Disciplinary Proceedings Against Biester
2013WI85, 10/22/2013 (2013)
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ATTORNEY disciplinary
proceeding. Attorney's license
suspended.
¶1 PER CURIAM. We review the report
filed by the referee, Dennis J. Flynn,
recommending the court suspend Attorney Mary
K. Biester's license to practice law in
Wisconsin for one year for 30 counts of
professional misconduct. No appeal has been
filed so we review the referee's report and
recommendation pursuant to SCR 22.17(2).
Upon careful review of the matter, we adopt
the referee's findings of fact and
conclusions of law. We agree that Attorney
Biester's professional misconduct warrants a
one-year suspension of her license to
practice law. We also find it appropriate
to order her to make restitution and to
successfully complete 20 hours of continuing
legal education (CLE) ethics courses. We
further find it appropriate to require her
to pay the full costs of this proceeding,
which were $25,584.50 as of April 1, 2013.
¶2 Attorney Biester was admitted to the
practice of law in Wisconsin in 1979 and
practices in Beloit. She has no prior
disciplinary history.
¶3 On February 23, 2012, the Office of
Lawyer Regulation (OLR) filed a complaint
against Attorney Biester alleging 16 counts
of misconduct. An amended complaint
alleging 31 counts of misconduct was filed
on August 15, 2012. Attorney Biester filed
an answer to the amended complaint on
September 18, 2012. On December 18, 2012,
the referee granted Attorney Biester's
motion for a stay of proceedings as to Count
Two of the amended complaint.
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¶4 The final hearing in this matter
took place on February 18, 2013. At that
time, the parties presented the referee with
a written stipulation and no contest plea
agreement whereby Attorney Biester withdrew
her answer to the amended complaint and pled
no contest to Counts One and Three through
Thirty-One of the OLR's amended complaint.
Attorney Biester agreed that the referee
could use the allegations of the amended
complaint as an adequate factual basis in
the record for a determination of misconduct
as to those counts. The parties jointly
recommended the referee determine that an
appropriate sanction would be a one-year
suspension of Attorney Biester's license to
practice law in Wisconsin. The parties
agreed that if the referee's order staying
proceedings relating to Count Two of the
amended complaint was no longer in effect,
the OLR was free to continue the prosecution
of Count Two and seek an appropriate
sanction and restitution. The parties also
agreed that any additional sanction relating
to Count Two should run consecutive to any
sanctions imposed as a result of the
stipulation and should commence on the day
following the last day of the sanction
imposed in the instant matter.
¶5 The referee concluded that the OLR
had met its burden of proof on the 30 counts
to which Attorney Biester pled no contest.
The referee agreed that a one-year
suspension was an appropriate sanction. The
referee also recommended that Attorney
Biester make restitution in the amount of
$900 to one client, that she be ordered to
successfully complete 20 hours of CLE ethics
courses, and that she pay the full costs of
this proceeding. Rather than detail the
extensive allegations and findings in this
matter, we will instead briefly summarize
the six client matters that gave rise to
Attorney Biester's misconduct.
Matter of L.T. (Counts One and Three
through
Seven)
¶6 L.T. hired Attorney Biester to
represent her in a divorce case in the
summer of 2008. Attorney Biester's
nonlawyer assistant, J.M., had L.T. write a
$3,500 check to J.M. for attorney fees.
J.M. cashed the check without depositing it
in Attorney Biester's trust account.
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¶7 Attorney Biester was experiencing
financial problems. She filed a chapter 7
bankruptcy proceeding and her home was the
subject of a foreclosure action. L.T.
inherited a large sum of money. Attorney
Biester advised L.T. she should protect
those funds from her husband. In February
2009 J.M. convinced L.T. to transfer $78,000
of her inherited funds into Attorney
Biester's client trust account for
safekeeping. Attorney Biester wire-
transferred over $70,000 from her client
trust account to the bank that held the
first mortgage on Attorney Biester's home.
Attorney Biester never notified L.T. of the
receipt of L.T.'s funds, nor did she deliver
any of those funds to L.T. or provide L.T.
with a full accounting. The OLR's
investigative audit of Attorney Biester's
trust account showed numerous trust account
violations.
Matter of L.R. (Counts Eight through
Eleven)
¶8 In July of 2009, L.R. hired Attorney
Biester to represent her in a divorce case.
During the pendency of the matter $3,886 was
forwarded to Attorney Biester, which
represented L.R.'s half of a tax refund.
