Disciplinary Proceedings Against Hammis
2019 WI 55, 5/23/19 (2019)
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ATTORNEY disciplinary proceeding.
Attorney's license suspended.
¶1 PER CURIAM. Attorney James Edward
Hammis has appealed a report filed by
Referee Lisa C. Goldman accepting
concessions Attorney Hammis made in a
stipulation with the Office of Lawyer
Regulation (OLR) that he committed 40 counts
of professional misconduct and recommending
that his license to practice to law in
Wisconsin be revoked. In his appeal,
Attorney Hammis primarily challenges the
sanction recommendation and asserts that an
appropriate sanction would be a suspension
of his license to practice law in the range
of one year.
¶2 Upon careful review of this matter,
we uphold all of the referee's findings of
fact and conclusions of law. We conclude,
however, that the facts of this case do not
warrant revocation. Instead, we conclude
that a three-year suspension of Attorney
Hammis' law license is an appropriate
sanction for the misconduct at issue. We
also deem it appropriate to impose certain
conditions upon the reinstatement of his law
license. We also order him to pay $400 in
restitution to one former client and, as is
our usual custom, we impose the full costs
of this proceeding, which are $13,160.22 as
of March 4, 2019 on Attorney Hammis.
¶3 Attorney Hammis was admitted to
practice law in Wisconsin in 1988. The
State Bar of Wisconsin shows that he has a
Stoughton address.
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¶4 In 2011, Attorney Hammis was
suspended for four months for ten counts of
misconduct involving two clients. The
misconduct included practicing law while
administratively suspended and failing to
cooperate with the OLR's investigation.
In
re Disciplinary Proceedings Against
Hammis,
2011 WI 3, 331 Wis. 2d 19, 793 N.W.2d 884.
In 2015, Attorney Hammis' license was
suspended for 90 days for nine counts of
misconduct, including failure to timely
report an Ohio misdemeanor conviction to the
OLR or the clerk of this court; failing to
communicate with an incarcerated client;
retaining an advance fee despite taking
little or no action in the matter; failing
to hold the advance fee in trust; and
failing to cooperate with the OLR's
investigation. In re Disciplinary
Proceedings Against Hammis, 2015 WI 14,
361
Wis. 2d 1, 859 N.W.2d 108.
¶5 On September 25, 2014, the OLR filed
a complaint alleging 46 counts of misconduct
against Attorney Hammis. Attorney Hammis
filed an answer on January 5, 2015. On
August 27, 2015, the OLR filed an amended
complaint alleging 49 counts of misconduct.
Attorney Hammis filed an answer on January
19, 2016.
¶6 On September 29, 2016, the parties
filed a stipulation, and Attorney Hammis
entered a no contest plea to 40 counts of
misconduct. Attorney Hammis agreed that the
referee could use the allegations of the
amended complaint as an adequate factual
basis to support findings of misconduct as
to each of the counts to which Attorney
Hammis was pleading no contest. The OLR
withdrew nine counts of misconduct.
Attorney Hammis agreed that the referee's
report should recommend that the court order
him to make restitution to one client, R.G.,
in the amount of $400. The parties further
agreed that the issue of the appropriate
level of discipline to be imposed for
Attorney Hammis' misconduct would be
addressed on briefs.
¶7 On January 6, 2017, the parties
filed a stipulation of facts specifying that
the referee may use specific allegations in
the amended complaint as an adequate factual
basis to support findings of misconduct as
to each of the misconduct counts to which
Attorney Hammis pled no contest. The
referee issued her report and recommendation
on September 14, 2017.
¶8 The counts to which Attorney Hammis
pled no contest involved nine separate
client matters as well as numerous trust
account and other violations.
¶9 According to the amended complaint,
in 2006 Attorney Hammis represented G.L. in
several criminal cases. The representation
ended sometime in 2006 or 2007. In early
2008, the Department of Corrections revoked
G.L.'s probation and G.L. was resentenced.
