Opinion ID: 2430224
Heading Depth: 1
Heading Rank: 2

Heading: the strauss matter

Text: In 1981 Stanley Strauss retained respondent to represent him in dissolution of marriage proceedings. He was referred to respondent by Debra Lynn with whom Mr. Strauss had developed a close relationship. Following the dissolution of the marriage of Mr. Strauss and his wife of many years, Mr. Strauss married Debra Lynn. Mr. Strauss and Debra Lynn remain married. While the dissolution proceeding was pending and while respondent was acting as attorney for Mr. Strauss in the dissolution proceeding, Mr. Strauss and Ms. Lynn together conferred with respondent on numerous occasions with respect to Mr. Strauss's wish to make a gift to Ms. Lynn in the amount of $40,000. Ms. Lynn apparently claimed that she needed money for a real estate investment in Rhode Island. Mr. Strauss was apparently willing for Ms. Lynn to have the money without qualification. The money was to come from an inheritance due Mr. Strauss. Both Mr. Strauss and Ms. Lynn requested that respondent assist them in determining a means of transferring funds without the adult children of Mr. Strauss becoming aware of it; the children were strongly opposed to their father's relationship with Ms. Lynn. Although respondent initially advised Mr. Strauss and Ms. Lynn that there was not a legitimate way to effect a transfer of monies without knowledge of Mr. Strauss's children, respondent eventually agreed to assist Mr. Strauss and Ms. Lynn. Respondent prepared a petition for a lawsuit styled Debra Lynn v. Stanley Strauss in which respondent purported to represent Debra Lynn against Stanley Strauss. To conceal from the children what was taking place, respondent arranged for the petition to be filed in Franklin County, a county where neither of the parties or Mr. Strauss's family were known. Stanley Strauss paid the filing fee. Employees of respondent prepared a consent to judgment that Mr. Strauss signed. Mr. Strauss and Ms. Lynn personally took the petition and consent to judgment to Franklin County for filing in the circuit court. Respondent charged Mr. Strauss $2,500 for services related to the proceeding. Prior to the filing of the petition in Franklin County, respondent telephoned the circuit judge in Franklin County to inquire whether the judge would have any objections to what respondent characterized as a friendly suit being filed in Franklin County by two residents of St. Louis County. According to respondent, the judge voiced no objections. The circuit court later entered judgment in the amount of $40,000 in favor of Ms. Lynn and against Mr. Strauss. Upon contact by representatives of the Strauss family subsequent to entry of judgment, however, the trial court on its own motion set aside the judgment. The record reflects that the children of Mr. Strauss later instituted proceedings in the probate division of the Circuit Court of St. Louis County seeking appointment of a conservator for Stanley Strauss. A conservator was appointed and the conservatorship remains in effect. DR 5-105(A) prohibits a lawyer from accepting employment if the exercise of the lawyer's independent professional judgment on behalf of a client will be or is likely to be adversely affected by the acceptance of the proffered employment. DR 5-105(B) prohibits a lawyer from continuing multiple employment if the exercise of the lawyer's independent professional judgment on behalf of a client will be or is likely to be adversely affected by representation of another client. According to DR 7-104(A)(2) a lawyer shall not give advice to a person who is not represented by the lawyer, other than the advice to secure counsel, if the interests of such person had or have a reasonable possibility of being in conflict with the interests of the lawyer's client. The only exception to the prohibition that a lawyer may not represent interests that are conflicting is where the lawyer can adequately represent the interests of all parties and obtains express consent of all concerned after a full disclosure of the facts. DR 5-105(C). The exception cannot apply where one of the parties is incapable of giving consent. In re Pfiffner's Guardianship, 194 S.W.2d 233, 236 (Mo.App.1946). Where a lawyer seeks to justify dual representation on the basis of the parties' consent, the consent must be knowing, intelligent, and voluntary. Matter of Dolan, 76 N.J. 1, 384 A.2d 1076, 1081-82 (1978). Consent purportedly given by a client whom the lawyer should reasonably know lacks capacity to give consent is ineffective. The client must be of sufficiently sound mind to assent to the conflict, to understand the consequences of consent, and to exercise judgment in the matter. See Restatement of the Law Governing Lawyers, Tentative Draft 4, § 202 cmt. g (ii) (April 10, 1991). The lawyer is required to examine the individual client's ability to receive and analyze information about the conflict and its consequences. Charles W. Wolfram, Modern Legal Ethics 347 (1986). The lawyer must examine the individual client's ability to give consent voluntarily and free from overriding influence of another person. Id. Vulnerability of the client must be taken into account. To circumvent application of the Code of Professional Responsibility, respondent alleges that he fully advised Mr. Strauss and Ms. Lynn regarding any possible conflict of interest and that he was satisfied that they understood the explanation and consented to his representation in spite of the conflict of interest. Respondent additionally claims that the transaction between Mr. Strauss and Ms. Lynn was of no harm to either of them. He further claims that it is common practice for public figures and others to avoid publicity by filing lawsuits in counties where the persons are not known and it is unlikely that the media would discover the litigation. Respondent's protestations seem to urge a defense that the conflict of interest was more technical than actual. See Acorn Printing Co. v. Brown, 385 S.W.2d 812, 817 (Mo.App.1964). The defense is highly questionable at best. According to respondent, his disclosure to Mr. Strauss consisted of his advising Mr. Strauss that a judgment would come out of Mr. Strauss's inheritance. Respondent did not disclose that all assets and income presently owned or eventually acquired by Mr. Strauss could be subject to attachment through the judgment until the judgment was satisfied. Respondent also failed to advise Mr. Strauss that the judgment would remain in effect regardless of the state of the parties' relationship. Even assuming, arguendo, full disclosure, respondent had knowledge of facts that should have caused him to refuse dual representation. Early in the representation of Mr. Strauss, respondent became aware of the following facts: Mr. Strauss was obsessed with Debra Lynn; Mr. Strauss had lost employment as a result of his giving away merchandise without charge to Debra Lynn; Mr. Strauss misappropriated funds from an organization he was serving as an officer; and he had been under the care of psychiatrists. Respondent should reasonably have known that Mr. Strauss's judgment, at least on the subjects of Debra Lynn and money, was impaired and that Mr. Strauss's capacity to give knowing consent to any transaction involving Debra Lynn and funds or assets to which Mr. Strauss had access was in question. The Master found, and this Court also finds, that it should have been apparent to respondent that there was a serious question as to whether Stanley Strauss was capable of consenting to respondent's representation of Ms. Lynn and Mr. Strauss. Under such circumstances, the respondent should have refused to represent Debra Lynn in litigation against Stanley Strauss. Respondent violated DR 5-105(A), DR 5-105(B) and DR 7-104(A)(2). Further, respondent's use of the court and legal process in Franklin County to facilitate the litigation between Debra Lynn and Stanley Strauss constitutes violations of DR 1-102(A)(5) and (6). In view of the Court's disposition of the Cowell matter, infra, it is unnecessary to consider the appropriate discipline relative to the Strauss matter.