# Disciplinary Counsel v. Zumstein

> Ohio Supreme Court · November 14, 2001 · 93 Ohio St. 3d 544

URL: https://www.frixlaw.com/law-library/cases/11152248

## Case

- **Court:** Ohio Supreme Court
- **Decided:** November 14, 2001
- **Citations:** 93 Ohio St. 3d 544; 2001 Ohio 1619
- **Precedential status:** Published
- **Opinion:** Opinion
- **Cited by:** 1 later opinions in the Frix Law Library

## Citator (automated)

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## Opinion text

[This decision has been published in Ohio Official Reports at 93 Ohio St.3d 544.]

OFFICE OF DISCIPLINARY COUNSEL v. ZUMSTEIN.
[Cite as Disciplinary Counsel v. Zumstein, 2001-Ohio-1619.]
Attorneys at law—Misconduct—Permanent disbarment—Engaging in illegal
conduct involving moral turpitude—Engaging in conduct involving
dishonesty, fraud, deceit, or misrepresentation—Engaging in conduct
prejudicial to the administration of justice—Engaging in conduct
adversely reflecting on fitness to practice law—Failing to carry out
contract for professional employment—Prejudicing or damaging client
during course of professional relationship—Commingling client funds
with personal funds—Failing to promptly deliver to client funds to which
the client is entitled.
(No. 01-750—Submitted June 20, 2001—Decided October 31, 2001.)
ON CERTIFIED REPORT by the Board of Commissioners on Grievances and
Discipline of the Supreme Court, No. 00-80.
__________________
Per Curiam.
{¶ 1} In 1998, First American Title Insurance Company (“First American”)
began an audit of Capital Title Agency, Inc. (“Capital Title”), an Ohio corporation
that operated as a title insurance agent for First American and whose president was
respondent, R. William Zumstein of Columbus, Ohio, Attorney Registration No.
0020944.
{¶ 2} In March 1999, Tracy L. Daugherty obtained a mortgage loan from
City Mortgage Company/Washtenaw Mortgage Company to pay off his existing
mortgage with Atlantic Mortgage and Investment Corporation (“Atlantic
Mortgage”) of Jacksonville, Florida, pay off some credit card debts, and provide
funds for new windows for his house. The loan was to close at Capital Title, and
SUPREME COURT OF OHIO

Daugherty engaged respondent to represent him during the closing. Respondent
assured Daugherty that following the closing his existing mortgage would be paid
off by Capital Title. Although the new mortgagee transferred sufficient funds into
the escrow controlled by Capital Title, the check respondent drew on the escrow
account that was payable to Atlantic Mortgage was dishonored for insufficient
funds.
{¶ 3} Atlantic Mortgage then indicated that it was contemplating beginning
foreclosure proceedings against Daugherty, who then sued Capital Title and First
American. The suit was settled, and as part of the settlement respondent was
personally to pay $8,000 in damages to Daugherty in two $4,000 installments.
Against the express instructions of First American’s Vice-President and Ohio
manager, respondent withdrew the funds for these two checks from Capital Title’s
escrow accounts.
{¶ 4} In April, July, and August 1999, respondent caused checks from
Capital Title’s newly opened escrow account to be issued to Kim Anderson in the
amounts of $800, $1,870, and $2,000. These checks were unrelated to any real
estate transactions in which Capital Title was involved. In December 1999,
respondent wrote a check for $15,000 to Nawal K. Pandey from Capital Title’s new
escrow account unrelated to any real estate transaction in which Capital Title was
involved. In April 1999, respondent also made cash withdrawals of $6,000, $706,
and $1,294 from the new escrow account for his own benefit. He also withdrew
$4,000 from the new escrow account for his own benefit in October 1999. During
the period in question, respondent’s misuse of the Capital Title escrow accounts
resulted in more than fifty overdraft situations.
{¶ 5} The “Good Funds Law,” R.C. 1349.21(B)(5), provides that, in certain
situations applicable here, no escrow or closing agent shall accept a personal check
in excess of $1,000. Nevertheless, on March 28, 2000, respondent accepted four
separate personal checks from Carlysle W. Coleman in the amounts of $15,411.56,

