Title: Matter of Kasdan
Citation: 132 N.J. 99, 623 A.2d 228
Docket Number: N/A
State: new-jersey
Issuer: new-jersey Supreme Court
Date: April 30, 1993

132 N.J. 99 (1993) 623 A.2d 228 IN THE MATTER OF MARCIA S. KASDAN, AN ATTORNEY AT LAW. The Supreme Court of New Jersey. Argued December 1, 1992. Decided April 30, 1993. *100 Walton W. Kingsbery, III, Deputy Ethics Counsel, argued the cause on behalf of Office of Attorney Ethics. Dominic J. Aprile argued the cause for respondent (Bathgate, Wegener, Dugan &amp; Wolf, attorneys). PER CURIAM. This is an attorney-disciplinary case. The District Ethics Committee for Bergen County, District II-A-North (the "DEC" or "Committee"), filed complaints against respondent, Marcia S. Kasdan, in three matters. Hearings were held on a consolidated basis for all three matters before a hearing panel, which recommended public discipline with respect to each of the three complaints. After reviewing the matters the Disciplinary Review Board (the "DRB" or "Board") issued its Decision and Recommendation, recommending imposition of a three-year suspension and that reinstatement to the practice of law be subject to conditions. The matter is before this Court in accordance with an order entered under Rule 1:20-5(a) requiring respondent to show cause why she should not be disbarred or otherwise disciplined. Respondent was admitted to the practice of law in New Jersey in 1978 and maintained a law office in Englewood Cliffs. In 1990, the District IIA Ethics Committee filed three formal complaints. The complaints were based on respondent's representation of three clients, referred to as the "Davilla," "Wolkoff," and "Goldberg" matters. A critical factor in the Davilla and Wolkoff complaints is that respondent had been suspended from the practice of law under a disciplinary order of the Court when she represented those clients. The complaints charged respondent with violations of Rules of Professional Conduct ("RPC") 3.3(a)(1) (making false statements to a tribunal), 3.4(c) (disobeying an obligation under the rules of a tribunal), 1.15 (safekeeping property), and 8.4(c) (misrepresentation). The DEC found respondent guilty of the offenses charged in the complaints and recommended public discipline. The DRB agreed with that determination, with certain differences. With respect to the charge that respondent had engaged in the practice of law while she was suspended from the practice of law for ethics violations, the DRB, unlike the DEC, determined that respondent's infraction constituted a failure to follow Guideline No. 23, which constituted a separate violation of RPC 3.4(c). Further, the DRB, unlike the DEC, did not find that respondent had knowingly disbursed client funds in violation of RPC 1.15 because no clear and convincing evidence demonstrated that respondent released funds without authorization. We have independently reviewed the record and are satisfied that the findings of the DRB are comprehensive and accurate. We recapitulate the Board's summary of the salient facts: Respondent's defense related to her psychological condition and consisted of certain documentation of psychotherapy she had received in 1989 and 1990. However, the Board rejected that defense, concluding that the reports did not demonstrate a causal link between her psychological condition and the ethics charges sufficient to constitute a mitigating factor. Further, the DRB found no mitigating circumstances that were causally related to respondent's conduct. Based on its determination of the facts, the DRB concluded that in each of the matters, respondent had violated the Rules of Professional Conduct and that public discipline was warranted. With respect to the "Davilla" matter, respondent had been suspended from the practice of law for three months on June 19, 1989. See In the Matter of Kasdan, 115 N.J. 472, 559 A.2d 411 (1989). The DRB found that in the course of respondent's representation of Davilla, respondent had made a false statement of material fact to the court through her appearance as an attorney and by knowingly disobeying an obligation under the rules of a tribunal. Further, respondent continued to represent Ms. Davilla while she was suspended by this Court and in the *106 face of the Court's express denial of respondent's request for a stay of her suspension. It also found that respondent had not properly informed her client, her adversary, and the court of her suspension. Similarly, in the "Wolkoff" matter, the DRB determined that respondent had practiced law while under the order of suspension. The DRB also found that respondent had not properly informed her client, the adversary, and the court of her suspension. Accordingly, with respect to each of those matters, the DRB determined that respondent had violated RPC 3.3(a) and 3.4(c) and, in addition, had violated the Rules of Professional Conduct beyond those specifically charged by failing to adhere to Guideline No. 23. The DRB also determined that clear and convincing evidence supported the "Goldberg" complaint that respondent had failed to keep complete trust records; failed to notify the other party of the exact amount in escrow, despite numerous demands for that information; failed to safekeep funds subject to dispute, either by using the funds for her own purpose or by lending them to her client; failed promptly to deliver those funds to the other party once the court had decided that party's entitlement thereto; and had engaged in conduct involving dishonesty, fraud, and deception. That course of conduct, the Board concluded, constituted a violation of RPC 1.15(a) through (d) and 8.4(c). In considering appropriate discipline, the DRB determined that respondent's previous