Sanction For Bankruptcy Misconduct In Idaho

The Idaho Supreme Court imposed a suspension of two years with all but nine months stayed for stipulated misconduct in two bankruptcy matters described on the State Bar web page

The Idaho Supreme Court’s Order followed a stipulated resolution of a disciplinary proceeding that related to Mr. Pitner’s representation of two clients in separate bankruptcy matters. In the first matter, Mr. Pitner represented a client in her personal injury case and bankruptcy case. He obtained a settlement in the personal injury case and, before the Bankruptcy Court approved that settlement or his contingent fee in the personal injury case, he withdrew the settlement funds from his client trust account and used those funds to pay personal expenses. Mr. Pitner did not timely disburse the settlement funds to his client or third parties, respond to requests by the Bankruptcy Trustee for information relating to those disbursements, or comply with the Bankruptcy Court’s orders requiring him to submit documentation confirming the disbursements. Mr. Pitner ultimately issued all required disbursements after depositing funds into his trust account from unspecified sources.

…In the second matter, Mr. Pitner represented a client seeking to reopen her bankruptcy case to obtain a discharge. The client sent Mr. Pitner a check for the filing fee in May 2016. Mr. Pitner negotiated that check immediately, but did not deposit the funds into his trust account or file the client’s motion to reopen her bankruptcy case until July 2016. Thereafter, Mr. Pitner failed to comply with the Bankruptcy Court’s orders requiring him to submit records regarding his client’s payment and his purported refund to the client of that payment.

He must complete two years probation on reinstatement. (Mike Frisch)