Opinion
No. 83-31
Decided January 25, 1984.
Attorneys at law — Misconduct — One-year suspension — Knowing conversion of funds from trust account to satisfy business expenses.
ON CERTIFIED REPORT by the Board of Commissioners on Grievances and Discipline of the Bar.
The Toledo Bar Association, relator herein, filed a complaint with the Board of Commissioners on Grievances and Discipline (hereinafter "board"), pursuant to Gov. Bar R. V, charging John F. Potts, respondent herein, with violations of the following Disciplinary Rules: DR 1-102(A)(1) — a lawyer shall not violate a Disciplinary Rule; DR 1-102(A)(4) — a lawyer shall not engage in conduct involving dishonesty, fraud, deceit or misrepresentation; and DR 9-102 — preserving identity of funds and property of a client. The complaint alleged that respondent had improperly disbursed funds from his trust account to himself.
A hearing was held on relator's complaint on October 12, 1983 before a panel of the board. Respondent appeared with counsel and called four judges as character witnesses to testify on his behalf.
The factual basis for relator's complaint arose from respondent's handling of one client's case. Respondent undertook to represent the client in a personal injury matter on a contingent fee basis. Respondent received $1,000 initially in partial settlement of the client's claim and disbursed these funds as the client requested. Thereafter, respondent arranged a full settlement of the claim for $14,750. The client endorsed the settlement check and respondent deposited the check in his trust account, informing the client that it would take fourteen business days for the check to clear his bank.
The client apparently was out of town or otherwise unavailable when respondent sought to have her fill out a disbursement approval form. Respondent testified that four to six weeks passed before he received the signed disbursement form from the client.
At approximately the same time, respondent's partnership with several other attorneys ended, and he incurred substantial expenses in closing his old office and in opening a new one. He used funds from his trust account attributable to his client for his own purposes in meeting his expenses. After a grievance was filed regarding his misuse of the client's funds, respondent purchased a bank check payable to the client in the full amount of the settlement proceeds. He was unable to find the client to pay her, however, and deposited the check with the relator.
The board concluded that respondent had violated DR 9-102 "with regard to his improper disbursement from his trust account." The board recommended that respondent be suspended from the practice of law for a period of one year, finding "that the conversion of the funds from the trust account was done knowingly in order to satisfy other business expenses."
Mr. David F. Cooper and Mr. Ronald S. Moening, for relator.
Mr. Harland M. Britz, for respondent.
After a careful examination and review of the record in this cause, this court concurs with the findings and conclusions of the board that respondent violated DR 9-102.
It is the judgment of this court that respondent be suspended from the practice of law for a period of one year.
Judgment accordingly.
CELEBREZZE, C.J., W. BROWN, SWEENEY, LOCHER, HOLMES and J.P. CELEBREZZE, JJ., concur.
C. BROWN, J., not participating.