Opinion ID: 2093603
Heading Depth: 1
Heading Rank: 5

Heading: The Gagliardi Matter

Text: This matter concerned a business transaction between Mr. and Mrs. Gagliardi, newlyweds, and S.J.A. Builders, Inc., a corporation for which respondent served as president and which he owned. In April 1977, the Gagliardis executed a contract which required the corporation to construct a new home for them on property in Clinton Township. The Gagliardis trusted the respondent and dealt with him personally with regard to the contract and construction of the home. Their visits to the building site, however, revealed that work was not being completed as contracted. They received many excuses from the respondent, not including the fact that he had never received a building permit for the premises. Finally in November 1977 they demanded the return of their down payment. The first check that they received failed to clear due to insufficient funds. To rectify this situation, respondent issued a check for over $6,000 drawn on his attorney's trust account. This check was also returned for insufficient funds. Respondent admitted that at the time he issued the trust account check he had approximately $15 in the account.