Opinions
Jurisdiction | Colorado,United States |
Citation | Vol. 32 No. 1 Pg. 121 |
Pages | 121 |
Publication year | 2003 |
2003, January, Pg. 121. Opinions
Vol. 32, No. 1, Pg. 121
The Colorado Lawyer
January 2003
Vol. 32, No. 1 [Page 121]
January 2003
Vol. 32, No. 1 [Page 121]
From the Courts
Colorado Disciplinary Cases
Opinions
Colorado Disciplinary Cases
Opinions
Case Number: 00PDJ053
Complainant
THE PEOPLE OF THE STATE OF COLORADO
Respondent
JERROLD C. KATZ
ORIGINAL PROCEEDING IN DISCIPLINE BEFORE
THE OFFICE OF THE PRESIDING DISCIPLINARY JUDGE
THE OFFICE OF THE PRESIDING DISCIPLINARY JUDGE
November 22, 2002
AMENDED OPINION AND ORDER IMPOSING SANCTIONS
Opinion by the Hearing Board consisting of the Presiding
Disciplinary Judge Roger L. Keithley and Hearing Board
members, Boston H. Stanton, Jr. and Thomas J. Overton both
members of the bar.
SANCTION IMPOSED: ATTORNEY DISBARRED
The trial in this matter was held on September 9 through 13,
2002, before a Hearing Board consisting of the Presiding
Disciplinary Judge Roger L. Keithley ("PDJ") and
two hearing board members, Boston H. Stanton, Jr., and Thomas
J. Overton, both members of the bar. Gregory G. Sapakoff,
Assistant Regulation Counsel represented the People of the
State of Colorado (the "People"). Gary S. Cohen
represented the respondent, Jerrold C. Katz,
("Katz") who was also present.
The People's exhibits 1 through 13, 14 (admitted for
limited purpose), 15 and 18 were offered and admitted into
evidence. Katz's exhibits 101, 102, 103, 104, 105, 106,
108, 109, 110, 111, 112, 117, 118, 125, 128, 129 through 154,
157, 158, 159, 169, 171, 172, 173, 178, and 179 were offered
and admitted into evidence. The Hearing Board heard testimony
from the People's witnesses Jerrold Katz, Alan Molk,
Charles Kercheval, Robin Beattie, Carmel Ryan, and John
Salmon. In lieu of live testimony from David Wollins, a
portion of Mr. Wollins' deposition transcript was read
into the record by stipulation. The Hearing Board also heard
testimony from Katz's witnesses Irving Johnson, Greg L.
Perczak and Gary Gutterman, M.D. Katz testified on his own
behalf. In lieu of having John Salmon testify as a witness in
the respondent's case, the parties stipulated as to how
Mr. Salmon would testify with respect to certain matters. The
Hearing Board considered argument of counsel, assessed the
credibility and testimony of the witnesses, the exhibits
admitted, the stipulated statement of facts set forth in the
Trial Management Order, and made the following findings of
fact which were established by clear and convincing evidence.
I. FINDINGS OF FACT
Jerrold Katz was licensed to practice law in the State of
Massachusetts in 1964. He was licensed to practice law in the
State of Colorado in 1984, attorney registration number
13966. Katz maintained a law practice in both Massachusetts
and Colorado during all times relevant to the events in
question.
From 1991 to 1996, Katz was in partnership with Susan L.
Sanger in Colorado. In 1996 that partnership dissolved. In
March of the following year, Katz contacted John Salmon
("Salmon") of Salmon, Lampert and Clor, P.C.
("SLC") to inquire whether he would be interested
in collaborating on medical malpractice cases. Although
Salmon agreed to a co-counseling arrangement, the specifics
of the collaboration agreement were not reduced to writing.
The specific nature of the collaboration arrangement is the
subject of dispute. Although Katz has taken the position the
business arrangement was a joint venture, Salmon describes it
as only a co-counseling relationship for specific cases. The
precise nature of the business relationship will be decided
in a civil action pending in the Arapahoe County District
Court, Case No. 99CV3206.
Following their agreement to participate jointly in the
representation of clients, Salmon and Katz maintained
separate malpractice insurance policies, separate phones, and
separate advertising. On cases generated by Katz in Colorado,
SLC had the right to exercise the co-counsel arrangement or
decline to co-counsel. If SLC declined to co-counsel on a
given case, Katz could look elsewhere for co-counsel. On
cases in which a co-counsel arrangement was undertaken, both
firms filed entries of appearance on behalf of the client.
