State Ex Rel. Oklahoma Bar Association v. Hatcher

452 P.2d 150
CourtSupreme Court of Oklahoma
DecidedMarch 4, 1969
DocketS.C.B.D. 2182
StatusPublished
Cited by15 cases

This text of 452 P.2d 150 (State Ex Rel. Oklahoma Bar Association v. Hatcher) 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 Association v. Hatcher, 452 P.2d 150 (Okla. 1969).

Opinion

JACKSON, Justice.

This is a bar disciplinary matter in which, after a full hearing pursuant to the Rules Creating, Regulating and Controlling the Oklahoma Bar Association, the Trial Authority found that respondent, Ben N. Hatcher, had violated the provisions of 5 O.S.1961, Sec. 7, and Canons 7 and 11 of the Canons of Professional Ethics, which have been adopted by this Court as the standards of professional conduct for members of the Oklahoma Bar Association.

The charges against respondent grew out of his representation of a Mr. Stelzer, in connection with a claim for damages for personal injuries.

5 O.S.1961, Sec. 7, in effect limits attorney fees under a contingent fee contract to not more than 50% of the amount of the net recovery. The violation of Canon 11, found by the Trial Authority, consisted of a failure to properly account for funds of the client in the respondent’s hands. The violation of Canon 7 consisted of the acceptance of employment from Stelzer knowing that Stelzer had previously retained another attorney to handle the claim, *152 without first consulting with such attorney. The argument of respondent consists chiefly of a discussion of the weight of the evidence and the proper disciplinary action, if any, to be taken.

We have carefully examined the record before us and find that the Trial Authority’s findings of fact are amply supported by the evidence.

Summarized, the evidence shows that on January 17, 1966, an Employee’s First Notice of Injury (form 3) was filed with the State Industrial Court on behalf of Stelzer by Mr. W., an Oklahoma City attorney. The claim recited an injury resulting from a fall from a ladder on a ranch in Texas County, Oklahoma, on August 21, 1965. On March 23, 1966, respondent agreed to represent Stelzer in connection with the same claim, with knowledge that Mr. W. had previously been retained. The written contract between respondent and Stelzer called for a fee of “20% if industrial, 35% plus costs and expenses if civil”. Respondent testified that he conferred with Mr. W. by phone that day; however, the record shows that Stelzer signed a claim that day (Mar. 23, 1966) and respondent filed it in the Industrial Court the next (Mar. 24, 1966) reciting the same accident described in the claim filed on Mr. Stelzer’s behalf by Mr. W. Mr. W. testified that he was not contacted until March 28th, 1966, at which time he told respondent to “go ahead with the case and any fee we’ll split down the middle”. The claim in the State Industrial Court was later dismissed for want of jurisdiction as was anticipated by Mr. W. and respondent. Mr. W. never received an answer to his letter of May 4, 1967, inquiring about the Stel-zer case.

On October 12, 1966, respondent filed a civil action for damages, based upon the same injury, in the District Court of Texas County at Guymon, Oklahoma. In January of 1967, Stelzer received a check for $671.00 representing accrued Social Security benefits. He was then living in Oklahoma City and respondent helped him cash the check at an Oklahoma City bank, retaining $270.00 from the proceeds of the check, with Stelzer’s consent, for use as expense money in prosecuting the civil suit at Guymon. The evidence also establishes that Stelzer advanced $25.00 in cash to respondent for court costs, and that respondent received the proceeds of a $53.00 check to Stelzer from an insurance company for expenses in connection with a deposition.

On December 5, 1967, the damage suit was settled by compromise for $1000.00. A check in that amount payable to Stelzer and respondent was delivered by defendant’s insurance carrier to respondent. On December 8, 1967, Stelzer came to respondent’s office, endorsed the $1000.00 check and received respondent’s check for $385.00. At that time he signed the following “settlement statement”:

Fee 35% 350.00
Depositions 67.50
Costs, District Court 35.00
Costs, Industrial Court 5.00
Loan 4-28-67 8.00
Deposition and Dr. Faris
Medical Report 150.00
$615.00
Mileage and expense to Guymon, Oklahoma, previously paid by Stelzer 270.00
1000.00
615.00
385.00
I have settled and received my money in full less fees, costs, depositions, loan and medical bills.
Signed: Cecil Stelzer

Respondent obviously intended this as a final settlement between himself and his client. At that time Mr. Stelzer had the following sums invested in the case: $25.00, $53.00, and $270.00, a total of $348.00. From this sum must be deducted an item of $8.00 that respondent had loaned to Mr. Stelzer, leaving a net investment in the case for Mr. Stelzer the sum of $340.00. When $340.00 is subtracted from $385.00, the amount received from respondent, Mr. *153 Stelzer had a return of $45.00 out of this litigation. This settlement remained final until after respondent’s conduct was brought to the attention of the Oklahoma Bar Association.

The fee charged in this case would have been excessive even if the contingent fee contract called for 50% of the recovery. In 5 O.S.1961, Section 7, it is provided in effect that an attorney may contract for a percentage of the recovery, not to exceed 50% of the net amount recovered. Schaff v. Richardson, 120 Okl. 70, 254 P. 496; Armstrong v. Martin, 203 Okl. 565, 223 P.2d 1072; In re Choate, 174 Okl. 446, 50 P.2d 706.

On Dec. 18, 1967, Stelzer presented to the Oklahoma Bar Association an almost illegible written complaint regarding the $270.00 which ended “all I want is it back”. The next day, pursuant to the Rules Creating, Regulating and Controlling the Oklahoma Bar Association, respondent was notified in writing of the nature of the complaint. On January 4, 1968, respondent mailed a letter to bar counsel in the nature of a response to the informal complaint. In it, he outlined many of the facts already recited herein, including receipt of the $270.00 advanced by Stelzer, which he said was to be used for his expenses in “investigation and filing and trying the case at Guymon”. He attached to the letter a copy of the settlement statement set out above, and a copy of his contract with Stelzer.

On January 11, 1968, in response to a request for an itemized statement concerning the expenditure of the $270.00, respondent mailed to bar counsel a letter detailing expenses incurred on two different trips of one day each from Oklahoma City to Guy-mon. This statement totaled $320.00, and included charges of $120.00 for mileage and meals and $200.00 ($100.00 per day) for “absence from the office”.

The item of two trips to Guymon at the rate of $100.00 per day ($200¡.00) for “absence from the office” was not an item of expense, but a cash fee and an improper charge under the written contract.

At the end of respondent’s letter to General Counsel, dated January 11, 1968, is the following paragraph:

“At the time Mr.

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452 P.2d 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-oklahoma-bar-association-v-hatcher-okla-1969.