G.L. hired Attorney Hammis to appeal his
post-revocation sentences. In October 2008,
Attorney Hammis wrote to G.L. saying he had
mailed a copy of the original sentencing
transcript to G.L. "a month ago" and the
letter had been returned. Actually Attorney
Hammis had just obtained a transcript within
the prior two weeks and had not mailed
anything to G.L. since June 2008. Attorney
Hammis did not file a notice of appearance
in the case until January 2009. That same
month G.L. asked Attorney Hammis for
information about the cost of representation
but Attorney Hammis never responded.
¶10 By virtue of the stipulation,
Attorney Hammis pled no contest to the
following counts of misconduct with respect
to his representation of G.L.:
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Count Four: By failing to respond to
his client's request for information on the
costs of his representation, Attorney Hammis
violated SCR 20:1.5(b)(3).
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Count Five: By making
misrepresentations to his client by letter
dated October 31, 2008, Attorney Hammis
violated SCR 20:8.4(c).
¶11 In 2010, B.D. was employed as a
recreation director for the City of
Janesville (City). On November 5, 2010,
Janesville sent B.D. a "Pre-determination
Notice of Discharge." B.D. met with
Attorney Hammis regarding her employment and
paid him an advance fee of $2,000. B.D.
signed a written fee agreement which allowed
Attorney Hammis to deposit the fee into his
business account. The agreement required
Attorney Hammis to send B.D. a written
accounting of his fees at the end of his
representation. Attorney Hammis told B.D.
he would attend any meetings with the City.
¶12 On December 6, 2010, the City
terminated B.D.'s employment. That same
day, B.D. instructed Attorney Hammis to file
a discrimination complaint against the City.
Attorney Hammis prepared a complaint but
never filed it.
¶13 On February 23, 2011, Attorney
Hammis believed he ceased representing B.D.
He never provided her with an accounting.
In March of 2011, B.D. filed a grievance
against Attorney Hammis with the OLR.
Attorney Hammis failed to respond to
numerous OLR requests for a response to the
grievance. Attorney Hammis eventually
responded to the OLR in July 2011 indicating
he had time sheets and phone records for his
representation of B.D. The OLR requested
Attorney Hammis to provide that information,
but Attorney Hammis failed to provide it.
¶14 By virtue of the stipulation,
Attorney Hammis pled no contest to the
following counts regarding his
representation of B.D.
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Count Six: For failing to account to
B.D. for her $2,000 advance fee deposited into
his operating account, as required by the
alternative fee placement measures of former
SCR 20:1.15(b)(4m), Attorney Hammis violated
former SCR 20:1.15(b)(4).
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Counts Eight and Nine: By failing
to pursue his client's interest in negotiating
considerations in exchange for termination of
her employment and by failing at any time from
December 6, 2010, to February 23, 2011, to
file the discrimination complaint he had
prepared for his client, Attorney Hammis
violated SCR 20:1.3.
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Count Ten: By failing to timely
respond to the OLR's request for a written
response to B.D.'s grievance, Attorney Hammis
violated SCR 22.03(2), enforced via SCR
20:8.4(h).
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Count Eleven: By failing to
furnish documents requested by the OLR,
which he previously admitted he possessed,
Attorney Hammis violated SCR 22.03(6),
enforced via SCR 20:8.4(h).
¶15 In 2002, M.K. filed for divorce from
S.K. Attorney Hammis agreed to represent
S.K. in the matter in June of 2009. In
November of 2010, the circuit court found
S.K. in contempt and ordered him to spend 45
days in jail, commencing December 1, 2010.
¶16 Attorney Hammis moved to withdraw
from representing S.K. on January 4, 2011.
S.K. filed a grievance with the OLR against
Attorney Hammis on June 1, 2011. Attorney
Hammis failed to respond to numerous OLR
requests for information regarding the
grievance. Attorney Hammis finally provided
a partial response in September of 2011. He
provided additional documents in December of
2011. By virtue of the stipulation,
Attorney Hammis pled no contest to the
following count of misconduct regarding his
representation of S.K.
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Count Thirteen: By not timely
responding to the OLR's request for a
written response to S.K.'s grievance, and
then making only a partial and incomplete
response that did not include the documents
expressly requested and which was not
supplemented until approximately four months
after the original OLR request, Attorney
Hammis violated SCR 22.03(2) and SCR
22.03(6), enforced via SCR 20:8.4(h).
