Opinion ID: 1745216
Heading Depth: 1
Heading Rank: 5

Heading: Keller Construction

Text: During negotiations with Austin P. Keller Construction Co., Inc., in June 1988, the referee found that respondent had falsely represented to Keller that Wimbledon Hills had obtained a commitment for sufficient construction financing. Keller then entered into a contract with Wimbledon to do certain work for $541,852. This was a further violation of Rule 8.4(c). Through the summer and fall of 1988, Keller worked on the project but had problems collecting payment for its work on any consistent basis. In February 1989, Keller's attorney wrote respondent that unless certain payments were made by February 8, Keller would file a mechanic's lien for $54,389.56 against the project. Respondent, as attorney for Wimbledon Hills, promptly sought and obtained an ex parte temporary restraining order enjoining Keller from filing its lien. In support of the ex parte application, respondent stated in his affidavit that a bond existed that was more than adequate security to cover Keller's lien claims. A copy of the bond was attached to the affidavit. In fact, it was a performance bond running to the City of Rochester as obligee to assure a certain street in the development project would be constructed. The referee found there was no reasonable basis for respondent's representation that the bond protected Keller, and this finding, too, is supported by the evidence.