Opinion ID: 1800005
Heading Depth: 1
Heading Rank: 2

Heading: Conversion of Donna and James Nettles' Funds

Text: The bar association alleges that respondent violated several articles of the Code of Professional Responsibility in her representation of Ms. Donna Nettles and her minor son, James Nettles. Specifically, the bar association alleges that respondent violated DR 2-110(A)(3), which states that an attorney who withdraws from employment shall refund promptly any part of a fee paid in advance that has not been earned; DR 1-102(A)(3), which provides that an attorney shall not engage in illegal conduct involving moral turpitude; DR 9-102(B)(1), (3), and (4), which provide that an attorney shall promptly notify a client of the receipt of his funds, maintain complete records of all funds and render appropriate accounts to his client regarding them, and promptly pay the funds to the client as requested by the client; and DR 6-101(A)(3), which states that an attorney shall not neglect a legal matter entrusted to him. Respondent had been retained to represent Ms. Donna Nettles and her minor child, James Nettles, in a personal injury case. A settlement was reached and respondent received two separate drafts, each for approximately $23,000, on behalf of Ms. Nettles and James. Ms. Nettles was incarcerated at St. Gabriel State Prison. To facilitate the compromise of the minor's claim, respondent obtained the qualification of the child's father, James Hudson, as the minor's tutor. Respondent was requested by Ms. Nettles to set up a trust fund for the minor child, James Nettles, and to deposit $10,000 of the settlement funds in the account. Without obtaining the approval of the tutor, undertutor or the court, respondent deposited $10,000 of the minor's funds with IDS Financial Services, Inc. in November of 1985. Contrary to Ms. Nettles' intention, respondent designated herself as custodian of the account, giving herself complete control of the minor's funds. Beginning in February, 1986, Respondent obtained approximately $8,000 from the account through a series of withdrawals and loans. The respondent claimed at the hearing before the Commissioner to have documentation showing permission from Ms. Nettles to make these transactions although she failed to produce any evidence of it from Ms. Nettles or from the child's father. Ms. Nettles directed respondent to place $3,000 of her own settlement funds into a similar account, and further directed respondent to file a petition to change her son's last name. Respondent agreed to undertake these tasks but never did so. The record reflects that Ms. Nettles, while in prison, made several unsuccessful demands to respondent for an accounting of these funds before filing a complaint with the Committee. On December 25, 1986, after these disciplinary proceedings had been instituted, respondent visited Ms. Nettles in prison and persuaded her to sign a number of receipts back-dated to 1985 stating that Ms. Nettles had received several advances from respondent on her personal injury claim; these sums totalled $4600. Ms. Nettles testified that respondent explained to her that this evidence was necessary to clear her in the disciplinary proceeding, and that if her license to practice law were revoked, she would never be able to repay Ms. Nettles the money that she owed her. At the same time, at Ms. Nettles' insistence, respondent executed a counter-document which stated: On December 25, 1986 I Margaret G. Ford visited Donna Nettles # 112766. I, Margaret G. Ford, owe Donna Nettles the sum of $4600.00 as of this date, in consideration of her signing papers dates of: March 8, 1985$300.00 April 4, 1985$1,000.00 May 18, 1985$300.00 January 9, 1985 $3,000.00, saying that she received this amount for the purpose of responding to a complaint filed by Donna Nettles. As of this date December 25, 1986, I Margaret G. Ford have not paid the $4600.00. Signed, Margaret G. Ford At the hearing before the Committee held on February 1, 1988, respondent introduced the receipts signed by Ms. Nettles into evidence. When confronted by the Committee's attorney with the counter-document, respondent admitted her signature on it but invoked her 5th Amendment privilege when asked to explain it. Later, at the hearing before the Commissioner on October 14, 1988, respondent stated with regard to the receipts: Because I was irresponsible and listened to somebody and did something real dumb when I did those. I had Donna sign those things somebody recommended that to me, and I was dumb enough to follow that but I did, but I would prefer to tell you that than be caught in a lie. Although there are gaps in the record, making it impossible to determine exactly how much of the Nettles' settlement funds respondent took for her own use or exactly how much she has paid back, at the hearing held before the Commissioner, respondent admitted that she had converted $4600 of the Nettles' settlement funds for her own use and has not made restitution of that amount. In light of the respondent's admissions, as well as the testimony of Ms. Nettles and an employee of IDS Financial Services, we find that the evidence is clear and convincing that respondent violated: DR 1-102(A)(3), DR 9-102(B)(3), and DR 9-102(B)(4) in that she converted client funds to her own use and did not turn over those funds or render an accounting of them when requested by her client to do so.