State Ex Rel. Oklahoma Bar Ass'n v. Israel

2001 OK 42, 25 P.3d 909, 72 O.B.A.J. 1498, 2001 Okla. LEXIS 45, 2001 WL 514414
CourtSupreme Court of Oklahoma
DecidedMay 15, 2001
DocketSCBD 4524
StatusPublished
Cited by51 cases

This text of 2001 OK 42 (State Ex Rel. Oklahoma Bar Ass'n v. Israel) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Oklahoma Bar Ass'n v. Israel, 2001 OK 42, 25 P.3d 909, 72 O.B.A.J. 1498, 2001 Okla. LEXIS 45, 2001 WL 514414 (Okla. 2001).

Opinions

BAR DISCIPLINARY PROCEEDING.

HODGES, J.

¶1 This bar disciplinary proceeding examines ethical issues surrounding Respondent's representation of a client in a paternity and child support proceeding while a corporation in which Respondent was a shareholder contracted with the client for collection of child support. This proceeding also examines Respondent's management of client funds and a lawyer's duty to withdraw from representation when discharged by the client. Following an extensive review of the factual allegations and the evidence presented, this Court finds that Count III of the complaint has been proven by clear and convincing evidence. Public censure is imposed as the appropriate discipline.

FACTS

¶ 2 In April, 1994, Howard Israel (Respondent) and Barbara O'Berg, a non-lawyer, incorporated Child Support Services, Inc. (CSS). The purpose of CSS was to help single mothers with children collect court-ordered child support. Respondent and O'Berg were each 50 per cent shareholders. Respondent drafted the documents and forms used by CSS and served as its service agent. At the same time, he would contract separately, as a lawyer, to obtain a support order for the client and establish paternity if necessary. O'Berg's duties were to market CSS, answer the telephone, interview prospective clients, take information and perform general clerical duties.

¶3 On August 10, 1994, Stacy Renne executed an agreement with CSS for child support collection. It provided:

AGREEMENT
I hereby retain Child Support Services of Oklahoma, Inc. ("CSS") to represent me, Stacy Renne', for child support collection.
I agree to pay said fees as follows:
$25.00 non-refundable Application Fee; and
25% of all monies collected.
I further agree that all court costs, subpoena costs, photocopies, photos, depositions, court reporter costs, and all other out-of-pocket expenses shall be advanced by CSS but will be ultimately paid by Client. Client will advance Blood Test costs only if ordered to do so by the court.
The fees enumerated above include all trial court proceedings but do not include appeal from an adverse ruling of the trial court. In the event an appeal should become necessary in this matter, such services will be contracted separately.
It is agreed that Howard F. Israel, attorney at law, working in conjunction with CSS, will appear on my behalf or undertake my legal representation in this matter.
I further agree that CSS makes no warranties regarding the successful collection of any monies for child support. No representation is made by CSS that any contribution by the other party will be obtained towards the Client's legal fees or costs. In the event, however, that such a contribution is obtained, that amount will be credited toward any fees and costs owed. If none is owed, the amount will be delivered to Client.
I hereby authorize all child support payments to be made directly to CSS. In the event CSS has not been paid in full for fees which are due it under this agreement at the time any child support is paid to me as a result of the services rendered in this action, I hereby grant CSS a lien and agree that CSS may deduct all fees due it from any child support paid to it on my behalf before paying the balance to me.
[911]*911If at any time CSS determines, in its sole discretion, that child support is uneol-lectible, it may cease collection efforts and terminate its obligations under this Agreement. If such a decision is made and communicated in writing to the Client then NO FEES OR EXPENSES are due to CSS.
If the Client terminates this Agreement at any time prior to successful completion by CSS, then Client agrees that it owes to CSS the benefit of its bargain which is the fees CSS could have collected and the lien and assignment of Child Support shall not be terminated.
The above agreement is hereby accepted on the terms stated. CSS agrees to make no charge for services unless recovery is had in this matter. In addition, CSS agrees to make no settlement without the consent of the Client.

The same day, Renue executed a fee agreement whereby she retained Respondent to establish paternity of her minor child and obtain a child support order. It provided:

FEE AGREEMENT FOR HOURLY FEE

I, Stacy Renne', of Oklahoma City, Oklahoma, the "Client", hereby agree to retain the law firm of Howard F. Israel, P.C., the "Firm", in connection with establishing paternity of my minor child/children.
1. The Firm upon receipt of a fully signed copy of this Agreement, agrees to represent Client in connection with this matter.
2. The Firm will bill the Client monthly on a time-expended basis at the hourly rate of $125.00 per billable hour. The Firm agrees to be compensated from future child support collections. The Client agrees, that Child Support Services of Oklahoma, Inc. may deduct the full amount of the Firm's fees from child support collections, not to exceed 25% of any amount collected.
3. It is impossible to determine in advance the amount of time that will be needed to complete Client's matter. Any time spent relative to the Client's matter, including conferences, telephone calls, drafting documents, research, necessary travel time, ete. will be billed on an hourly basis. Time will be billed in multiples of 10ths of an hour. A minimum of 2/10ths of an hour shall be billed for each action performed.
4. Over the years, the Firm has spent countless hours developing agreements, forms and documents. The value of these to the Client cannot be measured merely by the time it may take to adapt them to the Client's case. Therefore, if one of these documents is used in the Client's matter, the Client will be billed at an institutional rate, plus the time taken to adapt it to the Client's matter.
5. The Client agrees to assume and pay for all out-of-pocket costs incurred in connection with this matter (e.g., sheriff's fees, filing fees, witness fees, travel, expenses of deposition, investigative expenses, copying, long distance telephone charges, extraordinary postage and other incidental expenses). All expenses will be advanced by the Firm EXCEPT FOR costs of any blood test.
6. To the extent of any fees and costs due to the Firm pursuant to this Agreement, Client hereby assigns to the Firm any and all funds and property due to, or received for the benefit of, the Client arising out of the subject matter of this representation.
7. No representation is made that any contribution by the other party will be obtained toward the Client's legal fees or costs. In the event, however, that such a contribution is obtained for the benefit of Client, the amount in question will be ered-ited against any fees and costs owed. If none are owed, the amount will be delivered to the Client.
8. It is further understood that this Agreement provides for services through trial on the merits of the case.

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Bluebook (online)
2001 OK 42, 25 P.3d 909, 72 O.B.A.J. 1498, 2001 Okla. LEXIS 45, 2001 WL 514414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-oklahoma-bar-assn-v-israel-okla-2001.