SUMNER C. BRYANT, Pеtitioner, v. THE STATE BAR OF CALIFORNIA, Respondent.
L. A. No. 18353
In Bank
Dec. 2, 1942
285
Jerold E. Weil and Chester F. Dolley for Respondent.
THE COURT. - By this proceeding petitioner seeks a review of the decision of the Board of Governors of The State Bar of California recommending his disbarment from the practice of law.
The recommendation of the Board of Bar Governors was made after a hearing held by a local administrative committee for the county of Los Angeles, which resulted in findings and conclusions of law adverse to petitioner, upon which the committee made its recommendation that petitioner be disbarred. The findings of the committee, with slight modifications, were adopted by the Board of Bar Governors.
The heаring before the local administrative committee was had upon an amended notice to show cause and petitioner‘s answer thereto. In the amended notice to show cause, petitioner was charged with the violation of his “oath and duties as an attorney and counsellor at law within the meaning of
The local administrative committee made extensive findings, which may be briefly summarized as follows:
The Liberty motors and generators, instead of being transferred to Newton and Redondo, were transferred in the first instance to Lydia Koehnen (the wife and agent of Paul Kalmanovitz) by a bill of sale in her favor executed by the Paramount Studios for the sum of $1,100; then Lydia Koehnen transferred the motors and generators to Newton and Redondo by means of a like instrument. In payment thereof Newton and Redondo executed a promissory note for $2,300, and a chattel mortgage to secure the payment of said note covering their three trucks and equipment, the three motors and two generators purchased from the Paramount Studios, and other electrical equipment owned by Newton and Redondo. The note was further secured by a trust deed upon the home of Mr. and Mrs. Nеwton, in which petitioner was named as trustee. Petitioner stated that it would be necessary for Mr. and Mrs. Newton to execute the trust deed on their home as additional security for the payment of the $2,300 promissory note, as Kalmanovitz was making the loan prior to compliance with
The $2,300 promissory note was dated March 9, 1938, and
The local administrative committee also found that petitioner as attorney for one Milton Long brought suit in April, 1939, against Redondo, Mrs. Newton and others (Mr. Newton having died in the meantime) on the identical promissory note and chattel mortgage which was the subject of the third party claim in the case of Koehnen v. Redondo; that after the commencement of the Long suit, the superior court in the case of Koehnen v. Redondo issued an injunction restraining Lydia Koehnen, her agents or attorneys, from negotiating or collecting any part of the funds represented by said note and mortgage and notwithstanding its service upon petitioner and his client, petitioner obtained a settlement of said Long suit by Redondo and Mrs. Newton, paying to his client the sum of $447.92, which sum was paid to Long who delivered it to Paul Kalmanovitz; that Lydia Koehnen was, during all of the times mentioned in said notice to show cause, the agent and “dummy” of Paul Kalmanovitz. The committee further found that petitioner failed and refused to reconvey to Mrs. Newton the real property conveyed to him as trustee by Mr. and Mrs. Newton on March 9, 1938, contrary to his promise to Mr. and Mrs. Newton to do so within seven to ten days thereаfter, and contrary to the judgment entered in the case of Koehnen v. Redondo on October 14, 1938, although demand on him had been made for such reconveyance. It was only after an order of court holding Lydia Koehnen guilty of contempt and after the issuance of a bench warrant for said Lydia Koehnen on October 21, 1941, that petitioner as trustee reconveyed said property to Mrs. Newton.
The local administrative committee concluded from the finding of facts as summarized above that petitioner violated his oath and duties as an attorney at law within the meaning of
As set forth in the
The position of petitioner is that the findings have no suрport in the evidence; and further, if they are so supported, that the facts found therein are not sufficient to justify disbarment or any disciplinary action.
(1) The drawings of the usurious documents;
(2) The violation by petitioner of his promise given to Mr. Rucker that no action would be taken against the latter‘s clients until Mr. Rucker‘s return from Bakersfield;
(3) The Long suit; and
(4) The failure of petitioner to execute a reconveyance of the real property covered by the deed of trust executed by Mr. and Mrs. Newton to secure the $2,300 promissory note. As this charge is not discussed nor referred to in any way by The State Bar in its brief, we assume that it has been abandoned.
(1) The drawing of the usurious documents. Newton and Redondo, through one Harry Phillips, were endeavoring to purchase from the Paramount Studios three Liberty motors and generators. They had secured a verbal option to purchase the propеrty for $1,300 and had paid $200 down on the purchase price. They were to pay the balance within ten days and were having considerable trouble in securing the same. Harry Phillips contacted Paul Kalmanovitz respecting the loan. Shortly thereafter Kalmanovitz, Newton, Phillips, and a fourth person named Sherry, drove out to the Paramount Studios. According to Kalmanovitz‘s testimony, Newton had an option from the Paramount Studios for the three Liberty motors and electric plants (the generators are frequently referred to as plants). He (Newton) said he would like to purchase them very badly. Continuing, Kalmanovitz said, “He said he would like to purchase, he wants them very bad, and he would give me аny security I wished. So I said I would let him know and went back to my office and talked to Mr. Bryant (the petitioner).” The next meeting as shown by the evidence was at petitioner‘s office. In the meantime, petitioner had prepared or assisted in preparing a bill of sale of the three Liberty motors and generators from the Paramount Studios to Lydia Koehnen.