R.B. and Trust Account Violations
¶17 In May 2010, R.B. hired Attorney
Hammis to represent him in an automobile
accident case. The parties agreed that R.B.
would receive the first $4,800 collected,
while Attorney Hammis would advance all
expenses and recover anything in excess of
$4,800. Attorney Hammis filed a complaint
in the case in June 2010. He subsequently
negotiated settlements for R.B. with two
insurance companies. One of the companies
mailed Attorney Hammis a check in early
August 2010 along with a release for R.B.'s
signature. Attorney Hammis asked R.B. to
lower his share of the settlement to $4,500.
R.B. reluctantly agreed. Attorney Hammis
deposited the check in his trust account but
never obtained R.B.'s signature on the
release or sent a signed release to the
insurance company.
¶18 On or around August 13, 2010,
Attorney Hammis gave R.B. a trust account
check for $4,500. Attorney Hammis failed to
send a check to another insurance company
for their subrogation interest. By January
27, 2011, the trust account's balance was
$1,000 less than the second insurance
company was owed for their subrogation
interest. In February 2011, the circuit
court dismissed the R.B. case with prejudice
because although the parties had reported a
settlement, no dismissal order was
submitted.
¶19 In the summer of 2011, both
insurance companies filed grievances with
the OLR against Attorney Hammis. Attorney
Hammis did not respond to the OLR's initial
requests for information about the
grievances. He subsequently provided
partial responses. In December 2011,
Attorney Hammis closed the trust account,
which then had a balance of $9.07, having
never disbursed the $1,489.82 due to the
subrogated insurance carrier.
¶20 On December 14, 2011, the OLR filed
a motion requesting an order to show cause
with this court due to Attorney Hammis'
noncooperation with the OLR's investigation.
An order to show cause was issued. On
December 30, 2011, Attorney Hammis sent the
subrogated insurance carrier a "replacement
check" for $1,489.82 with a cover letter
representing that he had previously sent a
check on August 13, 2010.
¶21 The OLR withdrew its motion for an
order to show cause on January 9, 2012. On
January 20, 2012, the credit union on which
the check was drawn refused to honor the
check. The account was closed four days
later. In May of 2012, Attorney Hammis sent
the subrogated insurance carrier a check
dated April 17, 2012, for $1,489.82 drawn on
a business account at a different bank.
¶22 In July and August 2013, the OLR
wrote and then personally served Attorney
Hammis with requests for various documents.
Attorney Hammis did not timely respond. In
September 2013, the OLR filed another motion
requesting an order to show cause. An order
to show cause was issued. In November 2013,
this court temporarily suspended Attorney
Hammis' Wisconsin law license due to his
failure to cooperate with the OLR's
investigation. Attorney Hammis responded to
several of the OLR's requests in December
2013. On December 30, 2013, pursuant to the
OLR's request, this court reinstated
Attorney Hammis' law license.
¶23 On October 7, 2010, Attorney Hammis
transferred $15,000 from his trust account
to his wife's checking account, leaving the
trust account with a shortfall of $1,589.50.
On December 14, 2010, Attorney Hammis
withdrew $45,000 from the trust account and
purchased a cashier's check in that amount.
Between July 2010 and December 2011,
Attorney Hammis deposited $15,400 of his or
his law firm's funds into the trust account
but his client ledgers did not reflect those
deposits.
¶24 Between July 2010 and February 2011,
Attorney Hammis made 56 prohibited Internet
or telephone transactions totaling over
$250,000 with his trust account. Attorney
Hammis failed to identify the client or
matter on deposit slips for 19 deposits
totaling over $640,000 into the trust
account between July 2010 and February 2011.
Attorney Hammis' client ledgers indicate
that he disbursed more funds then he
received for four clients, creating negative
balances for those clients in the trust
account.
