Opinion ID: 1170222
Heading Depth: 1
Heading Rank: 4

Heading: Tavernakis Solicitation

Text: On June 10, 1970, Margaret Elizabeth Tavernakis was injured in an automobile accident and was rendered unconscious for a short time. She was taken by ambulance to the Orthopaedic Hospital, where she was examined for broken bones, and her superficial cuts were cleansed. Mrs. Tavernakis felt groggy and disoriented while at the hospital and recalled chiefly the effort made to find someone to come for her. Finally, her estranged husband, James Tavernakis, came to the hospital and took her to Kaiser Hospital, where she had coverage. She had a brief conversation with him about what to do, and he told her that they would find a lawyer for her later. She discussed the possibility of employing an attorney with no one else. Two days later Lieberman telephoned Mrs. Tavernakis while she was recuperating at home. He told her that he was with the firm of Mizrahi & Geffen and mentioned that he had learned of her accident from a client or former client who had seen her at the hospital. He asked her if she had employed an attorney; and when she indicated she had not, he urged her to do so promptly and recommended petitioner's law firm. Lieberman represented to her that the attorneys in petitioner's law firm were specialists in automobile accidents and that they were the best in the country. He also suggested to her the possibility that she may have known them while she was a student at UCLA, where they had both studied. Mrs. Tavernakis said she wanted to discuss the matter with her husband before making a decision, and Lieberman gave her a Gardena telephone number to call after she made her decision. About half an hour later, Mrs. Tavernakis' telephone rang again, and an inquiry was made for another person. The caller, however, turned out to be Lieberman, who apparently recognized Mrs. Tavernakis' voice and indicated he had called her back by mistake. He then asked if she had had a conversation with her husband in the meantime. She informed him that she had not. Later that morning, Mrs. Tavernakis told her husband about her conversations with Lieberman. Her husband then spoke with his sister-in-law, who recommended Milton Wasserman. At his suggestion, Mrs. Tavernakis made an appointment with Dr. Levine. Her husband took her to the doctor's office. After they left, their car was rear-ended; Mrs. Tavernakis was again injured and was hospitalized for three days. Arrangements were made for Wasserman to call on Mrs. Tavernakis at her home. Before he came, however, she received another telephone call from Lieberman, inquiring if she had employed an attorney and stressing the importance of immediate action. When Lieberman learned from Mrs. Tavernakis that she had been in another accident and that the second one was a rear-end collision, he suggested that she forget about the first accident, because it would be more difficult to recover for her injuries in that one, and concentrate on attempting to recover on the basis of the clear-cut liability for the rear-end collision. In spite of Lieberman's persistent attempts to set up an appointment with Mrs. Tavernakis to execute a retainer employing petitioner's firm, she did not agree to meet with him. When Mrs. Tavernakis told Lieberman that she had a meeting arranged with Wasserman, Lieberman told her that he knew all the good personal injury attorneys and that he had never heard of Wasserman and thought he therefore probably was not a very good attorney. At her meeting with Wasserman, Mrs. Tavernakis mentioned the calls from Lieberman. Wasserman felt the activity was unethical and urged her to call the State Bar and, in fact, offered to call the State Bar for her. He suggested, however, that in the meantime she talk again with Lieberman and find out the name of the law firm he was representing. The next morning, Mrs. Tavernakis made a tentative appointment to see Lieberman that evening, provided it would be convenient with her husband. During Mrs. Tavernakis' meeting with an investigator for the State Bar in the afternoon, petitioner's secretary telephoned to confirm the appointment for Lieberman to see the Tavernakises that evening. The State Bar investigator arranged to be there when Lieberman was due to arrive, and he hid himself under the stairs, where he could hear the entire conversation. Lieberman indicated that although he did not remember who it was, he believed it was a former client at the hospital who had notified him of Mrs. Tavernakis' accident. He reiterated his advice that she concentrate her efforts on the second accident, telling her that in this state a person cannot sue the same insurance company for two accidents at the same time. He also again told her that petitioner and his partner were specialists in personal injury actions and were the best in California. He emphasized that the firm had its own doctors, who knew how to write up medical reports to the best advantage of a claimant. He also described petitioner and his partner as young, aggressive attorneys who really knew their field, and said that he was sure the Tavernakises would like both of them. Mrs. Tavernakis said she did not want to employ an attorney without having met him. Lieberman said that the attorneys made $1,000 a day in court and could not take up their time chasing around signing up clients. He offered, however, to arrange for her to talk with