The co-counsel cases were based on contingent fee agreements
and Katz and SLC would recover attorneys' fees only if
successful on the claims. On co-counseled cases, SLC would
advance payment of costs and, upon successful conclusion of
the representation and receipt of funds through judgment or
settlement, SLC would recover the costs advanced and receive
sixty percent of the attorney fees earned. Katz would receive
forty percent of the attorney fees earned. As part of the
arrangement, SLC would provide office space, support staff
and the services of associate attorneys to work on the
co-counseled cases. Settlement checks were to be deposited
into the SLC trust account, and SLC would make distributions
of funds consistent with the contingent fee agreement and the
co-counsel arrangement.
In March 1997, Katz moved into the SLC offices. Katz
continued to practice under the name "Katz and
Associates," continued to employ two associates in his
Massachusetts office, maintained a full-page advertisement in
the Denver Yellow Pages referring to "Katz and
Associates," maintained "Katz and Associates"
letterhead, and continued to maintain liability insurance, a
bank account, and filed tax returns for "Katz and
Associates."
One of the cases subject to the co-counseling agreement
concerned a medical malpractice action brought by Deanna L.
Groves ("Groves"). Groves retained Katz and
Associates and SLC to represent her pursuant to a contingent
fee agreement signed March 11, 1998. Salmon executed the
Groves contingent fee agreement on behalf of both Katz and
Associates and SLC. In the Groves case, both firms were
listed as counsel of record on the pleadings.
From the outset of the business relationship, disagreements
arose between Katz and Salmon. Katz demanded the business
relationship be reduced to writing. Salmon questioned the
need for costs expended by Katz. Katz questioned the amount
of staff support provided for the co-counsel cases and Salmon
questioned the amount of time Katz was spending on the cases
while maintaining his Massachusetts practice.
By mid 1998, the working relationship between Katz and Salmon
had become acrimonious. On August 6, 1998, Salmon notified
Katz that their business arrangement was not working out, and
provided notice requiring Katz to vacate the SLC offices
within thirty days. As a result, Katz moved out of the SLC
offices in September 1998, and began renting space from David
Wollins ("Wollins") of Wollins, Hellman and Green,
PC in Denver.
By letter dated September 25, 1998, Salmon and Katz notified
Groves that SLC and Katz and Associates would no longer act
as co-counsel on her case. The letter informed her that she
must decide which firm should continue to represent her. She
chose Katz and Associates.
The Groves medical malpractice matter went to trial in
December 1998. Notwithstanding their dispute, Salmon and Katz
determined that both Katz and two associate lawyers from SLC,
Brian Lampert and Victoria Tucker, should participate in the
trial. During jury deliberations, the matter settled for
$500,000. Pursuant to that settlement, on December 22, 1998,
a settlement check was issued in the amount of $500,000 and
made payable to Groves, SLC and Katz and Associates.
By that time, the relationship between Salmon and Katz had
further deteriorated and they both harbored mistrust of the
other. The mistrust was of sufficient magnitude that they
could not agree upon the trust account into which the
settlement check should be deposited. Salmon insisted it be
deposited into the SLC account consistent with the
co-counseling agreement, and Katz demanded it be deposited
into his trust account consistent with the client's
request. Katz retained Alan Molk ("Molk") and
Salmon retained Robin Beattie ("Beattie") to
represent their respective interests in connection with their
disagreements including the distribution of the Groves
settlement proceeds. Initially, their attorneys attempted to
resolve all of the Katz/ Salmon disagreements in conjunction
with the Groves settlement. By early January, it became
apparent that resolution of the entire disagreement would not
be promptly forthcoming and negotiations focused upon the
distribution of the Groves settlement proceeds. By January
11, 1999, Katz and Salmon had agreed, through counsel, to
deposit the $500,000 settlement check into a joint COLTAF
account from which funds could be withdrawn only upon the
signature of both Salmon and Katz, and that the portion of
the settlement payable to Groves, $200,000, would be
immediately disbursed to her.
On January 12, 1999, Salmon, Beattie, and Groves met Charles
Kercheval, the senior vice president of First Bank at First
Bank of the Denver Tech Center. Katz arrived shortly
thereafter without his attorney.1 Mr. Kercheval informed the
parties that his bank could not open a COLTAF account which
required two signatures but the bank would be willing to open
a joint account requiring two signatures on all checks in
excess of $10,000. During those discussions, Beattie informed
Katz that notwithstanding the account's $10,000
limitation on signatures, Salmon would agree that no checks
would be drawn on the account without both Salmon and
Katz's authorization. Beattie stated that in order to
insure no funds were removed absent such joint authorization,
she would retain custody of all checks and bank statements.
Katz agreed with that arrangement. Immediately thereafter, a
joint account was opened requiring two signatures for
withdrawals with only Katz and Salmon as authorized
signatories.
The bank took possession of the...
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