Conflict Of Interest In Divorce/Bankruptcy Representation

An attorney who engaged in a conflict of interest consented to a reprimand with conditions by the Arizona Presiding Disciplinary Judge.

In Count One, Mr. Hineman represented both Robert and Janice Beckhorn in an uncontested divorce and a bankruptcy matter. He advised the Beckhorns to first proceed with the bankruptcy before filing for divorce.

On July 20, 2015, Mr. Hineman filed a chapter 7 bankruptcy petition on behalf of both Robert and Janice. His fee agreement in the bankruptcy matter however, was deficient in that it did not contain language required by ER 1.5(d)(3).

On September 2, 2015, Mr. Hineman filed a petition for dissolution of marriage and listed only Robert as a client. The fee agreement in the dissolution proceeding also listed only Robert and not Janice as a client. On October 22, 2015, Mr. Hineman filed an application and affidavit for default in the dissolution proceedings on behalf of Robert only. On November 3, 2015, the Court entered a discharge in the bankruptcy matter. Mr. Hineman’s representation in the bankruptcy matter continued until May 23, 2016 as an objection was filed by the bankruptcy trustee. He filed a default degree of dissolution of marriage on behalf of Robert only on December 11, 2015, which was entered that day.

Overall, Mr. Hineman engaged in a conflict of interest by representing both the husband and wife in a bankruptcy proceeding and subsequently, a divorce proceeding. Although an ethical violation, the clients were satisfied with the results Mr. Hineman achieved.

Count Two involved a failure to adhere to rules regarding fees. (Mike Frisch)