Opinion ID: 2224054
Heading Depth: 2
Heading Rank: 4

Heading: False Statement of Material Fact to a Third Person

Text: Respondent next asserts that the Review Board erred in reversing the Hearing Board's finding that the evidence was insufficient to prove that respondent violated Rule 4.1(a) by providing false information to Janna Dutton when he told her that she did not need to pursue an order to freeze Rice's assets because Nobani was denied all access to Rice's accounts. The Administrator counters that the Hearing Board's judgment was against the manifest weight of the evidence, as Dutton's testimony regarding respondent's statements was unrebutted. [6] Rule 4.1(a) provides: In the course of representing a client a lawyer shall not: (a) make a statement of material fact or law to a third person which statement the lawyer knows or reasonably should know is false. 134 Ill.2d R. 4.1(a). In this case, the Hearing Board determined that respondent's conduct during the telephone conversation with Dutton did not rise to the level of a violation of Rule 4.1(a). Specifically, the Hearing Board stated that discipline was not required because respondent had no knowledge as to what Nobani had done with Rice's funds and respondent's statements to Dutton did not change her course of action, insofar as she still sought the freeze order on Rice's accounts. The Hearing Board also noted, in a footnote, that it had questions about Dutton's credibility, as she testified that she did not recall another conversation with a PLOWS caseworker. The Hearing Board, however, did not make an actual credibility determination. The Review Board determined that the Hearing Board's finding was against the manifest weight of the evidence, as the unrebutted evidence presented at the hearing demonstrated that respondent made a material misrepresentation to Dutton. We agree with the Review Board's conclusion. The evidence presented to the Hearing Board demonstrated, clearly and convincingly, that respondent made a false statement of fact to Dutton. Dutton described her conversation with respondent in detail, and unequivocally testified that respondent stated that Nobani was denied access to Rice's funds. Dutton testified that respondent specifically asked her why she was bringing a petition to freeze Rice's accounts when [t]hey [the banks] didn't give us any money anyway. She stated that she recalled the conversation in detail because she believed respondent, and thought that she would not have to pursue the freeze order as aggressively as she initially had planned. Respondent provided no evidence which impeached Dutton's statements. In fact, respondent did not even deny that he made the statements. Respondent merely testified that he could not recall the content of his conversation with Dutton. Respondent urges that Dutton's testimony was incredible and, in support, points to conflicts between Dutton's testimony and that of caseworker O'Leary with respect to the revocations of Rice's will and power of attorney. We are aware of the conflicts in that testimony, but we find that it has no bearing on the issue before us. Dutton's testimony regarding respondent's false statements to her was uncontradicted and unimpeached. There was no conflict over this evidence, as respondent did not deny making the statements Dutton attributed to him. Accordingly, we reject respondent's credibility argument. Furthermore, the evidence presented demonstrated that respondent had to know that his statement to Dutton was false, as he was physically present when Nobani closed Rice's bank account at Advance Bank, watched Nobani receive a cashier's check, and by his own admission, asked Nobani what he intended to do with the money. Respondent's false statement was material, because preventing Nobani from accessing Rice's funds was one of the primary purposes of the probate hearing. Providing the court with information that could have aided in protecting Rice's assets should have been respondent's main concern as Rice's attorney. Had Dutton acted upon respondent's false statement, Nobani could have continued to deplete Rice's resources. The Hearing Board ignored this evidence, and found that discipline was unwarranted. However, we conclude the basis of its judgment was improper. Regardless of facts demonstrating that respondent did not know about Nobani's improper conduct and, likewise, did not actually impede Dutton's actions in protecting Rice, the evidence shows that respondent made a false statement of material fact to Dutton. Whether respondent's falsehood ultimately had an effect on Dutton's conduct is inconsequential. Accordingly, we conclude that the Hearing Board's finding was against the manifest weight of the evidence, and thus find that the Review Board properly reversed the Hearing Board's judgment with respect to this charge.