Professional Documents
Culture Documents
OF THE
ILLINOIS ATTORNEY REGISTRATION
AND
DISCIPLINARY COMMISSION
In the Matter of:
DONALD FREDRICK FRANZ,
Attorney-Respondent,
No. 6216090.
7. On May 16, 2012, the court denied Respondent's motion to withdraw because the case had already been set for
trial commencing on May 21, 2012. The court further ordered Nzeribe to appear at the law offices of Sarah's
counsel for his deposition on that same day at 1:30 p.m.
8. After the court denied Respondent's motion for leave to withdraw as Nzeribe's counsel and ordered Nzeribe to
appear at the law offices of Sarah's counsel for his deposition on that same day, Respondent asked Nzeribe to pay
him $10,000 in additional legal fees. Nzeribe refused. Respondent advised Nzeribe that he would not represent
him at the deposition later that day unless he signed a Promissory Note requiring Nzeribe to pay Respondent
$10,000 in installments over the next four years. Nzeribe agreed to sign a Promissory Note, because he believed
that he had no alternative, if he wanted representation at the deposition and at the trial, which was set to begin on
May 21, 2012.
9. Sometime after the May 16, 2012 court appearance and before May 23, 2012, Respondent prepared a
Promissory Note ("the Note"). The Note purported to require that Nzeribe, the purported borrower, pay
Respondent, the purported lender, the sum of $10,000, together with interest thereon at the rate of four percent per
annum. Pursuant to the terms of the Note, Nzeribe was to pay Respondent $250 per month starting on July 15,
2012. At the time Respondent prepared the Note, Nzeribe did not owe $10,000 to Respondent.
10. On May 21, 2012, the date the trial in case number 10DV993 was set to begin, Nzeribe was present in court,
but Respondent did not to appear and the court continued the trial to May 22, 2012.
11. The trial in case number 10DV993 began on May 22, 2012, and concluded on May 24, 2012, after three
afternoon sessions.
12. On or about May 23, 2012, at court, and prior to the commencement of the trial proceedings that day,
Respondent presented Nzeribe with the Note and asked him to sign it. Respondent told Nzeribe that if he did not
sign the Note, Respondent would not continue to represent him. Nzeribe believed that he had no alternative but to
sign the Note if he wanted representation at the trial, so he signed the Note.
13. At no time before Nzeribe signed the Promissory Note did Respondent disclose to Nzeribe the risks associated
with Respondent's dual role as both legal advisor and participant in the transaction, or obtain Nzeribe's informed
consent to that transaction.
14. When asking Nzeribe to sign the Note, Respondent did not advise Nzeribe that he was entitled to seek
independent counsel or give Nzeribe a reasonable opportunity to do so. Further, Respondent did not advise
Nzeribe that, as his attorney, he was prohibited from entering into a business transaction with Nzeribe, since
Respondent's interests might be conflicting with Nzeribe's, unless Nzeribe was made aware in writing of the
transaction and its terms, and expressly consented in writing after disclosure, with the consent to recite the
essential terms of the transaction and Respondent's role.
15. By reason of the conduct described above, Respondent engaged in the following misconduct:
a. representing a client when the representation of that client may be materially limited
by his own interests, by having Nzeribe sign a Promissory Note wherein Nzeribe was the
borrower and Respondent was the lender, while representing Nzeribe in a matter, in
violation of Rule 1.7(a)(2) of the Illinois Rules of Professional Conduct (2010); and
b. entering into a business transaction with a client (the Promissory Note), without
explaining in writing to the client the possible conflicting interests and that the client was
entitled to seek the advice of independent counsel, and without obtaining the written
consent of the client, in violation of Rule 1.8(a) of the Illinois Rules of Professional
Conduct (2010).
COUNT II
WHEREFORE, the Administrator respectfully requests that this matter be assigned to a panel of the Hearing
Board, that a hearing be held, and that the panel make findings of fact, conclusions of fact and law, and a
recommendation for such discipline as is warranted.
Respectfully submitted,
Jerome Larkin, Administrator
Attorney Registration and
Disciplinary Commission
By: Scott Renfroe
Scott Renfroe
Counsel for Administrator
One Prudential Plaza
130 East Randolph Drive, #1500
Chicago, Illinois 60601
Telephone: (312) 565-2600
Facsimile: (312) 565-2320