August 2008

Jeffrey A. Catanzarite has a master’s degree in business administration as well as his law degree. An Akron, Ohio practitioner, he has practiced for most of his career in taxation and finance, representing closely held corporations. Sometime in early 2006, David Hirsch called Catanzarite to inquire about retaining his help in resolving difficulties that Hirsch and Robert Joyce, partners in a recruiting firm named Professional Dynamics, were having with a third partner. During their 15 to 20 minute conversation, Catanzarite advised Hirsch that he would not charge for their initial consultation but, if hired, would require a $1,000 retainer fee and then charge fees as necessary. Catanzarite, who typically charges $150 per hour, did not specify his hourly rate. Hirsch, inexperienced in dealing with attorneys, and Joyce then met with Catanzarite for one and one-half to two hours. They explained that their third partner had abandoned the business after incurring various debts. Catanzarite advised Hirsch and Joyce to reconnect with the partner and try to “bring [him] back as a team player.” At some point during the meeting, Catanzarite mentioned a $1,000 retainer, adding that he would cap his fees at $5,000. Both Hirsch and Joyce made no commitment to hire the lawyer, telling him that they wanted to think more before engaging him and intending to consult with another attorney the following week. Some time after this meeting, Catanzarite telephoned Hirsch and asked whether any progress had been made with the third partner. Catanzarite also inquired about obtaining a check for $1,000. Hirsch replied that he and Joyce would forward a check to Catanzarite if they decided to hire him.

It so happened that, before Hirsch and Joyce ever met with Catanzarite, Joyce had already tried without success to reconcile any partnership issues with the third partner. Joyce tried to deal with the third partner yet again after the initial lawyer consultation, but the third partner would not meet with Joyce. Joyce relayed this information to Catanzarite in a call during which Catanzarite neither offered another course of action nor revisited the matter of his fee. After this conversation, the partners received the following facsimile transmission:

You have already begun implementation of our plan regarding your former partner. We have agreed to my legal fee of $5,000, payable $1,000 immediately and $1,000.00 on the 15th day of February, March, April and May of 2006. I will provide all necessary services to resolve the bank loan issue and the corporate procedures needed to reflect [your third partner’s] resignation. This fee shall govern unless litigation becomes necessary….”

A few days later, Catanzarite again called Hirsch and asked about his retainer. Hirsch replied that he and Joyce would pay if they decided to hire him. At this point, Catanzarite lost his temper and became profane. He demanded his fee and threatened suit if Hirsch and Joyce did not pay. Hirsch never spoke to Catanzarite again. Catanzarite called a few more times, offering first to charge a fee of only $1,000, and then of only $300. Joyce did not accept either offer and told Catanzarite that he wanted to consult Hirsch about paying Catanzarite $300. The next day, Hirsch and Joyce were notified that Catanzarite had filed a lawsuit against Professional Dynamics in Akron Municipal Court for breach of contract, claiming that Hirsch and Joyce had orally agreed to pay a $1,000 retainer and a total of $5,000 in fees. His complaint alleged that he had advised Hirsch and Joyce in implementing “a specific strategy” to solve their partnership problem and that “shortly after implementing the first step,” Joyce had called him to report the success of the strategy and his optimism for a successful resolution. Hirsch and Joyce ultimately hired another lawyer to resolve the partnership’s troubles. They also had to engage a different lawyer to defend them in the municipal court action; that lawyer settled Catanzarite‘s claim for $300. Hirsch and Joyce resigned themselves to the settlement because “[e]nough time and enough money had been spent and it was time to move on.”

Lawyer disciplinary officials began investigating the fees that Catanzarite wanted to collect from the partners, as well as the viability of the lawsuit that he filed against Professional Dynamics. Eventually, formal disciplinary charged were lodged against him.  The Ohio Board of Commissioners on Grievances concluded that Catanzarite has spent no more than two hours in working on the Professional Dynamics matter. The Board further determined that the $5,000 fee claim, representing a charge of $2,500 per hour for the suggestion that the partners negotiate, was excessive. Importantly, the Board, and eventually the Ohio Supreme Court, found that Catanzarite filed the suit merely to “exact punishment” for what the lawyer perceived to be an attempt to obtain free legal advice. Catanzarite was bitter toward the partners, as is demonstrated from the following colloquy from the disciplinary proceeding:

Disciplinary Counsel: Well, do you think it is fair to sue somebody for $5,000 for an hour’s worth of time? I am sorry. Two hours’ worth of time?

Catanzarite: I am sure defense lawyers do it all the time. I would say yes. A breach of contract is a breach of contract. They got $5000 worth of advice, anyway. They were too ignorant to follow it….They got $5000 worth of advice. They paid nothing for it. I am glad they had problems. They deserve it. That is what shysters get for their dishonesty.

Catanzarite’s misconduct also involved a rather clumsy attempt to intimidate Disciplinary Counsel. During the course of the disciplinary proceeding, Disciplinary Counsel moved for a psychological examination to determine whether Catanzarite suffered from a mental illness that substantially impaired his ability to practice. Though he ultimately complied when the panel chairwoman ordered an exam, at first he vigorously resisted the motion. After he unsuccessfully moved to strike, he moved to dismiss the complaint, to vacate the order for the exam, for the chairwoman’s recusal, and for sanctions. He argued that a letter accompanying Disciplinary Counsel’s motion for a psychological examination revealed damaging information about him and constituted an ex parte communication with the chairwoman. The motions were all denied. Later, Catanzarite composed a letter to Disciplinary Counsel complaining about the purportedly improper communication between Counsel and the chairwoman. Ultimately, Catanzarite chose not to send the letter to Disciplinary Counsel; however, he did send a copy of the letter directly to Counsel creating the appearance that he had actually filed a grievance against Counsel. According to the Court, this additional wrongdoing formed the basis for sanction because, through the pretense of a sham grievance, he plainly aimed to intimidate Counsel and derail the disciplinary proceeding.

Finally, Catanzarite’s animosity toward .Counsel is best exemplified from the following testimony at the disciplinary proceeding:

Catanzarite: …Do you have a problem understanding that? Or is that not the answer you want? You want a convicting answer. Well, you are not going to get one.

Disciplinary Counsel: Fair enough. I want the truth. That is what I want. Now—

Catanzarite: You want the truth? You have been hearing the truth. All you want is something to hang me with. It is so obvious. All right. I told you. After I am engaged. That is what the DR provides. Do you understand that? That is the truth. You can’t handle the truth, can you? That is not what you are looking for.

Disciplinary Counsel: You saw that movie, as well?

Catanzarite: Well, it applies here. You want something that you can complain to the Supreme Court about me for. Do it. Do whatever you want. And I am coming after you personally.” (Emphasis supplied.)

Catanzarite was suspended for one year, with the suspension stayed after six months by a one-year period of probation with conditions. Akron Bar Ass’n v. Jeffrey A. Catanzarite , Slip Opinion No. 2008-OHIO-4063 (Ohio August 14, 2008).