Opinion ID: 1956151
Heading Depth: 1
Heading Rank: 3

Heading: Counts 4, 5, 6, 7, 8, 10, 11, & 14

Text: Prior to the Ten Quarter contract being drawn, Meyer had no connection to Martin. Nonetheless, this transaction evolved into a business and friendly relationship between the two. Counts 4 through 8, 10, 11, and 14 deal directly with that relationship which the Referee held to be outside the attorney-client relationship. However, Meyer never received advice on these business matters from any other attorney. Nor does any documentation exist indicating that Martin ever advised Meyer to seek independent counsel or that Martin made full disclosure of the potential for conflict. Although many of the documents encompassed by these accusations were never executed, Martin maintains that the writings were drafted at the request of Meyer. We need not consider the veracity of such a defense because, as a licensed attorney, Martin is well aware that he is to avoid even the appearance of professional impropriety. Canon 9; Matter of Discipline of Theodosen, 303 N.W.2d 104 (S.D.1981). Even if we were to find that the attorney-client relationship did not exist during these particular transactions, Martin still acted as an attorney in drafting the documents. Furthermore, Martin did serve in an attorney capacity with Meyer on other matters, such as preparing his 1972 income tax return and borrowing money from the Liebing trust. Thus, the threshold of attorney-client had been crossed. It appears that Martin was wearing two suits. Disciplinary Rule 5-104(A) advises attorneys about business relations with a client: A lawyer shall not enter into a business transaction with a client if they have differing interests therein and if the client expects the lawyer to exercise his professional judgment therein for the protection of the client, unless the client has consented after full disclosure. We caution attorneys that it is a fine line between attorney and business partner/friend when one serves in a dual capacity with the same person. Whereas Canon 5 states that a lawyer shall exercise independent professional judgment on behalf of client, Disciplinary Rule 5-101(A) additionally warns attorneys to refuse employment when the interest of the lawyer may impair that independent professional judgment: Except with the consent of his client after full disclosure, a lawyer shall not accept employment if the exercise of his professional judgment on behalf of his client will be or reasonably may be affected by his own financial, business, property, or personal interest. Martin may have served only as a business partner in most of his dealings with Meyer; however, his skills as an attorney in conjunction with Meyer's age and the extremely favorable terms he received in the contracts, which were not reviewed by independent counsel, create, at the very least, an appearance of impropriety. It may also be safely concluded that Martin was serving two masters at the same time, i.e., himself and his client, Meyer. Albeit the following parameters of attorney conduct were codified in 1978 at SDCL 16-19-31, subsequent to Martin and Meyer's dealings, they typify the concept of attorney propriety. The license to practice law in this state is a continuing proclamation by the Supreme Court that the holder is fit to be entrusted with professional and judicial matters, and to aid in the administration of justice as an attorney and as an officer of the court. It is the duty of every recipient of that privilege to conduct himself at all times, both professionally and personally, in conformity with the standards imposed upon members of the bar as conditions for the privilege to practice law. Matter of Discipline of Dana, 415 N.W.2d 818, 823 (S.D.1987). Although the Referee found no ethical errors in these Counts, we find that such a conclusion is not supported by the record. Id. at 822. Rather, we find Martin's actions suffer from the image of impropriety and a violation of Canon 9. In turn, it causes the image of all lawyers in the State of South Dakota to suffer.