discipline was an aggravating factor. That discipline, consisting of a three-month suspension, had been imposed for respondent's failure to communicate with her client, misrepresentation of the status of lawsuits to clients, failure to collect sufficient funds at closing, issuance of a trustaccount check against uncollected funds, fabrication of trial dates, and preparation of a false pleading with the intent to deceive a client. At the time of the hearing on those matters she had not yet been reinstated. Accordingly, the Board recommended respondent be suspended from the practice of law for three years. A majority of the Board recommended that the *107 three-year suspension be prospective, given that respondent had practiced law during her previous suspension. In addition, the Board recommended that prior to reinstatement, respondent be required to submit competent psychiatric proof of her fitness to practice law. It also recommended that respondent be required to practice law under the supervision of a proctor. Two members of the Board voted to disbar respondent. Based on our independent review of the record, we concur fully in the findings and conclusions of the DRB. First, with respect to the charges of mishandling escrow funds arising out of the "Goldberg" matter, the evidence does not clearly and convincingly show that respondent did not receive verbal authorization from the purchasers' attorney to release the escrow funds. The record contains no letter from the attorney documenting a refusal to release escrow funds after the postponement of the closing at the end of July. In addition, respondent's client confirmed her version that she had authorization to release the funds. Thus, the record does not clearly and convincingly demonstrate that respondent knowingly disbursed those funds without authorization. Nonetheless, the evidence does demonstrate that respondent did fail promptly to advise opposing counsel of the whereabouts and amount of escrow funds. With respect to the "Davilla" and "Wolkoff" matters, the evidence clearly and convincingly demonstrates that respondent deliberately decided she would continue to practice law, notwithstanding this Court's unequivocal and express denial of her application to stay her three-month suspension. She misrepresented to both her adversaries and the courts her status as that of a duly licensed attorney fully eligible to practice. She admitted that she intentionally had not disclosed her suspension to the appropriate parties in either matter, reasoning that it would hurt the client's case. Furthermore, when respondent *108 appeared before the DRB and this Court in the prior disciplinary matter, she gave assurances that she was then able "to counsel (her) clients a hundred percent on what is happening, whether it is good or bad" and not to make misrepresentations to them. See In the Matter of Kasdan, supra, 115 N.J. at 490, 559 A.2d 411. Those assurances have been betrayed. In addition to violations found by the DEC, the Board determined that each of respondent's failures to follow Guideline No. 23 constituted a separate violation of RPC 3.4(c). The DRB reasoned that the administrative guidelines are part of the "rules of a tribunal" and therefore imposed an ethics standard under RPC 3.4(c). Guideline No. 23 applies to every suspended or disbarred attorney. The Court's order of suspension specifically directs compliance with that guideline. Guideline 23 Future Activities of Attorney Who Has Been Disciplined sets forth specific requirements that must be met by a suspended attorney. They include the direction that the attorney "(1) should desist and refrain from the practice of law in any form ... and shall not appear as an attorney before any court...." Such an attorney "(3) [s]hall desist and refrain from furnishing legal services...." Further, a suspended attorney "(11) [s]hall, as to litigated ... proceedings in any court ... promptly give notice of the disciplined attorney's suspension ...," which notice must be sent by registered or certified mail to each client, the attorney of each adverse party, and the Assignment Judge with respect to any action pending in any court in the vicinage. The disobedience to a clear and firm order of this Court is an aggravating factor in assessing the nature of an ethics infraction. See In the Matter of Goldstein, 97 N.J. 545, 482 A.2d 942 (1984). Non-compliance with the specific requirements of Guideline No. 23 itself adds to the gravity of such a violation. In the Matter of Cohen, 120 N.J. 304, 576 A.2d 855 (1990). It can, as in this case, constitute an independent basis for finding a violation of RPC 3.4(c). *109 We conclude that respondent has violated RPC 3.3(a) and 3.4(c), 1.15(a) through (d), and 8.4(c). We also find that respondent's prior discipline is an aggravating factor. We likewise agree with the DRB that the documentation relating to psychotherapy received by respondent in 1989 and 1990 does not establish a defense or a mitigating factor. However, that information is relevant to respondent's fitness to practice law in the future. Respondent is therefore suspended from the practice of law for a three-year period and the three-year suspension shall be prospective. Prior to reinstatement, respondent is required to submit competent psychiatric proof of her fitness to practice law. On reinstatement, respondent shall be required to practice law under the supervision of a proctor. Respondent shall reimburse the Ethics Finance Committee for the appropriate administrative costs incurred in the prosecution of this matter. For suspension Chief Justice WILENTZ and Justices CLIFFORD, HANDLER, POLLOCK, O'HERN, GARIBALDI and STEIN 7. For disbarment None.