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Wisconsin Attorneys' Professional Discipline Compendium
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Public Reprimand of John F. Kerscher
1996-5
Violation of SCR 20:1.3, SCR 20:1.4, SCR 20:1.8(a), and SCR 20:8.4(c)
Attorney John F. Kerscher of Racine, Wisconsin, represented a client and her son in re-purchasing property that was the subject of a foreclosure sale. As part of that representation, Respondent drafted a quit claim deed and a land contract between the client's son and a realtor. Attorney Kerscher also had the client's son sign a land contract in blank. One month later, Kerscher recorded the Sheriff's deed and the land contract, with the purchase price still in blank. Respondent claims that the exact purchase price was not yet known. Two months later, Kerscher recorded a quit claim deed from the son to the realtor, which stated it was in satisfaction of a land contract, thereby extinguishing his client's interest in the property. Kerscher did not explain why he recorded this deed.
One year later, the client fell behind in her land contract payments. Eventually, an agreement was reached between the parties regarding payments on the land contract. The land contract was then re-recorded with a purchase price of $47,500 filled in. Kerscher did not obtain new signatures from either the client, the client's son or the realtor.
The client disputed the amount due on the land contract and stated that she was never informed that additional amounts for Kerscher's fees for other legal services or fees for the realtor were to be included in the land contract. The realtor stated that the client was aware of these additions to the land contract price. During the investigation, Kerscher produced a closing statement. The client stated that she had never seen such a statement.
In this first matter, the Board concluded that Kerscher engaged in conduct involving dishonesty, in violation of SCR 20:8.4(c), because Respondent entered numbers into a blank land contract, which was already recorded, without fully disclosing the calculation for the purchase price amount with his client and without obtaining his client's understanding and approval concerning those amounts. The Board also found that Kerscher violated SCR 20:1.3, by failing to prepare and record a completed land contract for more than one year.
In another real estate matter involving a different client, the client asked Attorney Kerscher, who was already her attorney on other matters, to assist her in refinancing business property in Racine County. Kerscher devised a plan whereby he would purchase the property himself and then sell the property back to the client. On the day of the closing, Kerscher went to the client's home and obtained her signature on a blank land contract. Kerscher told the client that he would fill in the amounts later.
The client made her payments directly to Kerscher. About six months later, the client and her accountant repeatedly asked Kerscher for a copy of the land contract and other documents related to the property. Kerscher did not respond to this request until six months later. Upon reviewing the land contract Kerscher sent her, the client noted that a price of $120,000 had been filled in and that the contract had been notarized by Kerscher's secretary. Kerscher's secretary had not witnessed the client's signing of the contract. The contract had not been recorded.
One month later, Kerscher recorded the land contract. However, the purchase price had been changed to $115,394. A review of the original blank land contract revealed that pertinent sections had been whited out and redated, including the date of the notarization, before the document was recorded.
Kcrscher produced a settlement statement during the Board's investigation. While this was the first time the client saw the statement, she did not find the various costs and expenses to be inappropriate.
Regarding this second matter, the Board concluded that Kerscher engaged in conduct involving dishonesty, in violation of SCR 20:8.4(c), by having a client sign a blank land contract and then changing amounts in the recorded land contract, and by having his secretary notarize a signature that she never witnessed. The Board further found that Kerscher entered into the land contract with his client without disclosing the terms of the contract and without obtaining the clients written consent to the business transaction, in violation of SCR 20:1.8(a). The Board also found that Kerscher violated SCR 20:1.3, by failing to prepare and record a completed land contract for more than one year and that Kerscher violated SCR 20:1.4, by failing to respond to his client's reasonable requests for information concerning the land contact.
In accordance with SCR 21.09(2), the Board of Attorneys Professional Responsibility does hereby publicly reprimand Attorney John F. Kerscher, of Racine.
This public reprimand is conditioned upon the following:
1) Attorney Kerscher will maintain sobriety for a period of at least two years.
2) Attorney Kerscher's practice will be monitored by an attorney connected with Lawyers Concerned for Lawyers for two years.
3) Attorney Kerscher will undergo treatment and/or attend AA meetings for at least two years and provide reports to the Board from the treating agency on a quarterly basis.
4) Attorney Kerscher will undergo a monthly random screening procedure for the presence of alcohol, as approved by the Board.
5) Attorney Kerscher, for a period of two years, will submit to the Board a quarterly affidavit of compliance with the above conditions.
If Attorney Kerscher does not comply with the conditions, the Board will then institute a medical incapacity investigation regarding Attorney Kerscher's alcohol abuse problems.
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