In Re the Discipline of Goodrich
In Re the Discipline of Goodrich
Opinion of the Court
A formal complaint was filed in this court on the 3rd day of February, 1972, charging John E. Goodrich with two different charges of dishonest and unprofessional conduct as an attorney at law. The accused filed an answer, and this court thereupon appointed the Honorable R. F. Manson, one of the judges of the Third Judicial Circuit, as referee to try the issues raised by the pleadings. Trial of the matter was held on June 10, 1972. The referee filed his Findings of Fact and Recommendations with this court on the 3rd day of July, 1973, discharging the Bosanco charge, sustaining the Ferguson charge and recommending that the accused be permanently disbarred from the practice of law. The accused filed exceptions thereto that were orally argued by his counsel. The special assistant attorney general appeared and announced that by reason of an action pending in the United States District Court (see note 3, infra) he would not argue or participate further herein.
At this same time, some of the friends of the doctor in the Murdo, South Dakota vicinity had contributed and solicited others for contributions that totaled in excess of $2,700 to be used in the doctor’s defense. This money was deposited in a special checking account in the Draper State Bank subject to disbursement by Mrs. Delores Iversen and Mr. H. R. North.
On April 11, 1968, the accused drew and signed two checks on the J. Ferguson Special Bond Account in the Lyman County Bank, one in the sum of $18,101, payable to the Lyman County Bank, and the other in the sum of $1,900, payable to cash. 1'n return he received a cashier’s check in the sum of $18,100 payable to the clerk of courts of Jones County, South Dakota, and $1,900 cash.
The accused then contacted Mr. North who, in turn, contacted Mrs. Iversen, who related it thus in her testimony:
“Q Do you remember the day the bond was posted for Doctor James Ferguson so you could get him out of jail?
*149 “A Yes, I do.
“Q And do you remember who came to you or how you were contacted about this?
“A I believe Mr. Goodrich called Mr. North and Mr. North called me and asked me if I would be ready to go to Draper and get enough money and finish the bond, (emphasis supplied)
‡ ‡ $ $ He ♦
“Q Do you remember any of the conversation preliminary to your drawing out the money from this account?
“A All real excited and just the feeling we were at least going to finally get him out and then they said we needed the $1,800.
“Q Was it 19 or 18?
“A Nineteen.
“Q Nineteen hundred dollars?
“A Yes.
“Q Do you remember who said that?
“A John (Goodrich).”
Mrs. Iversen then drew and signed a check payable to the Draper State Bank in the sum of $1,901. In return she received a cashier’s check in the sum of $1,900 payable to the Jones County clerk of courts.
Prior to this time Doctor Ferguson wanted the accused to obtain co-counsel, and because of the severity of the charges and the number thereof the accused agreed that George Johnson of
Evidence was that the remaining funds in the special “Iversen-North Account” in the Draper bank were used for Doctor Ferguson’s personal and legal expenses. Control over the remainder of the money, as well as the bond money from the “J. Ferguson Special Bond Account” that was refunded by the Jones County clerk of courts, was turned over to Doctor Ferguson by the accused with the consent of John Ferguson, and this money was used by Doctor Ferguson for his personal needs. The accused contends that his actions in light of the foregoing were only bookkeeping entries and that he did nothing dishonest or unprofessional.
The Canons of Professional Ethics of the State Bar of South Dakota in force and effect in 1968 read in pertinent part as follows:
“11. Dealing With Trust Property.
“The lawyer should refrain from any action whereby for his personal benefit or gain he abuses or takes advantage of the confidence reposed in him by his client.
“Money of the client or collected for the client or other trust property coming into the possession of the lawyer should be reported and accounted for promptly, and should not under any circumstances be commingled with his own or used by him.”
By the above described acts, the accused procured $21,900, which was $1,900 in excess of the required bond and which $1,900 was procured through accused’s deceit, fraud and misrepresentation. The money in the “J. Ferguson Special Account” was specifically limited for bond purposes only, and the money given to the accused by Mrs. Iversen was to “finish the bond.” All moneys received by the accused were thus given to him in trust
The referee further found, and the record supports such finding, that the accused during the hearings was less than forthright, that he frequently evaded direct answers to questions, and that he similarly gave complex and unresponsive answers to plain questions susceptible of simple answers. Such actions on the part of the accused are pertinent to the issue under consideration.
The accused is not a young or inexperienced attorney, having first been admitted to practice law on August 29, 1946. He continually practiced law in this state until his disbarment on September 24, 1959 (In re Goodrich, 78 S.D. 8, 98 N.W.2d 125). On November 17, 1965, he was reinstated to the practice of law by this court and has practiced to date. The prior record of an attorney may be considered in determining the appropriate discipline. Simmons v. State Bar of California, 2 Cal.3d 719, 87 Cal.Rptr. 368, 470 P.2d 352.
