Opinion ID: 1603815
Heading Depth: 2
Heading Rank: 3

Heading: The Breyer Case

Text: Carol Breyer was severely injured in an accident and agreed in June 1982 to have the firm represent her. Because the tortfeasor's insurance policy was limited to $10,000, it was clear that the bulk of the recovery would come from the uninsured motorist (UM) claim. The claim against the tortfeasor was settled in June 1983 for $10,000. Davey removed portions of the office file relating to the UM claim and closed the file on August 6, 1984, by filling out a Closed File Check List and signing his secretary's initials. Davey subsequently entered into negotiations between September 18 and December 13 with the adjuster representing the UM carrier. The adjuster wrote Davey a letter dated December 6, addressed to Davey's home, in which the adjuster made a settlement offer of $127,500. Davey accepted the offer and asked that the check be mailed to his home. The check was mailed on December 13 and Davey took it to the firm's bank on December 21; it was collected and credited to the firm's account on December 31. The Commission found that the check was made payable to the firm and that this alone foiled Davey's attempt to convert the entire fee. Cooper, Coppins, and Douglass testified that they met with Davey at some time between November 26 and December 21 to discuss Davey's failure to disclose the Bryant case noted above, and that at that meeting Douglass specifically asked Davey, Are there any other cases like the Bryant case that we should know about? Davey replied, No, sir. There are not, and did not mention the Breyer case. Cooper testified that he first learned of the Breyer case on December 21 when Davey approached him at a social function and told him that he had settled the case for $127,500, which should produce a fee of about $40,000. Cooper at first testified that he was uncertain if he ever saw the settlement check, but later said that he saw a copy and that it was payable to the firm. Douglass testified that he first learned of the case when the bank called him concerning the settlement check. Douglass testified that he too was uncertain if he ever saw the check, but later said that he believed he did. Davey testified that he signed his secretary's initials to the file, but said that he had done so on other occasions and did so here because the $10,000 tortfeasor claim was completed. He concealed the UM portion of the case from the firm in order to keep my options open, and contended that the check was made out to himself and that if he had intended to convert the entire fee he could easily have negotiated the check through his personal account.