Opinion ID: 2297758
Heading Depth: 1
Heading Rank: 5

Heading: Bankruptcy CaseRedux

Text: One of the charges asserted in Bar Counsel's petition was that, when discussing and ultimately filing a complaint against Sinai and Ms. Bongiovanni, respondent failed to advise the Berows of the potential conflict of interest in her representing the Berows in both their bankruptcy matter and the employment case ... and failed as well to notify the Chapter 13 trustee or to file any notice in the bankruptcy case that she had filed the complaint. Bar Counsel did not explain in his petition the precise nature of the potential conflict, but, as things developed, the dispute was less over whether there was such a potential conflict and more whether it was explained to the Berows. [2] Ms. Berow testified that respondent never mentioned the prospect of a potential conflict prior to filing the complaint against Sinai. Respondent claimed that she did discuss that with Ms. Berow and explained that she would need to get permission from the Bankruptcy Court to represent her in both cases, and that Ms. Berow insisted that respondent represent her in the action against Sinai. Again, Judge Cahill made a credibility assessment. He found Ms. Berow's testimony to have been far more persuasive on this question. As noted, the bankruptcy petition was filed on June 5, 2009. After the filing of the motion for sanctions against Citizens and the lawsuit against Sinai, respondent, according to Ms. Berow, recommended that the petition be withdrawn, as there was a potential for a significant recovery from the action against Sinai. Ms. Berow testified that respondent never advised the Berows that, if the petition were voluntarily withdrawn, a new one could not be filed for 180 days. Respondent adamantly maintained that she did advise the Berows of that consequence. On August 4, 2009, respondent filed a motion for voluntary dismissal of the bankruptcy petition. As with the other conflicts in the testimony, Judge Cahill credited Ms. Berow's testimony, finding that respondent did not, prior to filing the dismissal motion, advise the Berows of the consequences of dismissing the petition. He found credible Ms. Berow's testimony that had she and her husband known of this prohibition [against refiling within 180 days], they would not have agreed to the dismissal of their first bankruptcy petition. Ms. Berow said that, on August 27, 2009just three weeks after the petition had been dismissedrespondent called her and advised that the Berows needed to refile the petition, lest a second vehicle be repossessed, and that they needed to meet with her that day. The Berows testified that they went to respondent's office and, for the first time, were told not only about the 180-day prohibition, which respondent said she would ask the Bankruptcy Court to waive, but also about the potential conflict of interest on her part from representing the Berows in both their employment action and the bankruptcy case. The next day, respondent filed a second petition. Obviously dissatisfied with respondent's performance in both actions, the Berows consulted another attorney and, on September 14, 2009, terminated respondent's representation. The next day, respondent withdrew her appearance in the bankruptcy case. Other counsel was retained to prosecute that case. At no time, with respect to either the first petition or the second, did respondent ever amend the appropriate schedule(s) to add the claims against Sinai and Ms. Bongiovanni or otherwise advise the Bankruptcy Court of that action. In correspondence with Bar Counsel, respondent claimed that she had prepared amended schedules to disclose the Sinai action as well as a motion to allow her to represent the Berows in both cases but that the Berows had terminated her employment before she had a chance to file them. Later, she testified that she did not file the amended schedules because the Berows failed to come to her office to sign them. Based on Ms. Berow's testimony, which Judge Cahill found credible, and the documents sent to Bar Counsel in response to his inquiry, Judge Cahill disbelieved respondent's explanations and found that (1) she knew she was obliged to notify the Bankruptcy Court of the Sinai action and never did so, (2) she did not inform the Berows of the consequence of dismissing the bankruptcy, (3) she never told the Berows they needed to amend the schedules before the meeting with creditors, and (4) she misrepresented to Bar Counsel that she had prepared amended schedules and a motion to allow her to represent the Berows in both actions which was not the case.