Opinion ID: 3135175
Heading Depth: 2
Heading Rank: 1

Heading: Count I: Improper Business Transaction

Text: Respondent submits that the conclusion of the Hearing Board, as affirmed by the Reviewing Board, i.e. , that an attorney-client relationship existed at the time of the loans, was against the manifest weight of the evidence. Respondent notes that the Hearing Board expressly stated that “no violation of attorney disciplinary rules would be at issue here if respondent entered into a business transaction with Rzewnicki based upon Rzewnicki’s personal friendship with respondent rather than the attorney-client relationship.” Thus, if the Hearing Board’s determination that an attorney-client relationship existed at the time of the loan transaction is against the manifest weight of the evidence, the Rule violations alleged in count I of the complaint were not proved. See In re Smith , 168 Ill. 2d 269, 283 (1995). The Administrator, citing Attorney Registration and Disciplinary Commission Rule 302(f)(5), initially asserts that respondent’s argument concerning the existence of an attorney-client relationship has been waived since it was not expressly argued before the Review Board. Rule 302(f)(5) is similar to Supreme Court Rule 341(e)(7) (177 Ill 2d R. 341(e)(7)), providing that the appellant’s brief to the Review Board must include a section entitled “Argument,” containing the contentions of the party and the reasons therefor, and warns that points not argued are waived. In his brief before the Review Board, respondent essentially contended that the Hearing Board had over-emphasized respondent’s prior discipline and argued that a suspension, rather than disbarment, would be the appropriate sanction. According to the Administrator, respondent’s brief contained no specific argument that the Hearing Board erred in finding that an attorney-client relationship existed between respondent and Rzewnicki. Respondent’s brief before the Review Board did, however, contain the following contentions: “Thus we emphasize the following evidentiary facts, as reported by the hearing Board:

Respondent argued before the Review Board that Rzewnicki described himself as an ex-client at the time the loan was made, and pointed out that there was a gap of over four years between the time respondent completed the post-decree work in 1988 and his representation of Rzewnicki on the DUI and building code violation cases in 1992-93. Thus, although not precisely characterized as a point relied on for reversal, it is clear that respondent disputed the Hearing Board’s analysis and conclusion that the loan occurred during the attorney-client relationship. It is well established that the rule of waiver is a limitation on parties and not on reviewing courts. Welch v. Johnson , 147 Ill. 2d 40, 48 (1992). To reach a just result, this court may override considerations of waiver and consider a point not raised below. Welch , 147 Ill. 2d at 48. Under the circumstances presented by the record in this case, we decline to apply waiver and will consider respondent’s argument on its merits. Turning to the merits of the argument, the Hearing Board found that respondent was not performing any legal services for Rzewnicki at the exact time the loan transaction took place. However, this court has established that, while an attorney’s relation to a client generally ceases on completion and satisfaction of the matter the attorney was employed to conduct, special circumstances or arrangements may show a continuation of the relationship. Imming , 131 Ill. 2d at 252. The Hearing Board found that such special circumstances existed here. The Review Board affirmed this finding. The special circumstances found by the Hearing Board in this case were as follows: (1) Rzewnicki stated emphatically and without hesitation that he considered respondent to be his lawyer, not his friend; (2) the loan transaction took place, upon the request of respondent, within weeks of respondent’s completion of work on a post-decree matter that generated the funds; and (3) Rzewnicki testified that the funds loaned to respondent were generated by the work respondent performed on his behalf. The Hearing Board found the relationship of Rzewnicki and respondent to be analogous to the eight creditors and the attorney disciplined in Imming. In that case, the respondent was disciplined for breach of his fiduciary duties to eight investors who were, at the time of the investments, either clients or former clients. Imming , 131 Ill. 2d at 253. The Imming court held that the Hearing Board could reasonably have concluded that in the case of four of the investors, the funds in question were the product of respondent’s legal work that was concluded so close in time to the legal services rendered as to induce the client to believe that respondent’s business transactions were a continuation of the attorney-client relationship. Imming , 131 Ill. 2d at 254. In the case of the other four investors, respondent was performing legal services for them at the time of the loan or shortly afterward. Imming , 131 Ill. 2d at 253. While we believe that some differences exist between the facts of the present case and the facts in Imming , we do not believe those differences compel a conclusion opposite to that made by the Hearing Board. We further acknowledge that Rzewnicki’s sworn testimony was at odds with his deposition. However, credibility determinations rest with the Hearing Board. We cannot say that the findings made by the Hearing Board were against the manifest weight of the evidence. We therefore affirm the findings made by the Hearing Board with respect to the Rzewenicki transactions.