State ex rel. Spillman v. Priest

242 N.W. 433, 123 Neb. 241, 1932 Neb. LEXIS 185
Nebraska Supreme Court·Decided May 11, 1932·No. No. 26159·Published·Cited by 26 cases

Opinion

Day, J.

This is a supplemental application by John M. Priest for reinstatement as an attorney and counselor at law. The applicant was disbarred by this court February 13, 1929. State v. Priest, 118 Neb. 47. The ground of disbarment was that Priest as an attorney in his professional capacity had appropriated to his own use money belonging to his client. The client had, prior to the disbarment proceedings, secured a judgment against the attorney for the amount converted, which had been affirmed upon appeal to this court. The original motion for reinstatement was filed in this court June 29, 1931, and was overruled by the court. The supplemental application presents practically the same situation as the original motion. Both motions and the showing in connection therewith ground the request upon the fact that Priest has settled the judgment in favor of his former client.

It appears from the reports that the most frequent ground for disbarment of an attorney is the misappropriation of money belonging to his client, which was received in his professional capacity. This is not to say that it is a common occurrence, for, considering the number of transactions and the amount of money handled by attorneys for their clients, it is an uncommon offense. But it ought never to happen. There can be no question that this is a disregard of duty sufficient to warrant disbarment. In re Disbarment of Kahner, 180 Minn. 556; In re Garrity, 60 N. Dak. 454; State v. Priest, 118 Neb. 47; In re Bryans, 52 N. Dak. 673; Slemmer v. Wright, 54 la. 164; In re O-, 73 Wis. 602; State v. Rohrig, 159 Ia. 725; People v. Story, 265 Ill. 207; In re Washington, 82 Kan. 829; Thomas v. Ogilby, 44 Fed. (2d) 890; In re Walder, 247 N. Y. Supp. 14. It has been held that delay and failure of attorney to pay a client money collected for him justifies disbarment (In re Disbarment of Cherry, 166 Minn. 448) even though some of it is remit[244] ted after proceedings are commenced. In re Disbarment of Larson, 169 Minn. 194.

The sole ground for reinstatement of applicant is that he has settled the judgment secured against him by his client for the misappropriated funds. The purpose of a disbarment proceeding is not so much to punish the attorney as it is to determine in the public interest whether he should be permitted to practice. Attorneys, upon their admission to practice law, assume certain obligations and duties, and in their performance they must conform to certain standards in relation to clients, to courts, to the profession, and to the public. State v. Kern, 203 Wis. 178; State v. Barto, 202 Wis. 329; In re Egan, 52 S. Dak. 394.

Ordinarily, settlement with clients on a basis satisfactory to them does not preclude an inquiry into the moral and professional quality of an attorney’s acts in connection with the complaint. 6 C. J. 601. The court will not permit matters affecting the character of its officers to be compromised and settled by private arrangement. People v. Chamberlain, 242 Ill. 260. In the case of In re Davies, 93 Pa. St. 116, in answer to the contention that a settlement operated as a remission of the attorney’s offense, the court said: “This view of the' case ignores the fact that the exercise of the power is not for the purpose of enforcing civil remedies between parties, but to protect the court and the public against an attorney guilty of unworthy practices in his profession. He had acted in clear disregard of his duty as an attorney at the bar, and without ‘good fidelity’ to his client. The public has rights which Mrs. Curtiss (the client) could not thus settle or destroy.” If settlement with the client is not a remission of the offense as to a disbarment proceeding, it loses much of its potency as a ground for reinstatement. The decisive question on such an application is whether the applicant is of good moral character, and is a fit and proper person to be entrusted with the privileges of the office of attorney. 6 C. J. 615; In re Simpson, 11 N. Dak. 526; In re Egan, 52 S. Dak. 394. The [245] conversion of a client’s money by an attorney involves moral turpitude and requires evidence of reformation before such attorney may be reinstated. In re Kaas, 39 S. Dak. 4. A disbarred attorney has the burden of proof to establish good moral character to warrant reinstatement. In re Petition of Morrison, 45 S. Dak. 123. The mere formal proof of good character required under an original application for admission to the bar is not enough. It must overcome the former adverse judgment as to applicant’s character. Ordinarily, settlement will not be given much weight in determining the question of moral fitness for reinstatement, since it may depend more upon financial ability than upon repentance or reformation. In re Hawkins, 4 Boyce (Del.) 200. It cannot be said that it is not some evidence, however slight, for an entire failure to recognize the obligation would indeed be said to indicate a radical misconception of the duty of an attorney to his client.

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State ex rel. Spillman v. Priest, 242 N.W. 433, 123 Neb. 241, 1932 Neb. LEXIS 185 (Neb. 1932).

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