Opinion ID: 2059690
Heading Depth: 1
Heading Rank: 4

Heading: The Vanderbeck Matter

Text: Respondent represented Margaret Vanderbeck in her divorce from Charles Vanderbeck in 1979. At the time of her divorce proceeding, Mrs. Vanderbeck had a workers' compensation claim pending against her employer. The judgment of divorce provided that Mr. Vanderbeck would receive 20% of the net recovery awarded to Mrs. Vanderbeck in the workers' compensation matter. Mrs. Vanderbeck subsequently was awarded $2,500 for her workers' compensation claim. In November 1981, the workers' compensation carrier mailed respondent two checks, one in the amount of $500 payable to respondent as his fee, and one in the amount of $2,000, payable to both respondent and Margaret Vanderbeck. Respondent deposited the $500 check in his business account and the $2,000 check in his trust account. Pursuant to the 1979 judgment of divorce, $500 of the award was to be paid to Charles Vanderbeck. In June 1982, Charles Vanderbeck received a check for $500 drawn on respondent's trust account. Mr. Vanderbeck attempted to cash the check at the bank on which it was drawn. The bank refused to honor the check because the account was closed. The evidence indicated that in December 1981, respondent's trust-account balance was $28.41 and remained substantially at that level until the account was closed by the bank. Respondent apparently was unaware at the time that the bank had closed his trust account. In January 1983, Charles Vanderbeck instituted proceedings to enforce the divorce settlement, and an order was entered compelling respondent to pay Vanderbeck the sum of $500, representing his share of Margaret Vanderbeck's workers' compensation award. In April 1983, Charles Vanderbeck was paid $500 by respondent's counsel. Before the District Ethics Committee, respondent testified that he gave the $500 he held for Charles Vanderbeck to his client, Mrs. Vanderbeck, because she was in desperate financial straits. When asked whether the banking records reflected this transfer, respondent's counsel informed the Committee that the records were not then available but would be forwarded to the Office of Attorney Ethics shortly after the hearing. After the bank records were submitted, respondent stipulated that the $2,000 sum deposited to respondent's trust account on November 25, 1981, was paid out of that account as follows: 11/25/81 Margaret Vanderbeck $1,000.00 11/25/81 Margaret Vanderbeck 400.00 11/25/81 Margaret Vanderbeck 200.00 11/14/81 John V. Gill 200.00 12/14/81 John V. Gill 150.00 12/23/81 John V. Gill 40.00 Thus, of the $2,500 award, $1,600 was paid to Mrs. Vanderbeck. Of the remaining $900, $390 was paid to respondent from the trust account and $500, representing respondent's fee, was deposited directly in respondent's business account. Respondent stipulated that [n]o part of the $500 sum deposited to Gill's business account on November 25, 1981 was paid to Margaret Vanderbeck or Charles Vanderbeck at any time. In December 1983, a motion for temporary suspension was filed by the Office of Attorney Ethics. Respondent consented to temporary suspension on January 9, 1984, and remains suspended at this time. As a result of the Infante, Farrara, and Vanderbeck complaints, the District VI Ethics Committee filed a presentment against respondent. Hearings were held before the District VI Ethics Committee and the DRB. The DRB concluded: [R]espondent's actions constituted conduct involving dishonesty, fraud, deceit and misrepresentation, conduct which thereby adversely reflected on his fitness to practice law. DR 1-102(A)(4) and (6). Respondent further failed in his duty to seek the lawful objectives of his clients and to carry out his contracts of employment. He thereby prejudiced his clients. DR 7-101(A)(1), (2) and (3). Additionally, respondent had a duty to forward $500 to Charles Vanderbeck. A lawyer's fiduciary obligation applies to those other than his clients who have reason to rely on him. Matter of Schwartz, [99 N.J. 510, 517 (1985)]. The Board finds respondent breached that duty. Respondent's actions were clear, outright violations of numerous disciplinary rules. DR 1-102(A)(1). Finally, when all of his actions are considered together, the Board concludes respondent demonstrated an appalling pattern of neglect. DR 6-101. He was unfit to practice law. DR 1-102(A)(6). In addition, respondent conceded he did not maintain trust account records in accordance with Rule 1:21-6. Accordingly, the DRB found respondent in violation of DR 9-102(C). This Court issued an order to show cause why respondent should not be disbarred or otherwise disciplined.