR 9-102(B) and (C), 2 and the violation was willful, deliberate, and inexcusable. He recommended that respondent be disbarred.

In disciplinary proceedings we must review for ourselves the evidence, the credibility, weight and value of the witnesses, and determine all fact issues necessary to a decision. In re Elliott, 694 S.W.2d 262, 262 (Mo. banc 1985).

Here the fact of violation of the Disciplinary Rules is not in dispute. Respondent undertook to represent a client, Marvin E. Miller, in a Workmen’s Compensation claim. A settlement was reached in the amount of $6,000 and on July 16, 1984, Maryland Casualty Company issued its $6,000 draft payable to respondent and Miller. On or about July 17, 1984, respondent and Miller agreed that respondent would receive $1,486.64 for his fee and expenses incurred and Miller would receive $4,513.36, the balance of the $6,000. Miller endorsed the check, leaving it in respondent’s custody and was informed that “within a few days” respondent would deliver a check to Miller in the amount of $4,513.36.

On July 18, 1984, respondent deposited the $6,000 draft into an account titled “Law Clinic of David F. Williams Client Funds Account,” an account which was overdrawn at that time. On July 20, 1984, a check in the amount of $4,513.36 was drawn on that account and forwarded to Miller. However, that check was returned for insufficient funds on August 3, 1984, and again on August 14, 1984. Subsequently respondent’s law office wire-transferred funds to Miller in the amounts of $500 on August 17, 1984, and $1,000 on August 21, 1984, leaving a balance due the client of $3,013.36. On August 31, 1984, another check in the amount of $3,013.36, drawn on the account of “Law Clinic of David F. Williams Client Funds Account,” was for *520 warded to Miller, but on September 5, 1984 it too returned for insufficient funds. Throughout this period, Miller made numerous requests to respondent’s office for his money, but did not receive his funds from respondent or respondent’s law office until September 10,1984, five days after he filed a complaint with the Thirty-first Judicial Circuit Bar Committee.

Although as discussed below respondent offers the circumstances surrounding the above events, including his wife’s role in the events and his ignorance of the problems encountered in paying Miller, in mitigation to harsh punishment, he does not offer such circumstances to deny his guilt. It is admitted and this Court finds that respondent failed to make timely, accurate and adequate accounting to a client in violation of DR 9-102(B) and (C).

The sole issue remaining is to determine appropriate punishment. In requesting sanctions less than disbarment, respondent submits his was not an intentional violation. Such claim is based upon the following circumstances surrounding the facts constituting the violation. Respondent and his wife each held signature authorization for the trust account and he had delegated to his wife (as secretary and bookkeeper) the tasks of making the daily bank deposits, writing checks and balancing the checking accounts. Respondent testified that he did not know at the time of the deposit of the $6,000 check that the trust account was overdrawn, nor did he know of certain transactions which produced the insufficiency. Rather such problems were caused by his wife who did not inform him of the problems. Similarly, respondent and his wife testified that he was not made aware of the delays in paying Miller or the return of the checks for insufficient funds nor was he aware of Miller’s attempts to contact him and thought Miller had been paid promptly.

Although respondent recognizes his ultimate responsibility for the acts of his employee-wife regarding the trust account and therefore does not offer them in defense to the charges, he does offer his ignorance in mitigation. We cannot rule out the possibility that such circumstances might work in mitigation in a different case, but in view of all the evidence here, respondent’s assertion must fail. The record discloses that with respondent’s knowledge the trust account long had been in serious disarray and he had taken little if any corrective action. Yet despite his knowledge of this disarray respondent knowingly exposed Miller’s funds to the risks of this unstable account and must be held accountable to the same degree as if he had known of the specific problems encountered with the Miller payment. ' Having been aware of ongoing problems with the trust account, including return of checks for insufficient funds, credence cannot be afforded his plea of ignorance.

Respondent knew in December 1983 that problems were developing in the trust account. Checks drawn on the account and made payable to various courts were returned for insufficient funds. Respondent testified that he was not sure whether the account was ever “straight” after that time. Although he talked to his wife about these problems, respondent never attempted to review the account or obtain a proper accounting. Not once from January 1984 to July 1984 did respondent review the check stubs or the bank statements in an attempt to establish an understanding of the account. He testified that his only contact with the account “would be to see the envelopes unopened two and three months after they’d been received, the bank statements, and to holler about that.” When he saw such unopened envelopes, which he recognized as containing bank statements, he would merely talk to his wife about the fact that the account needed balancing and that they needed to know what was “going on” with the account. Although he threatened to lake over supervision of the account from his wife, he failed so to do. Yet respondent testified he was so concerned that checks drawn on the account might be returned for insufficient funds he began making payments, including court filing fees, by cash or money *521 order rather than by check. Respondent testified that although he thought about straightening out the account, or that he should have opened a new trust account, he did neither. He also testified that after May 1983 he did not maintain a law office general checking account and if it became necessary to write a check for his firm he drew it on the trust account.

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Bluebook (online)
711 S.W.2d 518, 1986 Mo. LEXIS 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-williams-mo-1986.