Opinion ID: 1439142
Heading Depth: 1
Heading Rank: 1

Heading: Barkasy

Text: During the course of investigating the complaint against Mr. Newman, the Director contacted Eleonora Barkasy, mother of Andre Barkasy, who had been represented by Mr. Newman in several criminal matters. Initially, Ms. Barkasy paid Mr. Newman $7,500.00 to represent her son on some drug-related matters in Benton County. She subsequently sent him another $7,500.00 fee to represent Andre in a criminal matter in Missouri. Ms. Barkasy explained that she also sent a check for $2,600.00 to Mr. Newman at his home. She stated that she believed this check was to cover final court fees so that Andre could leave Arkansas and return to California. In November of 2001, Andre entered a guilty plea in Washington County Court. He was sentenced to forty-eight months' probation. One of the written conditions of his probation was that he pay $150.00 in court costs and restitution of $1,000.00. After the State sought to revoke Andre's probation, his mother traveled to Arkansas, and Mr. Newman took her and Andre to the Washington County Clerk's office to pay the $1,150.00 owed. Mr. Newman subsequently paid costs of $125.00 in Andre's City of Fayetteville case. He also paid $350.00 in a pending Springdale case, but later asked Ms. Barkasy to reimburse him for that payment. At the time that Ms. Barkasy paid the Washington County fees, she did not question Mr. Newman about the prior $2,600.00 payment. Mr. Newman claimed that the $2,600.00 check was to repay him for personal expenditures that he had made on behalf of Andre, as well as to cover cash loans that he had made to him. Andre admitted that Mr. Newman provided him with a small amount of food and medicine at a time when he was sick, but he denied that Mr. Newman ever gave him any cash. A review of the special judge's findings reveals that he determined that Mr. Newman violated Model Rules: 1.3, 1.4(b), 1.15(a), 8.4(b) and 8.4(c). However, the special judge determined that Mr. Newman did not violate: Rules 1.2(a) by not abiding by his client's wishes; Rule 1.4(a) by failing to keep Barkasy informed; Rule 1.15(b) by failing to provide Ms. Barkasy with an accounting of the $2,600.00; Rule 1.16(d) by failing to protect his client's interest, surrender any property, and refund any advance payment of fee that had not been earned. In reaching this conclusion, the special judge noted that he did not believe that the Director proved by a preponderance of the evidence that the $2,600.00 payment was intended to cover the $1,150.00 in fees owed in Washington County. The special judge further found, however, that Mr. Newman grossly overstated Andre's debts for food, medicine, and telephone charges. He also found that Mr. Newman did not loan Andre any money. Mr. Newman now argues that the special judge's findings of fact split the baby in a way that renders them clearly against the preponderance of the evidence. Specifically, he argues that the special judge found in his favor by holding that there was a failure of proof that the $2,600.00 was intended to cover the $1,150.00 owed to the Washington County court. This finding was subsequently contradicted by the special judge's finding that Mr. Newman was obligated to pay $125.00 to Fayetteville and $350.00 to Springdale on Andre's behalf. He further argues that the special judge's finding faulting Mr. Newman for not having an accounting of the personal expenses he incurred on Andre's behalf was in error because there is no requirement that he keep such an accounting. Finally, Mr. Newman acknowledges that the special judge's findings are given due deference by this court but submits that this situation is ambiguous and thus does not warrant the classification of serious misconduct. The Director's only argument with regard to the trial court's findings is concerned with the finding that there was no violation of Rule 1.2(a). According to the Director, the evidence clearly supported Ms. Barkasy's statement that the $2,600.00 was intended to cover Andre's court costs and fees. We disagree with both Mr. Newman and the Director. We begin our analysis by reviewing the Model Rules that the special judge found had been violated by Mr. Newman. The first is Rule 1.3 which provides that a lawyer shall act with reasonable diligence and promptness in representing a client. The special judge found that Mr. Newman violated this rule by not timely paying the money Andre owed to the City of Springdale. Next, the special judge found that Mr. Newman violated Rule 1.4(b) by failing to describe the specific expenses comprising the $2,600.00. Rule 1.4(b) provides that: A lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation. The special judge found that Mr. Newman violated Rule 1.15(a) in failing to properly separate his client's money from his property. Specifically, the trial judge found that Mr. Newman violated this rule by depositing the $2,600.00 check into his personal account held jointly with his wife. Rule 1.15(a)(1) provides that: A lawyer shall hold property of clients or third persons, including prospective clients, that is in a lawyer's possession in connection with a representation separate from the lawyer's own property. The special judge found a violation of Rule 8.4(b) on the basis that Mr. Newman committed theft in connection with his taking of the $2,600.00, specifically, that Mr. Newman was vague about the fees and expenses that had been incurred in reaching the $2,600.00 amount. Rule 8.4(b) provides that it is professional misconduct for a lawyer to: commit a criminal act that reflects adversely on the lawyer's honesty, trustworthiness or fitness as a lawyer in other respects[.] Finally, the special judge concluded that Mr. Newman violated Rule 8.4(c) for engaging in dishonest conduct for not using the money to pay Springdale and for committing theft. Rule 8.4(c) provides that it is professional misconduct for an attorney to engage in conduct involving dishonesty, fraud, deceit or misrepresentation[.] Clearly, the trial court's conclusions regarding these violations were based on his review of the testimony in this case. The special judge had the benefit of hearing the witnesses' testimony and is better suited in assessing the credibility of those witnesses. It is axiomatic that disputed facts and determination of credibility of witnesses are within the province of the factfinder. Neal v. Matthews, 342 Ark. 566, 30 S.W.3d 92 (2000); Hollingsworth, 338 Ark. 251, 992 S.W.2d 771. Accordingly, we cannot say that any of the special judge's findings of violations of the Model Rules related to the Barkasy matter are clearly erroneous. We further note that Mr. Newman's argument that there can be no violation of Rule 8.4(b) because he was never charged with or convicted of a crime is without merit. Mr. Newman's interpretation of this rule is far too narrow. Nothing in the rule requires that there be a formal charge or conviction before the rules can be applied to an attorney's conduct. In fact, in Hollingsworth , this court found that the attorney violated Rule 8.4(b) despite the fact that the client from whom he stole money never pressed criminal charges against him. Likewise, we cannot say that the special judge was clearly erroneous in finding that Mr. Newman did not violate Rule 1.2(a). That rule provides: (a) Subject to paragraphs (c) and (d), a lawyer shall abide by a client's decisions concerning the objectives of representation, and, as required by Rule 1.4, shall consult with the client as to the means by which they are to be pursued. A lawyer may take such action on behalf of the client as is impliedly authorized to carry out the representation. A lawyer shall abide by a client's decision whether to settle a matter. In a criminal case, the lawyer shall abide by the client's decision, after consultation with the lawyer, as to a plea to be entered, whether to waive jury trial and whether the client will testify. The Director avers that the greater weight of evidence supported Ms. Barkasy's statement that the $2,600.00 was intended as payment for her son's court costs. Again, this is a matter of credibility, and we cannot say the special judge clearly erred in this regard.