Case Title: In re Heald

Citation: 

Docket Number: 

State: vermont

Court: Vermont Supreme Court

Date: 2002-01-18T00:00:00Z

Document:
In re Heald (2001-264); 173 Vt. 557; 789 A.2d 9

[Filed 18-Jan-2002]

                                 ENTRY ORDER

                      SUPREME COURT DOCKET NO. 2001-264

                             JANUARY TERM, 2002

In re Arthur Heald, Esq.	       }       APPEALED FROM:
                                       }
                                       }
                                       }       Professional Responsibility Board
                                       }	
                                       }
                                       }       DOCKET NOS. 2000-197 & 2001-051

             In the above-entitled cause, the Clerk will enter:

       Respondent Arthur Heald appeals from the recommendation of the Office
  of Disciplinary  Counsel to suspend him from the practice of law for sixty
  days.  Bar counsel and respondent have  submitted a stipulation in which
  respondent agrees to a public reprimand and to pay Laurence Lewin  the sum
  of $1500 as reimbursement for legal fees and costs.  In accordance with the
  stipulation,  therefore, we reverse.

       Arthur Heald is hereby publicly reprimanded for violations of Rule
  1.3, 1.4(a), and 8.4(d) of  the Vermont Rules of Professional Conduct.

                                       BY THE COURT:

                                       _______________________________________
                                       Jeffrey L. Amestoy, Chief Justice

                                       _______________________________________
                                       James L. Morse, Associate Justice

                                       _______________________________________
                                       Denise R. Johnson, Associate Justice

                                       _______________________________________
                                       Marilyn S. Skoglund, Associate Justice

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19 PRB

[6-Jun-2001]

                      PROFESSIONAL RESPONSIBILITY BOARD
                            Hearing Panel No. Two

       In Re:	Arthur Heald, Esq.
       PRB File Nos. 2000.197 & 2001.051

       	
                               DECISION NO. 19

       This matter was before Hearing Panel No. Two, comprising Michael
  Filipiak, Lawrin Crispe and Douglas Richards, at Springfield, Vermont, on
  May 10, 2001.

       Present at the Hearing, in addition to the members of the Panel, were
  Arthur Heald, Esq., Peter F. Langrock, Esq. and Michael Kennedy,
  Disciplinary Counsel.

       The matter for consideration was a Hearing On Sanctions, as noticed
  and by Amended Notice Of Sanctions Hearing, dated March 30, 2001.

       Filed and received by members of the Panel was Disciplinary Counsel's
  Recommended Conclusions of Law, dated March 26, 2001 and Disciplinary
  Counsel's Sanction Recommendation, dated March 26, 2001.

       There were no filings by or on behalf of the Respondent.

       By agreement, and under oath, the Complainant, Lawrence Lewin,
  participated by telephone.

       Michael Kennedy, Disciplinary Counsel, and Peter F. Langrock, Esq.
  made opening and closing statements.

       Arthur Heald and Lawrence Lewin testified under oath. 

       Petition of Misconduct was filed by Disciplinary Counsel on or about
  January 8, 2001 and served by Certified Mail upon Respondent.

       No Answer was filed.
   
       Disciplinary Counsel's Motion To Deem Respondent Has Admitted Charges
  in Petition Of Misconduct, dated February 13, 2001, was granted by the
  Panel on February 20, 2001 and charges and allegations of the Petition were
  deemed admitted.

       The following facts are found by Panel No. Two:

            The Respondent is an attorney licensed to practice law
       in the State of Vermont.

            Lawrence Lewin retained the Respondent to represent him
       in Real Estate transaction.

            Mr. Lewin purchased property for $100,000.00.

            At the closing, the Respondent withheld $10,000.00 from
       the purchase price in anticipation of the seller's tax
       liabilities.

            At the closing, the Respondent agreed to remit the
       $10,000.00 tax liability to the IRS.

            Respondent did not remit the tax withholding on time.

            When Respondent finally remitted the $10,000.00 that had
       been withheld at the closing, he erroneously informed the IRS
       that he was doing so on behalf of Mr. Lewin rather than for
       the seller.

