Opinion ID: 2135775
Heading Depth: 2
Heading Rank: 3

Heading: Joseph Serpico

Text: Count X of the Administrator's complaint charged respondent with conversion of $5,455 of a client's, Joseph Serpico's, funds. Serpico retained respondent to represent him in his dissolution proceeding with a $1,000 retainer fee. Prior to the dissolution of marriage, a sale of household goods and furniture generated $5,455 in cash. On December 31, 1985, the court ordered the money from this sale placed in an escrow account. That same day, Serpico gave respondent a check for $5,455 and wrote legal cost on the check pursuant to respondent's advice. Respondent placed the $5,455 in his client fund account and not in an escrow account. Serpico testified that he never gave respondent authority to use the money for respondent's personal or business purposes. Moreover, it was Serpico's understanding that the money would be placed in an escrow account until the conclusion of the litigation. On January 18, 1986, respondent's client fund account fell to $5,327.12, an amount below the $5,455 Serpico had given him. Bank records revealed that this same account fell to a negative $0.77 by August 15, 1987, and that a later client trust fund opened by respondent was not opened using Serpico's funds. An order for dissolution of marriage was entered on February 5, 1987, and provided that respondent was to release the $5,455. Serpico testified that he requested the money from respondent on a number of occasions after the court's order and on October 4, 1989, wrote to him again requesting the funds and acknowledging $3,200 in legal bills. Serpico asked that respondent return $2,300 plus interest from the money held in escrow. After requesting the money until February 13, 1990, with no success, Serpico filed suit against respondent for $2,320.70 plus costs. A default judgment was entered against respondent for the amount sought, but as of the date of the filing of the Administrator's complaint respondent had not yet satisfied the judgment. Prior to this judgment, respondent had sent Serpico several bills for legal services in the amount of $3,437. Respondent testified that Serpico agreed to have his legal bills deducted from the $5,455. Respondent did not believe he owed Serpico money because the $5,455 plus retainer did not cover respondent's time and that, in fact, Serpico owed him money. The Hearing Board found that respondent converted Serpico's funds when the balance of respondent's client fund account fell to an amount below the $5,455 Serpico gave respondent to hold. The Hearing Board also found that if it were not for this technical conversion, the dispute between respondent and Serpico could be described as a fee dispute. The Hearing Board further found that respondent's refusal to satisfy the judgment represented a failure to promptly pay or deliver to a client funds to which the client was entitled in violation of Rule 9102(c)(4) (107 Ill.2d R. 9102(c)(4)).