haveaquestion
New Member
- Jurisdiction
- California
LLC counsel violated several rules by taking a payment of a personal deed from a managing member of CA LLC in exchange for a loan.
Counsel was sent a letter citing the following:
1) His violation of Rule 4-210 CA Model Rule of Professional Conduct
2) Failure to provide disclosures required under CRPC 3-300
3) Issue of Potential for Undue Influence citing Beery v. State Bar, Gold v. Greenwald
In mediation the LLC former counsel agreed to sign back the deed that was taken as part of the conflict.
In return former LLC counsel was to receive a sum of $25,000 from the LLC.
Fast forward the $25,000 was not paid by the LLC (an administrative oversight) but the former counsel never spoke up and asked for it.
In the meanwhile the same deed was allocated to an escrow account to make payouts to all 20 LLC members as part of a separate LLC settlement agreement.
Former counsel then sued the LLC and the managing member to demand the payment and the deed. Current LLC counsel executes a side deal to give the former counsel $125,000 instead of $25,000. In exchange the former counsel agrees to drop dispute.
Former counsel drops the lawsuit against the LLC but not the managing member. Former counsel sues the managing member for the deed. This same deed is funding the LLC payout separate settlement agreement.
Question: this former counsel violated the 3 items above to get the deed. Then he gave it back to the managing member in mediation. This former counsel is again now claiming they are due the deed even though they violated the rules above to obtain it. Is this still an ethical violation for this former counsel?
Counsel was sent a letter citing the following:
1) His violation of Rule 4-210 CA Model Rule of Professional Conduct
2) Failure to provide disclosures required under CRPC 3-300
3) Issue of Potential for Undue Influence citing Beery v. State Bar, Gold v. Greenwald
In mediation the LLC former counsel agreed to sign back the deed that was taken as part of the conflict.
In return former LLC counsel was to receive a sum of $25,000 from the LLC.
Fast forward the $25,000 was not paid by the LLC (an administrative oversight) but the former counsel never spoke up and asked for it.
In the meanwhile the same deed was allocated to an escrow account to make payouts to all 20 LLC members as part of a separate LLC settlement agreement.
Former counsel then sued the LLC and the managing member to demand the payment and the deed. Current LLC counsel executes a side deal to give the former counsel $125,000 instead of $25,000. In exchange the former counsel agrees to drop dispute.
Former counsel drops the lawsuit against the LLC but not the managing member. Former counsel sues the managing member for the deed. This same deed is funding the LLC payout separate settlement agreement.
Question: this former counsel violated the 3 items above to get the deed. Then he gave it back to the managing member in mediation. This former counsel is again now claiming they are due the deed even though they violated the rules above to obtain it. Is this still an ethical violation for this former counsel?
