IS 10
Soon after Teresa DeYoung’s husband died, her mother-in-law also died, leaving an inheritance of more than $400,000 for DeYoung’s children. DeYoung hired John Ruggerio, an attorney, to ensure that her children would receive it. Ruggerio advised her to invest the funds in his real estate business. She declined. A few months later, $300,000 of the inheritance was sent to Ruggerio. Without telling DeYoung, he deposited the $300,000 in his account and began to use the funds in his real estate business. Nine months later, $109,000 of the inheritance was sent to Ruggerio. He paid this to DeYoung. She asked about the remaining amount. Ruggerio lied to hide his theft. Unable to access these funds, DeYoung’s children changed their college plans to attend less expensive institutions. Nearly three years later, DeYoung learned the truth. Can she bring a suit against Ruggerio? If so, on what ground? If not, why not? Did Ruggerio violate any standard of professional ethics? Discuss. [DeYoung v. Ruggerio, 185 Vt. 267, 971 A. 2d 627 (2009)]
DeYoung can bring a suit against Ruggerio because Ruggurio violate the Rule of Professional Conduct for attorneys. Under rule 8.4-Misconduct, one of the professional misconduct for an attorney is that “commit a criminal act that reflects adversely on the lawyer's honesty, trustworthiness or fitness as a lawyer in other respects”. An attorney could not “engage in conduct involving dishonesty, fraud, deceit or misrepresentation”. In the case of DeYoung and Ruggerio, Ruggerio, as an attorney of DeYoung, lied DeYoung to steal her children’s money from an inheritance. Ruggerio deposited $300000 of inheritance to his account and began to use the funds in his real estate business although DeYoung declined to invest in his business. Ruggerio misled his client that the money was unable to access. Thus, Ruggerio violate the Rule of Professional Conduct. He “engaged in conduct involving dishonesty, fraud, deceit or misrepresentation” for her client.
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