¶25 By virtue of the stipulation,
Attorney Hammis pled no contest to the
following counts of misconduct:
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Count Fourteen: By converting funds
held in trust for a third party to other
purposes sometime between August 10, 2010 (the
deposit of the insurance settlement check in
the R.B. matter) and January 27, 2011 (a date
on which the trust account balance was less
than the money owed to the subrogated
insurance carrier in the R.B. matter),
Attorney Hammis violated SCR 20:8.4(c).
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Count Fifteen: By receiving funds
in trust for a third party, the subrogated
insurance carrier, and then failing to pay
that party for over 20 months, Attorney Hammis
violated former SCR 20:1.15(d)(1) through (3).
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Count Sixteen: By failing to hold
in trust the funds he received for the purpose
of paying the subrogation claim of R.B.'s
insurer, Attorney Hammis violated SCR
20:1.15(b)(1).
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Count Eighteen: By falsely
representing to the subrogated insurance
carrier that he had sent a check for $1,489.82
to it on August 13, 2010, Attorney Hammis
violated SCR 20:8.4(c).
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Count Twenty: By failing to timely
answer the OLR's request for a response and
his subsequent failure to fully and fairly
disclose all the facts and circumstances
including those concerning the subrogated
insurance carrier's claim, by his wilful
failure to fully answer questions, by failing
to furnish requested documents, by repeatedly
responding to requests for information by
referencing non-existent attachments and by
generally failing to provide relevant
information, Attorney Hammis violated SCR
22.03(2) and (6), and SCR 20:8.4(h).
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Count Twenty-One: By withdrawing
$45,000 from his trust account on December 14,
2010, in order to obtain a cashier's check,
Attorney Hammis violated former SCR 20:1.15(e)
(4)a.
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County Twenty-Two: By engaging from
July 2010 through February 2011 in 56
prohibited Internet and telephone transactions
with a combined dollar value of $259,281.22 to
and from his trust account, Attorney Hammis
violated former SCR 20:1.15(e)(4)b. and c.
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Count Twenty-Three: By failing to
identify the client or matter on every deposit
slip for all of the 19 deposits totaling
$640,745.79 made to the trust account between
July 9, 2010, and February 24, 2011, Attorney
Hammis violated former SCR 20:1.15(f)(1)d.
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Count Twenty-Four: By converting
funds held in trust for clients to other
purposes sometime between July 21, 2010, and
December 9, 2011, Attorney Hammis violated SCR
20:8.4(c).
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Count Twenty-Six: By depositing at
least $15,400 of lawyer or law firm funds into
the trust account between July 2, 2010, and
February 24, 2011, which funds far exceeded
any amounts reasonably necessary to pay
monthly account service charges, and none of
which was allocated to any client or matter
for which funds were held in trust, Attorney
Hammis violated former SCR 20:1.15(b)(3).
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Count Twenty-Seven: By disbursing
funds from the trust account on at least
four occasions that resulted in negative
balances on the individual client ledgers
recording funds held in trust with respect
to four different clients or matters,
Attorney Hammis violated former SCR
20:1.15(f)(1)b.
¶26 On May 28, 2010, M.V. hired Attorney
Hammis to represent her in her role as the
personal representative of an estate. M.V.
paid Attorney Hammis $2,000 in advanced fees
and signed a written fee agreement. The fee
agreement did not authorize Attorney Hammis
to use the estate's funds to pay his
billings without court approval.
¶27 On August 30, 2010, a Dane County
Circuit Court judge named R.B. as special
administrator of the estate. On October 4,
2010, Attorney Hammis deposited $150,000 of
estate funds into his trust account. On
October 5, 2010, Attorney Hammis transferred
$1,000 of estate funds out of his trust
account for legal fees. On October 8, 2010,
Attorney Hammis sent the special
administrator's attorney a check for
$145,000 representing the estate's funds.
An invoice for Attorney Hammis'
representation of M.V. dated February 28,
2011, indicated that Attorney Hammis used
the $5,000 as a "reserve fee." Attorney
Hammis' client ledger indicates that on
February 28, 2011, he transferred the
remaining $4,000 of estate funds out of his
trust account.
¶28 M.V. died on November 16, 2011. On
December 7, 2011, D.E. was appointed as
special administrator of M.V.'s estate.