Although L.R. repeatedly contacted Attorney
Biester in the fall of 2009 about the status
of the case, Attorney Biester never
responded. L.R. then decided to represent
herself and asked Attorney Biester to return
the case file and the $3,886. In October
2009 Attorney Biester informed L.R. that
police had seized L.R.'s divorce file since
it was part of an investigation by the OLR
into the actions of an employee at Attorney
Biester's law firm.
Matter of J.F. (Counts Twelve through
Sixteen)
¶9 J.F. retained Attorney Biester to
represent her in a bankruptcy matter in July
2010. J.F. paid a $750 retainer. There was
no written retainer agreement and no receipt
was given to J.F. Attorney Biester
requested additional money to handle the
matter, and J.F. paid another $150.
Attorney Biester never deposited the funds
into any client account, and no funds were
set aside to pay the bankruptcy filing fee.
Attorney Biester filed a chapter 7 voluntary
bankruptcy petition on behalf of J.F. in
December 2010 and filed a request for a
waiver of the filing fee. The waiver of
filing fees was denied but options were
given for installment payments. Attorney
Biester never informed J.F. about the
bankruptcy court's fee waiver decision. The
filing fee was never paid, and in April 2011
the bankruptcy court entered an order
dismissing the petition for failure to pay
the filing fee. Attorney Biester never
informed J.F. about the dismissal.
Matter of J.H. and D.H. (Counts Seventeen
through Twenty-Four)
¶10 In April 2007 J.H. and D.H. retained
Attorney Biester to represent them in a
potential medical malpractice claim. A
contingent retainer agreement was signed
calling for Attorney Biester to receive one-
third of any amount recovered. In addition,
J.H. and D.H. paid $1,500 for anticipated
costs. The $1,500 check was deposited into
Attorney Biester's client trust account.
¶11 J.H. and D.H. made multiple trips to
Attorney Biester's office to discuss the
case, but Attorney Biester was never there.
Attorney Biester failed to file any
malpractice lawsuit or otherwise advance the
claim before the expiration of the statute
of limitations.
¶12 J.M. was authorized as Attorney
Biester's nonlawyer assistant to perform
client services to J.H. and D.H. Attorney
Biester failed to make reasonable efforts to
ensure that J.M. was compatible with
Attorney Biester's professional
obligations. J.M. took client files and
paperwork to her home or other locations and
failed to return them to Attorney Biester's
law office. J.H. and D.H. eventually
terminated their representation by Attorney
Biester and requested the return of their
case file materials. Attorney Biester
failed to comply.
Matter of J.M. (Counts Twenty-Five through
Thirty)
¶13 J.M., Attorney Biester's nonlawyer
assistant, hired Attorney Biester in early
July 2007 relating to a financial matter
regarding a loan on a pickup truck with
J.S. J.M. and J.S. signed an agreement
whereby J.S. would pay J.M. $7,900 for a
pickup truck, and J.M. agreed to accept the
$7,900 as full and final payment for the
truck. J.M. also agreed to release the
title to the truck. J.S.'s sister loaned
him the $7,900. That sum was wire-deposited
to Attorney Biester's client trust account.
Attorney Biester did not notify J.M. of her
receipt of the money. The OLR's audit of
Attorney Biester's client trust account
revealed that Attorney Biester used the
funds belonging to J.M. by making
disbursements to herself for $5,400 and
paying $400 in office rent. During the
course of the representation, J.M. was
associated with the Biester Law Office and
engaged in conduct that was incompatible
with the professional obligations of
Attorney Biester, including having Attorney
Biester's business and client trust account
checkbooks at her home. The checkbooks were
seized by police in the execution of a
search warrant of J.M.'s home.
Matter of M.W. (Count Thirty-One)
¶14 M.W. hired Attorney Biester to
represent her in custody and paternity
matters. She tried without success to
contact Attorney Biester regarding the
status of her case. M.W. verbally filed a
grievance with the OLR. The OLR sent
Attorney Biester several letters but
Attorney Biester did not respond. Attorney
Biester did finally respond after this court
issued an order to show cause why her
license should not be temporarily suspended
for failing to cooperate in the
investigation.
