Opinion ID: 2637589
Heading Depth: 1
Heading Rank: 6

Heading: Representation of Richard and Sybilla Augustine

Text: ¶ 28 In November 1998, Richard and Sybilla Augustine met with an agent of WPA after receiving mail regarding a threat of foreclosure on their home. The WPA agent referred them to Respondent, saying bankruptcy was the only option. They paid a $900.00 retainer to Respondent, to file a bankruptcy action on their behalf. Respondent assured them a Chapter 13 reorganization would allow them to become current on their mortgage payments and arrearage, and thereby retain their residence. ¶ 29 According to Mrs. Augustine's testimony, Respondent told them the bankruptcy court would discharge her husband's $27,157.50 child support arrearage, unless his former wife filed an objection. Mrs. Augustine also testified Respondent told them they could avoid future child support collection efforts by changing Mr. Augustine's social security number. ¶ 30 On December 1, 1998, Respondent filed a Chapter 13 bankruptcy on behalf of the Augustines in the U.S. Bankruptcy Court for the District of Arizona. Respondent did not file the requisite schedules and statements until December 18, 1998. The child support arrearage was listed in the bankruptcy schedules. On December 22, 1998, Respondent filed a Chapter 13 Plan which did not list the child support arrearage. The Plan made no mention of, or payment proposal regarding, that arrearage. Respondent's oversight was not discovered until after the Plan was confirmed. By letter dated May 2, 2000, the U.S. Trustee advised Respondent that the plan did not address the $27,150.50 child support claim. ¶ 31 On May 16, 2000, Respondent filed a Motion to Withdraw from the bankruptcy. The Motion stated that the debtors had agreed to discontinue the attorney-client relationship. The Augustines were unaware Respondent intended to withdraw until they received this motion in the mail. ¶ 32 Respondent's failure to include the child support arrearage in the Chapter 13 Plan resulted in a $9,556 shortfall that prohibited the plan's confirmation. As a result, Chapter 13 reorganization became unavailable to the Augustines. On May 30, 2000, the court dismissed the Augustine's bankruptcy because they were delinquent in their Plan payments. ¶ 33 On April 17, 2001, the Supreme Court of Arizona publicly censured Respondent for, inter alia, the misconduct cited above. See, In the Matter of Mothershed, Supreme Court No. SB-01-0076-D, 2001 Ariz. LEXIS 63. Public censure serves as the harshest penalty the Arizona Supreme Court may impose on a person not a member of the Arizona Bar Association. ¶ 34 In May 1998, the OBA opened a General Counsel's investigation as a consequence of the Arizona Bar Association investigation. On May 13, 1998, OBA General Counsel Dan Murdock wrote Respondent a letter requesting him to respond within twenty days to allegations of possible unlawful practice of law in Arizona. Respondent failed to respond within the time set forth. On June 11, 1998, Respondent mailed a one-page letter to Mr. Murdock that did not address the allegations and threatened suit against the OBA. Respondent mailed Murdock a second letter dated June 19, 1998, which again failed to address the allegations. On August 6, 1998, Murdock advised Respondent by letter that his responses did not satisfy the requirements of Rule 5.2, RGDP, and advised him of the deadline to supplement his response. Respondent never addressed the allegations brought against him.