Opinion ID: 1917174
Heading Depth: 1
Heading Rank: 2

Heading: Tuncay Matter

Text: We adopt the DRB's factual findings and conclusions on the Tuncay matter. In significant respects the DRB's report reads as follows: The respondent was retained by Sahil Tuncay in October of 1976 to represent him in obtaining a lease from Marl Associates, owner of a service station at 350 Grand Avenue, Leonia, New Jersey, then operated by Tuncay without a lease. The $100 retainer requested by respondent was never paid despite several requests. A proposed lease was received by respondent from the owner's attorney in late October. However, in December the respondent was advised that the owners intended to sell the gas station to another party rather than lease the premises to Tuncay. Interest in purchasing the property was thereafter expressed by Tuncay and Donald Barton, who proposed to form a corporation known as Leonia Gulf. Following purchase by Leonia Gulf, the corporation was to make available to Tuncay a lease comparable to that originally proposed by Marl. A contract of sale providing for the purchase of the property by Leonia Gulf was signed by Barton    on December 22, 1976. Closing of title was scheduled for May 9, 1977. Tuncay allegedly advised Barton at that time that he had changed his mind and wanted only a lease to operate the service station. He reiterated his unwillingness to participate in the purchase during a meeting that day between Barton, Tuncay and respondent. At that time, Tuncay was represented by another attorney, who was also present at this meeting. The respondent then determined to participate personally in the purchase as an equal stockholder with Barton in Leonia Gulf, Inc., and to be a director and officer of the corporation. He neither advised Tuncay of his participation nor obtained his consent. Closing took place on June 20, 1977. The respondent corresponded directly with Tuncay regarding a lease of the gas station property on August 4, 1977. Correspondence then occurred between respondent and Tuncay's new attorney, regarding a lease arrangement and certain alleged conflicts of interest. On October 12, 1977, respondent wrote directly to Tuncay, threatening him with removal from the premises if arrearages were not paid within seven days. A copy of that letter was not sent to Tuncay's counsel, since respondent apparently felt that he was acting in his capacity as director of the corporation which owned the property. However, the phrase attorney-at-law appeared below the respondent's name at the bottom of that letter. By letter dated October 21, 1977, Tuncay's attorney objected to respondent's action in corresponding directly with Tuncay. In March of 1978, the respondent instituted an action for rent arrearages and a dispossess action against Tuncay. Tuncay filed an ethics complaint in April of that year. In May, the respondent met with Tuncay and his attorney and a reduced rent was agreed upon. As part of the negotiations, the respondent requested and obtained a withdrawal of the ethics complaint and a general release. Pursuant to R. 1:20-5(f) the District II Ethics Committee pursued the matter, and concluded that the respondent acted improperly in purchasing the Leonia service station without notice to or consent by Tuncay, that he utilized information obtained via an attorney-client relationship to that client's disadvantage and that he improperly communicated directly with Tuncay rather than Tuncay's attorney in violation of DR 4-101 [dealing with preservation of confidences and secrets of a client] and DR 7-104 [covering communicating with one of adverse interest].         With regard to [the Tuncay matter], the respondent has admitted impropriety in corresponding directly with Tuncay rather than with his attorney. In addition, having first participated in the negotiations as attorney for Tuncay, respondent purchased an interest in the ownership of the premises in question without his former client's approval, and then negotiated with his former client, albeit primarily through the new attorney for that client, on the same matter in which he had first represented Tuncay. In these actions, respondent was guilty of serious violations of our ethical standards as set forth in DR 7-104(A)(1) and DR 4-101(B)(3). See In re Russell, 59 N.J. 315 (1971); In re Kent, 39 N.J. 114 (1963) and In re Carlsen, 17 N.J. 338 (1955). See also In re Cipriano, 68 N.J. 398 (1975); In re Ryan, 66 N.J. 147 (1974).