petitioner by telephone. He again cautioned her against employing Wasserman, who, he said, could not be very active in the personal injury field, since he (Lieberman) had never heard of him. In the end, Lieberman became somewhat provoked that he had taken the long trip to her home and that Mrs. Tavernakis had not signed the retainer. He left four business cards and asked her to call him if she decided eventually to employ petitioner's firm. Two of the cards were petitioner's business cards, and the other two were cards bearing Lieberman's name and the name Fredericks Accident Investigations. The telephone number shown on this card was indicated to be a day or night number. The address was a suite opposite petitioner's office, which suite was used by Lieberman in his work for the firm. Petitioner paid the rent for the suite and also the telephone bills. Lieberman explained that he had intended to go into the accident investigation business on the side and had had the cards made up, but that nothing further had been done in this regard. (1) Petitioner's principal contentions are (1) that the evidence does not support the finding that he knew of Lieberman's actions or the finding that Lieberman's activities were conducted with petitioner's knowledge, acquiescence, or consent or pursuant to an established scheme or design, and (2) that, in the alternative, the degree of discipline recommended by the board was grossly excessive in the light of all the facts and circumstances. As pointed out by this court on innumerable occasions, the burden is on petitioner to show that the findings of the board are not supported by the evidence or that its recommendation is erroneous and unlawful (see, e.g., Younger v. State Bar, 12 Cal.3d 274, 284-285 (1) [113 Cal. Rptr. 829, 522 P.2d 5]; Walter v. State Bar, 2 Cal.3d 880, 887 (2) [87 Cal. Rptr. 833, 471 P.2d 481]). Petitioner has failed to meet this burden. Admittedly, petitioner had no contact with the persons allegedly solicited by Lieberman until they appeared at the hearing before the local administrative committee, and there is no evidence that he expressly directed Lieberman to make the solicitations. However, as pointed out by this court in Zitny v. State Bar, 64 Cal.2d 787, 792 [6] [51 Cal. Rptr. 825, 415 P.2d 521], The wilfulness or intent may be proved by direct or by circumstantial evidence.  (Italics added.) ( Younger v. State Bar, supra, 12 Cal.3d 274, 286; Abeles v. State Bar, 9 Cal.3d 603, 610 [108 Cal. Rptr. 359, 510 P.2d 719]; Millsberg v. State Bar, 6 Cal.3d 65, 74 [98 Cal. Rptr. 223, 490 P.2d 543].) Petitioner's testimony with respect to his instructions to Lieberman is highly significant. When questioned about his attitude regarding calling prospective clients whose names and telephone numbers had been left with someone at his office, petitioner showed that he understood the difference between calling such a person where there was no indication that the person himself had requested that petitioner call and calling such a person where it was clear that the person himself had requested that petitioner call. Nevertheless, with respect to the instructions he had given Lieberman, petitioner testified: Q. Did you ever inform Mr. Lieberman when you employed him with regard to the limitations that are imposed on attorneys with regard to solicitation of business? A. Yes. Q. Would you tell us what instructions you gave him on that subject and when you first gave him those instructions. A. In general conversation while Fred [Lieberman] was around the office and in talking, I am sure that I made it clear to him that it's against the law for attorneys to go out and solicit business. Q. Did you define to him what solicitation meant? A. Yes. I told him he cannot go over to the scene of an accident where there are people at an accident standing around and go over and hand out my card and say to them, `Hey, you want an attorney?' Q. Is that the extent of your instructions on that particular issue? A. No, Mr. Seligsohn. It was more extensive than that. Q. Would you please tell the Committee how extensive as to the particular details you gave him. A. I told him that if a friend of his told him that he knew somebody who was in an accident, he could not call that person up and solicit for our firm. Q. Did you give him any further instructions? A. I am sure I did. I told him, and I used the word solicitation and other things, I told him that it's not to be done. Q. In his testimony both today and yesterday I believe I asked him if he understood the distinction between contacting a potential accident client referred by either another client of the office or an ex-client and contacting or soliciting the victim who originally called the office and requested someone to call him. Did you ever explain to him that it was proper for him to return a call by a potential client who had made inquiry of the firm, but that it was improper for him to call someone merely because an ex-client had left a message with the office to the effect that this person was in an accident and may need a lawyer? Do you understand the distinction I am talking about? A. I understand the distinction. Q. Did you ever so inform Mr. Lieberman that one of those was permissible and proper and is how business is conducted and the other might constitute a solicitation? A. I don't think so. Lieberman himself, interestingly enough, testified: Q. Well, did [petitioner] ever