BP Settlement Conversion Draws Permanent Disbarment
The Louisiana Supreme Court has permanently disbarred an attorney
Kenneth and Paula Laborde retained respondent to represent their company, TekCrete, Inc., in connection with a claim for losses resulting from the BP oil spill. Respondent accepted the representation for a 15% contingency fee.
In December 2016, the Labordes were awarded $505,882.94 for their TekCrete claim. The Labordes were pleased with this amount and did not wish to seek an appeal. Respondent received the funds from BP on March 7, 2017. Her 15% contingency fee totaled $75,882.44, leaving the sum of $430,000.50 due to TekCrete.
Respondent did not inform the Labordes that she had received TekCrete’s funds, and when they asked her about the funds, respondent denied that she had already received them. The Labordes finally reviewed an online status report regarding their claim and learned that respondent had already received the funds.
On April 27, 2017, the Labordes met with respondent. At that time, respondent attempted to renegotiate her employment contract, seeking to receive a higher percentage of TekCrete’s recovery as her fee. The Labordes refused to agree to alter the contract. Respondent then disclosed to the Labordes that she had received the BP funds, but had already spent a significant portion of the funds and had only $303,000 left to disburse to TekCrete. On that day, respondent paid the Labordes $303,000. She agreed to give them the balance of $127,000.50 within ninety days. Following the expiration of the delay, respondent still did not disburse the remaining funds. The Labordes advised respondent that they were hiring an attorney to collect the remaining funds. In September 2017, the Labordes filed a complaint against respondent with the ODC.
The violations
Respondent violated Rule 1.15(a) by converting $127,000.50 in funds owed to TekCrete and by not keeping these funds in her trust account.
Respondent violated Rule 1.15(d) by failing to promptly notify the Labordes that she had received the settlement funds from BP and by failing to promptly deliver the funds to TekCrete.
Respondent violated Rule 8.4(b) by converting $127,000.50 owed to TekCrete. In 2018, respondent was charged in Orleans Parish Criminal District Court with theft in excess of $1,500 in violation of La. R.S. 14:67(B)(1). She also violated La. R.S. 37:219, which makes it “unlawful for any attorney to pay money or give any other thing of value to any person for the purpose of obtaining representation of any client.”
Justice Crichton concurred
This Court finds itself once again faced with extremely serious violations of our Rules of Professional Conduct by a respondent who has demonstrated a stunning indifference to the disciplinary process, resulting in no viable and reasonable choice other than permanent disbarment. In my view, respondent’s misconduct alone minimally warrants disbarment but her lack of response throughout these proceedings and to the victim leads me to conclude permanent disbarment is the only viable outcome. This mind-boggling display of indifference by a few lawyers to disciplinary proceedings has been noted in recent cases.
Justice Hughes would impose disbarment. (Mike Frisch)