Opinion ID: 1484115
Heading Depth: 1
Heading Rank: 8

Heading: May 17, 1995 Check from Mr. Green to Respondent

Text: A critical fact in this case involves the characterization of a $2,000 check drafted by Mr. Green payable to Respondent, dated May 17, 1995. BX 12 at 40. 16. On May 16, 1995, Respondent spoke with Mr. Green by telephone about his need to produce some money to satisfy Mr. Green's outstanding debts. Mr. Green indicated that he would bring in $2,000 the next day and $5,000 altogether. BX 9 at 34. 17. On May 17, 1995, Mr. Green brought a cashier's check in the amount of $2,000 to Respondent's office. BX 12 at 39; Tr. at 193-95. Respondent was at her office when Mr. Green arrived with the check. Tr. at 192-95. It is not clear whether Mr. Green gave the check directly to Respondent or to one of Respondent's staff members, but Respondent was at least in the office when Mr. Green brought the check in and, in any event, became aware that Mr. Green had brought the money into the office. BX 9 at 31-32; Tr. at 195. 18. According to Mr. Green, he brought the $2,000 in for Respondent to hold on his behalf and use to try to forestall the foreclosure procedures on his condominium or to settle the arrears on his mortgage payments. Tr. at 195, 274-76; BX 9 at 31. Mr. Green testified that he, Respondent, and Respondent's then office manager, Walter Johnson, agreed that the money would go into an escrow account. Tr. at 195. Mr. Green does not recall receiving any receipt showing that Respondent had received the check and what she was going to do with it. Id. 19. Respondent's testimony on this event differs in one critical respect. Respondent testified that this money was to be used in part to address Mr. Green's outstanding debts with his three creditors, but also would be used to pay some of his outstanding attorney's fees. Tr. at 140-41. Although Respondent had a legitimate basis to seek additional attorney's fees from her client, her actions were inconsistent with the notion that any part of the $2,000 was for payment of an attorney's fee. 20. On May 19, 1995, Respondent deposited Mr. Green's $2,000 check into her attorney trust account. On that day, Respondent also deposited two checks, one for $4,000 and the other for $400, provided by her client Capitol Bus Rental, Inc. (Capitol Bus) into the trust account. BX 14 at 57-59. Respondent indicated on the $4,000 Capitol Bus check's memo line that the money would be used to make an Internal Revenue Service (IRS) payment on the company's behalf. BX 14 at 59. Simultaneously, Respondent withdrew $1,400 in cash from the $6,400 deposit, leaving a net deposit of $5,000, which brought her trust account balance to $5,336.77. BX 14 at 55, 57. Respondent did not note on the deposit ticket the reason for the $1,400 withdrawal or whose money it represented, but she testified that she took it out of Mr. Green's check as attorney's fees. BX 14 at 57; Tr. at 125. 21. On May 20, 1995, Respondent wrote a check drawn on her attorney trust account for $5,016.77 payable to the IRS on which she wrote Tax payment for Capitol Bus Rental. BX 14 at 69. Respondent does not have any records to explain how she was able to send a check for this amount to the IRS on behalf of Capitol Bus when she had received only $4,000 for this purpose the day before. Tr. at 128-32. Respondent testified that a company representative provided sufficient additional money at some point, but none of the deposits immediately before she wrote the $5,016.77 check or any up to a month after the IRS cashed it show that any additional money on behalf of Capitol Bus entered her escrow account. Tr. at 128-38. 22. On May 24, 1995, Respondent deposited a $2,100 insurance settlement check made payable to another client into her escrow account, as well as a $4,000 check payable to herself and drawn against her operating account at Industrial Bank of Washington. BX 14 at 61. On the $4,000 check, Respondent wrote Bal. Atty's Fee, but she did not indicate whose fees that sum represented. Id.; Tr. at 148. Simultaneously, Respondent withdrew $1,000 from the $6,100 total deposit, leaving a net deposit of $5,100, which brought her escrow account balance to $10,436.77. BX 14 at 55, 61. Respondent did not note on the deposit ticket the reason for the $1,000 withdrawal or whose money it represented. Id. at 61. 