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¶15 The referee concluded that Attorney
Biester committed the misconduct alleged in
Counts One and Three through Thirty-One of
the amended complaint. That misconduct
consisted of: One violation of SCR 20:1.2
(a); three violations of SCR 20:1.3; one
violation of SCR 20:1.4(a)(2); three
violations of SCR 20:1.4(a)(3); two
violations of SCR 20:1.4(a)(4); one
violation of SCR 20:1.4(b); one violation of
SCR 20:1.6; four violations of SCR 20:1.15(b)
(1); two violations of SCR 20:1.15(b)(4);
one violation of SCRs 20:1.15(d)(1) and (2);
three violations of SCR 20:1.15(f)(1)e.; two
violations of SCR 20:1.15(e)(4)a.; one
violation of SCR 20:1.15(e)(4)c.; one
violation of SCR 20:1.16(d); one violation
of SCR 20:3.4(c); four violations of SCR
20:5.3(b); five violations of SCR 20:8.4(c);
one violation of SCR 22.03(2), enforced via
SCR 20:8.4(h); and five violations of SCR
22.03(6), enforced via SCR 20:8.4(h).
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¶16 In discussing the appropriate
sanction, the referee noted that Attorney
Biester engaged in multiple acts of
misconduct that occurred over a period of
years. She did not initially cooperate with
the OLR during its investigations. The
referee said the misuse of client funds
became a pattern, and court orders were not
followed. The referee also noted each of
the six client matters detailed in the OLR's
amended complaint evidences harm to the
client and injury to the integrity of the
legal system in Wisconsin.
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¶17 As mitigating factors, the referee
said Attorney Biester appears to demonstrate
genuine remorse. She has no prior
misconduct adjudications over a practice
career of almost 34 years. The referee said
Attorney Biester is taking responsibility
for her actions. The referee noted that
during the period of her misconduct Attorney
Biester suffered from serious physical and
psychological issues, and suffered financial
hardship and went through a personal
bankruptcy proceeding. The referee said
Attorney Biester has expressed concern for
the victims of her misconduct, and he noted
she has participated in outpatient treatment
for her psychological issues.
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¶18 The referee said suspension of an
attorney's license to practice law for any
period of time is a very serious consequence
and also acts as a deterrent to others who
practice law in this state. The referee
concluded that an appropriate sanction for
Attorney Biester's misconduct was a one-year
suspension of her license to practice law in
Wisconsin. The referee also concluded that
restitution in the amount of $900 should be
paid to J.F. The referee also recommended
that Attorney Biester be required to
successfully complete 20 hours of CLE ethics
courses approved in advance by the OLR and
minimally addressing issues related to
office management, trust account
maintenance, responsibility to clients, and
compliance with court orders. The referee
also recommended that Attorney Biester be
ordered to pay the full costs of the
proceeding.
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¶19 The referee added that, if in the
future, the stay as to Count Two of the
amended complaint is lifted and that matter
is prosecuted, that matter would stand on
its own and the OLR and Attorney Biester
should not be prejudiced by the decision
made in the instant case. The referee said
if Attorney Biester is subsequently found to
have committed the misconduct alleged in
Count Two of the amended complaint and
sanctions are imposed, those sanctions
should run consecutive to the sanctions
imposed in this case.
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¶20 This court will affirm a referee's
findings of fact unless they are clearly
erroneous. Conclusions of law are reviewed
de novo. In re Disciplinary Proceedings
Against Tully, 2005 WI 100, ¶25, 283 Wis.
2d
124, 699 N.W.2d 882. This court is free to
impose whatever discipline it deems
appropriate, regardless of the referee's
recommendation. In re Disciplinary
Proceedings Against Widule, 2003 WI 34,
¶44,
261 Wis. 2d 45, 660 N.W.2d 686.
¶21 We adopt the referee's findings of
fact because they have not been shown to be
clearly erroneous, and we also agree with
the referee's conclusions of law. As to the
appropriate level of discipline, although at
first blush a one-year suspension may seem
to be on the light side for an attorney who
has stipulated to 30 counts of professional
misconduct, after careful consideration of
all of the circumstances of this case, we
conclude that a one-year suspension of
Attorney Biester's license to practice law
is an appropriate sanction.
¶22 In In re Disciplinary Proceedings
Against Raneda, 2012 WI 42, 340 Wis. 2d
273,
811 N.W.2d 412, an attorney who was found to
have engaged in 14 counts of professional
misconduct received a one-year suspension.
The misconduct included failing to hold
disputed funds in trust, distributing trust
funds to himself without promptly providing
a full written accounting to the person who
had ownership of the property, failing to
keep his clients reasonably informed about
the status of their matters, and failing to
cooperate with the OLR. The attorney had
been practicing law for nine years and had
no prior disciplinary history.
