Opinion ID: 2612591
Heading Depth: 2
Heading Rank: 1

Heading: historical background of the case

Text: This matter arose from probate proceedings involving the estate of Walter E. Herrmann, who died on January 20, 1973, leaving substantial properties in Nevada and California. Over five years later, in March of 1978, this disciplinary proceeding was commenced by the filing of a complaint with the State Bar's Board of Governors which accused Flangas and Ross, as attorneys for non-resident heirs, together with the attorney for the estate's executor, of misconduct in connection with the probate proceedings and subsequent inquiries into the propriety of their fees. The matter has a tortuous history, which will only be traced in most material part. In November of 1973, District Judge Richard Waters of the Ninth Judicial District Court, for the County of Lyon, awarded the total sum of $70,000 to Flangas and Ross, whom Judge Waters had previously appointed to represent the non-resident heirs of the Herrmann Estate. From the record, it appears that Flangas and Ross had performed services of benefit to the Herrmann Estate. It also appears, however, that at least part of their services were of no benefit to the non-resident heirs, to whom Walter Herrmann had bequeathed specific sums of money. Thus, apparently for that reason, when the executor filed his account and petition for fees, Judge Waters ordered that the fees to Flangas and Ross should be paid from the general estate. Under Judge Waters's order, the specific bequests to the non-resident heirs bore no portion whatever of the fees awarded to Flangas and Ross. [2] This fact should be noted explicitly, inasmuch as numerous stories have been generated in the news media, comparing the size of the fees to Flangas and Ross with the specific bequests made by the decedent to the non-resident heirs. Not long after fees were awarded to Flangas and Ross, Judge Waters died. A successor judge was named to fill Judge Waters's office until the next general election. He assumed control of the Herrmann Estate matter, and in time came to believe that the award of fees resulted from a corrupt conspiracy between Judge Waters, Flangas, Ross, and the executor's attorney. Thereupon, the successor judge telephoned the State Bar's president to solicit the investigation which culminated in the instant proceedings. After consulting with the successor judge, the State Bar president hired an investigator from Sacramento. These circumstances are summarized in a letter, in the nature of a status report, which the State Bar president wrote to his own successor: I received a call from [the successor judge], who indicated that it was obvious to him that his predecessor, [the attorney] representing the estate together with Peter Flangas and John Tom Ross, were involved in a conspiracy to extract exorbitant fees from this estate. He had no place else to look for assistance and asked if the State Bar would be willing to conduct an investigation into the entire matter. Thereafter, with the assent of the Board, I hired Jim Sims, who is a competent private investigator from Sacramento. I felt at that time that this investigation would serve a dual purpose: A. To assist the Court. B. To determine if counsel involved had been guilty of unethical conduct which could either lead to their receiving a reprimand, suspension or disbarment. Appreciating the fact that this might entail the spending of some State Bar dues to assist the Court, I felt we were justified in proceeding in the manner in which we have. I had in mind also that later perhaps we could petition the Court to recoup some of the expenses which have been involved, if, as a matter of fact, we could ultimately prove that there was unethical conduct involved and by virtue of this fact the assets of the estate were not diminished due to the conduct of counsel. ..... I am enclosing four bills from Jim Sims which somehow I misplaced which are in line for payment. I appreciate the fact that we have spent considerable money to date but, under these circumstances, I think the expenditures are justified. (Emphasis added.) The State Bar pursued a lengthy investigation attempting to validate the successor judge's suspicions about conspiracies. It appears that the successor judge assumed an active role in these inquiries, meeting privately with the Bar's investigator, one Sims, and channeling his activities. Flangas and Ross, as well as the attorney for the Herrmann Estate's executor, ultimately were charged and brought to hearing before the State Bar's Board of Governors. After an eight-day hearing in the summer of 1978, the Board of Governors absolved all three attorneys of every allegation originally conceived by Judge Waters's successor. The Board of Governors found that there was neither evidence to justify any of several charges of conspiracy and related impropriety involving Judge Waters and the Herrmann Estate attorneys, nor evidence to substantiate a charge involving a political plot by Flangas against the successor judge. On the basis of a welter of conflicting evidence, however, the Board of Governors found that Flangas and Ross had been untruthful in regard to aspects of the inquiries into the successor judge's unsupportable suspicions. Hence, the Board of Governors determined to recommend that Flangas and Ross should be disciplined. Under rules promulgated by this court, bar disciplinary proceedings are required to remain confidential pending our review. Nonetheless, almost immediately following conclusion of the Board of Governors' deliberations, and long before the Board had formulated and filed its legally confidential Decision and Recommendation with this court on September 11, 1978, distorted and inflammatory stories concerning the proceedings began surfacing in the news media. Therefore, after the formal Decision and Recommendation ultimately was filed with this court, Flangas and Ross moved to require more specific findings of fact, and requested an investigation into the breaches of confidentiality which were undermining the accused's rights. On October 19, 1978, the court convened with counsel in chambers, and elicited an agreement that the Board of Governors would prepare specific findings. [3] The court took no action, however, on complaints concerning the aforementioned breaches of confidentiality. A few days afterward, election campaign advertising began to appear in the print and electronic media throughout Nevada, alluding to the pending Herrmann Estate proceedings, and to the successor judge's role in these pending proceedings, as a basis for lauding the successor judge's candidacy for election to this court. Flangas again petitioned this court for protection, but relief was denied in an order executed by two court members, with one justice dissenting. This history has given rise to a plethora of issues. Flangas sued for violation of his civil rights in the United States District Court for Nevada, moving for an injunction against further proceedings in this court on the ground that the unlawful media leaks, the improper campaign advertising, and other judicial misconduct, had destroyed prospects for due process in our state court system. The United States District Court for Nevada enjoined us from proceeding. On appeal, however, the Ninth Circuit Court reversed, holding that federal intervention would be unwarranted until Flangas and Ross have exhausted possibilities for just treatment in this tribunal. See: Flangas v. State Bar of Nevada, 655 F.2d 946 (1981).