D.E. hired Attorney Michael Rumpf to
represent her. On December 7, 2011,
Attorney Rumpf wrote to Attorney Hammis
requesting, among other things, that he
transfer to Attorney Rumpf any estate funds
held in trust, and provide an accounting of
those funds. On December 22, 2011, Attorney
Hammis transferred his M.V. file to Attorney
Rumpf and signed an order for substitution.
He did not provide Attorney Rumpf with any
billing information, work product, or an
accounting of funds.
¶29 Over the next few months, Attorney
Rumpf sent Attorney Hammis several requests
for the entire M.V. file. Attorney Hammis
often did not substantively respond, and he
did not give Attorney Rumpf any additional
documents.
¶30 On February 28, 2012, D.E. filed a
grievance against Attorney Hammis with the
OLR. From August through November of 2012,
the OLR wrote Attorney Hammis several
letters asking him to respond to the
grievance, but Attorney Hammis provided no
substantive responses.
¶31 On March 13, 2013, the OLR moved
this court for an order to show cause why
Attorney Hammis' license should not be
suspended for failing to cooperate with its
investigation of the D.E. grievance and
other matters. This court issued an order
to show cause on March 15, 2013. On April
2, 2013, Attorney Hammis responded to the
OLR's information requests. As a result,
the OLR moved to withdraw its motion for a
license suspension, and this court dismissed
the order to show cause. In April and June
2013, the OLR wrote and personally served
Attorney Hammis with requests for more
information about the $5,000 estate
disbursements, but Attorney Hammis failed to
respond.
¶32 By virtue of entering into the
stipulation, Attorney Hammis pled no contest
to the following counts of misconduct
concerning the estate:
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Count Twenty-Eight: By withdrawing
estate funds from his trust account as
"reserve fees" to apply to his legal bill,
without notice to and consent from his client
or other parties with a potential interest in
the funds, Attorney Hammis violated former SCR
20:1.15(b)(1).
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Count Twenty-Nine: By withdrawing
estate funds from his trust account as a
"reserve fee" to apply to his legal bill,
without notice to and consent from his client
or other parties with a potential interest in
the funds, Attorney Hammis violated former SCR
20:1.15(g)(1).
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Count Thirty: By failing to provide
a copy of the entire M.V. file, including
billing statements, accountings and work
product, to the successor representative of
his client in the estate matter and her
counsel, Attorney Hammis violated SCR
20:1.16(d).
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Count Thirty-One: By failing to
timely respond to the OLR's initial grievance
investigation of D.E.'s grievance and
submitting a response to the OLR only after
the Supreme Court of Wisconsin issued an Order
to Show Cause why his license should not be
temporarily suspended for failing to
cooperate, Attorney Hammis violated SCR
22.03(2).
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Count Thirty-Two: By failing to
respond to the OLR's request for additional
information in its investigation of D.E.'s
grievance, Attorney Hammis violated SCR
22.03(6).
¶33 On November 3, 2011, R.W. hired
Attorney Hammis to draft a deed and a will.
In May of 2012, Attorney Hammis drafted the
deed and R.W. signed it. In the following
months, Attorney Hammis was unresponsive to
R.W.'s messages. R.W. filed a grievance
against Attorney Hammis in September 2012.
Attorney Hammis failed to respond to the
OLR's requests to provide information about
the grievance. Attorney Hammis did fax a
response to the OLR on December 27, 2012.
That same day, Attorney Hammis emailed R.W.
asking for his and his late wife's social
security numbers for a real estate transfer
form. This was Attorney Hammis' first
communication to R.W. in several months.
R.W. sent Attorney Hammis the information.
¶34 As of April of 2013, Attorney Hammis
had not filed R.W.'s deed. In May and June
of 2013, the OLR wrote to Attorney Hammis
asking him to provide additional information
about his representation of R.W. Attorney
Hammis failed to respond.
¶35 By entering into the stipulation,
Attorney Hammis pled no contest to the
following counts of misconduct with respect
to his representation of R.W.:
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Count Thirty-Three: By failing to
timely file the quit claim deed on his
client's behalf, after the deed had been
executed and all necessary information had
been received, Attorney Hammis violated SCR
20:1.3.
