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J. Alberto Quiroga was admitted to the
practice of law in
Wisconsin on June 18, 2001, State Bar No.
1037987.
From March 26, 2019, until August 18, 2020,
Quiroga represented A.W. in her divorce from
E.W. He also
represented A.W. in obtaining a domestic
abuse restraining
order against E.W.
_Conduct Related to Handling of Funds Held
in Trust_
At a May 14, 2019, temporary order hearing in
the divorce
matter, the parties agreed that
Quiroga would hold the funds from the sale of
a property
owned by A.W. and E.W. in trust.
In November 2019, Quiroga left his employment
at one law
firm and started his employment at another
law firm. At the
time, he was holding $66,480.03 in trust for
the benefit of
A.W. and E.W. He transferred the entirety of
those funds
into his new firm's trust account.
In January 2020, a second property owned by
A.W. and E.W.
was sold. In a January 17, 2019, email
exchange between
Quiroga, E.W., and the real estate agent,
Quiroga stated
that $6700 from the proceeds of the sale
would go to E.W.
for reimbursement for the roof repair he had
paid for and "
[t]he entirety of the remaining balance will
to to (sic)
the trust fund while waiting for the
divorce to finalize."
On January 31, 2020, the remaining proceeds
from the sale
of the second property, totaling $113,262.10,
were
deposited into Quiroga's firm's trust
account.
In February 2020, E.W. hired an attorney to
represent him
in his divorce.
In a February 26, 2020, email, Quiroga told
E.W's attorney
that he (Quiroga) was holding
$66,480.03 in trust from the sale of the
couple's first
property. That amount did not reflect the
previous month's
deposit of the proceeds from the sale of the
second
property, nor did it reflect disbursements
Quiroga had made
from the trust account in November 2019,
December 2019, and
January 2020 to pay attorney's fees owed to
him by A.W.
On July 24, 2020, and again on July 26, 2020,
E.W. 's
attorney requested an updated accounting of
the funds
Quiroga was holding in trust for A.W. and
E.W. The
accounting revealed that between November 26,
2019, and
June 29, 2020, Quiroga made withdrawals
totaling $8,995
from the trust funds to pay attorney's fees
owed to him by
A. W.
In a July 28, 2020, email, E.W's attorney
asked Quiroga
under which statute he was,
"allowed to apply funds held, in trust, for
both parties,
to your fees incurred to represent on part
(sic) - absent a
court order?"
Quiroga responded that paying his fees out of
the trust
funds was allowed by statute and
offered to cut a check to E.W.'s attorney's
firm for
outstanding fees owed by E. Specifically,
Quiroga cited
Wis. Stat. 767.117(l)(b). That statute
prohibits,
"encumbering, concealing, damaging,
destroying,
transferring of otherwise disposing of
property owned by
either or both of the parties, without the
consent of the
other party or an order of the court, except
in the usual
course of business, in order to secure
necessities, or in
order to pay reasonable costs and expense of
the action,
including attorney fees." E.W. 's attorney
responded
saying, "I think this is different from a
joint account. It
is money you are holding for both of them."
On July 29, 2020, Quiroga filed a Motion to
Amend Temporary
Order. Quiroga sought to
amend the temporary order to allow for a
disbursal of
$15,000 to each party, with A.W. 's disbursal
being offset
by the amount of trust account funds that had
been paid to
Quiroga to cover her legal fees.
That same day, A.W. sent an email to Quiroga
and another
attorney at Quiroga's firm which
stated, "This is an email confirming that the
$8995 draw
from [Quiroga's firm's trust account] is
being applied to
my current billed balance for attorneys (sic)
fees. This
payment is taking from my portion of the
marital assets."
While Quiroga asserts he was not "personally
party" to any
of the discussions leading to the drafting of
the email, he
infers that A.W. spoke to an attorney about
the conflict
surrounding the fees, "given that the email
is worded as
though a lawyer assisted in composing it."
Quiroga surmised
A.W. may have spoken to A.W.'s boyfriend's
attorney.
Quiroga's billing records reflect that the
attorney at his
firm spoke to A.W.'s boyfriend's attorney the
day the email
was drafted. In testimony regarding the
email, A. W. said
she drafted the email but that, "We wanted to
clarify it
wasn't being taken from [E.W.' s] portion."
In an affidavit accompanying the motion,
Quiroga averred
that he paid the fees out of the
trust account pursuant to Wis. Stat.
767.117(1)(b). He
further elaborated stating, "Upon
information and belief both [A.W.] and [E.W.]
are
authorized, upon request, to draw from the
trust to pay for
attorney fees in this family law matter. ...
My client has
authorized me to pay her fees out of her
portion of the
trust funds as allowed by statute."
On July 31, 2020, E.W.'s attorney filed a
motion to return
the disbursed funds to trust and
to transfer the entirety of the trust funds
to his (E.W.' s
attorney's) firm. In his affidavit filed in
support of the
motion, E.W. averred that he did not approve
of the
withdrawals being made at the time they were
made and did
not approve of them now. In his supporting
affidavit, E.W.
