Opinion
DOCKET NO. 15-1
10-30-2015
In Re: Ray R. Pallas, Esq. (Deceased) of Windham, Maine
Order to Discharge Receiver M. Bar R. 32(c)
Before the Court is a Petition for Discharge of the Receiver appointed by this Court to oversee the concluding of the law practice of Ray R. Pallas, Esq. After consideration of our previous orders, the Final Report of the Receiver, and the Petition for Discharge, the Court finds:
1. Upon motion of Aria Eee, Esq., Deputy Counsel to the Maine Board of Bar Overseers, the Court appointed Molly B. Sinclair, Esq., as Receiver of the law practice of Ray R. Pallas, Esq. for the purpose of obtaining possession of files belonging to Attorney Pallas's clients, securing funds held in Attorney Pallas's operating and trust accounts, obtaining Attorney Pallas's trust account records, and protecting the interests of his clients and/or former clients.
2. Molly B. Sinclair, Esq., Receiver of the law practice of Ray R. Pallas, Esq., has taken necessary and reasonable steps to fulfill her obligations as Receiver of the law practice of Attorney Pallas. She has returned or attempted to return all client files to their rightful owners. She has secured
funds held in Attorney Pallas's operating and trust accounts and has identified the persons to whom those funds belong.
3. Molly B. Sinclair, Esq. has reviewed Attorney Pallas's clients' files, She has generated an inventory of the client files and has delivered that inventory to Special Bar Counsel.
4. Molly B. Sinclair, Esq. has distributed files to a significant number of Attorney Pallas's clients and/or former clients. The Receiver has returned, where possible, all active client files to the respective clients. A list of the files that have been returned to Attorney Pallas's clients has been given to Special Bar Counsel.
5. A number of Attorney Pallas's clients have not picked up their files, despite Receiver's reasonable efforts to provide them notice that they should do so. Attorney Sinclair has in her possession one open file for which, despite written and telephonic messages sent to the client, the client has provided no instructions regarding the storage or return of the file. The name of this file has been delivered to Special Bar Counsel.
6. Some disposition needs to be made of the one open and 284 closed remaining files of Attorney Pallas's former clients. Attorney Sinclair, the former law partner of Attorney Pallas, is the most appropriate caretaker of these remaining files. Attorney Sinclair is willing and able to execute these
duties. As Receiver, she apprised herself of the proper method of tending and distributing these files. Robert Bennett, Esq., Maine Bar Number 9045, has agreed to assume these duties if and when Attorney Sinclair is no longer able to perform them,
7. The Receiver has disbursed all funds from any trust accounts held by Ray R. Pallas, Esq. to the appropriate persons pursuant to our Order of May 20, 2015. An accounting of said disbursements has been provided to Special Bar Counsel.
8. Molly B. Sinclair, Esq. has been partially compensated for the time she has devoted to her Receiver duties. She has been reimbursed for her out of pocket expenses in full. She seeks no further compensation for her work as Receiver.
9. Molly B. Sinclair, Esq. is entitled to recover costs for caring for the files as well as their ultimate destruction and is authorized to seek reimbursement for these anticipated costs from the Personal Representative of the Estate.
Based on the foregoing, it is hereby ORDERED:
1. Molly B. Sinclair, Esq., Receiver of the law practice of Ray R. Pallas, Esq., having taken all reasonable steps to discharge her obligations as Receiver of the law practice of Attorney Pallas, to return all client files, and to disburse all funds in Attorney Pallas's operating and trust
accounts, is discharged as Receiver of the law practice of Ray R. Pallas, Esq.Dated: October 30, 2015
2, Molly B. Sinclair is hereby authorized to maintain in storage at 425 Main Street, Westbrook, ME 04092 any client files that have not been retrieved by Attorney Pallas's clients. The files will be retained for eight years from the date of this Order, after which date they shall be destroyed in a manner that complies with confidentiality requirements. If Attorney Sinclair is no longer able to perform her duties as caretaker, Robert Bennett, Esq. is authorized to assume caretaker duties.
/s/ Ellen A. Gorman
Justice, Maine Supreme Judicial Court