Opinion ID: 2137456
Heading Depth: 1
Heading Rank: 1

Heading: thompson charges

Text: During mid-1985 through late 1987, Goetz represented Roger and Phyllis Thompson in three interrelated matters: foreclosure of loans by the First National Bank, Hettinger, a chapter 11 bankruptcy proceeding and a loan application to the Small Business Administration (SBA). [2] In the foreclosure action, Goetz obtained the Thompsons' signatures on a warranty deed and a bill of sale covering Thompson's farm machinery and equipment, both in favor of the Bank. Goetz did not explain the significance of the documents and, in fact, told the Thompsons the warranty deed was a mortgage deed required by the SBA. The SBA loan was part of the Thompsons' efforts to refinance their debt. Goetz prepared the application documents for the Thompsons. When the SBA denied Thompsons' loan application, Goetz told the Thompsons he would file an appeal. Goetz did not file the appeal but gave the Thompsons fictitious progress reports on the appeal. Goetz filed a Chapter 11 bankruptcy petition for the Thompsons. He later told the Thompsons that a hearing was set for their bankruptcy petition. He also told them that the Bank would extend the time for refinancing their debt if they would dismiss the bankruptcy petition. At the very time that Goetz was trying to get Thompsons' consent to dismiss the petition, he had already secured a dismissal by filing a stipulation of dismissal he had tricked Thompsons into signing. By November 1987, Thompsons discovered that the warranty deed and an Agreement and Option to Purchase had been filed with the register of deeds. These documents did not correspond with what the Thompsons believed Goetz was doing for them, based upon Goetz's reports to them. Goetz denied any knowledge of the agreement, even though he had arranged for its recording. At this time, Goetz told the Thompsons that he had paid, from his trust account, real estate taxes on the property covered by the deed. When the Thompsons complained about paying taxes on property they no longer owned, Goetz told them he would stop payment on the check. The tax transaction was fictitious; Goetz had not paid the taxes. Goetz billed the Thompsons over $6,000 for work performed from August 30, 1985 through September 15, 1987. The hearing panel found that in his dealings with the Thompsons, Goetz committed fraud and deceit, he failed to advance the Thompsons' interests in the foreclosure, loan application and bankruptcy matters, he lied to the Thompsons about the progress of their matters, he failed to advise them about significant developments involving their interests, he failed to keep client funds safe, and he charged an excessive fee in violation of the North Dakota Code of Professional Responsibility DR 1-102(A)(4), (5), (6), DR 2-106, DR 6-101(A)(3), DR 7-101(A)(1), (2), (3), DR 9-102(B)(3); North Dakota Rules of Professional Conduct 1.3, 1.4(a), (b), 1.15; North Dakota Procedural Rules For Lawyer Disability and Discipline 1.2(A)(3), (8).