Petitioner contends, and so testified, that he drew these papers in accordance with the express direction of his client, Paul Kalmanovitz, and without any knowledge that they did not correctly express the real transaction involved. Paul Kalmanovitz corroborated this testimony of petitioner. However, we are not required to accept their evidence if the circumstаnces surrounding the transaction point to a contrary conclusion. The evidence is without conflict that it was Newton and Redondo who made the purchase from the Paramount Studios, and not Mrs. Koehnen. Mr. Kalmanovitz testified that Newton and Redondo had an option to purchase this property. He further stated that after he and the others mentioned had returned from the Paramount Studios, and Newton and Redondo had decided to complete their purchase if Kalmanovitz would loan them the money, Kalmanovitz went back to his office and talked with petitioner. It must have been that as a result of this conference with petitioner, the papers were prepared by petitioner as indicated above. Kalmanovitz was not a lawyer. It may be conceded that an ordinary layman would know that the giving of a promissory note for $2,300 in consideration of a loan of
(2) We will now pass to the charge that petitioner violated his agreement not to commence any action on the $2,300 note and chattel mortgage until Mr. Rucker, attorney for Newton and Redondo, returned from Bakersfield. Rucker‘s version of his conversation with petitioner was that on April 11, 1938, he called petitioner and stated that he represented Newton and Redondo but that he was compelled to be in Bakersfield on the 12th of April, and asked that nothing be done until his return, to which request petitioner agreеd; that Rucker left for Bakersfield and was there on the 12th, but on his return found that petitioner had instituted the action against Newton and Redondo on the 12th. Petitioner‘s account of this matter was that he promised Rucker that he would not begin any action against Newton and Redondo without notifying Rucker‘s office; that his client insisted on beginning the action, and at the latter‘s insistence, petitioner, after telephoning Rucker‘s office and getting no response, instituted the action. While it is one attorney‘s word against that of another attorney, there are certain circumstances surrounding the affair which lend cre-
(3) The third charge against petitioner is the institution of the suit of Long against Newton and Rеdondo on the promissory note and chattel mortgage against the three trucks owned by the defendants in said action. This note and mortgage had been the subject of a third party claim in the action of Koehnen v. Redondo, and had been paid by the plaintiff in that action. In the judgment in said action rendered on October 14, 1938, the plaintiff was given judgment for $315, being the amount due on the promissory note at the time it was paid by Lydia Koehnen. As we have seen, petitioner was attorney in the Koehnen action. On April 17, 1939, petitioner as attorney for Milton Long, who claimed to have bought the note and mortgage from Kalmanovitz, brought a second suit on this note and mortgage against Mrs. Newton, and collected frоm her in that suit the sum of $447.92, being the principal and interest of the note, costs, and $40 attorney‘s fee. The only dispute as to the facts just related is the claim of petitioner that the evidence shows that the note was not paid by Lydia Koehnen but was bought by her. There is no contention that plain-
The findings as a whole in our opinion are amply supported by the evidence upon all three of the charges hereinbefore discussed, and it now remains for us to give consideration to the question as to whether the facts so found are sufficient to support the recommendation of The State Bar that petitioner be disbarred from the practice of law in this state, or that he be subjected to some lighter disciplinary action.
The local administrative committee concluded that petitioner had violated various sections of the
“It is agreed that an attorney may be disbarred, not only for professional misconduct, but also for such misconduct outside of his profession as shows him to be so wanting in integrity and trustworthiness that the legal business of others cannot safely be intrusted to him. The right of the courts to exclude attorneys for loss of moral character, malpractice or offenses not punishable as a crime is established beyond all question, for the right to practice law is subject to the cоndition that the attorney shall possess a blameless moral character, and it is forfeited upon a breach of that condition. The public have a right to demand that no person shall be permitted to aid in the administration of justice whose character is tainted with dishonesty, corruption, crime or disloyalty or treasonable acts.” (3 Cal. Jur. 727, § 122.)