23. Respondent wrote several checks against her escrow account that, by June 7, 1995, left a balance of $1,489.30. Id. at 55. Additional disbursements left the escrow account with overdraft balances of -$11.30 on June 19, 1995, and -$36.30 on June 20, 1995. BX 15 at 81. On June 21, 1995, Respondent deposited $50 into her account, bringing the balance to $13.70. Id. at 81, 87. On June 26, 1995, the balance rose to $913.70, then dropped to $712.68 by July 10, 1995. Id. at 81, BX 16 at 109. Thus, from June 7, 1995, until July 10, 1995, Respondent's escrow account balance remained under $2,000less than the amount Mr. Green had brought to her office on May 17, 1995. 24. Mr. Green subsequently requested $1,000 back from the $2,000 he had brought to Respondent's office, to cover some pressing expenses including the cost of recovering his car from an impound lot and of moving to New York City for graduate school. Tr. at 212. He spoke with Mr. Johnson about obtaining the $1,000. Tr. at 213. 25. On July 19, 1995, Respondent's escrow balance stood at $712.68. BX 16 at 109. That day she deposited $1,000 into the escrow account and then gave Mr. Green a check made out to him for $1,000 that included the notation, Return of funds from escrow. BX 16 at 113, 125; Tr. at 150-51. The record thus indicates that Respondent took steps to ensure that she could pay Mr. Green from funds in the trust account. Mr. Green picked the check up at the office and cashed it that day, leaving the escrow account balance at $712.68less than the remaining $1,000 to be held on Mr. Green's behalf. BX 16 at 109; Tr. at 152-53, 270. The balance rose to $1,397.68 on July 24, 1995, but dropped to $397.61 on July 27, 1995, and remained below $1,000 until at least August 7, 1995. BX 16 at 109. Respondent does not have any invoices or documents indicating that she had returned the $1,000 to Mr. Green. Tr. at 159. Mr. Green never requested a refund of any further funds. Tr. at 262, 269. 26. In July 1995, Mr. Green moved from Washington, D.C., to an apartment in the SoHo neighborhood of New York City. Tr. at 222. After moving, Mr. Green had a management company oversee his Willard Street condominium. Tr. at 278-79. A tenant who began living there in July or August paid about $600 or $700 in rent each month directly to the management company, but Mr. Green does not remember what the company did with that rent money. Id. At some point, Mr. Green moved to Union, New Jersey, but he does not recall for sure if that was in 1996 or 1997. Tr. at 222-24. He also does not remember if he told Respondent about his move, but recalls that Respondent could and did contact him by calling the number to his parents' house in Scotch Plains, New Jersey. Id. at 224, 226. The most reliable contact information for Mr. Green after leaving Washington, D.C., was his parents' Scotch Plains address and phone number. Id. at 264. At least up until he left Washington, D.C., Mr. Green was satisfied with the communications he had with Respondent. Id. at 266. 27. On August 17, 1995, an attorney representing Mr. Green's condominium association wrote to Respondent, informing her that Mr. Green had not paid his monthly assessments that year and owed $1,584. RX B; BX 18 at 184. The attorney wrote that if the association did not receive payment by September 1, 1995, it would request relief from the Bankruptcy Court. BX 18 at 184. 28. In October 1995, Mr. Green provided various financial data to G.E. Capital as part of a workout package that Respondent had attempted to negotiate, in lieu of foreclosure on Mr. Green's condominium, during the summer of 1995. BX 9 at 30. 29. On October 4, 1995, the Chapter 13 bankruptcy trustee filed a report with the Bankruptcy Court on claims pending against Mr. Green. BX 17 at 134. 