State v. Mahoney

908 A.2d 162, 188 N.J. 359, 2006 N.J. LEXIS 388
CourtSupreme Court of New Jersey
DecidedApril 19, 2006
DocketA-10 September Term 2005
StatusPublished
Cited by23 cases

This text of 908 A.2d 162 (State v. Mahoney) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Mahoney, 908 A.2d 162, 188 N.J. 359, 2006 N.J. LEXIS 388 (N.J. 2006).

Opinion

Justice RIVERA-SOTO

delivered the opinion of the Court.

Defendant Anthony Mahoney, a practicing attorney at law in this State, was convicted by a jury of stealing client funds entrusted to him. The jury determined that defendant committed a series of crimes by delaying the disbursement of funds owed to his clients, and by forging endorsements on a settlement check and depositing it without authorization. On defendant’s appeal, the Appellate Division reversed, holding that “the trial court improperly excluded substantial portions of proffered testimony by defendant’s character witnesses[;]” that “[t]he trial court also improperly submitted to the jury the full text of Rule 1:21-6 ____ [and failed] to provide instructions to the jury on how to consider and apply the Rule’s directives to the facts of this criminal case[;]” and that “certain statements made by the prosecutor during summation were so egregious that they deprived defendant of his right to a fair trial.” State v. Mahoney, 376 N.J.Super. 63, 72-73, 868 A.2d 1171 (App.Div.2005).

We disagree with two of the three conclusions advanced by the Appellate Division. We hold that the trial court’s limitation on the testimony of defendant’s proffered character witnesses, prohibiting any testimony either as to specific interactions with defendant or defendant’s skills as a lawyer, was proper. We also hold that the complained-of closing argument statements by the prosecutor did not deny defendant a fair trial. However, we do agree with the Appellate Division that the submission to the jury of the plain text of R. 1:21-6 — a rule of court that details an attorney’s recordkeeping and trust fund accounting requirements — without appropriate guidance from the court was error. Therefore, we *363 affirm in part and reverse in part the judgment of the Appellate Division, reinstate defendant’s third-degree forgery convictions, and remand for a new trial on the remaining counts of the indictment charging defendant with third-degree theft by failure to make required disposition of property and third-degree misapplication of entrusted property.

I.

As of the time relevant to this appeal, defendant had been licensed as an attorney at law in the State of New Jersey for almost twenty-eight years, the greater part of which was spent in partnership with his brother, who also is an attorney at law. Although defendant’s practice included some transactional work, defendant focused almost exclusively on litigation matters. It was as part of his litigation practice that defendant was engaged to represent Clark and Barbara Ferry in connection with the wrongful death of their twenty-one year old son, Clark Jr., who was struck and killed by a car in February 1998 as he was crossing a road late at night. 1 Later that spring, when the insurance carrier for the driver of the car who struck their son sought to contact the Ferrys, they asked defendant to handle the matter for them.

In December 1998, after some initial contacts between defendant and the insurance carrier, defendant sent a retainer agreement to Barbara Ferry. After reaching agreement on the terms of defendant’s retention and compensation, Mrs. Ferry signed the retainer agreement as administratrix ad prosequendum of her deceased son’s estate. The execution of the retainer agreement was followed by a January 4, 1999 meeting at the Ocean County Surrogate’s Office between the Ferrys and defendant, where both the Ferrys applied for appointment as administrators ad prosequendum of their son’s estate. This commonplace meeting and appearance at the Surrogate’s Office takes on added significance in light of later events.

*364 Approximately eight days later, the Ferrys received a letter from the insurance carrier advising them that the claim concerning their son’s death had been settled for the sum of $75,000. That letter also informed the Ferrys that a check in that amount, made payable to “Clark Ferry & Barbara Ferry, as Administrators Ad Prosequendum [of the] Estate of Clark Ferry, Jr., and Mahoney & Mahoney, as attorneys,” had been sent to defendant. The testimony concerning the receipt of this letter was in some conflict. According to Barbara Ferry, she did not read the letter from the insurance carrier when it arrived. She left it for her husband to read and they did not discuss its contents until October 1999. In contrast, Clark Ferry testified that when he read the letter from the insurance carrier, he discussed it with his wife and asked her to call defendant for clarification of its contents. In either event, Barbara Ferry telephoned defendant in March 1999 inquiring whether the settlement funds, net of defendant's fees and expenses, could be released to them.* 2 She was told by defendant that he could not do so because he was still waiting for certain tax releases.

In April 1999, the Ferrys decided to refinance their home. They again asked defendant when their $50,000 would be released to them so they could pay off their second mortgage. Defendant again stated that the funds could not yet be released, claiming the absence of purportedly necessary tax releases. After a second inquiry also relating to their proposed refinance, and after again being told that the settlement funds still could not be released due to absence of tax releases, the Ferrys abandoned their refinancing efforts. A few months later, in August 1999, Clark Ferry again contacted defendant and inquired as to the release of the $50,000 in settlement funds and was told that defendant planned to file a motion the following month for the release of the settlement funds.

*365 Finally, in October 1999, Barbara Ferry contacted someone known to her who was on the staff of a New Jersey State Senator for assistance in determining what was delaying the release of the funds. It was at that point that Barbara Ferry realized that the settlement check had been issued payable to multiple payees: to Clark and Barbara Ferry, as administrators of their son’s estate, and to defendant’s law firm, as the attorneys for the decedent’s estate. Barbara Ferry then secured a copy of the front and back of the cancelled $75,000 settlement check and for the first time became aware that it had been signed both on her behalf and her husband’s behalf. Both the Ferrys testified that the signatures were not theirs and that they had not granted anyone authorization to sign on their behalf. Barbara Ferry then contacted defendant’s office and was told that, at long last, the necessary releases had been secured and that the funds should be in her hands by month’s end.

The Ferrys’ suspicions were aroused. They contacted the Westfield Police Department, the municipality where defendant’s law offices were located, and were directed to the Union County Prosecutor’s Office. The Appellate Division succinctly summarized the events that followed:

On December 16, 1999, Mrs. Ferry called defendant from the Westfield Police Department. A recording of the call was played for the jury. In the conversation, defendant tells Mrs.

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Bluebook (online)
908 A.2d 162, 188 N.J. 359, 2006 N.J. LEXIS 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-mahoney-nj-2006.