The NORTH CAROLINA STATE BAR v. Ethridge

657 S.E.2d 378, 188 N.C. App. 653, 2008 N.C. App. LEXIS 283
CourtCourt of Appeals of North Carolina
DecidedFebruary 19, 2008
DocketCOA07-802
StatusPublished
Cited by10 cases

This text of 657 S.E.2d 378 (The NORTH CAROLINA STATE BAR v. Ethridge) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The NORTH CAROLINA STATE BAR v. Ethridge, 657 S.E.2d 378, 188 N.C. App. 653, 2008 N.C. App. LEXIS 283 (N.C. Ct. App. 2008).

Opinion

CALABRIA, Judge.

James B. Ethridge (“defendant”) appeals the order of a panel of the Disciplinary Hearing Commission (“DHC”) disbarring him from the practice of law. We affirm.

Defendant received a license to practice law in the State of North Carolina in 1973. In 2004, after practicing law for over thirty years in North Carolina, defendant was elected district court judge. On 16 August 2001, Rosalind W. Sweet (“Ms. Sweet”) met with defendant in his law office in Smithfield, North Carolina for assistance to safeguard property she owned. At the time of this meeting, Ms. Sweet was 69 years old and was suffering from dementia. After the meeting, defendant prepared a deed describing Ms. Sweet’s property as lot number eleven Old Mill Property (“Ms. Sweet’s property” or “the property”). The grantor on the deed for the property was Ms. Sweet and defendant was the grantee. The next day, on 17 August 2001, defendant drove Ms. Sweet to the State Employees Credit Union, where Ms. Sweet maintained a savings account. Ms. Sweet withdrew $14,249.11 from her account and obtained a money order made payable to her in the amount of $14,249.11. Defendant and Ms. Sweet then took the money order to Four Oaks Bank where defendant opened a new, personal account in his name only with the account number ending 706 (“account No. 706”). After endorsing the money order, defendant deposited the entire proceeds into his new account.

Also on 17 August 2001, defendant recorded the deed in the Register of Deed’s Office of Johnston County that transferred Ms. Sweet’s property to defendant. He then attached $24 in revenue stamps to the deed. Defendant mistakenly believed that the $24 value of revenue stamps would reflect that a purchase price of $48,000 had been paid for the property. However, the $24 in revenue stamps represented on the public record only $12,000, not $48,000 of consideration for the property.

On 28 August 2001, Ms. Sweet was placed in a family care home. On 20 September 2001, defendant withdrew $750 from account No. *656 706. On 24 September 2001, defendant wrote a check payable to the Four Oaks Bank in the amount of $13,499.11, that was drawn on account No. 706, and opened another personal checking account at the Four Oaks Bank in his name only, with the account number ending in 606 (“account No. 606”). Defendant deposited the $13,499.11 into his personal account No. 606.

Between 24 September 2001 and 28 September 2001, defendant paid a contractor, Broderick Parrott (“Parrott”), $3,000 in cash from his personal funds as a deposit for repairs to the property. Specifically, Parrott replaced siding, windows, and doors on the property Ms. Sweet deeded to defendant. Between 24 September 2001 and 18 October 2001, defendant wrote three checks, drawn on account No. 606, to himself, his wife, and a third party. The sum of these three checks totaled $850.

On 2 October 2001, attorney Thomas S. Berkau (“Berkau”) filed a petition, on behalf of Ms. Sweet’s nephew, Roosevelt Williams, Jr. (“Williams”), to have Ms. Sweet adjudicated as incompetent because she suffered from dementia and Alzheimer’s disease. On 18 October 2001, Ms. Sweet was adjudicated as incompetent and Williams was appointed as her general guardian.

On 30 October 2001, defendant went to Berkau’s office. Berkau told defendant that he was the attorney for William, Ms. Sweet’s general guardian. Defendant acknowledged to Berkau that Ms. Sweet had conveyed her real property to him and that she had withdrawn funds from her account with the State Employees Credit Union. Defendant agreed to return Ms. Sweet’s property and Berkau told defendant he would send Williams to get Ms. Sweet’s funds from defendant. On 31 October 2001, defendant reconveyed the property to Ms. Sweet, wrote a check payable to cash in the amount of $8,000, drawn on account No. 606, and deposited the check into his trust account.

On 16 November 2001, Williams went to defendant’s office to retrieve Ms. Sweet’s funds. Defendant wrote a check from his trust account in the amount of $8,000 and gave the check to Williams. On 21 December 2001, defendant wrote a check in the amount of $500 payable to cash from account No. 606. Later, on an undetermined date, prior to 2 January 2002, Parrott returned the $3,000 deposit to defendant that defendant previously gave him.

On 2 January 2002, Williams went to defendant’s office demanding that defendant return the remainder of Ms. Sweet’s money. De *657 fendant subsequently wrote a check, from a personal account ending in number 364 (“account No. 364”), in the amount of $4,000 to Williams as guardian ad litem for Ms. Sweet. In addition, defendant prepared a written release for Williams’ signature that “releases and discharges [defendant] from all claims, damages or money that maybe [sic] owed to [Ms. Sweet] arising out of a disputed amount of money that was given to [defendant] to hold for her.” Williams signed the release and received the check.

On 17 January 2001, defendant wrote a check payable to cash, drawn on account No. 606, in the amount of $85. On 4 February 2002, defendant wrote a check to himself in the amount of $3,700 that was drawn on account No. 606, and on the same day deposited this check into his personal bank account No. 364. On 11 August 2003, defendant closed account No. 606 at the Four Oaks Bank by withdrawing the balance in the amount of $243.01.

On 17 May 2006, the State Bar filed a complaint with the DHC against defendant. The State Bar alleged defendant’s conduct violated Rules 8.4, 1.17, and 1.15(a) of the Revised Rules of Professional Conduct. Based on the evidence presented above, the DHC concluded that defendant had violated each of the Rules of Professional Conduct the State Bar claimed. The DHC’s conclusions of law were stated as follows:

a. by depositing the entrusted funds of Ms. Sweet into his own personal checking account, by writing checks from this account to himself and others, by taking cash from this account, and by failing to return portions of Ms. Sweet’s funds to the rightful owner, Defendant misappropriated Ms. Sweet’s funds that had been entrusted to him in a fiduciary capacity to his own use, and thus engaged in criminal acts reflecting on his honesty, trustworthiness, or fitness as a lawyer in violation of Rule 8.4(b), engaged in conduct involving dishonesty, fraud, deceit or misrepresentation in violation of Rule 8.4(c) and prejudiced or damaged his client during the course of the professional relationship in violation of Rule 8.4(g).
b. by depositing the $14,249.11 of Ms. Sweet’s funds into his own personal bank account, Defendant failed to maintain fiduciary funds separate from his property in violation of Rule 1.15-2(a) and failed to deposit funds belonging to another received by him as a lawyer in a trust or fiduciary account in violation of Rule 1.15-2(c);
*658 c. by disbursing funds belonging to Ms. Sweet for the benefit of himself and third parties, Defendant used entrusted property for his own personal benefit and the benefit of other persons other than the legal or beneficial owner of the property in violation of Rule 1.15Q);
d. by preparing and recording a deed conveying Ms. Sweet’s II Old Mill property to himself when it was never Ms.

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Cite This Page — Counsel Stack

Bluebook (online)
657 S.E.2d 378, 188 N.C. App. 653, 2008 N.C. App. LEXIS 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-north-carolina-state-bar-v-ethridge-ncctapp-2008.