30. On October 6, 1995, Mr. Green wrote to Mr. Johnson in Respondent's office, opining that the $330 bankruptcy deductions from his payroll were excessive and that he should negotiate a reduction to the $100 per month that he and Respondent had discussed previously. RX D; Tr. at 242-43. 31. In January 1996, Respondent and Mr. Green spoke briefly by telephone after Respondent left a message with his roommate at his New York City apartment. Tr. at 218; BX 9 at 30. 32. On February 12, 1996, the Chapter 13 bankruptcy trustee filed a report with the Bankruptcy Court on claims pending against Mr. Green. BX 17 at 134. 33. In the spring of 1996, Respondent learned that Mr. Green's condominium had gone into foreclosure, and she subsequently contacted his creditors to see if anything could be done. BX 9 at 31. Respondent's office did not receive any notice of the foreclosure from Mr. Green's creditors. Id. 34. On June 17, 1996, Mr. Green wrote Respondent at her 1424 K Street, N.W., office to inquire about the status of his condominium because he had received notice that it had gone into foreclosure, and he asked Respondent why she had not notified him, given that she had $3,900 of my money in trust. BX 2 at 3. [3] He also asked about his bankruptcy status. Id. 35. In August 1996, Respondent moved her offices from 1424 K Street, N.W., to 3103 Georgia Avenue, N.W., and during the move she lost Mr. Green's June 17, 1996 letter to her. BX 2 at 3; BX 9 at 27. Respondent never answered the letter. Tr. at 204-05. 36. On August 30, 1996, Mr. Green wrote to Bar Counsel to complain that Respondent had not responded to a letter he had sent in July 2006. BX 1 at 1. He explained that he learned from a management company that his condominium had gone into foreclosure and that the money he provided to Respondent in trust was meant for her to monitor and advise him on his matter. Id. 37. On October 2, 1996, Bar Counsel sent Respondent a letter addressed to her Georgia Avenue office notifying her of Mr. Green's complaint and informing her that Bar Counsel had decided to investigate it. BX 3 at 7-8; Tr. at 79-80. Bar Counsel attached Mr. Green's complaint and requested a response by October 14, 1996. BX 3 at 7-8. 38. On October 10, 1996, the Chapter 13 trustee filed a motion to dismiss Mr. Green's bankruptcy case because he was in material default of his plan payments and because he failed to notify the trustee of the name and address of his then employer. BX 18 at 188-89. Copies were sent to Mr. Green and Respondent. Id. at 189. Respondent did not oppose the trustee's motion. Id. at 186. 39. On October 21, 1996, Bar Counsel sent Respondent another letter of inquiry because Respondent had not responded to the October 2, 1996 letter. BX 4 at 9; Tr. at 80. Bar Counsel demanded a written response to Mr. Green's allegations by October 26, 1996. BX 4 at 9. 40. On November 1, 1996, Respondent left Bar Counsel a recorded message concerning her need to respond to its letters of inquiry. BX 5 at 11. 41. On November 4, 1996, based on the trustee's motion to dismiss, the Bankruptcy Court ordered that Mr. Green's bankruptcy case be dismissed with prejudice. Respondent was sent a copy of this order. BX 18 at 186. 42. On November 5, 1996, Respondent advised a law clerk for the Office of Bar Counsel that she would respond to Bar Counsel's letters and Mr. Green's allegations. BX 5 at 11. 43. On November 12, 1996, Respondent met with an Assistant Bar Counsel, who told her that he would move to compel a written response if she did not submit one soon. Id. 44. On December 5, 1996, the Bankruptcy Court issued another order to close the case, which Respondent received. Tr. at 163. At this point, Respondent considered her representation of Mr. Green to have ended. Id. 45. On December 18, 1996, a law clerk with the Office of Bar Counsel spoke with Respondent by telephone; Respondent said she had been ill and would seek additional time to file a response. BX 5 at 11. 