Disciplinary Case Summaries
| Publication year | 1988 |
| Pages | 1775 |
1988, September, Pg. 1775. Disciplinary Case Summaries
The rules regarding disciplinary proceedings provide for the appointment of Inventory Counsel when a lawyer is disabled, dies or disappears, or is suspended or disbarred, and other conditions exist. The author of this article, G. Scott Briggs, spent over 200 hours as Inventory Counsel for two disbarred lawyers who had shared offices in Colorado Springs. His article is a primer for those who might someday serve as Inventory Counsel. It also highlights the administrative problems which are often faced by the family and friends of a lawyer who might suddenly or unexpectedly discontinue the practice of law. With some preplanning, lawyers could take steps to minimize these problems.
The chief judge of any judicial district is authorized under C.R.C.P. Rule 241.25(h) ("the Rule") protectively to appoint counsel "to inventory the files in question and to take any steps necessary to protect the interest of the lawyer in question and his clients. . . ." The lawyers in question are those who have been transferred to disability, inactive status; those who have disappeared; deceased lawyers; and suspended or disbarred lawyers who fail to comply with the notice procedures and other required action after disbarment, suspension or transfer to disability status(fn1) and who have no partner, executor, or other responsible party capable of conducting their affairs. Two conditions are mandatory: (1) the lawyer must fall under one of the statuses as defined by the Rule and (2) there must be no one to take over the files, facilitate their transfer to another lawyer or wind up the lawyer's affairs.
Like a receiver, inventory counsel is foremost an officer of the court with jurisdiction of the estate represented by the files and the clients' and the lawyers' property. Inventory counsel's ex parte appointment is permissible under the emergency circumstances precipitating the request or where notice is impractical, such as in the case of the lawyer who has disappeared.(fn2) Inventory counsel is a trustee for both the lawyer and the lawyer's clients and owes a duty of care to each. Collection and preservation of the files and maintenance of the status quo are the primary responsibilities.
The standard of care and use of property by inventory counsel appear in many aspects to parallel those of a court-appointed receiver. Inventory counsel is the only person entitled to the possession of the files pending transfer to the clients and is bound to follow court orders regarding disposition of property. Inventory counsel must act in good faith and with impartiality. Finally, inventory counsel must exercise reasonable care in the preserving and protecting of the property taken into custody.(fn3)
No Colorado appellate court has interpreted the responsibility of inventory counsel. However, there is a Fourth Judicial District (El Paso-Teller Counties) case where such counsel was appointed.(fn4) Generally, inventory counsel is accountable to the court. The purpose of appointment is similar to that of a receiver---to prevent waste of the clients' causes of actions and legal rights, loss of their files and personal property.(fn5) Further, the appointment reduces the lawyer's responsibility for his or her failure to timely, diligently and competently represent a client. Courts with inherent equitable powers have both the right and duty to make inventory counsel responsible to the court and to file periodic reports.(fn6) Inventory counsel is not accountable to the Grievance Committee, but copies of all court filings should be served upon it throughout the proceedings, as well as upon the lawyer if possible. In some cases, the lawyer may be able to assist inventory counsel in file transfers but no files should be turned back to the lawyer.
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