Board of Overseers of the Bar v. Ray R. Pallas, Esq.
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Docket No.: BAR-15-1
Issued by: Maine Supreme Judicial Court
Date: February 5, 2015
Respondent: Ray R. Pallas, Esq.
Bar Number: 001594
Order: Receiver Appointment
Disposition/Conduct: Appointment of Receiver
Upon the Petition for Appointment of Receiver filed by the Board of Overseers of the Bar, pursuant to M. Bar R. 7.3(f), the Court issues the following Order.
As of this date, Molly B. Sinclair, Esq. is appointed the Receiver of Attorney Ray R. Pallas's law practice. Attorney Sinclair shall:
- Secure the professional files, client property and client data of Attorney Pallas.
- Obtain access to Attorney Pallas's post office boxes to secure any law office or legal mail.
- Inventory the open and closed client files.
- Give priority attention to client matters that are open and time sensitive.
- Notify clients or former clients that the law practice has concluded and provide opportunity for clients to retrieve their property.
- Attorney Sinclair shall also prudently access and utilize Attorney Pallas's operating and IOLTA accounts to effect the formal conclusion of the practice, including the temporary retention of office staff or other personnel as necessary and appropriate.
As Receiver, Attorney Sinclair shall submit written reports to the Court and the Board of Overseers of the Bar containing a record of time worked and disbursements made in this matter. Attorney Pallas's Estate shall be the first choice for source of payment for those expenses/disbursements. If insufficient assets are available from Attorney Pallas's Estate, the Receiver may contact the Board or apply to the Court to locate an alternate payment source for the expenses.
Attorney Sinclair shall act as Receiver until discharged by the Court either by Motion or in accordance with M. Bar R 7.3(f).
Attorney Sinclair shall not disclose any information contained in any file listed in such inventory without the consent of the client to whom such file relates except as may be necessary to carry out an order of court including any order under M. Bar R 7.3(f).
Furthermore, Attorney Sinclair may be engaged by any former client of Attorney Pallas provided that she informs such client in writing that the client is free to choose to employ any attorney, and that the Court's appointment order does not mandate or recommend the Receiver's employment by the client.
The Receiver is subject to all Maine Rules of Professional Conduct, including M. R. Prof. Conduct 1.7, 1.8 and 1.9 regarding conflicts of interest. However, a client's retention of Attorney Sinclair as successor counsel is not a per se conflict of interest solely by reason of her appointment as Receiver.
Attorney Sinclair shall be protected from liability for professional services rendered in accordance with this Order to the extent permitted by law.
Finally, within one hundred twenty-six (126) days of this Order, the Receiver shall file a status report with the Court, with a copy to the Board of Overseers of the Bar, c/o Deputy Bar Counsel Aria Eee, Esq.
Dated:February 5, 2015
Ellen A. Gorman, Associate Justice
Maine Supreme Judicial Court