Opinion ID: 1304457
Heading Depth: 2
Heading Rank: 2

Heading: David McKillop

Text: Martinez began providing legal services to Donald Lopez in September of 1983, for which he received $500 a week. Martinez continued to provide such services until January or February of 1984. On December 6, 1983, David McKillop was served with a complaint filed by Irvin Freeman and his business, Supra Fund. The complaint alleged that McKillop and his son-in-law, Donald Lopez, had conspired to defraud Freeman through a transaction involving the purchase of land. McKillop's involvement in the suit stemmed solely from the appearance of his signature on some documents pertaining to the allegedly fraudulent real estate transaction. McKillop testified in the grievance proceeding that his signature had been forged on those documents by Lopez. Upon receipt of the complaint, McKillop contacted Lopez. At Lopez's suggestion, McKillop engaged Martinez to represent him in the dispute. Martinez also represented Lopez, who was a defendant in that same litigation. On or about December 16, 1983, Lopez told McKillop that the lawsuit could be settled for $600,000 if McKillop would provide the last $25,000. McKillop testified that he informed Martinez in a telephone conversation that he would wire the $25,000 to Martinez for use only in a settlement that would result in the complete release of McKillop from liability in the Supra Fund case. Martinez testified that the only instructions he received from McKillop were that the monies were to be used only for settlement purposes, and that Martinez was to obtain a promissory note from Lopez in the amount of $25,000. Subsequent to the telephone conversation, McKillop wired $25,000 to Martinez. Upon receipt of the $25,000 by Martinez, Lopez immediately informed Martinez that he and a business associate needed money to go to Texas and arrange for the rest of the funds required to settle the case. Martinez opened a trust account with the $25,000 on December 19th; only $4,000 remained in the account by the close of business that day. Martinez used $10,000 to obtain a cashier's check payable to Lopez, and $11,000 to purchase a cashier's check payable to Edward Vigil, an associate of Lopez. On December 21st, Martinez withdrew $500 for himself, and on December 22nd, at Lopez's direction, Martinez wrote a check for $2,000 payable to the mortgagee of Lopez's house. McKillop sent a letter to Martinez, dated December 16, 1983, after their telephone conversation, confirming his intent that the $25,000 be used to settle the lawsuit instituted by Freeman, and that a full release be obtained from Freeman on McKillop's behalf. When Martinez received the letter, he did not advise McKillop that most of the money had already been disbursed. The hearing board concluded that there was no clear and convincing evidence of the nature of the oral trust agreement between McKillop and Martinez prior to the latter's receipt of the December 16 letter, but that thereafter almost all of Martinez's expenditure of monies from the account were dishonest. The board characterized the payments before receipt of the letter as neglectful. On January 5, 1984, McKillop requested the return of the $25,000 unless the lawsuit was settled, and in the latter part of February he retained separate counsel to help him recover his money. In turning over the file, Martinez did not tell new counsel of outstanding overdue discovery requests and such requests did not appear in the file. The hearing board concluded that this conduct was neglectful. McKillop did not learn that the money had already been disbursed until Lopez informed him of that fact on the 3rd of March. All McKillop's efforts to obtain repayment were unsuccessful. Martinez continued to write checks against the account through the end of March. Only one of these checks, in the amount of $20, was relevant to McKillop's interest in the Supra Fund suit. On May 31, 1984, the bank closed the trust account because it was overdrawn. McKillop was eventually dismissed from the Supra Fund lawsuit when it was established that Lopez had forged his signature on the documents that provided the basis for the claim against him. McKillop never recovered any of the $25,000 advanced to Martinez. The hearing board concluded that at least as early as the receipt of the December 16 letter, Martinez became aware that representation of both Lopez and McKillop in the litigation involved a conflict of interests. It also concluded that Martinez allowed his economic relationship with Lopez to influence his judgment in representing McKillop, thereby adversely affecting McKillop's important interests.