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Man with briefcase REUTERS Yuriko Nakao

Attorney who charged excessive fees wins back law license

10/6/2011 COMMENTS (0)

ALBANY, N.Y., Oct. 6 (Reuters) - An attorney whose license was suspended for routinely charging excessive fees in surrogate cases has won the right to practice law again.

The Appellate Division, Third Department ruled on Thursday that Louis Rosenthal, who served as counsel to the Brooklyn public administrator from 1997 to 2002, where he handled the estates of people who had died without written wills or close relatives, "possesses the character and general fitness to resume the practice of law."

In 2008, the same court slapped Rosenthal with a two-year suspension after investigators found he had billed more than $2 million in excessive fees over a five-year period. State law caps attorneys' fees in surrogate cases at 6 percent, but Rosenthal regularly charged 8 percent.

In addition to billing for excessive fees, Rosenthal admitted to failing to file mandatory affidavits that outlined the work he had done. Instead, he wrote fee requests on Post-It notes and affixed them to court documents.

The case spurred the state's top court to kick former Surrogate Court Judge Michael Feinberg off the bench in 2002. Feinberg, who granted Rosenthal a total of $8.6 million in fees over five years without questioning his methods, was disbarred in 2005.

Investigators and the media claimed Feinberg and Rosenthal, who both attended Brooklyn Law School in the 1960s, were good friends, and said the attorney curried favor with the judge to win the counsel job.

"The taint of favoritism is strong," the Court of Appeals wrote in a 2008 ruling.

Rosenthal told Reuters those claims were exaggerated.

"We were friends, (Feinberg) came to my son's bar mitzvah, but so did 300 other people," he said.

'WE WERE WRONG'

Last year, Rosenthal petitioned the court to have his law license reinstated.

The state Committee on Professional Standards, New York's top watchdog for attorney misconduct, filed a petition challenging Rosenthal's reinstatement. Calls to CPS to find out the reasons for their opposition were not returned.

In an interview Rosenthal said that Feinberg and the clerk of the court, Stephen Chepiga, advised him that he did not have to file affidavits breaking down his fees.

Chepiga was censured by the Third Department in 2008.

"We were wrong, and we were punished, and I'm very happy it's over," Rosenthal said in an interview.

Meanwhile, the Attorney General's office is seeking to recoup the excessive fees charged by Rosenthal.

But Rosenthal quipped, "How am I supposed to pay them back if I'm not working?"

Rosenthal's reinstatement is effective immediately.

Justices Thomas Mercure, Edward Spain, Robert Rose, Leslie Stein and John Egan Jr. made up the Third Department panel.

The case is Matter of Louis R. Rosenthal, New York State Supreme Court, Third Appellate Division, No. D-45-11.

For Rosenthal: Alexander Dudelson

For Committee on Professional Standards: Michael Gaynor

(Reporting By Dan Wiessner)

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