Disciplinary Proceedings Against Ward
2005 WI 9, 278 Wis.2d 1, 691 N.W.2d 689 (2005)
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ATTORNEY disciplinary proceeding.
Attorney publicly reprimanded.
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1. PER CURIAM. We review the findings of
fact, conclusions
of law, and recommendations of referee Rose
Marie Baron for sanctions, pursuant to SCR
22.17(1). Attorney John A. Ward was found to
have engaged in unprofessional conduct in
the course of his practice of law in
violation of the Rules of Professional
Conduct. The referee recommended a public
reprimand.
2. We approve the findings, conclusions and
recommendations, and determine that Attorney
Ward's misconduct warrants a public
reprimand.
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3. Attorney Ward was licensed to practice
law
in Wisconsin in 1985. He received a private
reprimand for a violation of the Rules of
Professional Conduct in 1999.
4. This case involves three counts: (1)
failing to act with reasonable diligence and
promptness in representing a client in
violation of SCR 20:1.3; (2) charging an
unreasonable fee in violation of SCR 20:1.5
(a); and (3) failing upon termination of
representation to refund any unearned
portion of an advanced fee in violation of
SCR 20:1.16(d).
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5. These counts involve Attorney Ward's
representation, commencing in April 2001, of
a woman from Kenosha in two matters. First,
the client retained Attorney Ward to
represent her in opposing a February 2001
motion filed in Milwaukee County by her
former husband to establish visitation
rights with their daughter. Second, the
client retained Attorney Ward to commence a
separate proceeding in Kenosha County to
terminate her former husband's parental
rights to the child. The client agreed to
a "non-refundable minimum fee" of $10,000 to
cover the first 50 hours of Attorney Ward's
time with work beyond that to be billed at
$200 per hour.
6. The client wanted Attorney Ward to
immediately change the venue of the
Milwaukee matter to Kenosha in order to cut
down on his travel time and thereby reduce
the hours he would have to spend on the
case. She also believed that since she and
the child lived in Kenosha, that was the
appropriate county to litigate visitation.
Finally, since the termination proceeding
was going to be in Kenosha, she believed it
was efficient to have all proceedings in
that county.
7. There is a dispute whether Attorney
Ward
agreed with this strategy and consented to
expeditiously attempt the venue change. In
any event, Attorney Ward did not seek the
venue change. At the initial May 2001 motion
hearing before a Milwaukee County family
court commissioner, he objected to venue but
the commissioner advised him to raise it by
written motion with the judge assigned to
the case even assuming that could still be
done in a timely fashion. Attorney Ward
claims he had prepared a "rough draft" of a
venue change motion before this hearing, but
decided not to file it. The matter was
adjourned to August 2001.
8. Attorney Ward filed the termination
petition in Kenosha County later in May. A
guardian ad litem was appointed for the
child who soon advised Attorney Ward that
she wanted to interview the child. However,
the termination proceeding was adjourned in
July by the Kenosha court to await the
outcome of the visitation dispute that was
still pending in Milwaukee.
9. When the visitation matter returned
to
court in August, the commissioner held it
open for another month, sent it to the
circuit court for resolution, and in the
interim gave the former husband temporary
visitation, at least in part because the
client may have misrepresented the husband's
alleged lack of contact with the child over
the years and had impeded his past
visitation. Throughout this period, Attorney
Ward never sought the change of venue.
10. Within a few days after the August
hearing, the client terminated Attorney
Ward's services. She apparently was unhappy
that temporary visitation had been awarded
and that venue had not changed which she
believed might have avoided the unfavorable
temporary result. Attorney Ward admits that
by this time he too realized the matter had
to be moved to Kenosha.
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11. Attorney Ward cooperated in forwarding
his
file to the client's new attorney. However,
he refused her demand to return the unearned
portion of the $10,000. His services, for
what amounted to a four-month period from
April to August, allegedly totaled 36.4
hours. Thus he was refusing to return at
least $2720 (13.6 hours x $200 per hour) in
unearned fees.
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12. This court adopts the referee's
findings of
fact unless clearly erroneous. In re
Disciplinary Proceedings Against Charlton,
174 Wis. 2d 844, 498 N.W.2d 380 (1993). No
deference is granted to the referee's
conclusions of law and they are reviewed de
novo. In re Disciplinary Proceedings
Against Norlin, 104 Wis. 2d 117, 310
N.W.2d 789 (1981). The court may impose
whatever sanction it deems appropriate
regardless of the referee's recommendation.
In re Disciplinary Proceedings Against
Widule, 2003 WI 34, 261 Wis. 2d 45, 660
N.W.2d 686.
