Opinion ID: 1991636
Heading Depth: 1
Heading Rank: 5

Heading: The Patria and Burrell Matter

Text: In February 1984, Daniel Patria, Sr. and Darlene Burrell (grievants), uncle and niece, formed a corporation (Darlynn), the purpose of which was to operate a telephone answering service. Grievants were officers of Darlynn. Darlynn had signed an agreement with Atlantic Telephone Service, Inc. (Atlantic) to install and lease an answering service system. In March 1984, Darlynn entered into an oral agreement with Main Answer, Inc. (Main Answer), whereby the latter assumed all of Darlynn's liabilities and obligations, including those under the lease agreement with Atlantic. Grievants remained with Darlynn under an employment contract. The preparation of the written agreement was assigned to respondent, who was Main Answer's in-house attorney. Grievants were unrepresented by legal counsel. In January 1984, Atlantic informed grievants that the lease was considered terminated for failure to make payments. Main Answer had not made the lease payments, as required by its oral agreement with Darlynn. Neither had respondent prepared the written agreement. In October 1984, Atlantic served grievants with a summons and complaint, with Atlantic demanding payment and replevin of the equipment. Grievant then contacted respondent, who acknowledged that it was Main Answer's responsibility to make the lease payments and informed grievants that he would assume their representation in the litigation. Accordingly, grievants turned over to respondent the summons and complaint, relying on his promise to undertake their representation. In January 1985, grievants discovered that respondent had failed to answer the complaint, thereby causing a default judgment to be entered against them, together with a writ of replevin. Grievants immediately contacted respondent, who acknowledged his failure to file an answer and assured grievants that he would forthwith file a motion to vacate the default judgment against them. In spite of his promise, respondent neglected to file the motion, as a result of which Atlantic recovered monies and equipment from grievants. Ultimately, grievants were forced to appear pro se before the court, in order to set aside the default judgment. The district ethics committee hearing was held on July 16, 1986. Respondent did not appear. At the conclusion of the hearing, the committee found that, by representing Darlynn and Main Answer, respondent had created a definite conflict of interest, without any disclosure to grievants. The committee found, also, that he had acted against grievants' interests by favoring Main Answer and neglecting to act diligently and competently on grievants' behalf. In addition, the committee found that respondent had failed to communicate with grievants about the status of the litigation, all to grievants' detriment. The committee concluded that respondent had violated R.P.C. 1.1(a), R.P.C. 1.2(a), R.P.C. 1.3, R.P.C. 1.4, R.P.C. 1.7(a), R.P.C. 3.2 and R.P.C. 8.4. The panel report revealed the committee's grave concern with respondent's ethical infractions. It stated [i]t should be noted that the committee [is] extremely disturbed by the actions of Mr. Breen in this particular matter and that the miscondut in this particular case constituted more than negligence but gross misconduct and intentional wrongdoing on behalf of his clients. Essentially his actions constituted a fraud upon two innocent parties, namely Patria and Burrell. The committee recommended that a presentment be brought against respondent.