People v. Vigil

929 P.2d 1311, 1996 Colo. LEXIS 751, 1996 WL 718195
CourtSupreme Court of Colorado
DecidedDecember 16, 1996
Docket96SA361
StatusPublished
Cited by3 cases

This text of 929 P.2d 1311 (People v. Vigil) 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. Vigil, 929 P.2d 1311, 1996 Colo. LEXIS 751, 1996 WL 718195 (Colo. 1996).

Opinion

PER CURIAM.

A hearing panel of the supreme court grievance committee approved the findings and recommendations of a hearing board that the respondent in this lawyer discipline proceeding be disbarred. Neither the respondent nor the deputy disciplinary counsel has excepted to the panel’s action. We accept the hearing panel’s recommendation.

I

The respondent was admitted to practice law in Colorado in 1976. Because he failed to answer the formal complaint filed by the deputy disciplinary counsel, a default was entered against him, and the allegations of fact contained in the complaint were deemed admitted. C.R.C.P. 241.13(b); People v. Barr, 855 P.2d 1386, 1386 (Colo.1993). Based on the respondent’s default and the evidence presented by the complainant, the board made the following findings.

On June 2,1992, Melissa Doll was involved in a serious automobile accident. She remained in a coma for about two weeks and *1312 was hospitalized for a total of three months in Colorado and Pennsylvania. She was twenty-four years old. Ms. Doll was incapacitated for several months and she continues to suffer from memory loss and other residual effects of her head injury.

The respondent knew Ms. Doll from the athletic club where she worked. Shortly after the accident, the respondent petitioned the probate court to become Ms. Doll’s temporary conservator, after consulting with her father who lived in Pennsylvania. John Doll was ill at the time and could not stay in Colorado to assist his daughter. The respondent did not request that a guardian ad litem be appointed. He was approved as temporary conservator on June 15, 1992. The respondent’s petition for appointment requested limited authority to confer with Ms. Doll’s employer, negotiate PIP claims with the insurance company, and make initial contact with the insurance companies regarding their liability to Ms. Doll. The respondent’s conservatorship was valid until September 15,1992.

Melissa Doll’s brother, Steve, was also a passenger in the car, but he was less seriously injured. The respondent entered into an agreement with the brother to handle his personal injury claim.

In July 1992, the respondent retained James DeRose, his father-in-law and a lawyer, to handle Melissa Doll’s personal injury claim. The respondent, on the protected person’s behalf, signed a contingent fee agreement which provided that his father-in-law would receive 20% of any settlement amount recovered. The respondent neither obtained nor sought the required court approval to enter into the contingent fee agreement.

The driver’s insurance policy had a maximum liability limit of $300,000 per accident, without regard to the number of claimants. Melissa Doll and her brother therefore had to compete for their share of that amount. The respondent eventually settled Steve Doll’s claim for $80,000. In September 1992, the respondent’s father-in-law settled the protected person’s claim for $220,000. De-Rose performed limited services to obtain his $44,000 fee, consisting of a brief exchange of correspondence with the insurer. Before the insurer issued the settlement check, but after the respondent’s temporary conservatorship had expired, the respondent and John Doll authorized the appointment of DeRose as trustee for Melissa Doll.

DeRose drafted the trust agreement that the respondent signed as conservator to create the trust, without the approval of the court. While the order of temporary con-servatorship did not specifically require court approval for such action, the probate court expected the respondent to obtain court approval for extraordinary actions and expenditures. In addition to naming the respondent’s father-in-law as trustee, the trust provided that the corpus and income were to be applied by the trustee solely for the benefit of Melissa Doll until her death, until she reached the age of forty, or until the corpus was exhausted. DeRose had “uncontrolled discretion” to make investments, purchase property, to loan, mortgage, lease, acquire or dispose of trust property, and to receive reasonable compensation for his duties as trustee.

The hearing board found, however, that the trust drafted by DeRose did not include language protecting the beneficiary from being disqualified for Medicaid benefits. Because Melissa Doll has no other assets or income, the board concluded that the protection of the trust assets and Medicaid eligibility were major considerations in the creation of the trust and acceptance of a settlement. As a result of these problems in the drafting of the trust signed by the respondent, Melissa Doll became liable to the State of Colorado for Medicaid payments made to her and she was potentially disqualified from receiving further benefits.

About one month after the trust was funded, the respondent’s wife received $70,000 from the trust for a mortgage on a commercial building that the respondent uses in part as a law office. The respondent’s father-in- *1313 law, the trustee, drafted the note. The respondent and his wife made regular payments on the note until the property was refinanced in summer 1994. The net proceeds from the 1994 sale were deposited into the trust.

DeRose also authorized the use of $73,000 of trust funds for the purchase of the house of respondent’s parents. The house was then leased back to the parents for an amount below market value. The respondent’s parents failed to make rental payments to the trust for a period of several months, but the trustee brought no enforcement action against respondent’s parents.

The respondent signed a Medicaid application which notified him that he was required by law to report any personal injury settlement to the Department of Social Services. Nevertheless, the respondent failed to report the settlement.

Many of Melissa Doll’s medical bills that were not covered by insurance were paid by Medicaid. Eighteen months after the respondent’s application for Medicaid, social services began to inquire into the ease. In April and October 1993, a Colorado Senior Assistant Attorney General sent letters to the respondent regarding the state’s claims. The respondent did not reply. The attorney general then sent a demand letter to DeRose for the amount paid by Medicaid on behalf of Melissa Doll. In early March 1994, the respondent and his father-in-law appeared at the attorney general’s office to discuss the state’s claim. The attorney general noted that the trust drafted by DeRose did not shield the beneficiary from Medicaid collections. Apparently out of sympathy for Melissa Doll, the attorney general agreed to accept $47,000 in full settlement of the Medicaid claims, paid from trust funds. Doll eventually was reimbursed by the state after her subsequent lawyer discovered an error in the calculations.

After the respondent’s temporary conser-vatorship terminated, he continued to perform various legal tasks for Melissa Doll, including communicating with social services and the Office of the Attorney General about the Medicaid issue.

At no time did the respondent disclose any of the potential or real conflicts of interests to Melissa Doll, nor did he divulge his relationship with DeRose.

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Related

People v. Calvert
280 P.3d 1269 (Supreme Court of Colorado, 2011)
People v. Vigil
945 P.2d 1385 (Supreme Court of Colorado, 1997)
People v. DeRose
945 P.2d 412 (Supreme Court of Colorado, 1997)

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Bluebook (online)
929 P.2d 1311, 1996 Colo. LEXIS 751, 1996 WL 718195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-vigil-colo-1996.