Disciplinary Proceedings Against Smead
2013 WI 19, 02/20/2013 (2013)
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ATTORNEY disciplinary
proceeding. Attorney publicly
reprimanded.
¶1 PER CURIAM. We review the report
and recommendation of the referee, the
Honorable John B. Murphy, approving a
stipulation filed by the Office of Lawyer
Regulation (OLR) and Attorney Robert J.
Smead regarding Attorney Smead's
professional misconduct in the handling of
one client matter. The OLR and Attorney
Smead stipulate that Attorney Smead
committed professional misconduct. The
referee concluded that the appropriate
sanction for the misconduct is a public
reprimand. Upon careful consideration, we
adopt the stipulated facts and the referee's
conclusions of law. We also agree that a
public reprimand is an appropriate level of
discipline, and also find it appropriate to
order Attorney Smead to pay the full costs
of the proceeding, which are $1,699.03 as of
January 2, 2013.
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¶2 Attorney Smead was admitted to
practice law in Wisconsin in 1998 and
practices in Larsen, Wisconsin. In 2010,
his law license was suspended for 120 days
for misconduct found in two separate
attorney disciplinary matters. The
misconduct at issue included failing to
respond to clients' requests for
information; failing to hold clients' money
in trust; failing to refund an unearned fee
to a client; failing to have a written
contingent fee agreement; and failing to
respond to the OLR's grievance
investigations. In re Disciplinary
Proceedings Against Smead, 2010 WI 4,
¶¶20,
28, 322 Wis. 2d 100, 777 N.W.2d 644. In
2011, Attorney Smead was publicly
reprimanded for failure to notify a client
that his law license had been suspended;
failure to provide a client with an
accounting of fees advanced and a refund of
any unearned portion of the fee following
the suspension of his law license; and
failure to provide the OLR with a written
response to a grievance investigation. In
re Disciplinary Proceedings Against Smead,
2011 WI 102, ¶9, 338 Wis. 2d 23, 806 N.W.2d
631.
¶3 On July 17, 2012, the OLR filed a
complaint alleging seven counts of
misconduct arising out of Attorney Smead's
representation of J.C., who hired Attorney
Smead to represent him in a criminal
matter. J.C. paid Attorney Smead an
advanced fee of $2,000. Attorney Smead did
not prepare a written fee agreement, nor did
he deposit the fee into his trust account.
¶4 On July 26, 2007, Attorney Smead
filed a notice of appearance in the criminal
matter on J.C.'s behalf. On September 5,
2007, the OLR filed a motion with this court
asking it to order Attorney Smead to show
cause why his law license should not be
suspended for willful noncooperation in
three grievance investigations unrelated to
J.C.'s case. Attorney Smead failed to
timely respond to this court's order to show
cause, and on October 10, 2007, this court
issued an order temporarily suspending
Attorney Smead's license. The order
required Attorney Smead to comply with SCR
22.26 which requires, among other things,
that a suspended attorney notify clients in
pending matters of the attorney's suspension
and consequent inability to act. The rule
also requires that the attorney notify
courts and adverse parties of the suspension.
¶5 Attorney Smead did not advise J.C.,
the presiding court, or the assistant
district attorney that his license to
practice law had been suspended. On October
17, 2007, J.C. telephoned Attorney Smead to
ask about the status of his case. Attorney
Smead's telephone was disconnected. J.C.
then sent Attorney Smead an e-mail.
Attorney Smead responded and provided a new
telephone number but he did not inform J.C.
that his law license had been suspended.
¶6 J.C. telephoned Attorney Smead
multiple times and sent several e-mails
seeking information about the status of his
case. Attorney Smead failed to provide
meaningful responses to J.C.'s inquiries,
and continued in his failure to inform J.C.
that his law license had been suspended,
that he could no longer represent J.C., and
that J.C. should hire a new attorney.
¶7 J.C. learned through a source other
than Attorney Smead that Attorney Smead's
law license had been suspended. On January
24, 2008, J.C. sent Attorney Smead an e-mail
and specifically asked him to refund the
$2,000 advanced fee. Attorney Smead did not
respond to the request and did not provide
any refund.
¶8 J.C. subsequently retained another
attorney to represent him in his criminal
matter. In February of 2008, J.C. submitted
a claim for reimbursement to the Wisconsin
Lawyers' Fund for Client Protection ("the
Fund"). The Fund approved payment of $2,000
to J.C. for reimbursement of funds lost as a
result of Attorney Smead's conduct.
¶9 The OLR's complaint alleged the
following counts of misconduct:
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[COUNT ONE:] By accepting a $2,000
advanced
fee from [J.C.] and failing to communicate
in writing the scope of the representation,
the basis or rate of the fee, and the
purpose and effect of the advanced fee,
Smead violated SCR 20:1.5(b)(1) and (b)
(2).
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[COUNT TWO:] By failing to deposit
funds received in anticipation of providing
legal services into his trust account, with
no evidence he intended to use the
alternative fee placement provisions
permitted by the rules, Smead violated SCR
20:1.15(b)(4).
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[COUNT THREE:] By charging [J.C.]
$2,000 for representation in a criminal
matter that he did not complete, Smead
charged an unreasonable fee, and therefore
violated SCR 20:1.5(a).
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[COUNT FOUR:] By failing to
meaningfully respond to [J.C.'s] multiple
phone calls and e[-]mails seeking
information about the status of his case,
and otherwise failing to reasonably consult
with [J.C.] regarding the means by which the
objectives of the representation were to be
pursued, Smead violated SCR 20:1.4(a)(2).
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[COUNT FIVE:] By failing to respond to
[J.C.'s] specific request for a refund of
unearned fees, Smead violated SCR 20:1.5(b)
(3).
