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ATTORNEY disciplinary
proceeding. Attorney's license
suspended.
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¶1 PER CURIAM. We review the
stipulation filed by the Office of Lawyer
Regulation (OLR) and Attorney Lilah J. Zajac
pursuant to SCR 22.12 wherein Attorney Zajac
admits to the facts and professional
misconduct as alleged by the OLR in its
complaint. Attorney Zajac also assents to
the level of discipline sought by the OLR
director, a 60-day suspension of her license
to practice law in Wisconsin.
¶2 We adopt the stipulated facts and
conclusions of law. We agree that Attorney
Zajac's misconduct warrants the suspension
of her license to practice law in Wisconsin
for a period of 60 days. The OLR has stated
that it does not seek to impose the costs of
this proceeding upon Attorney Zajac, and we
accede to that recommendation.
¶3 Attorney Zajac was admitted to
practice law in Wisconsin in 2001 and most
recently practiced at Horizons Law Group,
LLC, in Wauwatosa. She has no prior
disciplinary history.
¶4 On April 27, 2007, the OLR filed an
order to answer and a complaint alleging
eight counts of professional misconduct.
All arose out of Attorney Zajac's handling
of two estate matters while she was an
attorney at Legal Horizons.
¶5 C.V. died in 2002 survived by four
daughters and a son, F.V. C.V.'s will left
her Milwaukee home to F.V. F.V. filed an
application for informal probate
transferring his mother's house to his
name. F.V. died shortly thereafter. His
only heirs were his four sisters. After
F.V. died, one of the sisters, R.G., moved
into her mother's home. C.V.'s will had
stated that the house should go to R.G. if
F.V. predeceased her.
¶6 On July 29, 2002, R.G. met with an
attorney at Legal Horizons about
representing her with regard to her mother's
and brother's estates so that she could have
the house transferred to her own name. R.G.
was quoted a $1,000 flat fee for the
representation, to be paid in $250
installments. R.G. signed a retainer
agreement in October 2002 and subsequently
made various fee payments. Attorney Zajac
told the OLR that all payments from R.G.
were deposited into the main LLC account at
Legal Horizons as flat fee payments.
¶7 On November 26, 2002, Attorney Zajac
filed R.G.'s amended application for
informal administration of C.V.'s estate and
R.G. was appointed personal representative.
The same day Attorney Zajac also filed an
application for informal administration of
F.V.'s estate.
¶8 In F.V.'s estate, Milwaukee County
filed a claim for $591.54. In C.V.'s
estate, Milwaukee County filed a claim for
$7,987.37 to recover benefits C.V. had
received between 1959 and 1975. Victor &
Victor, Ltd. filed a $736.41 claim for
C.V.'s J.C. Penney credit card. The J.C.
Penney claim was filed after the deadline
for claims established after the filing of
the initial application for informal
administration of the estate that F.V. had
filed before his death, but less than four
months after Attorney Zajac filed R.G.'s
amended application for informal
administration.
¶9 Although Attorney Zajac raised the
issue of whether the late filing of the J.C.
Penney claim would invalidate it, there was
no evidence she researched the issue
further, nor did she take any action to
challenge the claim in C.V.'s estate.
Instead of attempting to dispute the
validity of the J.C. Penney debt, Attorney
Zajac tried to negotiate a settlement.
Attorney Zajac also sent a letter to
Milwaukee County saying that C.V.'s family
wanted to either dispute its claim as stale
or settle it, and she negotiated with the
county to have the house pass to F.V.'s
estate subject to the county's lien. In
April 2003 the county provided a draft lien
to be executed and filed by R.G., as
personal representative of C.V.'s estate.
¶10 In December 2003 the circuit court
issued an order to show cause why C.V.'s
estate had not been closed. In January 2004
R.G. and Attorney Zajac attended a hearing
on the order to show cause, and the hearing
was adjourned until March 9, 2004.
¶11 On March 8, 2004, Attorney Zajac met
with R.G. at R.G.'s home. R.G. executed the
lien documents to allow the house to pass
from C.V.'s estate to F.V.'s estate, subject
to the county's lien. The lien documents
were filed in probate court the next day.
During the March 8, 2004, meeting, R.G. gave
Attorney Zajac $344 in cash, representing
the final installment of the flat fee owed
to Legal Horizons.
¶12 Attorney Zajac told the OLR that
when R.G. accompanied her to an order to
show cause hearing in probate court on March
9, 2004, Attorney Zajac asked R.G. if
Attorney Zajac could apply the $344 payment
toward the J.C. Penney bill. Attorney Zajac
also said she offered to personally cover
the rest of the bill, without a realistic
expectation of repayment. Attorney Zajac
also told the OLR she had mailed the J.C.
Penney payment to Victor & Victor on March
8, 2004, using her personal funds. Attorney
Zajac did not provide the OLR with any
written documentation to support her claim
that she had loaned money to R.G. or the
estate by paying the J.C. Penney bill from
her personal funds.
¶13 By April 2004 Milwaukee County's
deputy register in probate had frequently
told Attorney Zajac to get C.V.'s estate
closed. Attorney Zajac did not specifically
discuss with R.G. any deadline to close the
estate. There is no evidence to support a
finding that Attorney Zajac provided notice
to R.G. that there was a court appearance
scheduled for May 11, 2004. Neither R.G.
nor Attorney Zajac appeared for the May 11,
2004, hearing. At the hearing, R.G. was
removed as personal representative and
Attorney Zajac was removed as counsel for
C.V.'s estate. On May 17, 2004, the probate
court issued domiciliary letters with
general powers and duties of a personal
representative of C.V.'s estate to Attorney
Janet Resnick.