46. On December 20, 1996, Respondent faxed a letter to an Assistant Bar Counsel seeking an extension because she had been dealing with various health problems, including migraine headaches, glaucoma, a sinus infection, and the flu, and because she was struggling to meet client obligations after moving offices and becoming a solo practitioner. Id.; BX 6(b) at 23; Tr. at 83. Respondent informed Assistant Bar Counsel that she would contact him before Christmas to reschedule the Green case and two others also pending with Bar Counsel. BX 6(b) at 23. 47. On December 24, 1996, Respondent appeared at the Office of Bar Counsel seeking to meet with Assistant Bar Counsel, who was unavailable. BX 5 at 12. Respondent left without providing her written response. Id. 48. On January 3 and 6, 1997, a law clerk for the Office of Bar Counsel phoned Respondent concerning her lack of written response and told her that Bar Counsel would move the Board to issue an order compelling her to provide one if she did not do so by January 9, 1997. Id. Respondent promised to do so, but she did not. Id. 49. On January 22, 1997, Bar Counsel filed a motion to compel Respondent's written response and mailed a copy of the motion to Respondent. BX 6(a) at 13-14. 50. On February 12, 1997, the Board ordered Respondent to respond to Bar Counsel's letters and Mr. Green's allegations within ten days. Id. at 14. 51. On February 14, 1997, a copy of the Board's order was hand-delivered to Respondent. Id. at 14. 52. On March 12, 1997, Bar Counsel obtained approval of a petition and specification of charges alleging that Respondent violated Rule 8.4(d) and D.C. Bar R. XI, § 2(b)(3) based on Respondent's failure to comply with the Board's order. Id. at 13-15. 53. On April 11, 1997, Respondent's attorney wrote to the Hearing Committee assigned to the case to request additional time to review evidence and prepare an answer to the charges and to request that the hearing set for April 29, 1997, be postponed for thirty days. BX 8 at 25-26. 54. On April 30, 1997, Respondent finally responded to Bar Counsel's letters of inquiry and to Mr. Green's allegations. BX 9 at 27-32, Tr. at 87-88. Respondent summarized the work she had done on behalf of Mr. Green and included a Statement dated May 7, 1997, detailing work she had done for him between March 1994 and April 1996. BX 9 at 27-34. [4] Although Respondent believes she did much more work than was reflected on the May 7, 1997 Statement, which she and her husband prepared, she has not been able to locate any invoices she may have sent to Mr. Green asking for payment for this additional work. Tr. at 96-99. Mr. Green testified that he received no statements since the one of March 21, 1994, requesting payment of the remaining $460 of his initial retainer fee. Tr. at 207-08; see also Tr. at 284. The May 7, 1997 Statement has no entry reflecting the $1,000 Respondent refunded to Mr. Green on July 19, 1995. BX 9 at 34; Tr. at 158-59. 55. The April 30, 1997 letter represented Respondent's best memory of her representation for Mr. Green at that time. Respondent contends, however, that the letter was not a perfectly accurate summary because Respondent's office manager was not available to help prepare it. Tr. at 88. 56. On May 12, 1997, through her attorney, Respondent provided an answer to the specification of charges. BX 6(b) at 20-23. Respondent explained that, during her August 1996 move, she did not receive Bar Counsel's inquiry letters promptly because she did not immediately notify the D.C. Bar of her new office address. Id. at 20-21. After her move, she operated without staff support and had difficulty retrieving records and files according to her Answer, and Mr. Green's file and her bank records could not be found for some time. Id. at 21. She also stated in her Answer that she had been dealing with health issues. Id. at 21-22. 57. On May 19, 1997, Bar Counsel filed a motion to dismiss the petition and specification of charges without prejudice, having received responses from Respondent that would permit an investigation. BX 7 at 24. 58. On May 27, 1997, the Board issued an order granting Bar Counsel's Motion to Dismiss without prejudice. Id.