Opinion ID: 2307785
Heading Depth: 1
Heading Rank: 3

Heading: the bock matter.

Text: A complaint was filed with the Ethics Committee by Walter H. Bock charging Pennica with making misrepresentations and exercising undue influence in order to obtain fees from him in excess of their written retainer agreement. Four members of the Committee declared the accusation to be well-founded, and presented the matter to this court for disciplinary action. Two members dissented, saying that although they found Pennica did induce Bock to make additional advancements, in their opinion undue influence had not been shown by clear and convincing evidence. The factual background of the complaint may be stated briefly. Bock felt that he had a justifiable claim for libel against a Union County newspaper. Prior to meeting Pennica, he had been unsuccessful in obtaining the services of an attorney to bring an action for him. In May 1956 he consulted Pennica, who, after reading the newspaper item and discussing the matter with him, was enthusiastic about it and said he considered the prospect of recovery to be excellent. A written retainer was prepared and signed, in which respondent agreed to institute suit on a 30% contingency basis. Bock was to pay (and did pay) a retainer of $1,000 which would be applied against Pennica's share of any settlement or judgment. A complaint with an ad damnum clause of $500,000 was filed. Bock was upset about the size of the demand, fearing further publicity which might make him look ridiculous and might add to the embarrassment and humiliation to which the alleged libelous article had already subjected him. He asserted that he became reassured when told that two settlement offers, one for $5,000 and one for $6,500, had already been received and rejected. Pennica denied making any such statement. It is undisputed that the newspaper never made the offers. A few weeks after the retainer agreement was executed, the newspaper took Bock's deposition. Bock then insisted that counter depositions be taken of the defendant's witnesses. This was followed by a request for a different fee arrangement. During the discussion of the matter, Bock alleges among other things that Pennica asked him, Do you want me to throw the case up? Around the middle of June 1956 a new contract was made under which the cash retainer was increased to $2,500 (Bock paying an additional $1,500) and the contingency percentage was reduced from 30% to 20%. Pennica testified that the suggestion of modification of the original retainer was made because Bock's deposition did not support his damage claim as well as expected, and because he was proving to be a difficult, time-consuming client. He was visiting the office frequently, constantly writing letters about his case, and demanding actions such as the taking of defendant's witnesses' depositions, which Pennica, apparently, had not intended to do. In early September 1956 an additional cash retainer of $2,000 was requested. Bock said there was no apparent reason for it. But Pennica testified that Bock's continued difficulty as a client motivated it in part; further, that Bock, himself, expecting a large recovery, desired elimination of the contingency arrangement, and finally that he (Pennica) felt he was entitled to additional money in anticipation of the work to be done on the anticipated appeal from an adverse summary judgment. In any event, a third written agreement, dated September 4, 1956, was drawn. Under it Bock paid the additional $2,000, thus bringing the cash retainer to $4,500, and the contingency bargain was cancelled. The revised pact bound Pennica to take the case to the court of final jurisdiction, the Supreme Court, if necessary, and there were to be no further fees, charges or costs in this matter. This was the final and last payment. Pennica's reference to the anticipated work on appeal from a summary judgment against Bock, as a basis for the request for the $2,000, did not escape the Committee's attention. One member pointed out that the newspaper's motion for summary judgment was not made until November 8, 1956, and the decision thereon was not rendered until December 5, 1956. Thereupon Pennica engaged in the kind of ad hoc improvisation which characterized the Sacks and Monmouth County Court complaints. Witness: Q. Mr. Pennica, the record shows very clearly that the motion for summary judgment was made in November and an appeal taken in December?
Q. How could you possibly have anticipated on September 4 that the defendant would make a motion for summary judgment and that there would be an appeal? A. Well, there was discussion back and forth between Mr. Sachar and I about the summary judgment. I knew that he would be successful from my knowledge of the case. I knew that when I came back from making the depositions. But in the earlier part of his direct testimony he said his adversary's summary judgment idea caught me flatfooted. I didn't believe a summary judgment in this case would be applicable for my personal approach to this case. I was real close to it, and I felt that it was libelous per se,   . A motion for summary judgment for defendant was made, and resulted favorably to defendant on December 5, 1956. It was reversed on appeal and the cause remanded for jury trial. Bock v. Plainfield Courier-News, 45 N.J. Super. 302 ( App. Div. 1957). Thereafter and before the trial, according to Bock, Pennica asked him for additional sums. He claimed to have paid various amounts in cash at intervals, the total being $1,125, bringing his overall fee payments to $5,625. No receipts were given. Pennica denies asking for or receiving any of these cash payments. Bock's testimony on this aspect of the case is not clear as to whether any pressure was exerted to produce them. He said that although there was perpetual begging for further payments, he made them to stimulate what he felt was Pennica's flagging interest in the case. They represented an effort to brace him up, and he told Pennica no receipt was necessary. Eventually jury trial of the libel suit was had. It resulted in a verdict for the defendant. Subsequent happenings are of no particular moment in this proceeding. It is sufficient to note that no recovery was ever made against the newspaper. The majority of the Committee found that Pennica induced Bock to make additional fee payments to him by means of undue influence and misrepresentations, particularly with respect to alleged settlement offers, and assurance as to the value of the case. They declared that Bock impressed them with his demeanor and frankness, as well as with his straightforward account of his relationship with Pennica. They recognized that the issue presented was largely one of credibility, and they specifically proclaimed their belief of Bock and their disbelief of Pennica. Their final conclusion was that, after weighing the credibility of the witnesses, they would be remiss in their duty if they concluded that respondent's conduct was free from censure. The minority members said they were favorably impressed with Bock's credibility, but felt there may have been misunderstanding between them as to whether Pennica was referring to actual offers of settlement rather than sums for which he felt a settlement could be made. On the whole case they could not find clear and convincing proof of such undue influence as warranted disciplinary action. Our review of the testimony indicates that Bock undoubtedly was an anxious, nervous and difficult client, who was deeply embarrassed by the unfavorable newspaper article, and who was most anxious for redress, as much in the form of vindication as monetary damages. The impression is inescapable that it was not very difficult to persuade him of the need for additional cash retainers, especially in the face of the optimism of his attorney as to the outcome of the litigation. His mental state made him unusually susceptible to such requests, and, like the majority of the Committee, we believe they were made, substantially under the circumstances described by him. There is little doubt that if Bock's claim met with success at the trial in the form of almost any affirmative judgment, this complaint would not have been made. And his testimony at the hearing showed that if vindication from the disparagement of the newspaper article could be achieved in some way, even at that late date, he would not be interested in his charges against Pennica. Our conclusion under the peculiar circumstances of the case is that the testimony demonstrates some improper overreaching on Pennica's part, running counter to the standard of morality and ethics required of members of the bar. If the dereliction stood alone, some measure of censure or disciplinary action would be warranted.