Brody v. State Bar

Opinion

THE COURT.

This is a proceeding to review a recommendation of the Disciplinary Board of the State Bar of California that petitioner be suspended from the practice of law for one year and until he makes satisfactory restitution, but in no event no more than two years.

1

The board’s recommendation follows that of the local administrative committee which found that petitioner wilfully commingled and misappropriated his client’s funds, committing acts involving moral turpitude in violation of his oath and duties as an attorney. (West’s, Bus. & Prof. Code, foil. § 6076, rule 9 [Deering’s, Rules of Professional Conduct, rule 9]; Bus. & Prof. Code,

[349]

§§ 6103, 6106.) We are satisfied that the discipline recommended by the board is justified.

Petitioner, Denis J. Brody, was admitted to practice law in California in 1966. He has no prior disciplinary record. In 1967 petitioner represented Harry Bedell in two personal injury actions culminating in a settlement of $30,000 in one case and a judgment of $16,650 plus $221.45 costs in the other. Upon receipt of these funds petitioner deposited them in what he had designated as a trust account at Security Pacific Bank. It appears, however, that petitioner had opened this purported trust account with personal funds and in fact used it as a personal account.

2

3 In addition, petitioner attached a personal Master Charge and Ready Reserve account to the purported trust account authorizing the bank to make automatic withdrawals for the required monthly payments.

3

It is undisputed that by commingling personal and client funds in this manner petitioner failed to adhere to the Rules of Professional Conduct.

4

The board further found that petitioner had converted funds of his client, Harry Bedell, for his own use. After deducting attorney fees and costs, Bedell’s net recovery in the personal injury actions referred to above was $24,989.80. Of this amount, $12,239.80 was subject to four liens; an $8,000 workmen’s compensation insurance lien in favor of Industrial Indemnity Company, a $2,490.50 lien for medical services in favor of Dr. Álaia, a $1,675.80 lien for hospital services in favor of Los Altos Hospital, and a $73.50 lien for a back brace in favor of John A. Metzger Co., Inc. Petitioner paid the workmen’s compensation lien and turned over $11,-038.55 to Bedell. Petitioner, however, withheld the remaining $1,711.45 owed to Bedell and refused to pay the $4,239.80 owed to Bedell’s three medical lien creditors.