## Facts

- A grievance committee petitioned for discipline against attorney John R. Hibner, alleging nine charges of professional misconduct.
- Hibner represented a married couple in a Family Court child-neglect proceeding while they were also facing foreclosure on their home.
- During the ongoing representation, Hibner arranged for the clients to convey title to their residence to him, purportedly to prevent foreclosure; he paid mortgage arrears and back taxes and recorded the deed.
- Hibner later commenced summary eviction proceedings against the same clients while continuing to represent them in the neglect matter, where the clients’ housing stability was relevant.
- An alleged lease-back arrangement was not documented in a properly executed written lease signed by the clients.
- The clients later sued Hibner regarding the property; the dispute was settled with the home deeded back to the clients upon payment.
- After hearings, a Special Referee sustained charges 1–6 and found charges 7–9 not proven; both sides moved to confirm/disaffirm portions of that report.
- In mitigation, Hibner had no prior formal discipline, presented favorable character evidence, cooperated, and expressed remorse.

## Issues

1. Whether the evidence supported findings that Hibner committed professional misconduct by entering a self-interested property/business transaction with current clients and then pursuing eviction against them while still representing them in a related, ongoing matter.
2. Whether charges 7–9 were proven by a fair preponderance of the credible evidence.
3. What sanction was appropriate in light of the sustained misconduct and mitigating circumstances.

## Decision

- The court confirmed the Special Referee’s report sustaining charges 1–6.
- The court confirmed the finding that charges 7–9 were not established.
- The court suspended Hibner from the practice of law for two years, with reinstatement conditioned on compliance with applicable rules for suspended attorneys.

## Legal Principles

- A lawyer must not accept or continue representation when the lawyer’s professional judgment will be, or reasonably may be, affected by the lawyer’s financial, business, or property interests, absent full disclosure and informed client consent.  
- A lawyer’s acquisition of an ownership interest in a current client’s property, coupled with adverse action against that client (such as eviction) during ongoing representation, evidences a conflict that can compromise independent professional judgment.
- Business/property transactions with clients require safeguards to protect clients, including terms that are fair and adequately disclosed and steps to ensure clients can obtain independent advice.

## Conclusion

The court imposed a two-year suspension after finding that Hibner’s acquisition of his clients’ home and initiation of eviction proceedings during ongoing representation created an improper conflict of interest and reflected serious misconduct, notwithstanding mitigating evidence of prior good character and cooperation.


In re Hibner, 73 A.D.3d 60, 897 N.Y.S.2d 489 (N.Y. App. Div. 2d Dep’t 2010)