State Ex Rel. Oklahoma Bar Association v. Pacenza

2006 OK 23, 136 P.3d 616, 2006 Okla. LEXIS 20, 2006 WL 999976
CourtSupreme Court of Oklahoma
DecidedApril 18, 2006
DocketSCBD 4983
StatusPublished
Cited by55 cases

This text of 2006 OK 23 (State Ex Rel. Oklahoma Bar Association v. Pacenza) 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. Pacenza, 2006 OK 23, 136 P.3d 616, 2006 Okla. LEXIS 20, 2006 WL 999976 (Okla. 2006).

Opinion

WATT, C.J.

¶ 1 The complainant, Oklahoma Bar Association (Bar Association), charged the respondent, Franklin J. Pacenza (Pacenza/at-torney), with two counts of professional misconduct involving a contract of deed executed between Eric and Tina Richards (collectively, Richards) and the attorney covering real property in Creek County, Oklahoma. The Bar Association alleged that the attorney’s actions in regard to the contractual relationship amounted to engaging in conduct involving dishonesty, fraud, deceit or misrepresentation. 1

¶ 2 Upon a de novo review, 2 we hold that clear and convincing evidence 3 supports findings of the attorney’s dishonest, fraudu *619 lent, deceitful and misleading actions resulting in significant economic harm to the Richards, embarrassment to the legal profession and this Court and an undermining of public confidence in the Bar Association and its members. Further, we determine that the respondent’s misconduct, not unlike that having occurred in two previous disciplinary proceedings, 4 considered with discipline administered in similar cases 5 and the attorney’s unwillingness to acknowledge any wrongdoing warrants a suspension of two years and one day along with the payment of $4,456.41 in costs. 6

FACTS

¶ 3 The gravamen of this complaint centers on real property (property) in Creek County. In 1997, Pacenza was hired by Vernon Loveless (Loveless) to foreclose the interest of Fred Monachello (Monachello) in the property for failure to meet the terms of a note and mortgage. The property consisted of approximately eight acres and an uncompleted “shell” home. Pacenza was successful in getting judgment against Monachello and the property was offered at a sheriffs sale. Loveless appeared at the sale, bidding two-thirds of the appraised price. However, the bid money was never paid and no sheriffs deed issued.

¶ 4 On August 25, 1988, the attorney withdrew from the foreclosure action without permission of the trial court and subsequently entered into an agreement with Loveless for purchase of the property. 7 In exchange for a $2,000.00 credit on his attorney fee and payment of $8,000.00, Loveless granted the attorney a general warranty deed, signed on October 2, 1998. The deed was not filed of record until January 2, 2002—-almost three years after Pacenza entered into the contract for deed with the Richards and subsequent to the Richards having brought suit against the attorney for damages.

¶ 5 In 1999, the Richards saw the property advertised for sale and contacted a local real estate agent who directed them to the property and to Pacenza’s office. The Richards were accompanied by Mrs. Richards’ sister, Janelle Koontz Massey (Massey/sister), when they went to the attorney’s workplace. The same day, February 15, 1999, the Richards executed a contract for deed prepared by the attorney for a total purchase price of $30,000.00. The contract states that Pacenza will provide the Richards with a warranty deed upon payment of the contract price. 8

¶ 6 The testimony concerning the meeting with Pacenza is conflicting on several points. First, Mrs. Richards and her sister testified that they asked the attorney whether they needed independent legal representation and were told the extra expense would be unnecessary as Pacenza was a “real estate attorney.” 9 Initially, Pacenza testified that he *620 didn’t recall whether the Richards asked if they should seek independent legal advice. Subsequently, he stated that there may have been “some discussion” about the Richards getting an attorney but that he didn’t tell them not to see another legal advisor. 10 Nevertheless, the attorney did admit that he may well have made some representations that he does real estate work. 11

¶ 7 Mrs. Richards stated that her sister specifically asked the attorney whether the title was free and clear and that Pacenza responded affirmatively. 12 She also testified that the attorney did not disclose: the existence of $300,000.00 in IRS tax liens against the property; title problems existing as a result of the incomplete foreclosure action; or that she and her husband could only expect a merchantable title upon the payment of cash in hand to the attorney. 13 Massey acknowledged that Pacenza mentioned there were some back taxes owed on the property. Nevertheless, she stated that he assured the Richards that their $500.00 deposit money and the additional $4,500.00 they placed with him would take care of bringing the taxes up *621 to date. 14 If she had been aware of the $300,000.00 in IRS tax liens and the incomplete foreclosure action, Massey testified that she would have advised the Richards to fore-go entering the contract for deed. 15

¶ 8 Before the trial panel, Pacenza admitted that he did not disclose the existence of the $300,000.00 in IRS tax liens because he did not believe the liens attached to his interest in the real property. 16 Furthermore, he acknowledged that he was fully aware of the condition of the title when the contract for deed was entered. 17 He also stated that if he had been in the Richards’ position he would have wanted a title opinion and knowledge of whether the property was subject to an incomplete foreclosure action. 18 Nevertheless, the attorney does not believe that he did anything wrong or out of order in the real estate transaction. 19

¶ 9 The couple invested countless hours of time and hard work and thousands of dollars in improvements to the real property. 20 The Richards first realized there might be title problems when they decided to move and to sell their interest. They received an offer from a couple, the Clingnenpeels. The Rich *622 ards approached Pacenza with an offer from the prospective buyers who wanted to take over the payments the Richards were making on the contract for deed and buy out them equity. Apparently, this occurred sometime before Christmas of 2000. Although Pacenza agreed to this arrangement and promised to have the paperwork completed before the holiday, he kept putting the transfer off stating that he had some tax problems to clear up on the property.

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Bluebook (online)
2006 OK 23, 136 P.3d 616, 2006 Okla. LEXIS 20, 2006 WL 999976, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-oklahoma-bar-association-v-pacenza-okla-2006.