Opinion ID: 836502
Heading Depth: 3
Heading Rank: 1

Heading: Stine v. Hallock

Text: The accused was negotiating a settlement on Hallock's behalf in a foreclosure action when he learned that his disciplinary suspension had gone into effect. He continued to represent Hallock, with Hallock's consent, in the settlement negotiations in that case. He communicated with opposing counsel, reviewed drafts of the settlement agreement, and prepared a draft of that agreement. The accused also signed the final agreement, but crossed out his title, Attorney for Hallock, thereby giving the first hint to opposing counsel that he was suspended from the practice of law. The Bar's third cause of complaint contains the allegation that the accused violated DR 1-102(A)(3) and DR 3-101(B) by failing to disclose his disciplinary suspension to opposing counsel and by practicing law during his disciplinary suspension. The accused contends that the Bar failed to prove by clear and convincing evidence that he practiced law after November 30. Although the accused admits that he negotiated the terms of the settlement on Hallock's behalf and that he drafted a settlement agreement in the case, he contends before this court that those activities do not constitute the practice of law. According to the accused, he acted merely as a scrivener when he revised and redrafted the settlement agreement. This court has held that any exercise of an intelligent choice, or an informed discretion in advising another of his legal rights and duties, will bring the activity within the practice of the profession. State Bar v. Security Escrows, Inc., 233 Or. 80, 89, 377 P.2d 334 (1962); see also State ex rel Oregon State Bar v. Lenske, 284 Or. 23, 31, 584 P.2d 759 (1978) (drafting a contract is the practice of law). The accused's negotiation on Hallock's behalf required legal expertise and informed discretion in order to represent Hallock's interests. Further, drafting the settlement agreement required the accused to make legally informed judgments based on drafts that had been prepared by two other lawyers (one who represented Stine and one who represented a third party) and to exercise informed discretion on Hallock's behalf. For example, in order to protect Hallock's interests, the accused inserted wording into the agreement regarding a claim for labor and materials that Hallock would have against the third party, including reasonable attorney fees in enforcing the claim. That is the work of a lawyer, not a scrivener. A lawyer has a continuing obligation to comply with all pertinent provisions of the Code of Professional Responsibility, even during a period of suspension. See In re Coe, 302 Or. 553, 557-59, 731 P.2d 1028 (1987) (suspension from the Bar does not terminate the court's jurisdiction over a lawyer's conduct). A lawyer's intentional failure to disclose a suspension to a client violates DR 1-102(A)(3), because it is a misrepresentation of a material fact. In re Whipple, 320 Or. 476, 487, 886 P.2d 7 (1994). Furthermore, a lawyer who fails to disclose a material fact to opposing counsel and fails to correct a known erroneous impression violates DR 1-102(A)(3). In re Boardman, 312 Or. 452, 456-57, 822 P.2d 709 (1991). The accused's suspension from the practice of law was a material fact. His intentional failure to disclose his suspension to opposing counsel during negotiations in the Stine v. Hallock matter was a misrepresentation of a material fact under DR 1-102(A)(3), because he failed to correct the erroneous impression that he was qualified to practice law. See generally In re Martin, 328 Or. 177, 185, 970 P.2d 638 (1998) (phrase conduct involving dishonesty in DR 1-102(A)(3) imports with it a notion of knowledge or intentionality). We find by clear and convincing evidence that the accused violated DR 3-101(B) by practicing law during his disciplinary suspension and that he violated DR 1-102(A)(3) by not disclosing to opposing counsel that he was suspended from the practice of law.