Lawyers Atalig, Yana suspended

Superior Court Associate Judge David A. Wiseman suspended yesterday attorneys Antonio M. Atalig and Reynaldo O. Yana from practicing law in the CNMI for refusing to return $1.1 million in attorneys’ fees that the two obtained from the Angel Malite estate.

Wiseman said the suspension will remain in place until Atalig and Yana have complied with certain conditions.

“The misconduct of [Atalig and Yana]…reflects adversely on an attorney’s honesty, trustworthiness and fitness as a lawyer,” Wiseman said.

He believes that the two’s misconduct resulted in serious injuries to the legal profession, clients, the public, and the legal system in general through a disparagement of the administration of justice.

Wiseman required Atalig and Yana to pay at least 10 percent of the funds that they received as attorney fees and have been ordered disgorged. They each must present a proposed payment plan for their balance of the funds that they must pay back.

They were also ordered to pay the court for the costs of prosecuting this disciplinary matter and to pay to any and all clients any unearned retainer fees.

The disciplinary hearing was held on July 20, 2011. Atalig and Yana represented themselves in the proceedings. Attorney Thomas E. Clifford served as court-appointed disciplinary counsel.

The complaint alleged that Atalig and Yana violated provisions of the ABA Model Rules of Professional Conduct during their representation of clients and handling of estate funds.

Atalig and Yana were given $1,138,500 in contingency fee on May 28, 2006. On June 1, 2006, only three to four days later, the Malite heirs represented by attorney Stephen Nutting filed a motion for a restraining order for the two to return the fees.

The court granted Nutting’s request, ordering Atalig and Yana to return the attorneys’ fees, with a threat of contempt proceedings if they fail to do so. The two did not comply.

In his order yesterday, Wiseman said that both Atalig and Yana knew that the $1,138,500 contingency fee was in dispute.

“Notwithstanding the fact that the motion to disgorge the fees placed them on clear and unequivocal notice that there was a dispute regarding the fees, they did not preserve, separate or safeguard the funds,” Wiseman said.

Not only were the disputed fees not safeguarded nor separated, they were spent by the respondents who then evaded the court’s order to account for the fees as to how they were spent, he said.

“Respondents were so unwilling and blatantly recalcitrant in cooperating with the court and providing an accounting of the funds…that they were placed in contempt of court and spent more than a year in jail rather than comply with the court’s order,” the judge said.

He said Atalig and Yana told the court that they had spent all of the $1,138,500 contingency fee, which is inconsistent with what was told to a reporter immediately after the hearing by Atalig who claimed he still had money left, but he was not going to say how much.

“Atalig’s contradiction immediately after the hearing to a news reporter highlights the blatant disregard for the falsity of the statements given to the court,” Wiseman said.

Atalig and Yana got out of the Department of Corrections on Dec. 24, 2009, after nearly one and one-half year in jail.