Incremental Withdrawals

The Georgia Supreme Court accepted the license surrender of an attorney admitted in 1977

Middleton, who has been a member of the State Bar since 1977, admits the following facts. Middleton was associated as co-counsel by an attorney licensed in South Carolina to represent a client who was injured in an automobile collision in the Savannah, Georgia area in November 2016. Middleton filed a lawsuit on behalf of the client in the Chatham County State Court in November 2018.

Middleton then settled the lawsuit with the primary insurance carrier for the policy limit of $100,000 in May 2020. The settlement funds were placed in Middleton’s IOLTA account at his bank pending the resolution of the client’s South Carolina workers’ compensation case, in which she was being represented by the South Carolina attorney. In March 2021, the South Carolina attorney resolved the workers’ compensation case when the carrier agreed to a lien waiver and, on that same day, notified Middleton that the workers’ compensation matter was resolved and that the settlement proceeds from the collision case could be disbursed. However, Middleton refused to disburse the settlement funds to the client or the South Carolina attorney despite numerous requests being made.

Middleton admits that sufficient funds were not available in his IOLTA account, because he incrementally withdrew the settlement proceeds for his personal use after the settlement proceeds were deposited into his IOLTA account.

License surrender is “tantamount to disbarment.” (Mike Frisch)