Title: In Re Shaw

State: new-jersey

Issuer: New Jersey Supreme Court

Document:

88 N.J. 433 (1982) 443 A.2d 670 IN THE MATTER OF HARRY L. SHAW, AN ATTORNEY-AT-LAW. The Supreme Court of New Jersey. Argued October 6, 1981. Decided March 25, 1982. *434 Colette A. Coolbaugh, Secretary, argued the cause for complainant Disciplinary Review Board. Francis J. Hartman argued the cause for respondent. PER CURIAM. The Disciplinary Review Board (DRB) considered two presentments filed by the District IV Ethics Committee for Camden and Gloucester Counties (Committee). Those presentments dealt with three areas of alleged misconduct on the part of respondent, Harry L. Shaw, growing out of his representation of clients involved in automobile accidents occurring in 1973 and 1975. The first allegation of ethical misconduct was that respondent unethically induced the driver and passenger in the 1973 accident to undergo unnecessary medical treatment to bolster their otherwise inconsequential claims for personal injuries. The DRB was troubled by the wide discrepancies between the versions of the driver and passenger on the one hand and the respondent on the other, and by the fact that the treating physician had not been subpoenaed to testify before the local Committee. However, on the record before it, the DRB was *435 "constrained to take no action regarding this portion of the case." Our independent review of the record leads us to concur in that determination. We therefore turn to the two remaining charges, as to which the DRB concluded that ethical infractions had been established by clear and convincing proof. The second allegation grew out of respondent's representation of both the passenger and driver of one automobile involved in a two vehicle accident on June 24, 1973 in Palmyra, New Jersey. The complainant, Efraim Martinez, was the driver and Edwin Santana was his passenger. The DRB found, and respondent admits, that by July 1972 respondent was representing both complainant and his passenger for claims arising out of that accident. His efforts to settle the Martinez and Santana claims were unsuccessful. Events thereafter, as summarized by the DRB, were as follows: Shaw's representation of these conflicting claims continued until January 12, 1976, when he turned the Martinez file over to another attorney. Respondent's only explanation for clinging to both files so long was that he was unable to find other counsel willing to handle one of the claims. The local Committee determined that Shaw's conduct in representing the competing claims of both Martinez and Santana was clearly unethical. It recommended a private reprimand. The DRB ultimately filed a report and recommendation with this Court calling for respondent's suspension from the practice of law for six months. However, while the matter was pending here, an additional ethics complaint was lodged against Shaw, wherefore we ordered the Martinez-Santana matter remanded to the DRB for further consideration after the second complaint had been processed. In its final determination the DRB reiterated its conclusion that respondent's representation of the driver and passenger, and, more particularly, his representation of the passenger in a suit against his own client, driver Martinez, clearly violated DR1-102(A)(5) and (6), prohibiting conduct prejudicial to the administration of justice and conduct reflecting adversely on a lawyer's fitness to practice law, and DR5-101(A), requiring a lawyer to "decline proferred employment" when it would create a conflict of interest. The DRB found that Shaw acted unethically by bringing suit against Martinez despite Santana's complete lack of interest in pursuing the claim. Moreover, Shaw *437 failed to inform Santana of his intention to file the suit in Santana's behalf. The DRB concluded that respondent should have recognized the conflict and withdrawn from the representation immediately rather than continue the dual representation for seven months after the filing of suit. The third allegation contains charges of the utmost seriousness: in essence, that respondent "purchased" a claim from one of his clients. Because the events that give rise to this allegation are complex, the DRB discussed them in detail. Our examination of the record leads us to the same factual findings as were reached by the DRB. Mindful of the requirement that the quality of the supporting evidence be clear and convincing, we repeat the substance of the DRB's findings and conclusions and adopt them as our own: As to the conflict-of-interest charges arising out of the dual representation of Martinez and Santana, the rule relied on *441 by the DRB has long been that where liability is in dispute, a lawyer cannot represent the interests of both the driver of a vehicle and his passenger in claims against the driver of the adverse vehicle. The conflict of interest in such representation is inherent. See Advisory Committee on Professional Ethics Opinion 248, reprinted in 96 N.J.L.J. 93 (1973); Advisory Committee on Professional Ethics Opinion 188, reprinted in 93 N.J.L.J. 789 (1970). Shaw's dual representation of Martinez and Santana was a blatant violation of this long-standing rule, exacerbated by the fact that he filed a complaint as attorney for Santana against Martinez, his own client. Equally plain is respondent's complete abandonment of any pretense of professional ethics in the Weber matter. Shaw's conduct amounted to nothing less than a "confidence game," albeit on a more imaginative level than is generally encountered. That Blandi participated, even to the extent of acting as the "front man," does not relieve respondent of his professional obligation. We do not for a moment believe that Shaw was the unwitting victim of Blandi's machinations. But given the modern, sophisticated techniques of law office management, it may be that in the future we will be called upon to address more frequently in ethics proceedings the problem of lawyer responsibility for agents' derelictions. Should that occur, the bodies that conduct hearings and make determinations below will have to take pains to make specific findings of fact on managers' and paralegals' collaboration in any nefarious scheme. The dreary scene played out in these proceedings should alert lawyers to the necessity of exercising a high degree of caution in the choice and supervision of their paralegals, office managers and others who exercise authority. The opportunity for a venal manager to victimize a *442 young lawyer is all too apparent, although we repeat that Shaw was hardly victimized by Blandi in the matter before us. As for Blandi himself the Court has no disciplinary jurisdiction over him. We would tend to look askance, however, at any lawyer's establishing an office relationship with one who had been implicated previously in an unscrupulous scheme like the one presented here. Absent a rule on the subject, cf. R. 1:21-2 (employment of disbarred or suspended attorney prohibited), we will continue to address the problem on a case-by-case basis, with an eye to improving the ethics of support staff and minimizing the dangers of a rascal moving about in the profession. The DRB recommended that Shaw be suspended for three years. We entertain a different view of the appropriate discipline. It is difficult to imagine a more sinister threat to a professional relationship than the conduct so painstakingly portrayed in the DRB's report. Under the circumstances we conclude respondent must be disbarred. He is also required to reimburse the Administrative Office of the Courts for appropriate administrative costs, including production of transcripts. So ordered. For disbarment Chief Justice WILENTZ and Justices PASHMAN, CLIFFORD, SCHREIBER, HANDLER, POLLOCK and O'HERN 7. Opposed None. It is ORDERED that HARRY L. SHAW of Camden be disbarred and that his name be stricken from the roll of attorneys of this State, effective immediately; and it is further ORDERED that HARRY L. SHAW be and hereby is permanently restrained and enjoined from practicing law; and it is further ORDERED that HARRY L. SHAW reimburse the Administrative Office of the Courts for administrative costs arising out of these disciplinary proceedings, including the cost of production of transcripts; and it is further ORDERED that the respondent comply with all the Regulations of the Disciplinary Review Board governing suspended, disbarred or resigned attorneys.