Opinion ID: 1842284
Heading Depth: 1
Heading Rank: 1

Heading: original findings

Text: Respondent, who was 32 years of age at the time of the December 1972 hearing, was graduated from the University of North Dakota School of Law in 1964; he was admitted by examination to the practice of law by this court on October 8, 1964. Following his graduation from law school, respondent worked for an insurance company in Sioux Falls, South Dakota, for approximately seven months, after which he moved to Rapid City, South Dakota, where he was employed as Deputy State's Attorney of Pennington County until 1970. Since 1970 respondent has been engaged in the private practice of law as a sole practitioner in Rapid City. He was described by judges and fellow lawyers as a capable, talented, reliable lawyer. Respondent represented one Van E. Harmon of Evansville, Wyoming in a claim arising out of contract. After commencing litigation, respondent agreed to settle the case for $800 on behalf of his client. Payment was made by a check in the amount of $800, dated April 26, 1971, and endorsed to the David O. Rude trust account. On April 28, 1971, the check was deposited in the First National Bank of the Black Hills, $550 thereof in the David O. Rude trust account and $250 in the David O. Rude office account in the same bank. The check was returned because of insufficient funds, and the David O. Rude trust account was charged by the bank for the amount of the check, thus overdrawing that account. Respondent promptly notified Mr. Harmon that the check had been returned because of insufficient funds. Although the same check was again deposited on May 11, 1971, and credited to the David O. Rude office account, Mr. Harmon was not notified of this fact. Respondent did not remit to Mr. Harmon his net portion of the settlement recovery and at subsequent times did not have sufficient funds to do so. Mr. Harmon made complaint to the Secretary of the State Bar and letters were sent to respondent by the Grievance Committee. Respondent did not respond to the communications from the Grievance Committee and did not pay Mr. Harmon until the day before the hearing of his disciplinary proceeding before the Referee, at which time he paid the entire $800 to Mr. Harmon without any deduction for attorney's fees and costs. On November 19, 1971, respondent obtained $50 in cash from one Roman Kurylas of the Imperial 400 Motel in Rapid City by giving a personal check in that amount to Mr. Kurylas. After making many unsuccessful attempts to collect the $50 from respondent, Mr. Kurylas finally made complaint to the Grievance Committee. At the hearing before the Referee Mr. Kurylas testified that his wife had received a phone call from Mr. Kurylas' attorney on the morning of the commencement of the Referee's hearing, notifying her that the $50 check had been made good. The trust account and business account of respondent with the First National Bank of the Black Hills in Rapid City, South Dakota, were on numerous occasions overdrawn and respondent's checks on those accounts were charged as overdrafts or returned as insufficient fund checks. The trust account was closed by the bank on August 18, 1971, and the status of respondent's business account with the bank in July and August of 1971 was such that checks presented for payment were almost universally returned for lack of sufficient funds; this account was dropped from the bank records on January 4, 1972. The records of respondent's account with the National Bank of South Dakota in Rapid City, South Dakota, for the period from May 19, 1972 to December 15, 1972, reveal that on numerous occasions the account was overdrawn. Respondent, who had been issued a South Dakota Retail Occupational Sales Tax license, failed to make quarterly returns of his gross receipts or to pay or remit the occupational sales tax for the July-August-September 1971 period and the October-November-December 1971 period. Respondent's sales tax license was revoked as of November 15, 1971, and thereafter he continued to engage in the practice of law without such license and failed and neglected to file reports or returns of gross receipts or to pay any retail occupational sales tax. Proceedings were commenced by the Commissioner of Revenue of the State of South Dakota, as a result of which an order was issued by the circuit court restraining respondent from engaging in business as an attorney for the period from April 10, 1972 to May 1, 1972. Respondent, while continuing the practice of law in the state of South Dakota during the year 1972, did not pay his dues as a member of the State Bar of South Dakota for the calendar year 1972 until November 3, 1972, in violation of Section 23 of the By-Laws of the State Bar.