Opinion ID: 1245939
Heading Depth: 1
Heading Rank: 2

Heading: O'Neill and McNamara Matters

Text: Respondent sent notice of his suspension to O'Neill and McNamara. Also, O'Neill's attorney corrected his misperception of respondent as an attorney at law by March 3, 1987, when he wrote a letter dropping the designation of respondent as an attorney at law. Accordingly, the record supports the referee's finding that respondent did not hold himself out as an attorney to O'Neill and that McNamara knew of respondent's suspension. A legal assistant engages in the unauthorized practice of law where a non-lawyer acts in a representative capacity in protecting, enforcing, or defending the legal rights of another, and advises and counsels that person in connection with those rights   . In re Jorissen, 391 N.W.2d 822, 825 (Minn.1986). In Jorissen, the court found that a suspended attorney engaged in the unauthorized practice of law by, inter alia, negotiating for and counseling a client in a marital dissolution stipulation. Moreover, in other jurisdictions, courts commonly hold that suspended attorneys are not permitted to conduct settlement negotiations on behalf of other persons. Annotation, Nature of Legal Services or Law-Related Services Which May be Performed for Others by Disbarred or Suspended Attorney, 87 A.L.R.3d 279, 312-14 (1978 & Supp.1989); see, e.g., In re Bodkin, 21 Ill.2d 458, 173 N.E.2d 440 (1961) (negotiating settlement with insurance company while suspended warranted 3-year suspension). O'Neill told Jeffrey Lang, an attorney opposing her in a matter, that respondent was her attorney. Lang talked with respondent on the telephone a number of times about settling the case. In March 1987, Lang wrote respondent with final terms and to inform respondent that Lang intended to proceed with an unlawful detainer action. Respondent does not dispute that he advised O'Neill in this matter. With respect to the McNamara automobile accident matter, respondent does not deny that, when McNamara asked him to represent her, he told her that he could not appear in court, but could negotiate over the phone with her insurer. Further, respondent does not deny that he made at least two attempts in 1988 to negotiate a settlement with McNamara's insurer. Respondent also advised McNamara to reject an offer of $65,000 from the insurer. Thus, the record supports the referee's conclusion that respondent engaged in activities improper for a suspended attorney in the negotiations for McNamara and O'Neill. II. The director argues that, because the referee found that respondent must have prepared a will, to be consistent, the referee should also have found that respondent knowingly made false statements to the director's office. The referee found that respondent did not make false statements to the director even taking into account the inconsistencies between Markert and respondent's testimony. These inconsistencies arose from respondent's sworn statements to the director and testimony at the panel hearing in 1988. The inconsistencies related only to the number of visits to Voita's nursing home in 1986 and 1987. The referee apparently found that these inconsistencies did not support a finding of false statements. The evidence supports this conclusion. The director also alleges that respondent made false statements to McNamara. Minn.R.Prof.Conduct 4.1 provides: In the course of representing a client a lawyer shall not knowingly make a false statement of fact or law. (Emphasis added.) Although respondent's statements to McNamara that he could negotiate for her without Markert's participation may have been false, the record does not reveal nor does the director point to any evidence that respondent intentionally made false statements to McNamara. Thus, the sole charge proven by clear and convincing evidence is respondent's negotiations on behalf of McNamara and O'Neill. III. What then is the appropriate discipline? The referee recommends that respondent be allowed to resign as an attorney if he agrees never to apply for readmission and never to work for a lawyer or in a law firm. If respondent refuses to resign, the referee recommends disbarment. In the alternative, the referee recommends continuing his suspension for 1 year and, if ever employed by an attorney, respondent must work under a supervisor who would report to the director quarterly for 1 year. We have imposed discipline for practicing law while suspended for failing to pay attorney registration fees. In re Knutson, 405 N.W.2d 234 (Minn.1987) (public reprimand and 2-year probation); In re Fitzgerald, 366 N.W.2d 262 (Minn.1985) (public reprimand, 90-day suspension, 3-year probation); In re O'Brien, 362 N.W.2d 307 (Minn.1985) (indefinite suspension for minimum of 2 years). We have applied harsher discipline in a case where, as here, an attorney suspended for disciplinary violations continued to practice law. In re Jorissen, 391 N.W.2d 822 (Minn.1986) (disbarment). Jorissen, however, involved more blatant unauthorized conduct than here. In Jorissen, in addition to counseling a client while negotiating a marital dissolution stipulation, a suspended attorney appeared in a juvenile criminal proceeding, at a pretrial hearing (where he waived his client's right to a Rasmussen hearing), and before an administrative tribunal. He also stipulated to a restraining order on behalf of a client not present in court. Id. at 825. Moreover, the attorney in Jorissen did not tell anyone about his suspension; id. at 826, whereas, here, respondent sent notices of his suspension to all his clients. Respondent's previous serious misconduct is an aggravating factor. Mitigating factors include no harm to clients, respondent's civic and pro bono activities, and his commitment to future good ethics. Beyond respondent disputing certain allegations of misconduct, the director does not cite any evidence that respondent failed to cooperate fully with the director's investigation. It is the opinion of this court that the appropriate sanction to be imposed on respondent is to continue his suspension to January 1, 1991. On or after that date, respondent may petition for reinstatement. Any application for reinstatement shall require respondent to comply with Rule 18, RLPR, including a requirement to take the ethics portion of the state bar examination. In addition, within 90 days of the date of this order, respondent shall pay to the director the sum of Seven Hundred Fifty and No/100 Dollars ($750.00) in costs and disbursements pursuant to Rule 24, RLPR. IT IS SO ORDERED.