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Count Thirty-Four: By failing to
respond to his client's inquiries regarding
the status of his matter, and by failing to
initiate status updates to his client,
including his purported need for additional
information from the client before being able
to complete the representation, Attorney
Hammis violated SCR 20:1.4(a)(3) and (4)
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Count Thirty-Five: By failing to
respond to the OLR's request for additional
information in its R.W. grievance
investigation, Attorney Hammis violated SCR
22.03(6).
¶36 On November 4, 2011, R.G. spoke with
Attorney Hammis about setting up a limited
liability company (LLC) and drafting related
documents. Attorney Hammis said he could do
this work within a week. On November 7,
2011, R.G. hired Attorney Hammis, signed a
fee agreement, and paid him $400 to set up
the LLC. In November and December of 2011,
R.G. sent Attorney Hammis several emails
asking for updates on drafting the LLC
documents. Attorney Hammis responded
occasionally to the communications, but
never provided an update.
¶37 On December 22, 2011, R.G. emailed
Attorney Hammis, terminating his
representation and requesting that he refund
her fees. Attorney Hammis failed to
respond. In March of 2012, R.G. filed a
grievance against Attorney Hammis with the
OLR. In April 2012 she sued him in small
claims court, seeking damages based on his
failure to return her fees.
¶38 On April 30, 2012, Attorney Hammis
represented that his notary commission was
valid when he notarized a document submitted
in R.G.'s lawsuit. In fact, Attorney Hammis
had not been a licensed notary since January
20, 2011, when the Secretary of State
revoked his notary commission.
¶39 On July 13, 2012, Attorney Hammis
sent the OLR a response to R.G.'s grievance.
As part of the response he sent an
"Operating Agreement" and "Contribution
Agreement" for the LLC and submitted a case
log representing he had drafted the
agreements on December 1, 2011. In fact,
Attorney Hammis did not draft the agreements
until after R.G. had filed her grievance.
R.G. obtained a judgment against Attorney
Hammis in April 18, 2013.
¶40 Based on his entry into the
stipulation, Attorney Hammis pled no contest
to the following counts of misconduct with
respect to his representation of R.G.:
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Count Thirty-Six: Having been hired
on November 7, 2011 to prepare LLC documents
for R.G., and at that time creating the
expectation that the work could be completed
in a matter of days or a week, by failing to
produce the LLC documents and provide them to
R.G. as of December 22 and 27, 2011, when R.G.
provided email notice of the termination of
representation and requested the return of her
advanced fee in the matter, Attorney Hammis
violated SCR 20:1.3.
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Count Thirty-Seven: By failing to
respond to multiple email inquiries from R.G.
in December 2011, in which R.G. sought updates
concerning the status of the LLC work,
Attorney Hammis violated SCR 20:1.4(a)(4).
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Count Thirty-Eight: Having failed
to produce the LLC papers and provide them to
R.G. as of the December 22 and 27, 2011
termination emails, in which R.G. sought a
refund, and having stated in a January 4, 2012
email to R.G., "I have submitted the file and
the instruction to my bookkeeper to remit
refund of your advance fee per your request,"
by thereafter failing to refund R.G., Attorney
Hammis violated SCR 20:1.16(d).
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Count Thirty-Nine: By notarizing an
affidavit of mailing in a Dane County small
claims action with the declaration that his
notary commission was permanent, when his
notary commission was in fact revoked, thereby
violating Wis. Stat. § 137.01(2), Attorney
Hammis violated SCR 20:8.4(c) and SCR
20:8.4(f).
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Count Forty: Having made no
mention of preparing any documents related
to R.G.'s desired LLC in response to R.G.'s
multiple emails, and likewise failing to
mention any such purported document
preparation when informing R.G. on January
4, 2012 that he had instructed his
bookkeeper to refund R.G.'s advance fee
payment, by then sending the OLR documents
relating to an LLC, purportedly drafted on
or about December 1, 2011, offered to the
OLR to support his claim of compensable
drafting services, when Attorney Hammis had
not prepared those documents prior to R.G.'s
termination of representation or as of
January 4, 2012 when he promised R.G. a
refund, Attorney Hammis violated SCR
22.03(6), via SCR 20:8.4(h).