            By notice dated February 7, 2000, the IRS informed Mr.
       Lewin that he was delinquent on a $10,000.00 tax liability
       arising from the Real Estate transaction in which he had been
       represented by the Respondent.

            The delinquency was due to the Respondent's failure to
       remit the $10,000.00 in a timely fashion.

            The IRS assessed Mr. Lewin a delinquency penalty.

            Mr. Lewin wrote several letters to Respondent in which
       he asked him to clear up the delinquency issue with the IRS.

            The Respondent did not respond to Mr. Lewin's letters.
   
            The Respondent did not take any steps to resolve Mr.
       Lewin's predicament.

            The IRS continued to send delinquency notices to Mr.
       Lewin.

            After failing to receive a response from the Respondent,
       Mr. Lewin paid the delinquency on his own.  He paid
       approximately $1,800.00.

            Mr. Lewin commenced a small claims action against the
       Respondent.

            In the small claims action, Mr. Lewin requested relief
       in an amount equal to the delinquency that the IRS would
       assess him.

            The Franklin County Small Claims Court entered judgment
       against the Respondent in the amount of $1,775.93.  Of that,
       $1,701.70 represented the damages and interest caused by the
       Respondent.

            Upon receiving the Order, Mr. Lewin executed the
       judgment on the Respondent's bank account.

            Upon executing the judgment, Mr. Lewin received
       approximately $1,700.00, approximately $100.00 less than he
       had paid to the IRS to satisfy the delinquency.

            To prosecute the small claims action, Mr. Lewin incurred
       legal fees and expenses of nearly $1,400.00.

            Mr. Lewin filed an ethics complaint against the
       Respondent.

            By letter dated July 18, 2000, Bar Counsel asked the
       Respondent to file an Answer to Mr. Lewin's Complaint.

            By letter dated August 9, 2000, Disciplinary Counsel
       asked the Respondent to file an Answer to Mr. Lewin's
       Complaint.

            By letter dated September 7, 2000, Disciplinary Counsel
       asked the Respondent to file an Answer to Mr. Lewin's
       Complaint.

            To date, the Respondent has not provided the Office of
       Disciplinary Counsel with an Answer to Mr. Lewin's Complaint.
   
            The Respondent in 1995 was publicly reprimanded for
       neglecting a probate case.  In Re Heald, 163 Vt. 640 (1995)

            In 1994 the Respondent was admonished after having been
       found to have neglected a client matter.  In Re PCB File No.
       93.14, PCB #65, 1 Vt,P.C.R. 118.

       Panel No. Two makes the following Conclusions of Law:

            Respondent has violated Rule 1.3 of the Vermont Rules of
       Professional Conduct in that a lawyer shall act with
       reasonable diligence and promptness in representing a client.

            Respondent has violated Rule 1.4(a) of the Vermont Rules
       of Professional Conduct in that a lawyer shall keep a client
       reasonably informed about the status of the matter and
       promptly comply with reasonable requests for information.

            Respondent has violated Rule 8.4(d) of the Vermont Rules
       of Professional Conduct in that he engaged in conduct that is
       prejudicial to the administration of justice.

       It is the Decision of Hearing Panel No. Two, based upon the foregoing,
  that the Sanctions to be imposed in this matter, as to Arthur Heald, are as
  follows:

            Arthur Heald shall reimburse and pay to Lawrence Lewin
       the sum of $1,500.00, as reimbursement for legal fees and
       expenses incurred by Mr. Lewin in this matter.

            Arthur Heald's license to practice law in the State of
       Vermont shall be suspended for the period of sixty (60) days.
   
       Dated at Springfield, in the County of Windsor and State of Vermont
  this 24th day of May, 2001.

  HEARING PANEL NO. TWO
  FILED JUNE 5, 2001					   

  /s/
  ___________________________________
  Douglas Richards, Chairman

  /s/
  ___________________________________
  Lawrin P. Crispe, Esq.

  /s/
  ___________________________________
  Michael Filipiak