Opinion ID: 2362113
Heading Depth: 2
Heading Rank: 3

Heading: The Bantugs' Petition for Bankruptcy

Text: 1. Mrs. Bantug testified that she returned to the United States in June 1997, one year after her departure. Retrieving her mail from her sister's house, which she used for her forwarding address, Mrs. Bantug discovered that Chase Manhattan's counsel had attempted to contact her regarding the foreclosure sale of the Fort Washington home. Upon consulting with an attorney, Mrs. Bantug contacted Chase Manhattan and Commercial Credit to obtain information regarding the status of her mortgages; she learned then that a petition for bankruptcy had been filed on the Bantugs' behalf. On referral, Mrs. Bantug retained an attorney more familiar with foreclosure and bankruptcy proceedings to represent her and her husband in resolving the bankruptcy matter. 2. On 23 May 1997, a voluntary petition for bankruptcy was filed in the United States Bankruptcy Court, District of Maryland, Greenbelt Division. The petition bears the purported signatures of the Bantugs and was allegedly filed by McLemore, whose signature also appears on the petition. On 9 June 1997, additional documents were filed in the case, including a statement of financial affairs, an individual debtor's statement of intention, and a Chapter 13 plan, all of which bear the Bantugs' purported signatures. On 26 June 1997, a motion to convert from Chapter 13 to Chapter 7 was filed bearing McLemore's purported signature,. 3. On 27 May 1997, a notice of bankruptcy was filed [in the foreclosure action] in the Circuit Court for Prince George's County, Maryland. The notice, stating that a voluntary petition for bankruptcy had been filed on behalf of the Bantugs, bears McLemore's purported signature. 4. The Bantugs' counsel confronted McLemore and asked him why he had filed the bankruptcy petition without the consent or knowledge of the Bantugs. McLemore responded that he did not know the Bantugs; he did not represent them; he did not file the petition; and, that he did not authorize anyone else to sign their names or his own. Rather, he informed the Bantugs' attorney that it was his partner, Respondent, who represented the Bantugs in their bankruptcy matter. Although McLemore admitted that Respondent had requested that McLemore act as local counsel in connection with a Maryland bankruptcy claim, McLemore asserted that Respondent provided him with neither the names of the parties nor the details of the case. Moreover, he claimed that he never authorized Respondent to sign his name, and that Respondent never consulted with him before he affixed the signatures and filed the petition. [8] 5. Respondent maintains that Mrs. Bantug, if not her husband, knew about the filing of the bankruptcy petition, for it was necessary to file the petition in order to stop the foreclosure sale on the Fort Washington home, which had been scheduled for 27 May 1997. Respondent also claims that he was unable to secure financing, as required under the terms of the contract of sale, because the true value of the home was significantly less than the appraisal value. He noted that he never intended to pursue the bankruptcy matter, but rather intended only to delay the foreclosure sale. 6. Respondent admitted that he signed the Bantugs' and McLemore's names to the bankruptcy petition without their express permission. [9] He reiterates, however, that Mrs. Bantug knew about the petition. It is his contention that he and Mrs. Bantug were more than friends, and that hard feelings on her part may have precipitated her complaints. 7. Mrs. Bantug testified [10] that she never retained Respondent to represent her or her husband in a bankruptcy matter, and that she never even discussed filing for bankruptcy with Respondent. Confirming Respondent's admissions, she stated that she never signed her name to any of the bankruptcy-related documents. Her account differs from Respondent's, however, in that she also claims she never authorized Respondent to sign her name. 8. Chase Manhattan's counsel ultimately sold the Fort Washington home to McLemore at a foreclosure sale on 21 January 1998. McLemore purchased the home on Respondent's behalf because Respondent could not find anyone else to attend the sale. Although McLemore intended to purchase the home in Respondent's name, pursuant to an executed power of attorney, he actually purchased the home in his own name, with the intention of immediately substituting Respondent as the purchaser. This substitution was made shortly after the sale. Based upon these findings of fact, Judge Harrington concluded that Respondent violated MRPC 1.7(b), 3.3(a)(1), 5.5(a), 7.1, 7.5(a) and (b), and 8.4(a), (c), and (d). Both parties except to some part or another of Judge Harrington's findings and/or conclusions. Respondent asserts that there was no conflict of interest created between the Bantugs and himself; that he did exhibit candor before the tribunal; and, that Judge Harrington and this Court have no jurisdiction over this matter. In this regard, Respondent specifically argues that, because he is not a member of the Maryland bar, he cannot be sanctioned by the Court of Appeals of Maryland. In a separate, evidentiary argument, Respondent contends that it was error for Judge Harrington to declare Mrs. Bantug an unavailable witness and to accept into evidence her testimony before the Inquiry Panel. Moreover, he argues that Mrs. Bantug's attorney should have been compelled to divulge information regarding his client's relationship with Respondent because Mrs. Bantug waived her attorney-client privilege. Petitioner excepts to Judge Harrington's conclusion that Respondent did not violate MRPC 7.5(d). We address both parties' exceptions below.