Opinion ID: 2385538
Heading Depth: 1
Heading Rank: 6

Heading: chapman complaint

Text: Respondent had been retained to represent Edward Edlkraut, who had been named a defendant in a complaint signed by Anita Chapman on March 26, 1981 charging him with criminal sexual contact, contrary to N.J.S.A. 2C:14-3b. A probable cause hearing commenced on April 2, 1981 was not concluded due to the emotional state of the victim/complainant. Respondent advised the victim/complainant to obtain an attorney to represent her and to have this attorney contact him. After this hearing, Respondent again advised her to retain an attorney to discuss with him a possible civil settlement of the case. He indicated to her that the defendant would not be convicted and suggested that there could be additional hearings before a grand jury and other proceedings. He suggested the names of several attorneys to her. Ms. Chapman hired one of the attorneys recommended and later met with him in his office. During most of the conference between the two, the attorney's partner, who was a Municipal Court Judge in Morris County, was present. Ms. Chapman related to this attorney her conversation with Respondent and that she wished to withdraw the criminal complaint because she wanted to move to Texas to reside with her father and obtain employment there. Her attorney advised Ms. Chapman to obtain a release from Edlkraut because of the potential for a malicious prosecution charge if she simply dropped her complaint. He also discussed with her the possibility of a civil settlement, and it was agreed that he would make a demand for $5,000. When Chapman's attorney informed Respondent of the $5,000 demand for civil settlement, Respondent made a counteroffer of $1,500. After conferring with his client, this counteroffer was accepted. On April 8 or 9, 1981, $1500 in cash plus releases were delivered to Chapman's attorney by Respondent with a covering letter which instructed that the release documents should be held in escrow pending the representations by the complainant on Thursday evening, April 9, 1981 in the Jefferson Municipal Court (Exhibit A). Chapman's counsel deposited $1,100 in his firm's trust account (Ms. Chapman's share) and $400 in his firm's operating account (the legal fee for representation). At the ethics hearing, Ms. Chapman testified that she had been counseled by both the Respondent and her attorney not to disclose the civil settlement at the municipal court hearing. This was categorically denied by both attorneys. It is acknowledged, however, that she received no affirmative instruction to advise the Municipal Court of the civil settlement. When the probable cause hearing continued on April 9, 1981, Ms. Chapman appeared by herself. She informed the court that she wished to withdraw the criminal complaint. Although she gave reasons for this withdrawal, she did not mention the civil settlement. Respondent who was present at this time representing defendant, Edlkraut, also did not disclose to the court the civil settlement. The Municipal Court dismissed the charge subject to the approval of the County Prosecutor, which was necessary because this was an indictable offense. Later that same evening, Ms. Chapman and her attorney met with Respondent at his office. The prompt meeting was arranged so that the civil matter could be concluded before Ms. Chapman's imminent departure to Texas. At that meeting, releases dated April 8, 1981 were executed and Ms. Chapman signed a memorandum which stated that the money settlement was being paid for the civil claim and not as payment for withdrawing the criminal charges. The release signed by Ms. Chapman, however, specifically stated that: Releasor hereby waives all rights and claims, both civil and criminal against Releasee (emphasis supplied). At this meeting, Ms. Chapman received a trustee check from her attorney for $1,100. The existence of the civil settlement was apparently discovered by the Morris County Prosecutor's Office during its ancillary investigation of the criminal matter in the course of its review of the request to dismiss. The criminal charges against Edlkraut were downgraded to simple assault, of which he was ultimately found guilty. A formal complaint was filed against Respondent charging him with violating DR 1-102(A)(4), (5) and (6) for failing to disclose to the Municipal Court the civil settlement during the request to withdraw the criminal charge. The panel held that Respondent, who was present in Municipal Court on April 9, 1981, had a duty to disclose to the court the full details of the settlement. His failure to do so violated In re Friedland, 59 N.J. 209 (1971) and DR 1-102(A)(5) and (6). The panel accepted Respondent's testimony that he was not aware of the Friedland case and found that the factual circumstances in this case were not as serious as those in Friedland. The District XII Ethics Committee panel, unaware of the Respondent's other ethical violations, recommended that a private reprimand be imposed. Respondent no longer practices law; he is a claims examiner for a New York insurance company.