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In re Scattaretico-Naber

Citations: 250 A.D.2d 334; 682 N.Y.S.2d 67; 1998 N.Y. App. Div. LEXIS 13516

Court: Appellate Division of the Supreme Court of the State of New York; December 15, 1998; New York; State Appellate Court

Narrative Opinion Summary

In this professional misconduct case, the respondent, an attorney, faced allegations of violating several professional responsibility codes concerning the management of her Interest on Lawyer Account (IOLA). The Grievance Committee initially charged the respondent with seven counts, later amending and dropping some charges. The Special Referee sustained six charges, including failures in escrow account designation, inadequate bookkeeping, safeguarding entrusted funds, and improper commingling of personal and client funds. Significant incidents involved overdrafts in the IOLA account affecting a mortgage-related disbursement and the deposit of personal funds into the account. The respondent admitted to some factual allegations but contested the charges, requesting a referral back to the Grievance Committee for reconsideration. However, the court confirmed the findings of the Special Referee, denying the respondent's cross motion. Citing factors such as cooperation, remorse, and the absence of client harm, the respondent sought leniency in disciplinary measures. Ultimately, the court, with concurrence from Judges Mangano, Rosenblatt, Miller, O’Brien, and Sullivan, imposed a censure as the disciplinary action for the professional misconduct identified.

Legal Issues Addressed

Disciplinary Actions for Professional Misconduct

Application: Despite the technical nature and unintentional occurrence of violations, the respondent was censured for professional misconduct.

Reasoning: Ultimately, the respondent was censured for professional misconduct.

Escrow Account Designation under Professional Responsibility Codes

Application: The respondent failed to properly designate her escrow account as required by professional responsibility standards, resulting in a violation.

Reasoning: Charge One indicates the respondent failed to properly designate her escrow account, violating specific professional responsibility codes.

Maintenance of Bookkeeping Records for Trust Accounts

Application: The respondent did not adequately maintain bookkeeping records for her IOLA account, failing to keep a record of all funds, sources, and disbursements.

Reasoning: Charge Two alleges inadequate maintenance of bookkeeping records for the IOLA account, also violating professional responsibility codes.

Prohibition Against Commingling Personal and Client Funds

Application: The respondent commingled personal and client funds by depositing a personal check into her IOLA account, violating ethical rules.

Reasoning: Charge Five claims the respondent commingled personal and client funds, also violating the aforementioned rules.

Safeguarding Entrusted Funds in Escrow Accounts

Application: The respondent's IOLA account showed a balance lower than required on two occasions, indicating a failure to safeguard entrusted escrow funds.

Reasoning: Charge Three claims the respondent did not safeguard entrusted escrow funds, as her IOLA account showed a balance lower than required on two occasions.

Violation of Duty to Maintain Proper Escrow Accounts

Application: The respondent failed to maintain a proper escrow account by allowing disbursements that resulted in an overdraft, violating professional conduct codes.

Reasoning: Charge Four asserts that the respondent, Mary Anne Scattaretico-Naber, failed to maintain a proper escrow account, violating Code of Professional Responsibility DR 9-102 (A) and DR 1-102 (A)(8).