Florida Bar v. Dunagan

In 1992 Attorney Dunagan prepared a bill of sale purporting to transfer assets of a restaurant, “Biscuits ‘N’ Gravy ‘N’ More” (B&G) to the joint ownership of William and Paula Leucht. Subsequently a commercial lease dispute arose concerning the restaurant. Dunagan represented B&G and the Leuchts in the action and moved to dismiss Paula as an improper party to the suit because he had inadvertently omitted her name on a registration form. Dunagan was also involved in various other negotiations and suits representing B&G and the Leuchts. In 1996 Dunagan sent a letter to the police and city attorney stating that he represented William Leucht, that Leucht was the sole owner of B&G, and that although there as a bill of sale that considered putting the business in the name of William and Paula, it was determined that William would remain the sole owner. It further advised that William intended to fire two employees, and that they would no longer be welcome on the premises of the restaurant. Several days later Dunagan filed a petition for dissolution of marriage on behalf of William against Paula. A few days later, Paula called B&G restaurant and was told that William was the sole owner and she could not come to the restaurant. She went anyway and was arrested for disorderly conduct and forcibly removed. During this arrest she informed police that she was the co-owner. After these events a divorce proceeding commenced that ordered William and Paula to share equally in the net proceeds of both B&G restaurants. Paula hired an attorney to file a malpractice suit against Dunagan, and he sought review of the referee’s findings and recommendation ruling against him.