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2 attorneys suspended over real estate deal

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Indiana Lawyer Disciplinary Actions

Two attorneys have been suspended by the Indiana Supreme Court for their representation of a client in a real estate contract in which one of the attorneys had a financial interest.

In the combined disciplinary action released today, In the matter of: Jeffrey S. Rasley and In the Matter of: David M. Wood, Nos. 49S00-0808-DI-468, -467, Jeffrey Rasley and David Wood worked together in the same firm. A "seller" in the business of rehabbing and selling distressed real estate sold some property to the "buyer" he met through a third party in 2002. That third party brought Rasley into the transaction when the buyer borrowed $11,500 from Rasley to improve the property. The buyer signed a note for repayment, which was secured by a second mortgage on the property. The seller signed a mortgage on the property which held the seller and buyer liable in case of default.

The buyer fell behind on payments and Rasley had his law partner, Wood, send a letter to the buyer and seller saying Rasley would foreclose the property if the debt wasn't repaid. Rasley later said he wouldn't foreclose if a monthly interest payment was made to him. The seller interpreted this to mean that the seller was responsible for the payment since the buyer had no money.

Then the seller asked Wood about hiring his firm to represent him in a dispute with the buyer over the property because he thought Rasley would refrain from asserting his claim against him. Rasley attempted to resolve conflicts between himself and the seller; the two agreed the seller would assume the buyer's obligation to Rasley and they could jointly sue the buyer if necessary. The seller was never informed that he could consult outside counsel about the agreement.

In 2004, Rasley sent a letter demanding the seller pay the firm's attorney's fees, and acknowledge his priority on the lien of the property, or else he'd sue. The seller eventually agreed to settle the case by paying Rasley $15,600.

The Supreme Court unanimously found Rasley violated Professional Conduct Rule 1.7(b) based on his representation of the seller, and that Wood violated Rule 1.7(a) for his representation of both Rasley and the seller. Rasley and Wood lacked insight into their misconduct and expressed no remorse for it, the per curium opinion stated. The justices concluded Rasley didn't intentionally harm the seller and worked diligently to help him gain control of the property. Neither respondent has any disciplinary history.

Rasley will be suspended 120 days without automatic reinstatement and Wood will be suspended 30 days with automatic reinstatement because of his lesser role in the misconduct and his junior position to Rasley in experience and within the firm. The suspensions begin Jan. 22, 2010.

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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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