's attorney averred that he had "insisted on
return of the
funds, and that the replenished trust funds
be turned over
to hold at my firm's trust account." Despite
E.W. 's
counsel's request, none of the funds had been
replenished.
Quiroga did not personally receive the funds
that were
taken from trust. Rather, they were
deposited into his firm's account. Because he
was not in
control of the funds, he was not in a
position to return
the funds to the trust account.
On August 18, 2020, Quiroga withdrew from
representing A.W.
because a disagreement had developed between
him and his
client. He was replaced by another attorney.
On September 21, 2020, Rock County Circuit
Court Judge
Derrick A. Grubb was assigned
judge in the divorce matter.
On October 13, 2020, a hearing was held
before Judge Grubb
on both pending motions. In
the meantime, the remaining trust funds had
been
transferred to the law firm of the guardian
ad litem in the
matter.
At the conclusion of the October 13, 2020,
hearing, the
judge stated, "I think that the
findings should be clear, that it appears to
me that there
was a violation of [SCR 20: 1.15(e)(3)]."
Pursuant to SCR
20:1.15(e)(3), when a client and another
person claim
ownership interest in trust property
identified by a lien,
court order, judgment, or contract, the
lawyer shall hold
that property in trust until there is an
accounting and
severance of the interests. If a dispute
arises regarding
the division of the property, the lawyer
shall hold the
disputed portion in trust until the dispute
is resolved.
The judge further stated that he didn't
believe Wis. Stat.
767.117(1)(b) contemplated trust accounts.
The judge ordered the guardian ad litem to
disburse $8,995
to E.W's attorney's trust
account for the benefit of E.W. The judge
also invoked the
court's equitable authority to impose
sanctions and gave
E.W's attorney until October 15, 2020, to
submit a
statement of fees associated with pursuing
motion to be
considered in imposing sanctions. A.W. 's
counsel was given
until October 19, 2020, to respond.
On October 19, 2020, Quiroga filed a motion
to vacate the
court's decision of October 13,
2020. A hearing was noticed for November 20,
2020.
At the November 20, 2020 hearing, the judge
stated he would
not address the motion to
vacate and motion for sanctions until the
divorce had been
concluded, as advancing the underlying case
was his
priority.
By letter dated December 10, 2020, Quiroga
was notified
that OLR had opened an investigation into
this matter.
A hearing on the motion to vacate and motion
for sanctions
was finally held on October
28, 2022. At that hearing, Quiroga dropped
the motion to
vacate because the equalization payment had
been made and
the issue of any violation of the Supreme
Court Rules was
before OLR. Thus, the only issue left was
sanction.
During the hearing, A.W. testified that she
understood that
both parties had to agree to any disbursement
of trust
funds and that she had not authorized Quiroga
to release
the $8,995 to pay her fees. She further
testified that she
sent her July 28, 2020, email after she
discovered there
was "a debate or conversation happening
between the lawyers
on July 28th, so I sent it after I found out
there was a
discussion."
Quiroga testified that he believed he had
E.W.'s permission
to disburse the funds because,
in July 2019, a year before E.W. hired an
attorney, Quiroga
spoke to E.W. and suggested E.W. hire his own
counsel, to
which he alleged E.W. had responded, "Why,
we're both
paying you?" Quiroga identified no other
facts supporting
his conclusion that E.W. authorized his
disbursement of
funds.
On October 28, 2022, the judge awarded $2500
to E.W. as a
sanction for Quiroga's
"conduct in taking the money out of the trust
account
without a joint agreement of the parties at
the time."
Quiroga was ordered to pay the funds to
E.W.'s attorney
within 90 days.
Quiroga paid the funds on February 1, 2023.
_Conduct Related to Injunction_
On June 26, 2020, an injunction was entered
against E.W. As
part of the injunction, E.W.
was not allowed to be within two city blocks
of A.W's
residence located in Middleton, WI. E.W was
represented in
the matter by a second attorney.
On June 29, 2020, Quiroga emailed both of
E.W.'s attorneys
a proposed map highlighting
what he and his client considered to be a
boundary of two
city blocks around A.W.'s residence. Quiroga
never
submitted the map to the court. The map had
been created by
A.W.
On June 30, 2020, E.W. 's divorce attorney
responded to
Quiroga, copying E.W.'s second
attorney and informed Quiroga that he needed
to talk to
E.W. but he (E.W.'s divorce attorney)
understood that E.W.
needed to be able to drive on certain roads
and visit
certain business, which the proposed map
would prohibit him
from doing. The email ended by asking, "Is
that OK with
you?"
That same day, Quiroga responded to both of
E.W.'s
attorneys asking, "Can you explain
why he needs to drive in these areas?"
On July 1, 2020, E.W.' s second attorney sent
Quiroga and
E.W.'s divorce attorney an email
stating that E.W. needed to be able to drive
on certain
roads for commuting purposes and to visit
certain stores.
The attorney explained that she had raised
these issues
with the judge at a hearing on a related
matter and had
been told that if the parties couldn't come
to an
agreement, she should file a letter
requesting a hearing to
clarify the boundaries. She asked Quiroga to
let her know
if he wouldn't agree to the changes and she
would file a
letter with the court.
