Opinion ID: 1427055
Heading Depth: 1
Heading Rank: 6

Heading: wilfulness

Text: (8a) Section 6067 permits the State Bar to recommend disbarment or suspension for wilful violations of an attorney's oath or duties. (See also Inniss v. State Bar (1978) 20 Cal.3d 552, 556 [143 Cal. Rptr. 408, 573 P.2d 852]; cf. Millsberg v. State Bar (1971) 6 Cal.3d 65, 74 [98 Cal. Rptr. 223, 490 P.2d 543]; but see § 6103. [7] ) Petitioner concedes his office mishandled the Torres check, but he disputes the hearing panel's finding of wilfulness. As he notes, his unrebutted testimony placed the blame on human error by an employee of his firm. Thus, he urges, while the record may show his negligence, it does not demonstrate intentional misconduct or dishonesty. At the outset, petitioner's contention overlooks his intentional and unauthorized endorsement of Torres' signature on the check. (9) Beyond that, it ignores the fact that attorneys assume a personal obligation of reasonable care to comply with the critically important rules for the safekeeping and disposition of client funds. (See §§ 6067, 6068, 6077; Rules Prof. Conduct, rule 8-101, supra ; see also Bernstein v. State Bar (1972) 6 Cal.3d 909, 916-917 [101 Cal. Rptr. 369, 495 P.2d 1289].) (10) Attorneys cannot be held responsible for every detail of office operations. ( Vaughn v. State Bar (1972) 6 Cal.3d 847, 857 [100 Cal. Rptr. 713, 494 P.2d 1257].) However, where fiduciary violations occur as the result of serious and inexcusable lapses in office procedure, they may be deemed wilful for disciplinary purposes, even if there was no deliberate wrongdoing. (E.g., McMorris v. State Bar (1981) 29 Cal.3d 96, 99 [171 Cal. Rptr. 829, 623 P.2d 781]; Giovanazzi v. State Bar (1980) 28 Cal.3d 465, 475 [169 Cal. Rptr. 581, 619 P.2d 1005]; Silver v. State Bar, supra, 13 Cal.3d 134, 145; Black v. State Bar (1972) 7 Cal.3d 676, 692 [103 Cal. Rptr. 288, 499 P.2d 968].) Indeed, mere evidence that the balance in a trust account fell below the amount credited to a client has been said to support a finding of wilful misappropriation. ( Jackson v. State Bar (1979) 25 Cal.3d 398, 403 [158 Cal. Rptr. 869, 600 P.2d 1326].) (11) [W]e have repeatedly held that trust account deficiencies are attributable to attorneys  not to their employees. ( Giovanazzi, supra, 28 Cal.3d at p. 475; see Black, supra, 7 Cal.3d at p. 692.) (8b) Some decisions imply that only gross negligence or habitual disregard of client interests warrants discipline. (See, e.g., Inniss v. State Bar, supra, 20 Cal.3d 552, 556; Gassman v. State Bar (1976) 18 Cal.3d 125, 130 [132 Cal. Rptr. 675, 533 P.2d 1147]; Grove v. State Bar (1967) 66 Cal.2d 680, 683-684 [58 Cal. Rptr. 564, 427 P.2d 164].) But the record demonstrates such pervasive carelessness here. Petitioner testified he told his office manager, Ms. M., to deposit the Torres check in the trust account; she mistakenly placed it in the payroll account instead. According to petitioner, Ms. M. had complete banking and bookkeeping control; she could draw checks on the payroll account without his specific approval by using a stamp bearing his signature. Petitioner acknowledged that he gave Ms. M. no supervision, never instructed her on trust account requirements and procedures, and never examined either her records or the bank statements for any of the office accounts. [8] Petitioner's own testimony thus describes a pattern of gross negligence involving serious violations of an attorney's duty to oversee client funds entrusted to his care, and to keep detailed records and accounts thereof. (See Weir v. State Bar (1979) 23 Cal.3d 564, 573-574 [152 Cal. Rptr. 921, 591 P.2d 19].) These omissions resulted in a four-month delay in notifying the client that money due him had arrived, and in transmitting the funds promptly due. In the meantime, the funds were converted to the use of petitioner's office. There is no indication that petitioner would have remedied the irregularities if not pressed by the interested parties. [9] We conclude that the findings of wilful commingling and misappropriation are amply supported. [10]