Case Abstracts for matters heard in January of 2007
CSB-2006-088 William Gately, Braintree, MA (Disbarred)
Claimant engaged Mr. Gately to represent her in two matters during 2000: a divorce and an SSI/disability claim. According to claimant, Mr. Gately succeeded in both. During the divorce, the marital home was sold and claimant's share of the sale proceeds was $43,255.81. After receiving those funds at the closing, Mr. Gately told claimant that he "had researched the creation of this special trust account" and that "he was now waiting for some pending legislation . . . to be finalized." Mr. Gately also assured claimant that he would send a check at any time if she needed money. Mr. Gately responded to three requests for financial help with payments to claimant of $3,000, $1,650 and $500. When the Social Security Administration learned that claimant's home had been sold, it discontinued her SSI payments on the theory that the constructive receipt of the sale proceeds made her ineligible for means-tested SSI benefits because her resources exceeded $2,000. The SSA also billed claimant for the SSI payments made to her after the sale of the marital home. Claimant was unable to contact Mr. Gately who was deeply involved in disciplinary proceedings. Mr. Gately failed to account for $38,105.81 after paying claimant a total of $5,150.00. The Board found a defalcation and made an award to claimant of $38,105.81.
CSB-2006-069 Peter Langan Schofield, Grafton, MA (Disbarred)
In 2001 claimant's parents, both in their 80's, prepared an estate plan by which, upon the death of the second to die, claimant would become sole owner of their home upon the payment of a total of $60,000 to his siblings or their heirs. Claimant's father died in 2001 and his mother died in January 2006. According to claimant's agreement with the trust created by his parents, he had 60 days following his mother's death to pay the $60,000 and obtain the releases from his siblings. Claimant, who had $40,000 available, retained Mr. Schofield and delivered to him a $40,000 check on March 6, 2006. To make up the shortfall, he applied for a $20,000 home equity loan with a local credit union. Mr. Schofield prepared and mailed four releases (two of which bore incorrect payment amounts) and cover letters to the siblings and heirs. Three weeks later, Mr. Schofield advised the claimant that he was terminating his law practice. He failed to mention that he was being disbarred and made no arrangements to return the $40,000. One week later, the lawyer assigned to conduct the closing on the home equity loan, advised claimant that Mr. Schofield no longer had the $40,000. The Board found a defalcation and made an award to claimant of $40,000.
CSB-2006-050 Alan Mason, Princeton, MA (Disbarred)
In early 2005, claimant retained Mr. Mason to assist with the sale of her home. The sale closed on March 11, 2005 following which claimant received two checks: one for $148,492.84 from buyer's counsel and another from her lawyer, Mr. Mason, in the amount of $9,500 that represented the buyer's deposit. The check from buyer's counsel cleared but Mr. Mason's did not. Claimant unsuccessfully tried to contact Mr. Mason to get a new and funded check from him. Mr. Mason never returned the $9,500 to claimant. The Board found a defalcation and made an award to claimant in the amount of $9,500.00.
CSB-2006-051 Merrill D. Goldfarb, Needham, MA (Disbarred)
Claimant sued Mr. Goldfarb in Superior Court in October 2002. Mr. Goldfarb answered the lawsuit in December 2002 and by May 2003, forced claimant to dismiss the complaint with prejudice and without costs. Claimant then filed this claim with the Board based on the same allegations of the dismissed lawsuit. Claimant did not allege a misappropriation of funds by Mr. Goldfarb; instead he alleged that Mr. Goldfarb failed to earn the $10,000 retainer claimant gave to him. Mr. Goldfarb admitted receiving $10,000 in May 2001 but contended that he performed significant legal services on claimant's behalf for his fee. The Board found that there was no defalcation by Goldfarb, that this was a fee dispute, and made no award to claimant.
CSB-2006-063 Peter Langan Schofield, Grafton, MA (Disbarred)
In August 2005, Mr. Schofield prepared a purchase and sale agreement for claimants to sell a vacant lot for $80,000. The buyer gave a $1,000 deposit to the real estate broker and gave an additional $7,000 to Mr. Schofield at the signing of the purchase and sale agreement. Although the closing was scheduled for January 6, 2006, on January 24, 2006, Mr. Schofield extended buyer's time for performance until May 15, 2006. On March 28, 2006, Mr. Schofield wrote to claimants advising them that he was closing his law practice and urged them to retain substitute counsel. He failed to mention that he was being disbarred and made no arrangements to return the claimants' $7,000 deposit. Successor counsel wrote a demand letter to Mr. Schofield's counsel for the missing $7,000 deposit and asked that the letter be forwarded to Mr. Schofield's professional liability carrier or other potential source of reimbursement. The funds were never returned. The Board found a defalcation of $7,000 and made an award to claimant in that amount.
CSB-2006-068 Peter Langan Schofield, Grafton, MA (Disbarred)
Claimants, a divorced couple, hired Mr. Schofield to assist them in the sale of their home. In February-March 2006, claimants signed a purchase and sale agreement prepared by Mr. Schofield and their real estate agent endorsed over to Mr. Schofield buyers' $4,500.00 deposit check in late February. On March 28, 2006, Schofield wrote to claimants advising them that he had decided to close his law practice and urged them to retain substitute counsel. The letter failed to mention that he was being disbarred and what, if any, arrangements he had made for returning claimants' $4,500. Claimants' efforts to contact Schofield and obtain a refund were all in vain. The Board found a defalcation of $4,500 and made an award to claimants in that amount divided according to the terms of the divorce decree: 65% to claimant-wife and 35% to claimant-husband.
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