Opinion ID: 1184437
Heading Depth: 1
Heading Rank: 3

Heading: fourth item of complaint

Text: This complaint was made by Mrs. Dorothy Gentry. Essentially, this complaint involved misuse of money placed with respondent in trust, and seeking to take advantage of a layman who was not represented by counsel. On December 21, 1969, one Thorsten Gastgivar died, leaving a will naming Dorothy Gentry as nonintervention executrix. She was a stepdaughter of deceased. On December 29, 1969, Mrs. Gentry employed respondent to probate the will. This was respondent's first attempt to handle a probate. Because of one matter of respondent's conduct, it is necessary to briefly state the background of the Gastgivar probate. Dorothy Gentry was the daughter of Hazel Gastgivar, deceased wife of Thorsten Gastgivar, who had died July 14, 1968, leaving as her only heirs her husband and her daughter. Mrs. Gentry had filed a relinquishment and waiver of all interest in the estate of her mother and a request that all of the assets go to Thorsten Gastgivar. The decree of distribution in King County probate No. E-195904 distributed to Thorsten Gastgivar all of the assets of the estate, together with any property not now known which may belong to said estate. Thorsten Gastgivar was a member of the Masters, Mates & Pilots Association, a union, which had death benefits for members. In the case of this deceased, the death benefit was $7,500 payable to the named beneficiary, David O. Gastgivar, a brother of deceased. The union had no address for the brother other than Albany, New York and could not deliver the check to him. When the union learned from the funeral home that respondent was attorney for the estate, they sent to him the check dated January 20, 1970, payable to David O. Gastgivar for $7,500. The letter dated January 21, 1970, accompanying the check read as follows: Re: Thorsten V. Gastgivar, deceased. Having received a certified copy of the death certificate from the Seattle representative of the MMP Local 90, we have processed a claim for death benefit payable for the above noted deceased licensed deck officer on behalf of his named beneficiary, David O. Gastgivar, brother. The only address noted on the enrollment form for this brother was Albany, New York. In view of the fact that you are handling the estate as indicated on the copy of the funeral expenses received, we are forwarding the death benefit to your office for delivery to the named beneficiary. We also wish to state that this benefit is not a part of Mr. Gastgivar's estate. Please be advised that there are additional benefits payable which would be a part of the estate and upon receipt of a copy of the court appointment of an executor, we can process a claim for benefits. Again, on February 9, 1970, the union wrote to respondent as follows: Re: Thorsten V. Gastgivar, deceased. On January 21, 1970 we forwarded to your office a death benefit for the named beneficiary of the above noted deceased licensed deck officer. If you have contacted the above noted deceased officer's beneficiary, one David O. Gastgivar, his brother, we would appreciate hearing from you, and that you have forwarded the death benefit to the beneficiary. Also noted in our letter was a request for a copy of the court appointment of an executor. If the court has appointed an executor, we would appreciate receiving a copy of this appointment. Respondent was thus clearly advised the check was no part of the estate of deceased, and that he was given the check for the sole and only purpose of delivery to the beneficiary. Respondent apparently left the check exposed on top of his desk and a few days later another client of respondent, one Joseph V. Agosto, was in the office and saw the check. Agosto did not know Gastgivar, but stated he would undertake to locate him for respondent. Very soon thereafter, by means known only to Agosto, he located Gastgivar in a jail in Albany, New York. David O. Gastgivar was a chronic alcoholic and was mentally unable to properly conduct his own affairs. He was then in jail since November 5, 1969, and before that had been undergoing a sentence which caused his imprisonment from July 27, 1969, to October 29, 1969. During the preceding 6 months he had been out of jail approximately 1 week. Agosto and respondent went to Albany, New York, by air, leaving Tacoma on February 14, 1970. Respondent did not take the check with him. In jail, respondent told Gastgivar he had a draft for $7,500 for a death benefit, and that the estate of deceased had a claim on the money. He entered into a rather extended discussion of the community property laws of the State of Washington. He represented the estate might or might not win in court, and that litigation would take some time, which