Out To Lunch

The Arizona Presiding Disciplinary Judge has approved a consent suspension of one year

Generally speaking, the ethical issues arose in the context of Respondent Farley’s retention/representation of a client in the sale of client’s restaurant. Respondent failed to communicate the scope of the representation and/or basis or rate of any fee in writing. While representing the Client, he solicited the Client for loans to a restaurant owned by the Respondent. While soliciting for the loans, the Respondent made false disclosures and representations to the Client about the financial status of Respondent’s restaurant. The transaction and terms of the loans were not fair or reasonable to the client, in violation of the Rules of Professional Conduct.

Sanction factors

The parties stipulate to three aggravating factors: (1) dishonest or selfish motive; (2) bad faith obstruction of the disciplinary proceedings by intentionally failing to comply with rules or orders of the disciplinary agency; and (3) substantial experience in the practice of law. The parties stipulate to three mitigating factors: (1) absence of a prior disciplinary record; (2) personal or emotional problems; and (3) character or reputation.

After reviewing the matters presented, the PDJ concludes that the Agreement achieves at least the minimally appropriate protections to the public and the other recognized purposes of the lawyer discipline process.

The client sought assistance to sell his Firehouse Subs restaurant; Respondent solicited $400,000 in loans for his Lone Spur Cafe of America.

Respondent conditionally admitted that he did not disclose defaults and judgments by Lone Star. 

He defaulted on the loans at issue but is now making regular payments to the client. (Mike Frisch)