Opinion ID: 1904276
Heading Depth: 1
Heading Rank: 6

Heading: macomber/bowditch

Text: In November 1974, Respondent met with Mrs. Margaret K. Macomber and her daughter, Mary Bowditch. They wanted Respondent to set up a trust for Mrs. Macomber and handle other legal matters for her. Mrs. Macomber was 74 years old and in failing health; her daughter resided in Great Britain. Mrs. Macomber at some point transfered $25,000 in stock to Respondent as trustee. Her estate at this time was valued at $130,000. When Mrs. Macomber questioned about having a bank as trustee, Respondent replied that the amount was too small for a bank to handle and that he could do a much better job for much less. When Mrs. Macomber moved to Florida in 1976, Mrs. Bowditch had a trust agreement drawn up by a bank which named her and the bank as co-trustees. The amount held by Respondent at that time approximated $130,000. Between November 9, 1974 and April 30, 1976, Respondent, acting on Mrs. Macomber's behalf, allegedly visited 115 nursing homes within New Jersey, in alphabetical and not geographical order. According to Respondent, he compiled a list of the homes and then traveled back and forth across the state visiting and inspecting them. He charged her $49 an hour inclusive of expenses, for about 700 hours of work. Mrs. Macomber was not placed in a nursing home until she moved to Florida and that placement was not the result of Respondent's efforts. Mrs. Bowditch believed her mother never authorized Respondent to visit these nursing homes and to bill her for that service. Respondent also received from Mrs. Macomber a total of $23,260 in cash. Respondent had given her promissory notes for these funds. One note was dated June 1, 1975, for $13,500 at 7% interest for an eight month term and the other was dated July 15, 1975, for $10,000 at 7% interest for a seven month term. These funds were held by Respondent in his individual name and not in an attorney's trust account. Respondent paid at least two interest payments to Mrs. Macomber after she moved to Florida. He also paid some or all of her moving expenses. Respondent did not submit a bill to Mrs. Macomber for services rendered. He kept the funds and refused for more than two years to account for them when requested by the appointed Florida trustees. When the Florida bank was not able to collect from Respondent it filed a civil action against him in October 1978. Respondent, without signing any declaration of liability, settled the civil action by paying the trustees $9,000. After hearing testimony from Mrs. Bowditch, the Ethics Committee concluded Respondent violated DR 5-101 by having a dual capacity as a trustee for and debtor of Mrs. Macomber. It also found that he violated DR 9-102 and DR 5-103.