THE FLORIDA BAR, COMPLAINANT,
v.
HANS C. FEIGE, RESPONDENT

Fla. | 1992-02-13
No. 76408
SHAW, C.J., and OVERTON, . McDonald, barkett, grimes, KOGAN and HARDING, JJ., concur.
596 So. 2d 433 Florida Supreme Court (1992) Caution
Cited by 9 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

The Florida Bar disciplined attorney Hans Feige for assisting his client Whalen in defrauding her ex-husband Gale by continuing to accept alimony payments after Whalen remarried, an event that terminated her alimony obligation. Feige retained the $4,200 in fraudulently obtained payments as payment for his legal fees, and also represented Whalen in litigation where he was a defendant, creating an irremediable conflict of interest.


Holding

Feige violated multiple disciplinary rules by assisting Whalen in defrauding Gale, retaining fraudulent payments, and representing Whalen in litigation where an irremediable conflict of interest existed. An attorney cannot hide behind client confidentiality or instructions to perpetrate fraud against third parties, and certain conflicts of interest cannot be cured by client consent.


Headnotes

[1] An attorney may not assist a client in perpetrating a fraud against a third party, even if doing so requires violating the client's instructions.

[2] An attorney's knowledge of a client's fraud obligates the attorney to call upon the client to rectify the fraud and, if the client refuses, to reveal the fraud to the aff…

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Key Quotes

“an attorney may not hide behind a client's instructions in order to perpetrate a fraud against a third party”

Establishes that client confidentiality and instructions do not shield an attorney from liability when fraud is perpetrated against third parties.

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Facts & Procedural History

In 1975, Michael Gale agreed to pay his ex-wife Debra Whalen permanent periodic alimony. Beginning in 1981, Feige represented Whalen on divorce-relate…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

Hans C. Feige petitions this Court to review the referee’s findings and recommendations in the instant bar disciplinary proceeding. We have jurisdiction. Art. V, § 15, Fla. Const. The referee found the following facts based upon the parties’ joint pretrial stipulation. As part of their 1975 divorce, Michael Gale and his wife Debra Gale (now Debra Whalen) entered into a property settlement under which Michael Gale was to pay Whalen permanent periodic alimony until Whalen died or remarried. The terms of the agreement were incorporated into the final judgment of divorce.

Pursuant to oral agreement, Gale was to pay the alimony to Whalen’s attorney in trust for Whalen. Feige did not represent Whalen in the original divorce proceedings.

However, Whalen retained Feige in November 1981 concerning a visitation dispute with Gale. Gale began sending the alimony checks to Feige in trust for Whalen. Whalen remarried in December 1983. Feige performed the marriage ceremony. Whalen and her father told Feige that they had informed Gale of the remarriage and Whalen instructed Feige not to advise Gale of her remarriage. Gale did not learn of Whalen’s remarriage until November 1985 and would not have paid the alimony had he known of the remarriage. Between January 1984 and November 1985, Gale made monthly alimony payments to Feige in trust for Whalen totaling $4,200.

Pursuant to an agreement with Whalen, Feige kept the money as payment for his representation of her on matters related to the divorce action (but unrelated to the alimony payments).

The divorce decree was modified in 1981 to provide that Gale would pay Whalen up to an additional $50 per month in alimony if Whalen resumed psychiatric or psychological therapy, provided that Whalen made a proper showing that she had incurred such expense. The court file contains no pleadings from Whalen concerning a demand for the additional alimony. Gale did not pay this additional alimony. Feige knew or should have known of the terms and conditions of the Property Settlement Agreement and subsequent court orders related thereto.

Gale filed a lawsuit against Feige and Whalen. Feige represented Whalen in the lawsuit even though he was a defendant in the same lawsuit. Feige was a witness to the events that formed the basis of the lawsuit, but his testimony would have duplicated that of Whalen and/or her father. Whalen and her father were aware of Feige’s conflict of-interest and consented to his representation notwithstanding the conflict. The suit ultimately was settled. Pursuant to a consent judgment, Feige and his law firm are obligated to pay the balance remaining on the settlement.

The referee found that: (1) Feige had an obligation either to inform Gale of Whalen’s remarriage or to stop accepting Gale’s alimony checks; (2) by continuing to accept Gale’s checks, Feige assisted Whalen in perpetrating a fraud upon Gale and his conduct amounted to theft by fraud; (3) Feige’s actions in continuing to accept Gale’s checks were fraudulent; (4) Feige was not entitled to offset $50 per month in “additional alimony” because Whalen never made a “proper showing” that she had incurred the requisite $50 of psychiatric treatment; (5) Feige’s action in representing Whalen in Gale’s lawsuit was unethical; and (6) the conflict of interest was of the type which cannot be consented to by a client.