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January Term, 2001

$16,339.45, $14,796.57, and $16,957.38 for deposit in the Capital Title escrow
account in connection with a real estate purchase by Coleman. All four of the
checks were dishonored for insufficient funds.
{¶ 6} In June 1998, respondent made a $14,500 loan to Sonny Yinger. The
Vice-President for First American discovered the note for this loan in Capital
Title’s records. When asked at his deposition whether he had ever loaned money
out of the Capital Title escrow account, respondent said that he had not.
{¶ 7} In February 2000, respondent prepared a deed transferring real estate
from “A-Corp., an Ohio Corporation,” to Fred M. Slade for $66,000. “A-Corp.” is
not and was not ever an Ohio corporation. Capital Title then issued checks in the
amount of $7,000 and $10,716.49 payable to “A-Corp. or Kim Anderson,” which
Kim Anderson cashed.
{¶ 8} In April 2000, respondent prepared a deed transferring real estate
from “PSI Group, Inc., a corporation organized and existing under the laws of the
state of Ohio,” to Fred Slade. The deed was executed for PSI Group by “Kim
Anderson, its President,” although PSI was not an Ohio corporation and Kim
Anderson was not its president. Earlier, in October 1999, respondent prepared a
deed transferring real estate from “PSI Group, Inc., an Ohio Corporation,” to Kim
Anderson. The deed indicated that it was executed for PSI Group by “Kim
Anderson, President.”
{¶ 9} Based on a grievance filed against respondent, Office of Disciplinary
Counsel (“relator”) began an investigation of respondent’s activities in connection
with Capital Title, which included taking respondent’s deposition. On August 14,
2000, relator filed a complaint charging the respondent with the activities outlined
above and alleged that they constituted violations of the Code of Professional
Responsibility. Respondent failed to answer, and the matter was submitted by the
Board of Commissioners on Grievances and Discipline of the Supreme Court

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SUPREME COURT OF OHIO

(“board”) to Master Commissioner Harry W. White for ruling on relator’s motion
for default, pursuant to Gov.Bar R. V(6)(F)(2).
{¶ 10} The Master Commissioner found the facts as stated and concluded
that respondent violated DR 1-102(A)(3) (engaging in illegal conduct involving
moral turpitude), 1-102(A)(4) (a lawyer shall not engage in conduct involving
dishonesty, fraud, deceit, or misrepresentation), 1-102(A)(5) (a lawyer shall not
engage in conduct prejudicial to the administration of justice), 1-102(A)(6) (a
lawyer shall not engage in conduct adversely reflecting on the lawyer’s fitness to
practice law), 7-101(A)(2) (a lawyer shall not fail to carry out a contract for
professional employment), 7-101(A)(3) (a lawyer shall not prejudice or damage his
client during course of professional relationship), 9-102(A) (a lawyer shall not
commingle funds of a client with personal funds), and 9-102(B)(4) (a lawyer shall
promptly deliver to the client funds or property to which the client is entitled). The
Master Commissioner recommended that respondent be permanently disbarred
from the practice of law in Ohio. The board adopted the findings, conclusions, and
recommendation of the Master Commissioner.
{¶ 11} We have reviewed the record and adopt the findings, conclusions,
and recommendation of the board. As we noted in Cleveland Bar Assn. v. Belock
(1998), 82 Ohio St.3d 98, 100, 694 N.E.2d 897, 899, “The continuing public
confidence in the judicial system and the bar requires that the strictest discipline be
imposed in misappropriation cases.” Accordingly, respondent is hereby
permanently disbarred from the practice of law in Ohio. Costs are taxed to
respondent.
Judgment accordingly.
MOYER, C.J., DOUGLAS, RESNICK, F.E. SWEENEY, PFEIFER, COOK and
LUNDBERG STRATTON, JJ., concur.
__________________

4
January Term, 2001

Jonathan E. Coughlan, Disciplinary Counsel, and Lori J. Brown, First
Assistant Disciplinary Counsel, for relator.
__________________

5

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/11152248. Public record. Not legal advice.