Trust In Louisiana

The Louisiana Supreme Court recently decided four cases involving entrusted funds that drew four different sanctions.

One resulted in disbarment of an attorney who settled a claim without authority and embezzled the proceeds

The evidence in the record of this deemed admitted matter supports a finding that respondent neglected a client’s settlement and converted client and third-party funds related to that settlement. He also failed to cooperate with the ODC in its investigation.

A second case drew a year and a day suspension with all but 60 days stayed.

We agree with the hearing committee and the disciplinary board that respondent acted negligently except with respect to his knowing and intentional failure to cooperate with the ODC in its investigations. The record also supports a finding that respondent violated duties owed to his clients and the legal profession, causing potential and actual harm. The baseline sanction for this type of misconduct is suspension. The aggravating and mitigating factors found by the board are supported by the record.

There are two dissents. From Judge Crichton

I dissent from the majority’s imposition of discipline in this case because I find it to be unduly lenient. Primarily, the underlying conduct warranting this discipline is unacceptable, including respondent’s failure to communicate with a client, neglect of a legal matter, and mismanagement of his client trust account. To make matters worse, not only did respondent fail to cooperate with two disciplinary investigations, but also he was late—by over two months—in filing an objection to the disciplinary board’s recommendation. With such conduct, I question whether respondent can competently represent clients. Therefore, I would impose a harsher discipline.

A third case drew a two-year suspension

The record in this deemed admitted matter supports a finding that respondent grossly mishandled his client trust account, resulting in the commingling and conversion of client funds. Based on these facts, respondent has violated the Rules of Professional Conduct as charged.

Justice Clark

I respectfully dissent for the following reasons. I find the imposition of a twoyear suspension is overly lenient. In my view, respondent’s actions represent serious misconduct that warrants a three-year suspension, as recommended by the hearing committee. Respondent’s mismanagement of his trust account amounts to gross negligence that approaches intentional misconduct. That Respondent did not directly benefit from the mismanagement is negated by the finding that he nonetheless acted with a dishonest or selfish motive. Moreover, despite the absence of a formal allegation, it is noted that respondent intentionally failed to comply with the investigation by the ODC. Thus, I believe a three-year suspension is appropriate.

Justice Crichton

I dissent from the majority’s imposition of discipline in this case and would suspend Respondent from the practice of law for three years—as recommended by the Hearing Committee and Justice Clark’s dissent. See In Re: Michael Louis Martin, 17-B-1288 (Clark, J., dissenting). Without question, Respondent committed serious misconduct by mismanaging his trust account. However, what I strongly believe exacerbates Respondent’s conduct is his total lack of responsiveness to the disciplinary proceedings. Specifically, Respondent did not respond to the formal charges filed by the Office of Disciplinary Council (“ODC”), forward his trust account statements to the ODC (as he said he would), object to the Hearing Committee’s report and recommendation, or object to the Disciplinary Board’s report and recommendation. In light of the scant evidence that Respondent cares about his bar license, I believe a harsher, three-year suspension is more appropriate.

Finally, the court approved a consent suspension of a year and a day. (Mike Frisch)