advise you of limitations on attorneys with regard to soliciting clients? A. We never discussed soliciting a client.... Q. BY MR. SELIGSOHN: Did he give you any instructions on what practices are not permissible in signing up new clients? A. BY THE WITNESS: He never told me what not to do.... Q. And did [petitioner] ever give you instructions on how you should hold yourself out or how you should or should not contact such people? A. I only contacted the people that I was told to contact. If they told a friend to tell me to call them, then I would call them or their mother called and told us to call the son, then I called the son. Q. Did [petitioner] ever tell you that certain practices regarding contacting prospective clients were unethical or against the rules of the State Bar? A. We never discussed it. Lieberman further testified: Q. Mr. Lieberman, yesterday at the time of the break I asked you whether or not [if] someone, an ex-client of your firm, called your firm and left a message that another person had been in an accident and may need a lawyer ... you were instructed to call that potential claimant yourself. As I recall, you answered that you were instructed to return all calls; is that correct? A. Yes. My instructions were to return all calls for any attorneys that are out of the office.... Q. Did [petitioner] ever advise you or instruct you with regard to any distinction between calling someone who was referred by someone else as to returning the call of the client himself who wished to be retained? A. My instructions were to return all calls. Q. All right. The source of the call was not material to you; is that correct? A. I don't believe that ... [petitioner] ever distinguished to just call back certain people or not call back other people. He just told me to return calls. Q. In fact, at one time, I believe at the preliminary hearing in this matter, there had been a problem and you had lost a lot of clients by not making punctual returns of their calls; is that correct? A. Yes. Q. Because of that, were you instructed by [petitioner] to return all calls? A. Yes. In addition to the foregoing evidence of petitioner's instructions to Lieberman there is also circumstantial evidence that petitioner was aware that solicitations were being made to prospective clients and that he sought to avoid implication of his personal involvement. Thus, Lieberman established a separate office in the same building as petitioner's office, and had business cards printed which read Fredericks Accidents Investigations  Fred C. Lieberman. However, Lieberman continued to work as petitioner's salaried employee and had no other clients of his investigations business. Both the office rent and charges for a separate telephone were paid by petitioner, and, during Lieberman's absence from his office, his telephone was answered by petitioner's office personnel. Such evidence adds support to the board's finding of petitioner's knowledge. From the above, it will be seen that there was substantial circumstantial evidence to show that petitioner wilfully violated rules 2 and 3. There is in the record convincing proof to a reasonable certainty that petitioner's employee, Lieberman, solicited professional employment in behalf of petitioner from Miss Warwick, Mrs. Wright, and Mrs. Tavernakis. The local administrative committee, which saw and heard the witnesses, expressly found that Lieberman had solicited Miss Warwick and Mrs. Tavernakis; and in this court's independent review of the evidence the committee's findings are entitled to great weight. ( Lewis v. State Bar, 9 Cal.3d 704, 712-713 [108 Cal. Rptr. 821, 511 P.2d 1173]; Ridley v. State Bar, 6 Cal.3d 551, 559 [99 Cal. Rptr. 873, 493 P.2d 105].) [3] The record shows that at the time Lieberman made the solicitations he was a full-time employee of petitioner's firm and that petitioner saw him with respect to the performance of his duties oftener than once a week. Moreover, petitioner knew that Lieberman, although an experienced salesman, had never worked in a law office before and was not knowledgeable with respect to the prohibition against the solicitation of professional employment. Petitioner also knew that before Lieberman was employed full-time he had received only minimal instructions from Mizrahi and that while Lieberman was working part-time petitioner and Mizrahi always told him who the firm's clients were and whom he should contact. However, when the arrangement was made for Lieberman to go on a full-time basis and work out of the Gardena office, petitioner specifically directed him to return all calls for any attorney there who was out at the time the call was received. Petitioner knew at the time he gave such directions that the system of recording incoming calls did not indicate who had placed the call. Recognizing that it could be an improper solicitation to call a person who had not requested that he be called, petitioner nevertheless failed to warn Lieberman that he should not call persons who had not so requested. (2) (See fn. 4) From the evidence, it is clear that petitioner knew that Lieberman was making telephone calls to prospective clients under circumstances where it was improper to do so. [4] It is ordered that petitioner be suspended from the practice of law for six months. This order is effective 30 days after the filing of this opinion. Petitioner's application for a rehearing was denied August 27, 1975.