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13. The referee concluded there had been a
violation of SCR 20:1.13 due to Attorney
Ward's failure to file a written motion
seeking a change of venue as directed by his
client.
14. Attorney Ward disputed that he had
ever
agreed to seek the venue change. He claims
it was "not true" that it was in his
client's interest to have the matter moved
to Kenosha; that it was "absolutely simply a
ploy" to even preliminarily raise a change
of venue because he was only "testing the
waters" and trying to feel out the
opposition; that he initially did not "care
one way or the other" whether there was a
change of venue; that he eventually decided
to "table" the idea because he thought
things were going well in Milwaukee; and
that this was "absolutely the type of
tactical decision" that he-and not his
client-should make.
15. Attorney Ward argued that there were
several reasons why not seeking a venue
change was a sound tactical decision. First,
he claimed that the former husband's
attorney-who would not have represented the
husband had the case been transferred to
Kenosha-was not particularly "aggressive"
and Kenosha was a more litigious venue.
Second, he claimed that his client had been
uncooperative with the Kenosha guardian ad
litem by not letting the guardian interview
the child. Thus Attorney Ward supposedly
believed it was better to keep the
visitation dispute in Milwaukee. Third,
Attorney Ward claimed that the Milwaukee
action was going well, at least until August
when the former husband got temporary
visitation, and thus there was no reason to
move it.
16. On the other hand, the client
testified
that Attorney Ward "assured me that that
[change of venue] would be done" and that
she was "of the impression" that the
Milwaukee visitation matter would ultimately
be moved to Kenosha which was her "main
concern."
17. The referee acknowledged that an
attorney
is not liable under the Rules of
Professional Conduct for errors in
professional judgment that are made in good
faith and/or are in the best interest of the
client. Thus she acknowledged that the
failure to seek the venue change was not
misconduct per se.
18. However, the referee rejected
Attorney Ward's defense stating:
Mr. Ward failed to file the requisite
written motion seeking a change of venue
from Milwaukee County to Kenosha County for
approximately three months contrary to the
direction and expectation of his client, his
assurances that he would do so, and the
direction of the Milwaukee Court
Commissioner . . . It is argued that there
were good reasons for not pressing for a
change in venue and there was no harm done
to the [client] . . . I find that Mr.
Ward's explanation of his strategy to keep
the case out of Kenosha County and delay
filing a change of venue motion until he was
able to have a new Milwaukee guardian ad
litem appointed (who presumably would
provide a positive recommendation to the
Kenosha guardian ad litem) is not credible.
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19. Mindful of the applicable standard for
our review of findings of fact and that the
referee was best situated to judge the
credibility of the witnesses, we conclude
that these findings are not clearly
erroneous. Further, we agree that these
facts support the subsequent conclusion of
law that this rule of professional conduct
was violated.
20. There was a direct factual dispute
between the client's understanding of what
would occur by way of a venue change and
Attorney Ward's insistence that he never
agreed to take such action and that it would
have been a bad tactical decision under the
circumstances. The referee was obviously
best situated to listen to the witnesses,
assess their credibility, and resolve this
factual dispute.
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21. The referee concluded that Attorney
Ward had
charged an unreasonable fee in violation of
SCR 20:1.5(a) and that a refund was in order
under SCR 20:1.16(d). The Office of Lawyer
Regulation (OLR) had not argued that the
amount of the fee was unreasonable per se.
Rather, it objected to it being
nonrefundable under circumstances where the
amount was not reasonable and here $10,000
was unreasonable in relation to the amount
of time Attorney Ward put in on the case and
the result he achieved.
22. The referee stated that Attorney
Ward
turned a "simple" visitation/termination
dispute into a "complex legal endeavor" by
allegedly spending over 36 hours to make a
few appearances before a commissioner and
never filing any written motions. Further,
the referee found that much of the research
Attorney Ward claimed he performed in this
case-such as a memoranda after the second
commissioner hearing-was at a time when he
should have anticipated his imminent
discharge as counsel. The referee also
termed the research "of questionable
necessity, not on point, and of no value."
The referee observed that Attorney Ward had
no documents in the file that reflected the
26.3 hours of research he claimed he
performed in this case. For example, there
were no bills for electronic legal services,
no computer files, no copies of a daily time
record for the days for which he billed, or
any contemporaneous notes. The referee
acknowledged that it was evident Attorney
Ward did some research, but found that the
alleged total of over 36 hours
was "unreliable."
