Opinion ID: 1441929
Heading Depth: 3
Heading Rank: 1

Heading: Review Department Findings of Fact.

Text: Ms. Red paid $2,000 to petitioner on September 9, 1985, as an advance fee for services that were to be rendered at an hourly rate of $125. Petitioner had insisted that Ms. Red make advance payments or, at a minimum, keep her account current. Ms. Red paid another $1,000 on March 3, 1986, but told petitioner that her mother would not advance additional fees until the dissolution was concluded. Petitioner and counsel for Ms. Red's husband agreed to modify a court order to permit Ms. Red to rent the community property residence for $1,000 per month; to deposit the rental income in a trust account to be opened by Ms. Red for that purpose; to make necessary payments from the account for upkeep and maintenance of the property; and to hold any remaining money in trust for both parties pending further agreement or order of the court. Ms. Red was to account for the funds received and disbursed. The parties orally modified the agreement to permit petitioner to receive and disburse the funds pending disposition of the dissolution proceeding. On final disposition, petitioner was to provide an accounting reflecting the monthly receipts and disbursements. Petitioner did not provide an accounting to counsel for Mr. Red. Petitioner testified that at the end of February 1986, time and charges had totalled 36.16 hours or $4,645; that Ms. Red had paid $2,000; that $2,645 was due; and that petitioner and Ms. Red then agreed that petitioner could receive her fees from the funds in the trust account. Ms. Red denied that she had agreed that petitioner could deduct her fees from the funds in the trust account. [2] The evidence clearly and convincingly showed that petitioner had begun taking money from the trust account and applying it to her fee before the date on which she and Ms. Red allegedly agreed that she could do so. The funds in the trust account constituted community property and could not legally be used for any purpose other than those purposes agreed upon by both Mr. Red and his attorney, or by order of the court. Petitioner misappropriated $4,066 of funds in her trust account, including $2,066 of Mr. Red's community property, and $2,000 in renters' security deposits.