On July 8, 2020, E.W.'s second attorney filed
a letter with
the court asking for a hearing
on the issue of setting the boundaries. She
noted she had
reached out to Quiroga several times and they
could not
come to an agreement as to the meaning of
"two blocks."
On July 11, 2020, A.W. provided the map
proposed by Quiroga
to the Middleton Police
Department in connection to a report of a
suspicious
person, who turned out to be E.W. No arrest
was made in
connection to that incident.
On July 13, 2020, the judge's clerk emailed
E.W. 's second
attorney and Quiroga asking
which of two addresses was applicable to the
injunction;
the judge had both a Madison address and a
Middleton
address. The clerk also informed counsel that
the judge
declined to schedule a hearing on the matter
of setting the
physical boundaries related to the
injunction.
A minute later, Quiroga responded that the
Middleton
address was applicable.
On July 14, 2020, the judge's clerk sent
Quiroga and E.W.'s
second attorney a map
showing the outlines of the geographical
restriction "as
ordered by the judge." The email stated,
"Please see the
attached google map that outlines the
geographical
restriction determined and ordered by Judge
Hyland. [E.W.]
may travel on [certain streets] but not
within the city
blocks indicated."
That same day, the map sent by the judge was
filed in the
injunction case. The map
contained the statement BY ORDER OF THE COURT
and was
signed by the judge. Quiroga
received electronic notice of the filing.
Quiroga did not
provide a copy of the court-approved map to
A.W. On July
21, 2020, based on a call from A.W. and the
boundaries on
the proposed map A.W. had previously provided
to Middleton
Police Department, E.W. was arrested on
suspicion of a
violation of the injunction.
When he was arrested, E.W. had a copy of the
court-ordered
map with him. A detective
with the Middleton Police Department spoke to
E.W.'s second
attorney, who informed the
detective that the map E.W. had (which was
not the map
proposed by Quiroga and provided to
the Middleton Police Department by A.W.) was
the valid,
court-ordered map. E.W.'s second
attorney then emailed the valid, court-
ordered map to the
detective.
The detective also spoke to Quiroga, who was
"very
persistent" in asserting that the map
provided to the Middleton Police Department
by A.W. was the
court-approved map. During her
conversation with Quiroga, the detective
informed Quiroga
that the map E.W.'s second attorney had
emailed to the
detective encompassed a smaller area than the
one A.W. had
provided. Quiroga insisted that the map A.W.
had provided
was the valid map.
The detective then contacted the clerk of
courts, who
clarified that the map provided by
E.W's second attorney was the valid, court-
ordered map.
E.W. was released from jail immediately,
where he had been
held for approximately five hours.
In a letter to the judge dated July 21, 2020,
and filed on
July 22, 2020, Quiroga
acknowledged his awareness of the July 14,
2020, map sent
by the judge's assistant but stated that the
map bore, "no
signature by the Court or any indication that
it had been
incorporated in the injunction .... " Quiroga
asked that
the court schedule a hearing "to settle the
matter of the
injunction borders .... " The court declined
to schedule a
hearing.
_Violations_
By directing his firm to disburse money to
pay legal fees
owed to to his firm by A.W. from
trust funds the firm was holding to which
A.W. and E.W.
both claimed an ownership interest,
Quiroga violated SCR 20:1.15(e)(3), which
states, "When the
lawyer and another person or the client and
another person
claim ownership interest in trust property
identified by a
lien, court order, judgment, or contract, the
lawyer shall
hold that property in trust until there is an
accounting
and severance of the interests. If a dispute
arises
regarding the division of the property, the
lawyer shall
hold the disputed portion in trust until the
dispute is
resolved. Disputes between the lawyer and a
client are
subject to the provisions of sub. (g)(2)."
By failing to disclose to E.W. 's divorce
attorney in
February 2020 that he had made disbursements
from the trust
funds he was holding, Quiroga violated SCR
20:8.4(c), which
states, "It is professional misconduct for a
lawyer to
engage in conduct involving dishonesty,
fraud, deceit, or
misrepresentation." SCR 20: 1.0(h) defines
misrepresentation as, "communication of an
untruth, either
knowingly or with reckless disregard, whether
by statement
or omission, which if accepted would lead
another to
believe a condition exists that does not
actually exist.
By representing to the detective that the map
A.W. had
provided the police accurately
outlined the geographical areas from which
E.W. was
restricted, Quiroga violated SCR 20:8.4(c),
which states,
"It is professional misconduct for a lawyer
to engage in
conduct involving dishonesty, fraud, deceit,
or
misrepresentation." SCR 20: 1.0(h) defines
misrepresentation as, "communication of an
untruth, either
knowingly or with reckless disregard, whether
by statement
or omission, which if accepted would lead
another to
believe a condition exists that does not
actually exist.
Attorney Quiroga has no prior discipline.
In accordance with SCR 22.09(3), Attorney
Quiroga is hereby
publicly reprimanded.
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