Therefore, as we view the law in question, any flagrant act of dishonesty on the part of an attorney is made a cause for disciplinary action against him. The preparation by an attorney of documents whereby a usurious transaction is made to appear to be a legal transaction for the purpose of evading the laws of this state with knowledge of the real facts involved in the transaction, cannot be justified upon any theory of ethics. The failure of an attorney to keep his word pledged to a brother attorney, whereby the clients of the latter were put to heavy expense and loss, is equally dishonest and reprehensible. The institution of an action upon an obligation which was in litigation in a transaction wherein the client of petitioner had to all intents and purposes been accorded full relief, cannot be regarded in any other light than an attempt to obtain a double recovery upon a single cause of action, with an additional attorney‘s fee in his favor. No honest lawyer would be capable of using the process of the courts to accomplish such a nefarious purpose. With three such transactions, all attributed by legal and ample evidence to one individual, there can be no question as to their sufficiency to justify disciplinary action against the offending attorney. In the case of In re Napthaly, 7 Cal. Unrep. 378, reading from the syllabus, it was held that “An attorney, with knowledge of the facts, who advises and takes steps to assist in a violation of the bankrupt law of the United States, whereby one creditor unlawfully receives a preference, is subject to suspension.” We can see no appreciable distinction in legal effeсt between the acts of an attorney as stated in that case and the acts of petitioner, who advised his client and, by resorting to false and fraudulent means, assisted him to attempt the circumvention of the laws against usury, and thereby secure an unjust, illegal and excessive rate of interest upon the loan which his client was making.
While petitioner denies that he knowingly committed any of the wrongful acts of which he was found guilty by the local administrative committee, he also justifies his acts by asserting his lack of experience as a practicing attorney, the dominating character of his client, and the fact that the charges against him were instituted, and the principal evidencе in their support was given, by Mrs. Newton and her attorney for the purpose of vilifying opposing counsel in a law suit. As to these matters of defense, the record shows that petitioner was admitted to the practice of law on May 9, 1933, and from that date until January 1, 1938, he was not in the general practice of law but was employed on a salary by the Texas Company in their right-of-way department, in which position he had no opportunity to participate in the actual conduct of litigation, although his employment by the Texas Company was a branch of its legal department. He opened an office for the private practice of law on January 1, 1938, and Kalmanovitz was one of his first clients, and one of the first legal matters concerning which he was consulted was that which is the basis of the present proceeding against him. He was 37 years of age at the time he opened his office on January 1, 1938. He further claims, and the record bears him out in this respect, that his client, Paul Kalmanovitz, was of a dominating and domineering character and strenuously insisted upon petitioner, as his attorney, proceeding in the manner shown by the record.
His claim of lack of experience principally relates to the preparation of the documents involved in the usurious transaction. He does not make the direct claim that he did not know that this transaction, if carried out in accordance with the terms of the documents as prepared by him, would be a violation of the Usury Act, but he asserts that in the prepara-
Petitioner complains that this proceeding was instituted and prosecuted by Mrs. Newton and her attorney, and their action in so doing was prompted by unworthy motives, as their purpose in pursuing petitioner was actuated by a spirit of hatred and revenge, and also in the hope of eventually defeating the action of Koehnen v. Redondo, which he asserts has not yet been finally settled. In our opinion both Mrs. Newton and her attorney had just cause to feel aggrieved by the acts of petitioner as found by the local administrative committee, as hereinbefore reviewed, but aside from any consideration of the motives of those interested in this proceeding against petitioner, the facts before us compel the conclusion that petitioner‘s conduct respecting the controverted matters is deserving of severe censure and calls for some disciplinary action. The complaint made by petitioner has also been made in a number of like proceedings before this court, as shown by our decision in the following cases: Peck v. State Bar, 217 Cal. 47, 51 [17 P.2d 112]; Tapley v. State Bar, 8 Cal.2d 167, 172 [64 P.2d 404]; Geibel & Morfoot v. State Bar, 14 Cal.2d 144, 149 [93 P.2d 97]; Rohe v. State Bar, 17 Cal.2d 445, 450 [110 P.2d 389].
In the last named casе the court stated its position on the question as follows at page 450:
“Whatever may have been the instigating factor, or whatever may have been the personal motive, in the initiation of The State Bar proceeding, are not matters of controlling concern in a case where the facts disclosed independently lead to the conclusion that the attorney is subject to some disciplinary action. There is no showing that any personal motives of individuals have generated any pressure or prejudice or have in any way prevented the petitioner from having full, fair and unbiased hearings.”
As stated above, both the local administrative committee and the Board of Bar Governors recommended that petitioner be disbarred. In considering some aspects of the case against him, we see ample reasons for sustaining their action. However, as we view the whole case, we are of the conclusion that a lighter penalty will more properly meet the demands of the law. We have already referred to the fact that the case of Koehnen v. Redondo was one of petitioner‘s first cases as an attorney in the practice of law. We have also mentioned certain characteristics of his client, who undoubtedly was primarily responsible for the petitioner‘s misdeeds. We are satisfied that a lawyer of mаture experience would have spurned the suggestions and demands which petitioner‘s client is shown to have made. While these considerations do not excuse petitioner for his violation of the ethics of his profession, they do present a condition wherein the court is justified in refusing to inflict the extreme penalty of disbarment upon petitioner. After a careful consideration of all the evidence in the case and the situation of all parties concerned in this proceeding we are of the opinion that a suspension of eighteen months would be the proper punishment to be meted out to petitioner.
It is therefore the order of this court that рetitioner be and he is hereby suspended from the practice of law for the period of eighteen months beginning thirty days after the filing of this order.
EDMONDS, J., Dissenting.---In reviewing the record in this case, my associates say that the findings made by the
Traynor, J., concurred.
