In re Fagan, 869 N.Y.S.2d 417, 2008 N.Y. Slip Op 09734 (N.Y.A.D. 1 Dept. 2008)

Brief Summary
Attorney was disbarred for failure to comply with multiple court orders including sanction orders.

Complete Summary
Attorney Edward Fagan, who gained notoriety in the 1990s for seeking to recover the property of Holocaust survivors, was disbarred in New York. A panel of the Appellate Division, First Department, unanimously ordered disbarment based on Fagan’s extensive history of misconduct.

The panel focused primarily on Fagan’s most recent misconduct. Fagan had failed to pay a $5,000 fine and $345,520.64 in litigation costs as ordered by United States District Court Judge Shirley Wohl Kram of the Southern District of New York. Judge Kram’s orders were based on her findings of both a Rule 11 violation and champerty. The former finding was based primarily on the fact that the relief Fagan sought had already been obtained in a prior settlement. The latter finding was based on the fact that Fagan purchased an interest in stolen artwork for the purpose of obtaining standing in litigation involving the artwork.

The panel also noted Fagan had been reprimanded in New Jersey and either sanctioned or disqualified by three other federal judges. Fagan still owed money, the panel noted, in connection with each of these instances, which dated back to 1994. Further, in the panel hearing itself, Fagan exhibited a “lack of contrition and disruptive and dilatory conduct[.]”  Id. at 421.

Finally, the panel found Fagan’s proposed mitigating factors unpersuasive. Fagan argued that his clients would suffer because no one would take over his cases. He also noted he was involved in a difficult divorce and that he lacked funds to pay any sanctions.

Significance of Opinion
Even famous lawyers can be disbarred, and misconduct in federal court will justify state disbarment.

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