The referee recommended that Feige be found to have violated the following provisions of the former Code of Professional Responsibility: Disciplinary Rule 7-102(A)(7) (a lawyer shall not counsel or assist his client in conduct that the lawyer knows to be fraudulent); Disciplinary Rule 7 — 102(B)(1) (a lawyer who receives information that his client has perpetrated a fraud shall call upon his client to rectify same and if the client refuses shall reveal the fraud to the affected person); Disciplinary Rule 5-101(A) (except with client consent, a lawyer shall not accept employment if his professional judgment will be affected by his own financial or personal interest); and Disciplinary Rule 5-101(B) (a lawyer shall not accept employment when he is a witness in the pending litigation).

The referee also recommended finding that Feige violated rule 4-1.7(b) of the Rules Regulating The Florida Bar (a lawyer shall not represent a client when the lawyer’s exercise of professional judgment may be limited by his own interests).1 The referee recommended that Feige be suspended from the practice of law for two years. Feige takes issue with the referee’s determination that his conduct violated these disciplinary rules. He argues that in order to . inform Gale of Whalen’s remarriage, he would have been required to violate his client’s confidences and express instructions. This claim is without merit. Whalen’s remarriage was not a confidential matter protected by the attorney-client privilege.

Moreover, an attorney may not hide behind a client’s instructions in order to perpetrate a fraud against a third party. Feige has not provided any support for his claim that Whalen was entitled to offset $50 per month in “additional alimony” against the permanent periodic alimony. The only documents in the record relating to this matter are a letter from Whalen’s attorney requesting the additional alimony and a response from Gale’s attorney questioning Whalen’s entitlement thereto. Whalen never made a proper showing that she had incurred expense for psychiatric treatment.

We agree with the referee that the conflict of interest inherent in Feige’s representation of Whalen in Gale’s lawsuit was so fundamental that it could not be condoned by the client, even with full disclosure. See The Fla. Bar v. Ward, 472 So. 2d 1159 (Fla.1985).

Accordingly, we adopt the referee’s findings of fact and approve the findings of guilt.

The referee recommended that Feige be suspended from the practice of law for two years.

We agree that Feige’s misconduct was egregious. He defrauded Gale of more than $4,000 over the course of nearly two years. He used the money to pay himself for fees incurred by Whalen. Feige refused to acknowledge the wrongful nature of his conduct. In addition, he exhibited indifference to making restitution in that he returned the money only after Gale initiated a lawsuit against him.

We agree that Feige’s conduct warrants a two-year suspension.

Accordingly, we accept the referee’s recommended discipline. The suspension shall become effective on March 16, 1992, thereby giving Feige time to take the necessary steps to wind up his affairs and protect his clients’ interests. Feige shall provide notice to his clients of his suspension and shall accept no new clients from the date of this opinion. Judgment for costs in the amount of $1,411.15 is entered against Feige, for which sum let execution issue.

It is so ordered.

SHAW, C.J., and OVERTON, . McDonald, barkett, grimes, KOGAN and HARDING, JJ., concur. . The referee also recommended finding violations of several general rules: Article XI of the former Integration Rule, rules 11.02(2) and 11.-02(3)(a); Disciplinary Rule 1 — 102(A)(1), (4), (5) and (6), of the former Code of Professional Responsibility; and rules 3-4.2 and 3-4.3 of the Rules Regulating The Florida Bar.


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Citator

Cited By

  • THE Florida BAR v. Vining, 721 So. 2d 1164 (Fla. 1998)
    …ts despite conflict of interest); Florida Bar v. Mastrilli, 614 So. 2d 1081 (Fla.1993) (imposing six-month suspension where attorney filed suit against client on behalf of second client and showed “no remorse for his actions”); Florida Bar v. Feige, 596 So. 2d 433 (Fla.1992) (imposing two-year suspension where attorney represented client in suit where he was also a defendant and defrauded the client’s husband of money which he used to pay his own fees); Florida Bar v. Hayden, 583 So. 2d 1016 (Fla.1991) (impos…
  • THE Florida BAR v. Burkich-Burrell, 659 So. 2d 1082 (Fla. 1995)
    …d to counsel in the interrogatories. However, while Burkich is guilty of serious misconduct, in light of the unique facts of this case and the mitigating factors present, a thirty-day suspension is sufficient discipline. Accord Florida Bar v. Feige, 596 So. 2d 433 (Fla.1992) (attorney who assisted client in perpetrating fraud on third party suspended for two years); Florida Bar v. Rood, 569 So. 2d 750 (Fla.1990) (attorney who concealed information from opposing counsel and had client sign false answers to int…
  • THE Florida BAR v. Scott, 39 So. 3d 309 (Fla. 2010)
    …cted for mail fraud); Florida Bar v. Mastrilli, 614 So. 2d 1081 (Fla.1993) (suspending attorney for six months for filing suit against one client on behalf of another client in matter for which attorney had been retained by both of them); and Feige, 596 So. 2d 433 (suspending attorney for two years for representing himself and client when their interests were adverse, despite client’s consent to dual representation). Standard 4.32 provides that suspension is appropriate when a lawyer knows of a conflict of i…

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