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[COUNT SIX:] By failing to refund
unearned fees to [J.C.], Smead violated SCR
20:1.16(d).
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[COUNT SEVEN:] By failing to notify
his client, the presiding court, and the
prosecutor handling the criminal matter that
his law license was under suspension, Smead
violated SCR 22.26(1)(a), (b)[,] and (c).
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¶10 Attorney Smead filed an answer on
July 25, 2012, admitting the allegations in
the complaint. On October 26, 2012, the OLR
and Attorney Smead entered into a
stipulation whereby Attorney Smead stated he
understood his right to a full evidentiary
hearing at which the OLR would have the
burden to prove the allegations in the
complaint by clear, satisfactory, and
convincing evidence. Attorney Smead
affirmed that no promises were made to
secure his entry into the stipulation and
that he entered into the stipulation
voluntarily and of his own free will. The
parties stipulated that Attorney Smead would
make restitution to the Fund in the amount
of $2,000, with interest at the rate of five
percent dating back to January 24, 2008. On
October 26, 2012, the referee entered an
order approving the stipulation. The
referee requested the parties to brief the
issue of appropriate discipline. Following
review of those briefs, the referee filed
his recommendation as to discipline on
December 10, 2012. While the OLR had sought
a 60-day suspension, Attorney Smead asked
for a public reprimand. The referee
concluded that a public reprimand was an
appropriate sanction.
¶11 The referee pointed out that the
misconduct at issue in this case occurred in
the fall of 2007, which was the same general
time period during which the misconduct that
resulted in Attorney Smead's prior
suspension and public reprimand arose. The
referee said during that time period,
Attorney Smead had taken on too many cases
to help another lawyer and he became
overwhelmed. As a result of the extra work,
Attorney Smead became burned out and
exhausted and began neglecting his work,
which resulted in complaints to the OLR.
¶12 The referee said in retrospect,
Attorney Smead seems to now recognize that
his behavior during late 2007 and early 2008
fell far below the standard of professional
responsibility expected from any attorney.
The referee said although none of Attorney
Smead's post-event analysis of his behavior
excuses his actions in J.C.'s case, it does
provide a context for those actions and
suggests that his mistakes were not
motivated by greed or laziness. The referee
said Attorney Smead's self-analysis suggests
that he is capable of understanding where he
went wrong in his practice and how those
errors could be avoided in the future.
¶13 The referee notes that following his
suspension Attorney Smead began working as a
nursing assistant and later attended nursing
school and became a registered nurse in June
of 2010. Attorney Smead continues to work
as a nurse. The referee also notes that
Attorney Smead's law license is currently in
good standing and he has been working with
the Winnebago County Free Legal Clinic on a
limited basis by providing pro bono and
reduced fee services to needy clients. The
referee also points out that Attorney Smead
has made restitution to the Fund.
¶14 The referee concluded that he did
not believe a further suspension would serve
either the public or Attorney Smead in any
meaningful way. In the words of the referee:
Smead has been extremely
cooperative
in handling this case and he has
demonstrated a more than adequate
understanding of his past mistakes. He
appears sincerely sorry for what he did to
his clients, including [J.C.] Smead has
made a new life for himself and has returned
to the practice of law as part of that
life. He has chosen to make amends for this
past by providing legal service to those in
need. To deprive him of that opportunity
through suspension would be counter-
productive.
¶15 The referee recommends that the
court impose a public reprimand. He also
suggests that this court should consider
waiving costs.
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¶16 This court will affirm a referee's
findings of fact unless they are clearly
erroneous, but conclusions of law are
reviewed de novo. See In re
Disciplinary Proceedings Against
Eisenberg, 2004 WI 14, ¶5, 269 Wis. 2d 43,
675 N.W.2d 747. This court is free to
impose whatever discipline it deems
appropriate, regardless of the referee's
recommendation. See In re
Disciplinary Proceedings Against Widule,
2003 WI 34, ¶44, 261 Wis. 2d 45, 660 N.W.2d
686.
¶17 After careful review of the record,
we adopt the referee's findings of fact and
conclusions of law. We also agree with the
referee that a public reprimand is an
appropriate level of discipline.
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¶18 We note, as did the referee, that
the misconduct at issue here had its genesis
in the same time frame that was at issue in
the matters that led to Attorney Smead's
prior suspension and public reprimand.
Attorney Smead has indicated that since that
time he has evaluated his past behavior,
recognized his mistakes, and declared his
remorse for his misconduct. He has embarked
on a new career in nursing and has returned
to the practice of law on a limited basis
and provides services to needy clients. We
also note that Attorney Smead was willing to
resolve this matter without the need for a
full evidentiary hearing, and he made the
ordered restitution to the Fund. Under all
of these circumstances we conclude that a
public reprimand is an appropriate level of
discipline.
¶19 We decline to adopt the referee's
recommendation that Attorney Smead not be
assessed the costs of the proceeding.
Supreme Court Rule 22.24(1m) provides that
it is this court's general policy upon a
finding of misconduct to impose all costs
upon the respondent. In cases involving
extraordinary circumstances, the court may,
in the exercise of its discretion, reduce
the amount of costs. We find no
extraordinary circumstances in this case
that would warrant a deviation from the
court's general policy.
¶20 IT IS ORDERED that Robert J. Smead
is publicly reprimanded for professional
misconduct.
¶21 IT IS FURTHER ORDERED that within 60
days of the date of this order, Robert J.
Smead shall pay to the Office of Lawyer
Regulation the costs of this proceeding.
¶22 IT IS FURTHER ORDERED that the
director of the Office of Lawyer Regulation
shall advise the court if there has not been
full compliance with all conditions of this
order.
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