Court Opinion

ID: 9742031
Source: CourtListenerOpinion
Date Created: 2023-08-26 21:05:35.312766+00
Date Added: 2024-06-11T07:24:27.938534
License: Public Domain

Spencer, J.,
dissenting.
I believe censure and reprimand herein is too lenient a penalty for the gravity of the offense. I would at the very least impose a temporary suspension.
The conduct of counsel was a knowing violation of their fiduciary duty. They knew that as trustees they were directed to apply the net proceeds in a specific manner. The referee finds that no fraud was involved. In my judgment, the action of the attorneys was a fraud on the creditors who were to receive payment. There is no way that I could condone their actions.
The trial court appointed them trustees for a specific purpose. They then jointly agreed to convert a portion of the fund to their own use. As lawyers, they were bound to know they could not change the terms of their trust without the consent of the court. If they did not know that an agreement with their clients could not change the terms of their trust in this instance, they have no right to be in the practice of law.
The penalty imposed is merely a slap on the wrist. It is not fair to those we have punished in the past for no more serious violations.
I respectfully dissent from the majority opinion.