The Florida Bar v. Hagglund

372 So. 2d 76, 1979 Fla. LEXIS 4688
Supreme Court of Florida·Decided June 7, 1979·No. 53459·Published·Cited by 5 cases

Opinion

372 So.2d 76 (1979)

THE FLORIDA BAR, Complainant,
v.
Clemens HAGGLUND, Respondent.

No. 53459.

Supreme Court of Florida.

June 7, 1979.

Thomas R. Hess, Bar Counsel, Daytona Beach, and H. Glenn Boggs, II, Asst. Staff Counsel, Tallahassee, for complainant.

Andrew Baron, Orlando, and R.J. Beckham, of Beckham, McAliley & Proenza, Jacksonville, for respondent.

PER CURIAM.

This disciplinary proceeding against a member of The Florida Bar is before the court upon report and recommendation of a referee and the petitions of both parties for review. Art. V, § 15, Fla. Const.; Fla.Bar Integr.Rule, art. XI, Rule 11.06(9), 11.09.

Following a finding of probable cause by a Florida Bar grievance committee, a disciplinary trial was held before a referee. The referee's essential findings of fact as to the items of misconduct alleged in the bar's complaint are as follows:

In 1967, Mrs. Evelyn Robitaille purchased an auto tag business in Dade County, Florida. Mrs. Robitaille represented by no attorney other than Respondent received $7,500 from the Respondent which is evidenced both by a written agreement drawn by the Respondent and a promissory note to the Respondent, and gave the previous owner of the business a mortgage for $7,500. Respondent did not advise Mrs. Robitaille that they had conflicting interests. At this late date, more than ten years after the entry into said business arrangement, it is impossible to ascertain the exact nature of the business arrangement between the Respondent and Mrs. Robitaille, but that a finding is made that the Respondent was something more than a mere lender to the business, and in fact, had managerial control over the business, regularly frequented the office of the auto tag business, had certain financial responsibilities in conjunction with said business, and provided regular business and financial consultation to said business, and during the said entire period of time was also the attorney for said *77 business, charging attorney's fees for his services. The contention that the Respondent was a partner of Mrs. Robitaille in this business has neither been proved nor disproved. Respondent refers to himself as an investor.
Respondent invested $7,500 in this business, obtaining from Mrs. Robitaille both an option to purchase and a promissory note, Exhibits C and D.
The Respondent candidly admits that he did not advise or recommend that the complaining witness obtain independent legal advice and complaining witness confirms that she did not seek independent legal advice in this matter.
If Respondent ever intended to become a partner in the business, he exercised his authority only by the actual acts of management and physically attending to the affairs of the business. He never took the required examination imposed by Dade County upon persons engaged in this business and never exercised his option and the business terminated with a loss to all concerned as a result of a burglary in 1969.
That while the business was being operated, Respondent functioned in the dual capacity of attorney, for which he received fees, and an optionholder who took an active part in the management of the business.
The company that bonded the auto tag agency brought suit against Mrs. Robitaille as she was technically the sole owner of the business venture as reflected by all public documents pertaining to same.
During the course of the business, Mrs. Robitaille made several payments to the Respondent towards the repayment of the loan or investment which had been made to her, and checks evidencing said payment have been admitted into evidence. Specifically, checks dated December 30, 1967, in the amount of $500, January 29, 1968, in the amount of $500, and October 15, 1968, in the amount of $762.36, were all delivered to the Respondent as repayment upon said loan or investment. Additional evidence was presented to the Referee pertaining to repayment of said loan or investment, which evidence included numerous checks testified to by Mrs. Robitaille as having been payment upon said loan or investment. It is impossible to ascertain which part, if not all, of said payments were in fact made as repayment toward said loan or investment to the Respondent, but that a finding of fact is made that at least some part thereof, even though the exact amount thereof cannot be ascertained, was additional repayment towards said loan, if in fact it was a loan as distinguished from an investment, and that additional parts thereof included several payments to the Respondent which paid his fees for legal services rendered by him to the business.
After the automobile tag agency's license was revoked and the business ceased operations, the Respondent and Mrs. Robitaille had a discussion regarding the termination of said business, and during said discussion, the Respondent advised Mrs. Robitaille that as the business was now defunct, he would not require or request her to make good on the balance of said $7,500, and that the Respondent did subsequently take a deduction from his Federal Income Tax Return due to the failure of Mrs. Robitaille to repay him the balance of the $7,500.
More than four years later in late 1973, the mother of Mrs. Evelyn Robitaille died. Shortly after the death of Evelyn Robitaille's mother, Mrs. Robitaille called the Respondent and advised him of her death and told the Respondent that she would like to see him to confer with him about her mother's Will and her mother's estate. It was through this telephone conversation that the Respondent learned that Mrs. Robitaille stood to inherit a house from her mother.
Subsequent to that telephone conversation, the Respondent did in fact visit the home of Mrs. Evelyn Robitaille, and at Mrs. Robitaille's home in the presence of Mr. Larry McGill, the Respondent conferred with Mrs. Robitaille about the death of Mrs. Robitaille's mother and the *78 existence of her mother's Will, the status of the suit of the bonding company against Mrs. Robitaille upon the bond pertaining to the auto tag agency theft, and the intention of the Respondent to file a lawsuit against Mrs. Robitaille shortly thereafter. Regarding those matters which were conversed and those things that transpired at the home of Mrs. Evelyn Robitaille, specific findings of fact are made:
By the testimony of the Respondent, Clemens Hagglund, and by his own admission, he had, prior to the visit to the home of Mrs. Evelyn Robitaille, formed an intent to sue her and pursue said litigation to final judgment and collection thereon.
That a substantial conflict of interest existed between the Respondent, Clemens Hagglund, and Mrs. Evelyn Robitaille. Said conflict may have existed as early as the entry into of the business relationship between the Respondent and Mrs. Robitaille in February of 1967, and definitely existed at the time that Clemens Hagglund formed his intent to sue Mrs. Robitaille and was in existence at the time that Clemens Hagglund went to the home of Mrs. Robitaille.
Upon the visit to the home of Mrs. Robitaille, the Respondent should have advised her to obtain independent counsel not selected or recommended by the Respondent, to fully represent her and defend her, in any claim that he would commence against her, but that he did not in fact do this. That Clemens Hagglund should not have continued to advise Mrs.

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The Florida Bar v. Hagglund, 372 So. 2d 76, 1979 Fla. LEXIS 4688 (Fla. 1979).

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