Judge’s ruling ends with attorney having reprimand, complaint dismissed

Two Las Vegas judges looked at the same facts and came to completely opposite opinions about local attorney Neil Beller.

A year ago, U.S. Bankruptcy Judge Bruce Markell looked at Beller’s actions and publicly reprimanded the attorney and urged the State Bar to investigate.

Markell was harsh in his evaluation, writing Beller “discredits the work of all attorneys before this court and in the state of Nevada by calling into question whether attorneys will faithfully and loyally serve the interests of their clients.” Markell disciplined the longtime Las Vegas attorney, saying Beller represented two opposing parties in the same bankruptcy case without obtaining the consent of the clients.

Beller appealed the reprimand, and U.S. District Judge Clive Jones looked at the same facts and said Beller’s conduct “constitutes a mere professional courtesy and in no way, actual or potential, threatened harm to any represented party.” Beller didn’t violate Nevada Rules of Professional Conduct or breach his duty. In fact, Jones didn’t see in his four-page opinion issued Sept. 3 that Beller did anything wrong.

A complaint with the State Bar of Nevada based on Markell’s opinion was dismissed Wednesday, based on Jones’ opinion, said Assistant Bar Counsel David Clark.

The difference of judicial opinions involved Beller’s representation of Joseph and Jo Ann Rossana in a 1992 bankruptcy case in which the couple sought a judgment against attorney John Momot.

Beller sued Momot on the couple’s behalf, saying Momot had been overpaid in an unrelated $225,779 judgment involving a partnership in a bar and Momot owed the couple $28,559.

After the overpayment was repaid to the wife (the husband had died), Momot asked Beller to help him expunge the judgment because it has been satisfied and having it on his record hurt his credit. Beller did as asked, acting this time as Momot’s attorney.

Markell was outraged, seeing it as dual representation of two opposing parties in the same case.

But Jones saw it as Beller described it, merely a professional courtesy between attorneys who had known each other for more than 30 years.

The bankruptcy judge has been aggressive about disciplining attorneys who appear before him and, in his opinion, do shoddy legal work, sometimes driving up costs to the debtors unnecessarily. He authors detailed, scathing and scholarly opinions that some charge are overreaching.

Beller isn’t the only attorney appealing Markell’s disciplinary actions.

In 2006, Markell sanctioned the Henderson law firm Harris Merritt Chapman and partner Scott Chapman. The judge said Chapman, “who had no background or training in Chapter 11, agreed to represent a client who had no business being in bankruptcy.” The law firm’s appeal of Markell’s opinion to the 9th U.S. Circuit Court of Appeals is pending.

In a third case, Markell publicly reprimanded the Cooper Castle law firm and sanctioned Wells Fargo Bank for bad faith conduct over a stipulation mistakenly surrendering the wrong home in a bankruptcy.

The bank and the law firm refused to consent to correcting the error, wasting money and time.

In a fourth disciplinary case in March, Markell reprimanded Las Vegas attorney Randolph Goldberg for filing two bankruptcy cases for the same debtor before two different judges. Markell decided Goldberg’s conduct was made in bad faith and Goldberg “failed to meet the standards of a competent attorney” practicing in bankruptcy court.

Nevada is tops in the nation for bankruptcies so far this year, with 11 bankruptcies for every 1,000 people, according to USA Today.

Based on all the advertising from lawyers soliciting bankruptcy business, those bankruptcies must provide a lucrative business for lawyers. Goldberg advertises heavily, saying he’ll solve people’s problems. “I’ll eliminate your debt and save your home. That’s what I do.”

I’ve cheered Markell on in the past because I believe attorneys who don’t know what they’re doing in bankruptcy court are a menace to people who already have it bad, otherwise they wouldn’t be in bankruptcy court.

If certain bankruptcy attorneys are making things worse for their clients instead of better, then it is the judge’s job to hold attorneys accountable, and I have to come down on the side of the debtors who are struggling with their finances. They deserve competent attorneys representing them.

However, if a pattern develops where Markell’s disciplinary actions are increasingly overturned, then it may be time to reconsider whether he’s overreaching.

Speaking of cheering, Neil Beller didn’t want to comment, but having a reprimand overturned and a State Bar complaint dismissed in the same week is cheer-worthy.

Jane Ann Morrison’s column appears Monday, Thursday and Saturday. E-mail her at Jane@reviewjournal.com or call (702) 383-0275. She also blogs at lvrj.com/blogs/morrison.