Lawyer in Misconduct Probe to Quit State Bar

A San Diego lawyer under investigation by local, state and federal authorities on allegations of misconduct announced Friday his intention to resign from the State Bar, moments after a Superior Court judge gave bar officials permission to take control of his law practice.

Richard Degallegos, 48, said his resignation is “the best and most logical move at this point” but continued to defend himself against allegations that have triggered investigations by the State Bar, the district attorney and a federal grand jury.

Degallegos said he is resigning from the bar--meaning he will not be licensed to practice law--because, “since this all started, problems have developed in my practice and this is probably the best step.”

But Degallegos pledged to continue his federal court challenge of the bar’s move to take over his practice. And he threatened to take other, unspecified legal action against the district attorney’s office in connection with its continuing investigation, which he claims has been improper.

‘Possible Threat’ to Public

The embattled lawyer’s surprising announcement came shortly after presiding Superior Court Judge Michael Greer granted the State Bar’s request for authority to seize control of his Mira Mesa law practice on grounds he poses a “possible threat” to the public.

Greer, in a lengthy, stinging ruling, said Degallegos “has become incapable of devoting the time and attention necessary to provide quality legal service for his clients.” The attorney has failed to obey court orders, has been reprimanded and fined many times by judges for missing court deadlines and appearances, and has caused his clients’ cases to be “jeopardized or dismissed completely and destroyed,” Greer said.

“The assumption of control by the State Bar is essential to protect the interests of the clients,” Greer said. “In fact, they would be severely prejudiced if the course of conduct resulting in this hearing was to continue.”

Greer then ordered Degallegos to turn over files on existing cases to the San Diego County Bar Assn. by Wednesday. The county bar will contact his clients, advising them that they may wish to obtain new legal counsel. Volunteer lawyers will file motions and other pleadings on cases with pressing time limits, assuming the client approves.

Victoria Molloy, senior trial counsel for the State Bar, said the judge’s order means Degallegos is placed on “inactive status,” meaning he may not practice law pending a resolution of disciplinary charges against him. Those charges, however, will be moot if Degallegos follows through with his pledge to resign from the State Bar effective Dec. 30.

“Once he resigns, we lose jurisdiction over him and there would be no disciplinary proceeding,” Molloy said.

If that occurs, clients who claim Degallegos took their money and did nothing on their cases will be promptly reimbursed from the State Bar’s client security fund.

“I’m hopeful that he will resign, because that will allow us to . . . reimburse clients quickly,” Molloy said. If a formal disciplinary process is followed, it could take as long as two years to repay clients.

Blames Former Wife

Throughout the hearing, Degallegos, a bearded, bespectacled man wearing pinstripes and gray cowboy boots, appeared calm, taking notes occasionally on a yellow legal pad. During an impromptu press conference later, he continued to blame his legal woes on his former wife, Susan Eblen.

“This is all coming about because of the ‘Eblen conspiracy,’ ” he said, charging that his one-time spouse is “out to get me” and has spurred many of his former clients to file complaints with the district attorney and the State Bar.

Eblen, who was in court for Friday’s hearing, concedes she has talked to investigators but said Degallegos is using her as an excuse for his own problems.

“I’m just the most recent person for Richard to lay the blame on,” said Eblen, who is locked in a battle with her ex-husband over his visitation rights to their two daughters. “He has to have someone to blame his problems on, and it’s my turn.”

Although resigning his State Bar membership means Degallegos will not be licensed to practice law, he may still be permitted to represent farm workers in workmen’s compensation cases--which make up about 75% of his 1,000-case workload. State law does not require those claims to be handled by attorneys, and Degallegos said he intends to continue that work through his offices in Salinas and Santa Maria.

Molloy, however, said that bar officials will assume control of Degallegos’ existing workmen’s compensation cases under the order issued Friday. Degallegos must negotiate new contracts with workers if he wishes to continue such work, and he must obtain permission from the judges who hear those cases in order to appear in court, Molloy said.

The State Bar’s move to assume control of Degallegos’ practice was launched after clients complained that he repeatedly missed court appearances, agreed to take cases but never worked on them and misappropriated client funds. Earlier this month, a State Bar hearing officer concluded the bar could proceed against Degallegos under a section of the state Business and Professions Code because he represents a “possible threat” to the public and legal profession.

Attorneys are frequently hit with complaints from disgruntled clients, but the Degallegos case has attracted widespread interest because of his voluminous caseload and the many complaints filed against him with the State Bar--37 in all.

The State Bar has never before seized the practice of a lawyer who is contesting the move and still actively representing clients. And the county bar association has established a first-ever hot line to field calls from clients of Degallegos concerned about their cases.

Also Friday, the State Bar was granted control of the law practice of another San Diego attorney, Rafael Levens. Levens, however, is cooperating in the move and invited intervention in a letter to the county bar association recently.

“I am not sure what caused Mr. Levens to take this step, but clearly he believes he can no longer represent his clients and has requested the bar step in and help,” said Joe Mitts, co-chairman of the bar’s Attorney Disability Committee.

On Friday, Greer issued an order allowing officials to seize Levens’ files and contact his clients.