Callahan, Matter of, 879S212

• Decision Date: 27 December 1982
• Docket Number: No. 879S212,879S212
• Citation: 442 N.E.2d 1092
• Parties: In the Matter of Frank R. CALLAHAN.
• Court: Indiana Supreme Court

Page 1092

442 N.E.2d 1092

In the Matter of Frank R. CALLAHAN.

No. 879S212.

Supreme Court of Indiana.

Dec. 27, 1982.

James F. Stanton, Nick J. Thiros, Merrillville, for respondent.

David B. Hughes, Trial Counsel, Indianapolis, for Indiana Supreme Court Disciplinary Com'n.

PER CURIAM.

This disciplinary matter is before us on a one-count verified complaint which charges the Respondent with engaging in misconduct dating from 1969 to February 1972, i.e. participating in an unethical, extortionate scheme, whereby he allegedly received money under the guise of legal fees for purposes other than legitimate legal services. During a portion of the period of misconduct the appropriate standards of professional conduct, as recognized by this Court, were set forth in the Canons of the American Bar Association. In re Holovachka, (1964) 245 Ind. 483, 198 N.E.2d 381; Baker, et al. v. Keisker, (1957) 236 Ind. 617, 142 N.E.2d 432. The Respondent is charged with violating Canons 29 and 32 which, since March 8, 1971, have been embodied in the Code of Professional Responsibility for Attorneys at Law, Disciplinary Rules 1-102(A)(1), (2), (3) and (6).

A Hearing Officer appointed pursuant to Indiana Admission and Discipline Rule 23 has heard the case and has submitted his Report. In a disciplinary case, the ultimate findings of fact are arrived at through an examination of all matters before the Court: In re Crumpacker, (1978) 269 Ind. 630, 383 N.E.2d 36; In re Wireman, (1977) Ind., 367 N.E.2d 1368, cert. denied 436 U.S. 904, 98 S.Ct. 2234, 56 L.Ed.2d 402; In re Murray, (1977) 266 Ind. 221, 362 N.E.2d 128, appeal dismissed, 434 U.S. 1029, 98 S.Ct. 758, 54 L.Ed. 777; In re Pawlowski, (1959) 240 Ind. 412, 165 N.E.2d 595. Employing this standard of review we find that the Respondent, Frank R. Callahan, was admitted as a member of the Bar of this State in 1961. He is presently engaged in the private practice of law in Lake County and, in addition, is serving his third consecutive term as Judge of the City Court of East Chicago, Indiana.

We find further that during the period of time material hereto, the Respondent was engaged in the private practice of law in the City of East Chicago in a partnership with Norbert Wleklinski, under the firm name of Wleklinski and Callahan.

At all times material hereto, Cornel Leahu was the Superintendent of the East Chicago Board of Sanitary Commissioners. Miles Hernly was the President and Director of Hernly Brothers, Inc., a construction company which was the successful bidder of a substantial sewer project in East Chicago to be financed by public bonds. Walter Neimiec was the then President of the East Chicago Property Owners Association, Inc., an essentially "watchdog" organization interested in budgetary and public construction matters in East Chicago. The Respondent became active in the affairs of the Association, held some offices and served as a member of its Board of Directors until approximately 1970. Respondent's partner, Wleklinski was also a member of this Association.

During 1969 the Board of Sanitary Commissioners proposed the construction of the Water Polution Abatement Project (WPAP) to be financed by way of a bond issue. The East Chicago Property Owners Association vigorously opposed the project, threatening numerous and persistent remonstrances. In late June or early July, 1969, Neimiec approached Leahu and threatened to stop the project by using the association as a vehicle, unless Neimiec and others, then unidentified, were paid to forego remonstrances. Thereafter, Leahu met with Neimiec, Wleklinski and Respondent at Leahu's home. Though the Respondent did not participate actively, he was present at all relevant times. During this meeting Wleklinski, with Respondent's knowledge and acquiescence, coerced Leahu into an agreement whereby Leahu persuaded the general contractor of the project, Hernly Brothers, to retain the Respondent and Wleklinski, ostensibly as legal counsel, to handle all legal work arising during the construction activity. On January 11, 1970, the parties entered into an employment contract to that effect. Neither Respondent nor Wleklinski had any experience in handling the legal work of a major construction project.

Commencing in February, 1970, the Respondent and Wleklinski received from Hernly Brothers approximately $2,500.00 each and every month thereafter, ostensibly as attorneys fees for legal work rendered to Hernly Brothers on the project. On most occasions of receipt, a legal secretary in the office of Wleklinski and Respondent converted the checks to cash and returned the money to the attorneys. The $2,500.00 was, on most such occasions, divided and distributed in three equal parts, one each to Wleklinski, Respondent and Neimiec. Neimiec's share was ostensibly being received as a "consultant's fee" for having advised the attorneys on technical aspects of the construction contract. Pursuant to this arrangement, the Respondent received approximately $18,333.00 of a total of $55,000 paid by Hernly Brothers. Respondent, but not Wleklinski, did on occasion do acts and write letters which may fairly be characterized as legal services for Hernly Brothers. However, the nature of work thus done, the infrequency of its occurrance, the fact that neither Miles Hernly, the President of Hernly Brothers, nor the Hernly Brothers Job Superintendent ever once met with Respondent or Wleklinski, establish that the value of these legal services was infinitesimal in relation to the total of $55,000.00 paid. Respondent and Wleklinski never were called upon to perform any significant legal work. Even what little they did perform was of such simple and routine nature as not to require the services of a "consultant".

Further, there...