he estimated to be at least 4 months. He said he had authority to settle on the basis of one-third, or $2,500 to the estate and the balance to the beneficiary. After some discussion, Agosto and respondent went to a hotel in Albany and there Agosto typed several documents, including a power of attorney to Agosto to cash the check. They also had some documents which respondent had brought with him from Tacoma. Gastgivar signed all of the documents and a notary public was obtained to take the acknowledgments. The agreements in substance provided Agosto was to receive the $7,500 and was to deduct from that sum expenses he had incurred in the matter, the $2,500 for the estate, and all other expenses. The balance Agosto was to hold as security if he secured a bond for the release of Gastgivar; if not, he was to deposit the balance in his name in a bank and hold it for the benefit of Gastgivar. After the various papers were signed, Agosto and respondent returned by plane to Tacoma. Agosto, in fact, deposited no part of the $7,500 in the bank account for the benefit of David O. Gastgivar. Instead, he did deposit it in the bank account of one of his business ventures, which account was theretofore overdrawn. Five days later, on February 20, 1970, the petition for probate of the last will and testament of Thorsten Gastgivar was filed in King County under probate No. 201977. Mrs. Gentry was appointed executrix, and other matters done included appointment of an appraiser and granting of a family allowance. On March 12, 1970, David O. Gastgivar was released from jail without the need for posting bail or other security. In April he came to Tacoma. He wanted his money. Gastgivar could get absolutely no satisfaction from respondent. He located Mrs. Gentry. She did not have the $7,500, or any part of it. Gastgivar employed counsel to get his money. Demand was made on Agosto and eventually an accounting was made which Gastgivar accepted. In that accounting Agosto took credit for the $2,500 paid to the estate, although in fact, it was not so paid, but was retained by Agosto. Gastgivar made continued demands upon Mrs. Gentry and threatened her. Mrs. Gentry and her husband called upon Agosto, who threatened Mr. Gentry with a knife. After much difficulty, Gastgivar received at least a substantial part of the money. The disciplinary board by its order dated January 22, 1974, changed the hearing panel's recommendation from a reprimand to suspension from the practice of law for a period of 60 days. CONCLUSION: Respondent had no legal basis for claiming a part of the death benefit for the estate. His conduct was wrong in seeking to confuse the beneficiary, David O. Gastgivar, by a discussion of community property law, which was wholly inapplicable to the situation. He had received the funds specifically to convey them to David O. Gastgivar. If he could not do so, he should have promptly returned the check. It is improper for an attorney to take trust funds of one client for the benefit of another client. He had no right to leave Agosto in possession of funds belonging to David O. Gastgivar. His conduct in that regard was inexcusable. [1] We are firmly committed to certain principles in connection with disciplinary proceedings. (1) The final responsibility and authority in such matters rests with the Supreme Court. (2) The court will give respectful consideration to the recommendations of the disciplinary board, but not be bound by the same. (3) All recommendations of the disciplinary board and of the hearing panel are for the guidance of the court and are only recommendations. In re Espedal, 82 Wn.2d 834, 838, 514 P.2d 518 (1973) states: We always give serious consideration to recommendations of the Board in disciplinary proceedings. Nevertheless, they are only advisory. The ultimate responsibility for determining the nature of discipline rests solely with this court. In re Kennedy, 80 Wn.2d 222, 240, 492 P.2d 1364 (1972). Accord, In re Smith, 83 Wn.2d 659, 663, 521 P.2d 212 (1974). Having fully considered the recommendations of the disciplinary board, the court finds no valid reason for not adopting the same as to items one, two and three. As to the fourth item, the court finds the recommendations of the board to be inadequate, and that a suspension from the practice of law for 6 months would be a proper penalty. It is, therefore, ordered, that Robert G. Kerr receive reprimand on each of the first three items of the complaint. On the fourth item of complaint it is ordered that respondent, Robert G. Kerr, be suspended from the practice of law for a period of 6 months. The respondent shall pay the costs of this proceeding. HALE, C.J., and FINLEY, ROSELLINI, HUNTER, HAMILTON, STAFFORD, UTTER, and BRACHTENBACH, JJ., concur.