23. The referee further found that
Attorney
Ward had not performed in an acceptable
professional fashion in this case:
I do not believe that Mr. Ward exhibited
the level of professionalism in his
performance representing [the client] before
the Family Court Commissioner that would be
expected from someone with his many years of
legal experience. Further, I find his
apparent need to expend excessive hours on
researching a relatively straightforward
topic surprising given his professed ability
as a family law practitioner. The record
reflects that successor counsel, with far
less experience than Mr. Ward, was able to
bring the change of venue matter as well as
the TPR to a speedy and successful
conclusion without reliance on the subject
matter jurisdiction issue that consumed so
much of Mr. Ward's time. Thus, while
acknowledging Mr. Ward's reputation among
fellow lawyers, I must nonetheless find that
his ability in this case falls below
reasonable expectations.
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24. As for the nonrefundability factor, the
referee acknowledged that nonrefundable fees
are not a per se violation but are typically
permissible, in part, only where the nature
of the reputation precludes the lawyer from
accepting other representation, or the
lawyer's experience, reputation, and skill
may result in immediate benefit to the
client without regard to whether extensive
labor is performed. See Wisconsin Ethics
Opinion E-93-4. Based on this, the referee
concluded the nonrefundable aspect of this
fee was unreasonable because Attorney Ward
was not precluded from taking on other
representation due to his representation of
this client, and his experience, reputation,
and skill were not at such a level as to
give this client an immediate benefit.
25. The referee ultimately found that
Attorney Ward performed 13.8 hours of
legitimate research for a total time
expenditure of 23.9 hours which at a rate of
$200 per hour, amounted to $4780. The
referee concluded that reasonable
restitution to this client would thus be
$5220.
26. The referee's findings with respect
to
this nonrefundable fee agreement are not
clearly erroneous. The record does not
support Attorney Ward's contention that the
nature of the representation of this client
precluded him from accepting other
representation or that his experience,
reputation and skill could result in
immediate benefit to the client without
regard to whether extensive labor was
performed. Indeed, there certainly was no
immediate benefit to this client.
27. Further, the referee's findings with
respect to the amount to be refunded this
client are not clearly erroneous. It
obviously was difficult to create exactly
what Attorney Ward legitimately did in this
case, due in significant part to his lack of
proper documentation. Again, the referee had
the benefit of listening to the witnesses,
examining any relevant documentation that
did exist, and assessing Attorney Ward's
assertions in his defense.
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28. The referee recommended the public
reprimand
which the OLR sought. She agreed with its
characterization of Attorney Ward as selfish
and having intentionally misstated the
amount of time he spent on this case. The
referee reviewed several cases where public
and private reprimands were issued but
concluded they were not entirely comparable
because of factual differences. However, the
referee indicated that since there were
three counts of misconduct, and particularly
since Attorney Ward already has a private
reprimand on his disciplinary record, a
public reprimand was appropriate.
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29. As previously noted, the referee also
recommended restitution of $5220 to be
awarded the client, plus interest at the
statutory rate from the date Attorney Ward's
services were terminated.
30. We adopt the referee's
recommendation and
therefore decide that a public reprimand is
appropriate. Although there are indeed
factual differences with similar prior
cases, several are instructive. In
Disciplinary Proceedings Against Tjader,
2002 WI 37, 252 Wis. 2d 94, 643 N.W.2d 87,
resulted in a public reprimand for failure
to act with reasonable diligence and return
an unearned fee. Further, In Disciplinary
Proceedings Against Koehn, 208 Wis. 2d
128, 559 N.W.2d 908 (1997), resulted in a
public reprimand for failure to provide
competent representation, failing to
promptly file necessary documents, and
failing to respond to a request for
information from the client, under
circumstances where the attorney had a prior
disciplinary record. These, coupled with
Attorney Ward's disciplinary record,
indicate that a public reprimand is
appropriate.
31. IT IS ORDERED that Attorney John A.
Ward
is publicly reprimanded.
32. IT IS FURTHER ORDERED that Attorney
Ward's motion to dismiss the OLR complaint,
objection to costs, motion to disallow or
reduce costs, motion to hold in abeyance,
and motion to supplement are denied.
33. IT IS FURTHER ORDERED that within 60
days
of the date of this order Attorney Ward
shall pay: (1) the costs of this proceeding
to the OLR in the amount of $18,097.26; and
(2) his former client $5220 plus interest at
the statutory rate from the date his
representation was terminated. If these
costs are not paid within the time
specified, and absent a showing to this
court of an inability to pay those costs
within that time, the license of Attorney
Ward to practice law shall be suspended
indefinitely.
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