Steve Martini - The Arraignment

“Why don’t you give us the good news first,” says Harry.

“Our friends at Devon Insurance are getting ready to make an offer of settlement. According to the signal flares they’re sending up, it’s going to be quite generous.”

“How generous?” says Harry.

“Three point eight million.”

“That’s not four,” says Harry.

“You didn’t expect them to pay the full demand?” says Tolt. “Trust me, this offer was not recommended by their lawyers. Turn it down, and they will circle the wagons and defend the claim for double indemnity.”

“And who’s supposed to compromise?” says Harry. “We all know where Margaret’s coming from. You tell her to reduce her demand, you better get out of the way, because she’s gonna bounce off the walls like a rubber ball. The whole deal may go away.”

“I agree,” says Adam. “It looks like your client will have to back off. I did convince the company to forego confidentiality as to the terms of settlement.”

What Tolt means is that we would be free to publicize the deal.

“Why would they want to do that?”

“They didn’t, but I told them it might make their offer more palatable. Of course, you wouldn’t have to publicize it, but you’d be free to. A feather in your cap,” he says.

This is something most insurance carriers would never give up willingly, details as to the amount of settlement. It tends to make lawyers in other cases more aggressive, especially when the figures climb above six.

“You have to ask yourself if it is worth litigating for the next decade over such an amount,” says Adam. “Two hundred thousand dollars.”

“Maybe you should ask Margaret after she stops foaming at the mouth,” says Harry.

“You haven’t heard the bad news yet,” says Tolt.

He opens a manila folder on the desk in front of him, a few pieces of paper and a folded spreadsheet.

“There’s a problem. Not with the insurance settlement. Another matter. The firm’s been conducting an audit since Nick’s death. It’s routine whenever a partner leaves.” He makes it sound like Nick resigned.

“We review their cases to see what commitments the firm has, examine their client trust records. That sort of thing.”

Harry and I sit listening.

Adam covers his mouth with a fisted hand and clears his throat a little. “The problem is we’ve come up light on Nick’s accounting for the client trust fund.”

It’s the kind of news that tends to drain the blood from your head if you’re a lawyer.

“Are we talking a minor error in math?” I ask.

“I’m afraid not. It’s out of balance a little more than fifty-seven thousand dollars,” he says.

“You’re saying Nick invaded the client trust account?”

“Not exactly,” says Tolt. “All the checks were drawn over the last sixty days.”

“I don’t understand.”

“The checks were drawn after Nick died.” He says. “It appears that someone gained access to blank checks and signed Nick’s name to them. They were drawn to specific amounts in different names and deposited in several banks around town. We’ve checked those accounts. The funds were withdrawn, and the accounts closed all within a few days of the deposits. It appears that whoever did this gave some thought to how it should be done. We can’t get information as to social security numbers for the people receiving these funds because of banking privacy laws, though with a subpoena or a search warrant from the authorities this could be made available. I suspect that whoever did it may have used false employer I.D. numbers or bogus social security numbers, whatever. Of course I can’t be certain of that unless we inquire further. But we do have some of the canceled checks. None of them were endorsed since they were for deposit only, but the signature for the payor is not Nick’s. We do know that. We haven’t yet reported this to the police.”

“But you’re taking the time to tell us?” I say.

“Given the circumstances, I thought that it might be best.”

“Why is that?”

“The firm has no interest in stirring up a cloud of bad publicity unless it can’t be avoided. It seems your client removed a number of Nick’s personal effects from his office a little over a week after the shooting.”

“Dana?”

He nods. “According to one of our senior secretaries, the trust checks were in a drawer in Nick’s desk before Mrs. Rush visited. They were missing after she left.”

“This is a careful secretary,” says Harry. “How would she know?”

“Ordinarily she wouldn’t,” says Tolt, “but the police had just removed their yellow tape from Nick’s office door that morning. I’m just guessing, but I suspect that Mrs. Rush had called them to inquire as to when she would be able to collect her husband’s personal effects. The secretary in question, at the firm’s request, conducted an audit of everything in the office that morning, in preparation for boxing it up and reassigning client files.”

“I see.” Tolt has Dana painted into a corner.

“It’s an awkward situation,” he says. “Sooner or later, we’re going to have to report the discrepancy to the State Bar. It would be good if the money could be restored before that time.”

Harry and I look at each other, but neither of us says a word.

“The bar has no jurisdiction over lay persons, and the firm would have no reason to file a criminal complaint once the money is returned. We’d rather not get law enforcement involved unless it’s necessary. Please understand I don’t want to cause any more pain than is absolutely necessary.” The way he says this, the conviction in his voice makes me believe he is telling the truth. If the information is accurate, he’s already gone farther than he should have to protect Dana, and he’s assumed some risk in doing it.

“What do you want me to do?”

“Talk to her,” he says.

“Did you know this when we met with the carrier?”

“If I had, I would not have participated,” he says.

“But you realize the settlement may be the only source from which she can make reimbursement?” I tell him.

“I’ve considered that. I would not like to put pressure on her to settle on terms you feel are unfavorable. But you have to understand our position as well. If the insurance company were to get wind of this, they would no doubt withdraw their offer.”

Tolt is right. They would force Dana into court and take their chances there. In the meantime, they know we would have to involve the cops. Criminal charges would be filed against her.

“You see the problem?” he says.

I offer him nothing but a painful expression of concession. It’s one of those times when words can only make things worse.

“And then there is the one final aspect,” he says.

“Which aspect is that?” says Harry, as if it couldn’t get any worse.

“I prefer not to go there. I don’t believe it for a minute,” says Adam. “But if the police have to be told about this, given their natural suspicion, an open and unsolved double murder. Well…” He cocks his head to one side and shrugs that shoulder.

“They might wonder whether a woman that desperate for money might not hire somebody to kill her husband for the insurance on his life. Is that it?” I say.

“As I said, I don’t believe it for a minute.”

But it does add a whole new dimension. It looks as if Dana will be compromising her share of the settlement whether she likes it or not. If what Tolt tells me is accurate, I have little interest in laying my body on the blocks to push the carrier farther, even if I could.

“I would ask you to talk to your client and see what can be worked out. And to do it as quickly as possible. Of course, I’ll send you copies of the trust records for your review.”