In the Matter of Allen: Case Summary

Facts:

Attorney Marie Darlene Allen purchased a duplex from Supara Ratanasadudi, a longtime friend and occasional past client. The State Bar alleged this violated Rule 3-300, regarding business transactions with clients. The purchase was done by two friends, with limited legal action. She was also offered a less than market price.

Procedural History:

The Office of the Chief Trial Counsel filed a Notice of Disciplinary Charges. The hearing judge dismissed the charges. Allen had a prior trial win in a civil action about this issue. The Review Department affirmed, based on the prior trial. The case was then reversed.

Rules Involved:

• Rules of Professional Conduct, Rule 3-300: Prohibits attorneys from entering into a business transaction with a client without meeting certain conditions (fair terms, full disclosure, advice to seek independent counsel, and written consent).

Defenses Used:

Allen argued no attorney-client relationship existed at the time of the purchase, and cited the favorable outcome of the civil trial.

Holding/Punishment:

The Review Department affirmed the dismissal, finding no violation of Rule 3-300, and exonerated Allen. The State Bar was ordered to cover the legal costs of the case.