These proceedings are not to administer punishment for criminal misdeeds but to exercise the court’s power to make it impossible for men whose honesty and reliability as members of the legal profession have been certified to by this court and who have wronged their clients’ trust to commit further wrongs toward those who may seek their services. In Re Kaas, supra. The practice of law is a qualified right granted upon demonstration of legal fitness and satisfactory moral character. To continue in the enjoyment of this right one must maintain this fitness and character. State ex rel. Rice v. Cozad, 70 S.D. 193, 16 N.W.2d 484. The purpose of disbarment is to guard the administration of
Although the accused did not raise any constitutional questions in the hearing before the referee or in his objections to the referee’s report, he did raise certain constitutional questions in his brief filed in this court. We have considered those questions, together with his challenge to the constitutionality of our disbarment procedures, on their face and as applied to him in this proceeding, as set forth in his complaint in his action in United States District Court (see footnote 3, infra), and we have concluded that the constitutional claims raised by accused are without merit.
The unfitness of John E. Goodrich to continue in the practice of law having been established by the clear preponderance of the evidence, we are of the opinion that a judgment of permanent disbarment against the accused as recommended by the referee should be entered.
It is so ordered and adjudged.
. The bank charged a $1 fee for issuing the cashier’s check.
. Here again, the bank charged a $1 fee for issuing the cashier’s check.
. During a two-week period of arguments scheduled by the court, oral arguments in this proceeding as to the Findings of Fact and Recommendations of the referee were set for, and heard on, September 27, 1973. On that morning a Summons, Complaint and a Motion for Temporary Restraining Order in an action titled In the United States District Court, District of South Dakota, Central Division, naming John E. Goodrich as plaintiff and the Supreme Court of the State of South Dakota, The State Bar of South Dakota, and Kermit A. Sande, Attorney General of South Dakota, as defendants, together with a Notice thereon that the Motion would be heard on September 26, 1973, at 10 a.m. at Aberdeen, South Dakota, were served on the Chief Justice of this court. Obviously, the court could not, and did not, appear at that hearing. We are advised no such temporary restraining order was entered against the court, though some direction or order may have been entered against the other named parties. This situation may account for some of the delay in the writing and filing of the court’s opinion in this proceeding. At a later date, an Answer, including Motions to Dismiss, was filed by the court, and thereafter counsel did appear for the court, and on the Motions made the plaintiffs action was dismissed on February 13, 1974, by the United States District Court.
Dissenting Opinion
(dissenting).
I am in agreement with the majority that our disbarment procedures are constitutional.
I am also in agreement with the majority that the prior record of disbarment may be considered in determining the appropriate discipline for Mr. Goodrich, but I am not in agreement that it should be considered in determining his guilt. The Ferguson case was investigated by the Grievance Committee some three years ago on the complaint of John Ferguson. Following a full disclosure of the handling of the accounts, John Ferguson withdrew his complaint. Dr. James Ferguson moved back to Australia and John Ferguson died. The file of the Grievance Committee was closed.
Upon a second complaint being filed in 1972 in the Bosanco case, which the referee heard and found to be “not proven”, the Ferguson case was resurrected and now is the basis of John Goodrich’s disbarment. If the Ferguson case was to be the basis of disbarment, it should have been prosecuted in 1971 when the Fergusons were available to testify. The renewal of these charges after almost three years have elapsed denies to Mr. Goodrich very fundamental rights. I must respectfully dissent.
Dissenting Opinion
(dissenting).
I concur in the dissent of Justice Dunn. Also I am in agreement with the majority that our disbarment procedures are constitutional. I would add but a short statement as background. The referee made rather short shrift of the Bosanco charge and I think he was correct in so doing. Whatever complaint was originally made by Dr. Ferguson or his brother John or both against John Goodrich appears to have been completely adjusted and settled among themselves. This is borne out by an Exhibit
“Unless this office is notified by either the Grievance Committee or the South Dakota Supreme Court that further action or investigation is required by the Attorney General, we will close our file in this case.”
What I believe we have in this proceeding against Mr. Goodrich is a highly technical possible violation and a super-sensitive vindication of Canon 11 of Professional Ethics of the State Bar of South Dakota in force and effect in 1968 as set forth in the Court’s opinion. I do not believe that the following language of such opinion is either justified or warranted by the record: “* * * and which $1,900 was procured through accused’s deceit, fraud and misrepresentation.” These are serious charges, the same on which the Attorney General had previously closed his files. I think the majority opinion goes too far and at too late a date. For these reasons, I dissent from the judgment of outright disbarment in this case.
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