Opinion ID: 1222121
Heading Depth: 1
Heading Rank: 5

Heading: the sunmountain condominium matter

Text: The final set of circumstances leading to the charges against Depew concerns his involvement in transactions with respect to the sale and financing of certain condominiums. The Prosecuting Committee's complaint alleges as follows: On July 13, 1972, James Privette, a client of Depew's, purchased from Le'Car Development Corporation a condominium unit in Ketchum, Idaho, in a complex known as Building No. 1, and commenced to live in it. However, the sales agreement and warranty deed from Le'Car to Privette, among other documents, referred to a condominium unit in Building No. 2, which does not exist. In August of 1972, First Security Bank of Idaho, N.A., which was financing Privette's purchase of the condominium unit, recorded a deed of trust on the non-existent unit in Building No. 2 to perfect its security interest. On November 24, 1972, Sawtooth Title Company issued title insurance policies on the unit in Building No. 2. The complaint alleges further that Sawtooth then discovered the mistake which had been made and, shortly after December 22, 1972, informed Depew, who allegedly represented to Sawtooth that he would remedy the error. In June of 1973, Depew became trustee of Le'Car and signed a deed transferring the unit in Building No. 1 to CM&R, Inc., a corporation in which Depew had a substantial interest. On December 3, 1973, an attorney for Sawtooth again requested, to no avail, that Depew take action to correct the errors in the respective documents. On December 12, 1973, CM&R borrowed $18,000 and on December 28, gave as security therefore a deed of trust on the unit in Building No. 1. The Discipline Committee concluded that the conduct of Depew with respect to the condominium transactions constitutes a flagrant violation of DR 1-102(4) and (6) of the Code of Professional Responsibility.