Case Abstracts for matters heard in March of 2007
CSB-2006-026 John B. Shorton Norwood, MA (Disbarred)
When claimant, as trustee of a family realty trust, entered into a purchase and sale agreement to sell a parcel of residential property in September 1999, Mr. Shorton acted as the escrow agent for a deposit of $17,500. The buyer was a real estate development company that planned to demolish the existing single family home and erect a duplex if the necessary zoning approvals could be obtained. The sale never closed, Mr. Shorton was disbarred, claimant never received the deposit and does not know where the funds are. The developer later sued claimant for the deposit. In exchange for being dismissed from the suit and to avoid the costs of defending the litigation, claimant assigned to the developer whatever claim he had to the deposit. Mr. Shorton explained that during the pending sale, he defended claimant in litigation brought by adjoining property owners who felt threatened by the proposed construction of the duplex. When he was disbarred, Mr. Shorton contacted claimant, explained that he had to close his IOLTA account and asked claimant how he wanted to handle the $38,000+ legal bill. Respondent already held the $20,000 retainer but was short approximately $18,000. Claimant reportedly told Mr. Shorton that he should keep the deposit as claimant did not want to incur the penalties associated with an early redemption of a certificate of deposit. Mr. Shorton said he kept the funds at claimant's direction but there was nothing in writing to confirm that understanding. Claimant could not recall authorizing Mr. Shorton to keep the deposit. The Board concluded that the text of the claimant's assignment to the development company made clear that he no longer was the owner of the claim and had no standing to pursue it. The Board denied the claim for claimant's lack of standing.
CSB -2006-027 Kristjan A. Asgeirsson, Stoneham, MA (Disbarred)
Claimant's brother-in-law referred her to Mr. Asgeirsson when she needed help with a worker's compensation claim and a domestic violence criminal matter against her former boyfriend. Respondent referred claimant to a worker's compensation specialist and explained that claimant really did not have to pay him $200 per hour for his services on the criminal matter when the victim witness advocacy program would help her free of charge. Nevertheless, claimant wanted respondent's assistance and signed a fee agreement with him that contained no mention of a retainer. Although her funds were quite limited until the worker's compensation claim settled, she began to pay respondent small amounts weekly. The worker's compensation matter settled for $25,000 and claimant's share, net of legal fees for worker's compensation counsel, was $20,600. Respondent received a check for that amount and took it to the hospital for claimant to endorse. Respondent then deposited the check to his IOLTA account, deducted his fees for services ($6,690.89 plus a $2,500 retainer) in the criminal matter, credited claimant for her installments and sent her a check for the balance. Claimant contended that respondent did not perform all of the services he claims to have performed and specifically denied having met with respondent on some of the occasions enumerated in respondent's invoices. The Board found (and respondent conceded) that because the fee agreement made no mention of a retainer, respondent impermissibly took $2,500 from claimant and made an award to her in that amount.
CSB-2006-020 Michael G. McDonald, Salisbury, MA (Disbarred)
Mr. McDonald served as the settlement agent when claimants refinanced their home in December 2001. One reason for refinancing was to eliminate $28,365 in consumer debt the claimants had accumulated. According to claimants, Mr. McDonald paid some of the debts but failed to pay others. When the creditors continued to request payment from claimants, Mr. McDonald gave claimants (in March 2002) a list of the payments that supposedly had been made. By December 2002, Mr. McDonald had been suspended and no longer communicated with claimants. When they requested an Equifax report in February, 2006 it showed many of the debts that Mr. McDonald supposedly paid were still outstanding. Claimants also submitted a collection letter for an additional debt. A comparison between claimants' list of unpaid items and the account history on the Equifax report showed them to be almost identical. The Board found a defalcation of $7,616 and made an award to claimants jointly in that amount.
