Title: Matter of Miller

State: new-jersey

Issuer: New Jersey Supreme Court

Document:

100 N.J. 537 (1985) 498 A.2d 356 IN THE MATTER OF ROBERT S. MILLER, AN ATTORNEY AT LAW. The Supreme Court of New Jersey. Argued March 19, 1985. Decided October 1, 1985. *538 Colette A. Coolbaugh, Executive Counsel, argued the cause for complainant, Disciplinary Review Board. Alan Jay Rich argued the cause for respondent. PER CURIAM. This disciplinary matter is before the Court on an order to show cause why respondent, Robert S. Miller, should not be *539 disbarred or otherwise disciplined. The Decision and Recommendation of the Disciplinary Review Board (DRB) found respondent guilty of unethical conduct and recommended a public reprimand. Our independent review of the record leads us to the same conclusion. We therefore adopt the following DRB Decision and Recommendation, with several modifications as noted below: Our review of the record indicates that during this same period, respondent borrowed significant sums from Mrs. Krauthamer and Archer Pace. On September 11, 1978, respondent borrowed $5,000 from Mrs. Krauthamer, interest-free, payable on demand. This money came from the estate savings account, which was controlled jointly by respondent and Mrs. Krauthamer. On October 12, 1978, respondent borrowed $1,000 from Archer Pace to pay a personal income tax obligation. On January 6, 1979, respondent borrowed an additional $1,000 from Mrs. Krauthamer, again interest-free and payable on demand. The source of funds for this loan was the estate checking account, controlled solely by respondent. Respondent did not repay any of these loans as originally agreed, but the two loans from Mrs. Krauthamer later became the subject of the default judgment that was subsequently paid in full. In addition, respondent encouraged Mrs. Krauthamer to lend significant sums to Archer Pace. On June 22, 1978, only three weeks after Mrs. Krauthamer acquired her controlling interest in Archer Pace for $25,000, respondent advised Mrs. Krauthamer *542 to lend the company an additional $5,000 to meet current operating expenses. The money for this loan came from the estate funds that were then held in respondent's trust account. The loan was at 10% interest and was to be fully repaid in three and one-half years. On September 27, 1978, Mrs. Krauthamer lent Archer Pace an additional $2,500 from the estate savings account that she controlled jointly with respondent. No promissory note was executed to evidence this loan, but it was to be repaid, as company income would allow, at 10-12% interest. Of the $7,500 total that Mrs. Krauthamer lent to Archer Pace, she was repaid approximately $2,200, including interest. Respondent did not advise Mrs. Krauthamer to consult independent counsel regarding any of her loan transactions with Archer Pace or himself. The DRB's Conclusion and Recommendation follow its summary of the proceedings before the District X Ethics Committee: The Court views with grave concern respondent's withdrawal of legal fees from estate funds without the prior express consent of his client. It is due only to the unique mitigating factors present in this case that we have withheld more severe disciplinary action. There is no allegation or suggestion in the record that the amount of the fee taken by respondent was unreasonable. Moreover, the respondent and this particular client had a close relationship over a number of years and were working together as business associates. Our decision is influenced also by the mitigating factors set forth in the Decision and Recommendation of the DRB. Accordingly, we hereby publicly reprimand respondent, Robert S. Miller, for his professional misconduct. The Court further orders him to reimburse the Ethics Financial Committee for appropriate administrative costs incurred in this matter, including the production of transcripts. For reprimand Chief Justice WILENTZ, and Justices CLIFFORD, HANDLER, POLLOCK, O'HERN, GARIBALDI and STEIN 7. Opposed None.