¶14 R.G. was surprised and upset when
she received the order removing her as
personal representative. She called
Attorney Zajac, who told R.G. she would "fix
it." Weeks later, Attorney Zajac still had
not filed any documents with the court to
have herself and R.G. reinstated. R.G.
subsequently hired another attorney to
assist her in objecting to Attorney
Resnick's actions on behalf of the estates.
¶15 The OLR's investigation revealed
that R.G.'s perception was that Attorney
Zajac frequently did not discuss matters
regarding the estates with R.G. in a way she
could understand what was happening or what
needed to be done.
¶16 The eight counts of misconduct set
forth in the OLR's complaint were as follows:
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Count One: By failing to adequately
pursue whether the late filing of the J.C.
Penney claim filed by Victor and Victor,
Ltd., could serve as a defense to its
enforcement against C.V.'s estate; failing
to properly calendar and attend the May 11,
2004, order to show cause hearing; and
failing to request direction from the
probate court or explain to the court
difficulties she was having in closing
C.V.'s estate; Attorney Zajac violated
former SCR 20:1.3.
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Count Two: By failing to sufficiently
and
adequately communicate to R.G.: the
necessity to close C.V.'s estate within a
certain time and the consequences for not
doing so; whether a title report should be
obtained regarding C.V.'s house and the
consequences for not doing so; and whether
the date of the filing of the J.C. Penney
claim filed by Victor and Victor, Ltd.,
could serve as a defense to its enforcement
against C.V.'s estate, so as, in each such
instance, to allow R.G. and her family to
make informed decisions regarding these
matters; Attorney Zajac violated SCR 20:1.4
(a).
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Count Three: By paying from her
personal funds a claim filed against C.V.'s
estate by Victor and Victor, Ltd., Attorney
Zajac loaned funds to R.G. or C.V.'s estate,
when (1) the transaction and terms on which
Attorney Zajac acted were not fully
disclosed and transmitted in writing to the
client in a manner which could be reasonably
understood by the client; (2) the client was
not given a reasonable opportunity to seek
the advice of independent counsel in the
transaction; and (3) the client did not
consent in writing thereto; and therefore
Attorney Zajac violated SCR 20:1.8(a).
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Count Four: By providing financial
assistance to R.G. or C.V.'s estate in the
form of paying from her personal funds a
claim filed against the estate by Victor and
Victor, Ltd., Attorney Zajac violated SCR
20:1.8(e).
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Count Five: By failing to promptly
advise R.G. that she had decided not to file
a motion seeking to reinstate R.G. as
personal representative of C.V.'s estate
after having previously advised R.G. that
she would file such a motion, when Attorney
Zajac was aware that R.G. was relying on
Attorney Zajac to file such a motion
immediately after her agreement to do so,
Attorney Zajac violated SCR 20:1.16(d).
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Count Six: By converting R.G.'s $344
payment and also by representing to R.G.,
her sister, Attorney Resnick, and the
probate court that the J.C. Penney claim
filed against C.V.'s estate by Victor and
Victor, Ltd., had been paid in February or
March 2004, Attorney Zajac violated SCR
20:8.4(c).
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Count Seven: By advising OLR (1)
that she had mailed check #897 and the
accompanying letter dated February 28, 2004,
to Victor and Victor, Ltd.; (2) that on or
about April 14, 2004, she had advised R.G.
of the May 11, 2004, hearing scheduled in
the probate of C.V.'s estate; and (3) by
providing OLR with a photocopy of a
handwritten note purporting to have been
created on or about April 14, 2004, when the
note was created after the issuance of the
court's May 13, 2004, order, Attorney Zajac
violated SCR 22.03(6), actionable via SCR
20:8.4(f).
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Count Eight: By failing to timely
provide OLR with a written response
containing all of the records and
information requested in OLR's letters dated
May 5, June 6, and June 28, 2005; by failing
to timely provide OLR with a written
response containing all of the records and
information requested in OLR's letters dated
June 13 and July 18, 2006; and by failing to
provide any of the information and records
requested in OLR's letter dated November 16,
2006; Attorney Zajac violated SCR 22.03(2)
and SCR 22.03(6), actionable via SCR 20:8.4
(f).
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¶17 On March 12, 2008, the parties filed
a stipulation with this court. The
stipulation states that Attorney Zajac fully
understands the misconduct allegations;
fully understands the ramifications should
this court impose the stipulated discipline;
fully understands her right to contest the
matter; and fully understands her right to
consult with counsel and states that she has
in fact consulted with counsel and is
represented in this matter. Attorney Zajac
states that her entry into the stipulation
is made knowingly and voluntarily and
represents her admission of the misconduct
recited in the OLR's complaint and her
assent to the level of discipline sought by
the OLR director.
¶18 We approve the parties' stipulation
and recommendation regarding discipline.
¶19 IT IS ORDERED that the license of
Lilah J. Zajac to practice law in Wisconsin
is suspended for a period of 60 days,
effective May 23, 2008.
¶20 IT IS FURTHER ORDERED that
Lilah J. Zajac shall comply with the
requirements of SCR 22.26 pertaining to
activities following suspension.
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