Turner v. State Bar

THE COURT.

Petitioner seeks a review of the recommendation of the Board of Governors of The State Bar that he be suspended from the practice of law for a period of three months.

In 1947, after practicing in Illinois, petitioner was admitted to the bar in California. In 1948 he was charged with and found guilty of violating rule 12 of the Rules of the California State Bar. (26 Cal.2d 35.) This rule provides that a member of The State Bar “shall not communicate with a party represented by counsel upon a subject of controversy, in the absence and without the consent of such counsel. ...”

The charge grew out of the following situation: In an action brought in Los Angeles County by George W. Davis, his wife, and their copartner, Lebus, of Chicago, petitioner was one of the counsel of record for defendants, whom he had known in Chicago. Attorneys Dasteel and Dottenheim represented plain

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tiffs under a contingent fee contract whereby they were to receive 50 per cent of “any amount recovered by suit, settlement, or otherwise,” payment of which was secured by an assignment of “an undivided fifty percent (50%) interest in the proceeds of said claim and in any judgment recovered thereon.”

In November, 1947, judgment was rendered in plaintiffs’ favor in the sum of $95,000. Thereafter an appeal was taken by new counsel who were substituted in place of defendant and his associates. In January, 1948, execution was returned unsatisfied, and suit on the judgment was then started in Chicago to secure a levy on defendants’ assets in Illinois. Both parties secured Chicago counsel to represent them in those' proceedings. Petitioner and all attorneys representing the parties, both in Chicago and Los Angeles, knew of Dasteel and Dottenheim’s contract for one-half the recovery.

While the appeal in Los Angeles and the Chicago action were pending the Davises requested Dasteel and Dottenheim to effect a settlement of the case. Although some discussions were had, no agreement resulted, and the Davises then began to negotiate directly with defendants in Chicago by long distance telephone. A few days prior to May 14 defendants made an offer to settle for $25,000, which the Davises accepted. Defendants then told the Davises to contact petitioner in Los Angeles, who would make out the closing papers. One of defendants’ Chicago attorneys also telephoned petitioner and requested him to draw up a satisfaction of judgment, general release and indemnity agreement, giving him a general outline of the contents of these papers. Petitioner agreed to consummate the settlement as requested and in addition agreed to advance the $25,000 pending arrival of defendants’ check in that amount. When Dasteel and Dottenheim were told by the Davises about defendants’ offer, they objected to the settlement, declaring that their interest in the case was worth $25,000. Defendants’ Los Angeles attorneys also learned of the proposed settlement and promptly informed petitioner they intended to withdraw from the case because the arrangements were being made in the absence and without the consent of Dasteel and Dottenheim.