¶23 In In re Disciplinary Proceedings
Against Mandelman, 2009 WI 40, 317 Wis. 2d
215, 765 N.W.2d 788, an attorney who
stipulated to having engaged in six counts
of professional misconduct also received a
one-year suspension. The misconduct
included collecting a fee without performing
any work, failing to promptly disburse
client funds and provide a full accounting
upon request, and failing to act with
reasonable diligence and promptness in
representing a client. The attorney had
been practicing law for 29 years and had
been disciplined for professional misconduct
on four prior occasions, including three
prior suspensions. The attorney's first
contact with Wisconsin's lawyer disciplinary
system, which occurred in 1990 when he had
been practicing law for 10 years, resulted
in his receiving a one-year suspension for
27 separate rule violations.
¶24 Since no two cases are precisely
analogous, there is no "standard" sanction
for particular misconduct. Nevertheless,
the sanctions imposed in prior cases are
instructive in fashioning an appropriate
remedy for the case at hand. Attorney
Biester has admitted to more counts of
misconduct than were at issue in Raneda
or
the 2009 Mandelman matter. (Attorney
Mandelman's 1990 case, which also resulted
in a one-year suspension, involved roughly
the same number of counts as does the
instant case.) As the referee noted,
Attorney Biester practiced law uneventfully
for nearly 34 years. Her professional
misconduct occurred during a period where
she was experiencing serious personal
hardships. She has accepted responsibility
for her actions and has expressed concern
for the victims of her misconduct. Upon
consideration of all of the facts of this
case, we agree with the referee that a one-
year suspension of Attorney Biester's
license to practice law in Wisconsin is an
appropriate sanction.
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¶25 Because the case presents no
extraordinary circumstances, we further
conclude that Attorney Biester should be
required to pay the full costs of this
matter. See SCR 22.24(1m) (supreme court's
general policy upon a finding of misconduct
is to impose all costs upon the respondent
attorney). We also agree with the referee's
recommendation that Attorney Biester should
be required to complete CLE ethics courses
preapproved by the OLR, and we concur with
the referee's recommendation about future
prosecution of Count Two of the amended
complaint, should the existing stay be
lifted.
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¶26 Turning to the issue of restitution,
the parties stated in their stipulation, and
the referee agreed, that restitution in the
amount of $900 should be ordered paid to
J.F., unless Attorney Biester can
demonstrate that that amount has already
been paid. The parties' stipulation points
out that in the event the stay of all
proceedings relating to Count Two is lifted,
the OLR may continue the prosecution of
Count Two and seek appropriate sanctions and
restitution relating thereto. The record
indicates that the Wisconsin Lawyers' Fund
for Client Protection (the Fund) has paid
$78,000 to L.T. In the event the stay of
proceedings relating to Count Two of the
amended complaint is lifted, the OLR will
apparently be seeking an order requiring
Attorney Biester to reimburse the Fund.
Since a stay of all proceedings relating to
Count Two currently remains in effect, the
issue of restitution to the Fund is not
before us at this time.
¶27 IT IS ORDERED that the license of
Mary K. Biester to practice law in Wisconsin
is suspended for a period of one year,
effective November 25, 2013.
¶28 IT IS FURTHER ORDERED that Mary K.
Biester shall pay restitution in the amount
of $900 to her former client, J.F., within
60 days of the date of this order, or
provide documentation to the Office of
Lawyer Regulation that restitution has
already been made.
¶29 IT IS FURTHER ORDERED that, as a
condition of her reinstatement, Mary K.
Biester shall successfully complete 20 hours
of continuing legal education ethics courses
approved in advance by the Office of Lawyer
Regulation. The courses should address
issues related to office management, trust
account maintenance, responsibility to
clients, and compliance with court orders.
¶30 IT IS FURTHER ORDERED that within 60
days of the date of this order, Mary K.
Biester shall pay to the Office of Lawyer
Regulation the costs of this proceeding,
which are $25,584.50 as of April 1, 2013.
¶31 IT IS FURTHER ORDERED that
restitution is to be completed prior to
paying costs to the Office of Lawyer
Regulation.
¶32 IT IS FURTHER ORDERED that Mary K.
Biester shall comply with the provisions of
SCR 22.26 concerning the duties of a person
whose license to practice law in Wisconsin
has been suspended.
¶33 IT IS FURTHER ORDERED that, if in
the future, the stay of all proceedings
relating to Count Two of the amended
complaint is lifted and there is an
additional finding of misconduct as to Count
Two, any sanction imposed as a result of
that misconduct shall run consecutive to the
one-year suspension imposed by the terms of
this order.
¶34 IT IS FURTHER ORDERED that
compliance with all conditions of this order
is required for reinstatement. See SCR
22.29
(4)(c).
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