Opinion ID: 1224859
Heading Depth: 1
Heading Rank: 12

Heading: dr 9-101(a); dr 9-101(c)(3); dr 1-102(a)(3)

Text: The Bar argues that the accused violated DR 9-101(A) by failing to maintain all of Benston's funds in one or more identifiable trust accounts and that he violated DR 9-101(C)(3) by failing to maintain adequate records and properly to account for those funds. In addition, the Bar claims that the accused violated DR 1-102(A)(3), by fraudulently converting some of Benston's funds to his own use without her prior written consent. Those claims concern the accused's handling of all Benston's funds, but the parties have focused primarily on a series of withdrawals from Benston's trust account that occurred in December of 1988 and January of 1989. [16] The record does not indicate that the accused failed to deposit funds into Benston's trust account concerning those claims. [17] Therefore, the Bar's claim with respect to DR 9-101(A) is not well taken. However, the Bar's claim with respect to DR 9-101(C)(3) is well taken. Although the accused testified that he had discussed the withdrawals with Benston in advance, he did not render an accounting of those withdrawals after the funds had been removed from Benston's trust account, as required by that rule. We find that the Bar proved that the accused violated DR 9-101(C)(3) in that respect. The most serious claim made by the Bar is that the accused converted Benston's funds without prior consent from Benston and that the conversions were fraudulent and in violation of DR 1-102(A)(3). The Bar argues that there is no indication in the record, other than from the accused's own testimony, that he had discussed those withdrawals with Benston in advance. The Bar argues that, in the absence of any independent evidence to corroborate the accused's testimony, we should presume that the accused never received consent from Benston for the transfers before they were made. The Bar argues that any other result would leave it helpless in pursuing matters of this kind, because an accused could make up any story that he or she wished. We are not persuaded. We note, first, that the Bar has the burden of proving by clear and convincing evidence that the accused violated a rule of professional conduct. BR 5.2. The accused does not have the burden of proving that he did not commit the violation. Yet, the Bar's blanket approach would have the effect of shifting the burden to the accused to disprove the charge. Under the Bar's formula, the accused would have to produce independent corroborating evidence in support of his testimony or be found guilty. That approach is contrary to the specific way the burden of proof is assigned in these cases. The question, therefore, is whether the Bar proved by clear and convincing evidence that the accused violated DR 1-102(A)(3). To answer that question, this court must look to all the evidence in the record pertaining to that charge. In this case, that evidence includes the accused's testimony. [18] Second, the Bar is not doomed to failure merely because the accused's own testimony may be considered and relied on. A trial panel or this court is free to find the testimony of an accused lawyer credible or not credible based, inter alia, on the accused's demeanor and other evidence relating to the matter. The pertinent evidence concerning this matter is as follows: On December 5 and 20, 1988, and January 19, 1989, the accused transferred $2,212.95, $5,000, and $1,000, respectively, from Benston's trust account to his firm account. The accused testified that he discussed those transactions with Benston in advance and received her agreement before he transferred the funds from Benston's account to his firm account. In depositions, and at his hearing, the accused variously described those transfers as advances on fees and flat fees. The accused testified that all the payments were advances for fees for work not yet performed that were needed to pay operating expenses at the firm. However, the accused conceded that he neither told Benston to seek independent legal advice before agreeing to the transfers nor memorialized the transactions through written agreements with Benston. The Bar produced no evidence that the accused, in fact, did not receive permission to make those transfers in advance, or that he failed to perform the work that he promised in return for the transfers. Although we are not bound to rely on the accused's testimony regarding Benston's prior consent, we conclude that, in the light of the evidence and particularly in the light of the accused's conduct in his relationship with Benston with respect to other matters, the accused's testimony may be relied on in this instance. [19] We note also that the trial panel similarly accepted the accused's testimony on this subject. We agree with the trial panel that the Bar failed to prove that the accused violated DR 1-102(A)(3) with respect to this matter.