People v. Mercer

35 P.3d 598, 2001 Colo. Discipl. LEXIS 48, 2001 WL 1161372
CourtSupreme Court of Colorado
DecidedMay 25, 2001
Docket00PDJ009
StatusPublished
Cited by1 cases

This text of 35 P.3d 598 (People v. Mercer) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Mercer, 35 P.3d 598, 2001 Colo. Discipl. LEXIS 48, 2001 WL 1161372 (Colo. 2001).

Opinions

OPINION AND ORDER DISMISSING CLAIMS

CLAIMS AND CHARGES DISMISSED

This matter was heard on December 5, 6, and 7, 2000, before the Presiding Disciplinary Judge ("PDJ") and two hearing board members, Frederick Y. Yu and Madeline A. Colli-son, both members of the Bar. Charles E. Mortimer, Jr., Assistant Regulation Counsel, represented the People of the State of Colorado (the "People"). Alexander Rothrock represented the respondent, Craig William Mercer ("Mercer") who was also present. The People's exhibits 1 through 14 were admitted into evidence. Respondent's exhibits A through J, L through 0, Q through U and W through Y were also admitted into evidence. The PDJ and Hearing Board heard testimony from the People's witnesses Larry Tolley, Craig Mercer, Jack Strimbu, Laurence Canaday, Felicia Waddell and Luain T. Hensel. Mercer introduced testimony from Steve Bulmer, Jacqueline Tollerud, and character witnesses Robert B. Yegge, Michael Makaroff and James C. Coyle. Mercer also testified on his own behalf.

The evidence presented to the PDJ and Hearing Board in this disciplinary case presented two dramatically different versions of the same events. The outcome of this proceeding is dependent almost entirely upon the assessment of credibility of the witnesses who testified.

The PDJ and Hearing Board considered argument of counsel, the exhibits admitted, assessed the credibility of the witnesses, and made the following findings of fact which were established by clear and convincing evidence.

I. FINDINGS OF FACT

Case No. 0O0OPDJO09

On July 4, 1997, Coleman Moore was involved in an automobile collision. Larry Tol-ley, a passenger in the Moore car, suffered a closed head injury and was otherwise seriously injured. Moore had no insurance at the time of the collision. Moore was criminally charged as a result of the incident. Moore retained Mercer to represent him on the charges.

As a result of his injuries, Tolley was placed in a medically-induced coma. He remained hospitalized throughout the remainder of July and thereafter underwent a month of in-patient rehabilitation. Tolley suffered memory loss and other cognitive dysfunction. Throughout the initial two-month period of his convalescence, Tolley was heavily medicated, occasionally exhibited bizarre and extreme behavior and, by his own admission, was in a "haze." Tolley's recall of events which transpired during that period of time is, at best, spotty.

In either late July or early August, Tolley became aware that Mercer was representing Moore on the eriminal charges. Tolley called Mercer on at least one and possibly several occasions during that period of time to defend his friend, Moore, and provide information to Mercer which Tolley wanted to convey. Tolley also complained to Mercer about his medical treatment and his inability to obtain payment of his medical care by his insurance company.

[601]*601Tolley was subpoenaed as a witness for the prosecution at Moore's preliminary hearing. On September 80, 1997, Tolley responded to the subpoena and appeared in court. Mercer and Moore were also present. Although the evidence is clear that Mercer and Tolley had a discussion outside of the courtroom that day in which they discussed the status of Tolley's efforts to recover from his insurance company, it cannot be determined by clear and convincing evidence whether Tolley or Mercer initiated that portion of the conversation relating to Tolley's insurance. At some point in the conversation, however, Mercer told Tolley that if he wanted Mercer's assistance, Tolley could call him at the office, make an appointment and they would discuss the matter. Mercer gave Tolley his business card.

Shortly thereafter, Tolley did make an appointment to see Mercer. They met in Mercer's office on October 8, 1997. After interviewing Tolley, Mercer presented him with a contingent fee agreement and Tolley signed the agreement and left the office. Within two hours, Mercer realized that his representation of Moore on the criminal charges and Tolley in connection with the injuries he suffered in the incident posed a conflict of interest which he had not discussed with Tolley. Mercer prepared a letter to Tolley in which he rescinded the contingent fee agreement, explained to Tolley that there was a conflict of interest in the two representations and advised Tolley that Mercer had referred the case to another lawyer, Laurence Canaday. The letter stated that Canaday would be contacting Tolley regarding the representation. Mercer gave the letter to his secretary, Jacqueline Tollerud, to place in the mail to Tolley. Tollerud either mailed or hand-delivered the letter to both Tolley and Canaday. Tolley denied he received the letter rescinding the contingent fee agreement. Canaday also denied receiving the rescission letter.

Canaday and Mercer were law school classmates. Canaday had experienced some difficulty successfully completing the Colorado bar examination. Mercer came to Cana-day's aid and assisted him in preparing for the re-examination. Thereafter, Mercer referred some cases to Canaday, co-counseled with Canaday on three cases, allowed Cana-day to meet with clients at his office, provided him with legal forms, loaned him legal research resources, discussed cases with him and provided some measure of secretarial support, through Ms. Tollerud, for Canaday's representation of clients. On at least one occasion prior to the Tolley matter, Mercer had referred a personal injury client to Cana-day, assisted Canaday in the preparation of the case, referred Canaday to Jack Strimbu, an independent insurance claims consultant, provided office support and research resources and allowed Canaday to utilize Ms. Tollerud's secretarial skills in the prosecution of that case.

Jack Strimbu had a lengthy background working with insurance companies adjusting claims. Strimbu had been previously employed by at least two national insurance companies for many years, had worked as a legal assistant for four years in a law firm assisting the resolution of insurance related claims and for some time had offered his services as a consultant to attorneys in resolving insurance related cases. Strimbu had worked on over fifty cases with Mercer prior to the Tolley case. Strimbu's normal practice when engaged to assist an attorney was to evaluate coverage, prepare correspondence on the lawyer's letterhead to the insurance company for the lawyer's review and signature, consult with the lawyer concerning insurance-related issues, recommend courses of action regarding insurance, suggest settlement value and, in general, provide the lawyer with his experience and expertise in obtaining as favorable settlement under insurance coverage as possible for the lawyer's client. Strimbu testified that all of his work was supervised by the lawyer for whom he provided his services.

Strimbu normally billed the attorneys he consulted with on an hourly basis, but deferred payment of his bill until the insurance proceeds were received. It was his practice that if no insurance proceeds were received, he would not require payment of his bill for services. In effect, payment for his services was contingent upon the outcome of the case upon which he was working.

[602]*602In the earlier case in which Strimbu had consulted with Canaday, Canaday had provided Strimbu with a supply of his letterhead upon which Strimbu was to prepare correspondence for Canaday's review and signature.

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Related

People v. Mercer
35 P.3d 598 (Supreme Court of Colorado, 2001)

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Bluebook (online)
35 P.3d 598, 2001 Colo. Discipl. LEXIS 48, 2001 WL 1161372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-mercer-colo-2001.