CSB-2006-065 William E. Gately, Jr., Braintree, MA (Disbarred)
On May 4, 2001 claimant injured herself in a slip and fall at large grocery store. She retained Mr. Gately who had earlier prepared a will for her and her husband. Several years passed without any word from Mr. Gately. Then, in May 2006, claimant received a letter and her file from the commissioner appointed to oversee the shutdown of Mr. Gately's practice. From the file she learned that Mr. Gately settled her claim in October 2003 and received a $25,000 check that same month that he deposited to his account without benefit of any signatures. Claimant reported the matter to the local police who filed a complaint and had a warrant issued for Mr. Gately's arrest. Mr. Gately pled guilty to felony larceny in December 2006, received a sentence of 18 months probation and was ordered to make restitution to claimant of $16,667. The Board found a defalcation of $16,667 and made an award her in that amount.
CSB 2006-071 and CSB 2006-022 Francis X. Jackman, South Boston, MA (Suspended)
After fifteen years of practicing almost exclusively as appointed counsel for indigent defendants in criminal matters in two Boston neighborhood District Courts, Mr. Jackman opened and operated a civil practice in a Boston neighborhood with a substantial Vietnamese population. The office concentrated on personal injury cases and opened approximately ten new cases per month. Mr. Jackman created the practice with a non-lawyer of Vietnamese descent (Mr. X) who, in exchange for his services in managing the office, received "a portion of each personal injury settlement by the office." For the entire twenty-three months of the office's existence, Mr. X and other non-lawyer staff "handled and settled personal injury cases on behalf of the law office with inadequate supervision or oversight from" Mr. Jackman. Mr. X was a signatory on the four law office bank accounts, including an IOLTA account. Settlement checks were routinely commingled in business operating accounts and Mr. Jackman, Mr. X and the staff failed to keep adequate records "to document the receipt, maintenance and disbursement of clients' funds." Mr. X "converted settlement proceeds due clients and PIP funds due medical providers for his own use." On April 13, 1998, claimant and her husband were both injured in an auto accident and contacted Mr. X "because we could not speak English well, and Mr. X spoke Vietnamese, our native language." Mr. X led claimants to believe that they could expect to recover "over $10,000 each" on their cases. Although claimants left matters with Mr. X, they called the law office in October 1999 after not having heard from him for some time. When they were told that Mr. X no longer worked there, they hired new counsel to sort things out. New counsel learned from the insurer that the claims had been settled and checks in the amount of $3,500 each issued in February 1999. The Board found defalcations of $3,500 each and made awards to each claimant in that amount.
CSB 2006-083 John C. McBride, Marblehead, MA (Disbarred)
When her son was arrested, claimant gathered $10,000 in cash and gave it to another son who delivered it to Mr. McBride to represent her son. In April 2001, Mr. McBride filed an unsuccessful petition for bail. After the grand jury indicted the son, Mr. McBride appeared with him at the September 2001 arraignment where bail was set at $200,000 and the son was remanded to custody. When bar counsel confronted Mr. McBride about the services provided to the son, Mr. McBride tendered copies of docket entries and stated that they "show 16 appearances by my office." However, those docket entries show the entry "Event not held" for seven of the supposed sixteen appearances. When the still-incarcerated son became distraught about Mr. McBride's representation, he filed an August 30, 2002 motion to dismiss Mr. McBride. On November 18, 2002, successor counsel filed his appearance and one month later had bail reduced from $200,000 to $100,000 enabling the family to pay $10,000 for the son's release. In late December, successor counsel filed the array of pre-trial motions that one would expect of diligent defense counsel. In early January 2003, the son defaulted, his bail was forfeited and he is still at large. Mr. McBride acknowledged wrongfully retaining the entire $10,000 when he wrote to bar counsel: "I did speak with a family member of [name withheld] and do anticipate meeting with her shortly. When I meet with her I will inform you of the amount of refund and provide you with a copy of the check." Bar counsel never received a copy of any such refund check from Mr. McBride. The Board found a defalcation of $10,000 and made an award to claimant in that amount.
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