Disciplinary Proceedings Against Kleinsmith
2018 WI 50, 5-16-18 (2018)
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ATTORNEY disciplinary proceeding.
Attorney's license revoked.
¶1 PER CURIAM. The Office of Lawyer
Regulation (OLR) and Attorney Philip M.
Kleinsmith have filed a stipulation pursuant
to Supreme Court Rule (SCR) 22.12 agreeing
that Attorney Kleinsmith's license to
practice law in Wisconsin should be revoked,
as discipline reciprocal to that imposed by
the Supreme Court of Colorado. Upon careful
review of the matter, we approve the
stipulation and impose the stipulated
reciprocal discipline. The OLR does not
seek the imposition of costs against
Attorney Kleinsmith because this matter was
resolved without the need for a referee or a
lengthy proceeding, and we impose no costs.
We do require Attorney Kleinsmith to comply
with all of the conditions of the
disciplinary orders imposed on him by the
Colorado Supreme Court, which include a
requirement that he pay restitution in the
Colorado matter.
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¶2 Attorney Kleinsmith was admitted to
practice law in Colorado in 1967. He
presently resides in Colorado. He was
admitted to practice law in Wisconsin in
1999 and, at some point, was also admitted
to practice law in Arizona. In 2013, this
court publically reprimanded Attorney
Kleinsmith as discipline reciprocal to a
reprimand imposed by the Arizona Supreme
Court, for filing improper arbitration
certificates in nine different matters;
failing to appear at a hearing; failing to
properly serve a party; failing to properly
withdraw as counsel; and filing documents
with errors and omissions. Public Reprimand
of Philip M. Kleinsmith, No. 2013-10
(electronic copy available at
https://compendium.wicourts.gov/app/
raw/002602.html). His Wisconsin law license
has been suspended since October 31, 2017,
for failure to pay mandatory state bar dues
and failure provide an OLR certification.
¶3 On October 30, 2017, the Supreme
Court of Colorado entered an order
disbarring Attorney Kleinsmith in Colorado
for professional misconduct. The misconduct
giving rise to his Colorado disbarment dates
from 2012, when Attorney Kleinsmith hired a
title company to work on several foreclosure
matters in which his firm represented a
bank. Attorney Kleinsmith billed the bank
for the title company's work, but after the
bank paid him, he converted those funds to
his own use, instead of paying the title
company.
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¶4 The Colorado Supreme Court found that
Attorney Kleinsmith's conduct violated
Colorado Rules of Professional Conduct (RPC)
8.4(c), 1.15A and former RPC l.15(b).
Attorney Kleinsmith was ordered to pay
$56,238.80 in restitution to First American
Title Company of Montana.
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¶5 Attorney Kleinsmith then failed to
notify the OLR of his Colorado disbarment
within 20 days of its effective date. SCR
22.22(1).
¶6 On December 29, 2017, the OLR filed
a complaint against Attorney Kleinsmith
alleging two counts of misconduct. First,
by virtue of his Colorado disbarment,
Attorney Kleinsmith is subject to reciprocal
discipline in Wisconsin pursuant to SCR
22.22(3) (Count 1). Second, by failing to
notify OLR of his disbarment in Colorado for
professional misconduct within 20 days of
the effective date of its imposition,
Attorney Kleinsmith violated SCR 22.22(1)
(Count 2).
¶7 On February 22, 2018, Attorney
Kleinsmith entered into a stipulation with
the OLR in which he agreed that the facts
alleged in the OLR's complaint support the
revocation of his license to practice law in
Wisconsin, as discipline reciprocal to that
imposed by the Supreme Court of Colorado.
¶8 Supreme Court Rule 22.22(3) provides
that this court shall impose the identical
discipline imposed in another jurisdiction
unless one or more of three exceptions
apply. In his stipulation, Attorney
Kleinsmith states that he does not claim any
of the defenses found in SCR 22.22(3), and
he agrees that this court should revoke his
license to practice law in Wisconsin.
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¶9 Attorney Kleinsmith also states that
the stipulation did not result from plea
bargaining and that he does not contest the
facts and misconduct alleged by the OLR.
Attorney Kleinsmith further states that he
agrees the facts alleged in the OLR's
complaint may form a basis for the
discipline requested by the OLR director.
He further avers that he fully understands
the misconduct allegations; fully
understands the ramifications should this
court impose the stipulated level of
discipline; fully understands his right to
contest the matter; fully understands his
right to consult with counsel; avers that
his entry into the stipulation is made
knowingly and voluntarily; that he has read
the OLR's complaint and the stipulation and
that his entry into the stipulation
represents his decision not to contest the
misconduct alleged in the complaint or the
level and type of discipline sought by the
OLR.
¶10 In the memorandum submitted in
support of the stipulation, the OLR
recommends this court also order Attorney
Kleinsmith to comply with the Colorado
Supreme Court's decision, which requires
Attorney Kleinsmith to make restitution.
See, e.g., In re Disciplinary
Proceedings
Against Manion, 2016 WI 88, 372 Wis. 2d
34,
886 N.W.2d 371 (ordering attorney in a
reciprocal discipline case who was directed
to pay restitution in another state to
comply with "all conditions of the
disciplinary orders imposed on him by the
Arizona Supreme Court required for
reinstatement").
¶11 We accede to the OLR's request
regarding restitution. The court notes that
in the event Attorney Kleinsmith ever seeks
reinstatement of his Wisconsin law license,
he would need to demonstrate, pursuant to
SCR 22.29(4m), that he has made the
restitution ordered by the Colorado Supreme
Court or explain his failure to do so.
¶12 Upon review of this matter, we
accept the stipulation and revoke Attorney
Kleinsmith's license to practice law in
Wisconsin, as discipline reciprocal to that
imposed by the Supreme Court of Colorado.
Because this matter has been resolved by
means of a stipulation without the
appointment of a referee and because the OLR
has not requested the imposition of costs,
we do not impose any costs upon Attorney
Kleinsmith.
¶13 IT IS ORDERED that the license of
Philip M. Kleinsmith to practice law in
Wisconsin is revoked, effective the date of
this order.
¶14 IT IS FURTHER ORDERED that, to the
extent he has not already done so, Philip M.
Kleinsmith shall comply with the provisions
of SCR 22.26 concerning the duties of a
person whose license to practice law in
Wisconsin has been revoked.
¶15 IT IS FURTHER ORDERED that
compliance with all conditions of this
order, as well as compliance with all
conditions of the disciplinary orders
imposed on him by the Colorado Supreme Court
are required for Philip M. Kleinsmith's
reinstatement. See SCR 22.29(4)(c).
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