¶41 In 2008, D.M. hired Attorney Hammis
to represent her in a criminal matter. He
subsequently represented her in other
matters. D.M. filed a grievance against
Attorney Hammis in September 2012. Attorney
Hammis failed to respond to the OLR's
requests for information about the
grievance. In March 2013, the OLR moved
this court for an order to show cause why
Attorney Hammis' license should not be
suspended for failure to cooperate with its
investigation of D.M.'s grievance and other
matters. This court issued an order to show
cause on March 15, 2013. Attorney Hammis
responded to the OLR's information requests
and on April 3, 2013, the OLR moved to
withdraw its motion. This court dismissed
the motion and order to show cause the
following day. In October 2013, the OLR
wrote to Attorney Hammis asking for
additional information about his
representation of D.M. Attorney Hammis
never responded.
¶42 By entering into the stipulation,
Attorney Hammis pled no contest to the
following counts of misconduct regarding his
representation of D.M.:
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Count Forty-One: By initially
failing to timely respond to the OLR's
investigation of D.M.'s grievance and
submitting a response only after the Supreme
Court of Wisconsin issued an Order to Show
Cause why his license should not be
temporarily suspended for failing to
cooperate, Attorney Hammis violated SCR
22.03(2), enforced via SCR 20:8.4(h).
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Count Forty-Two: By failing to
respond to the OLR letter dated October 23,
2013 requesting further investigative
information, Attorney Hammis violated SCR
22.03(6), enforced via SCR 20:8.4(h).
¶43 On August 9, 2012, G.T. hired
Attorney Hammis to obtain title to an
automobile and gave him several original
documents. G.T. paid Attorney Hammis $500
in fees. Over the next several months,
Attorney Hammis failed to respond to G.T.'s
communications, except for sending G.T. one
email on October 26, 2012. G.T. tried to
visit Attorney Hammis' office in late
October 2012 but found it locked and closed.
G.T. hired another attorney who was also
unable to contact Attorney Hammis.
¶44 G.T. filed a grievance against
Attorney Hammis on November 7, 2012.
Attorney Hammis failed to respond to the
OLR's request for information about the
grievance. On March 13, 2013, the OLR moved
this court for an order to show cause why
Attorney Hammis' license should not be
suspended for failure to cooperate with its
investigation of G.T. and other matters.
This court ordered Attorney Hammis to show
cause. Attorney Hammis responded to the
OLR's information requests and in late March
of 2013, he returned G.T.'s original
documents and $500. This court dismissed
the OLR's motion for an order to show cause
based on the OLR's request.
¶45 By entering into the stipulation,
Attorney Hammis pled no contest to the
following counts of misconduct with respect
to his representation of G.T.:
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Count Forty-Three: By failing to
return his client's original documents and
return his unearned fee for approximately five
months after the representation ended,
Attorney Hammis violated SCR 20:1.16(d).
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Count Forty-Four: By initially
failing to timely respond to the OLR's
investigation of G.T.'s grievance,
submitting a response only after the Supreme
Court of Wisconsin issued an Order to Show
Cause why his license should not be
temporarily suspended for failing to
cooperate, Attorney Hammis violated SCR
22.03(2).
¶46 Attorney Hammis was admitted to
practice law in Michigan, but his Michigan
law license has been suspended for non-
payment of dues since 2001. From 2008
through at least 2012, Attorney Hammis
represented himself in emails as an
"experienced business and general practice
attorney representing businesses and
individuals in the State of Wisconsin and
Michigan."
¶47 By entering into the stipulation,
Attorney Hammis pled no contest to the
following count of misconduct with respect
to this representation:
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Count Forty-Five: By representing
himself as authorized to practice law and to
represent clients in the State of Michigan
in emails to A.W., representatives of an
insurance company, B.D., R.G. and/or
Attorney Michael Rumpf, although his
Michigan law license has been continuously
suspended since February 15, 2001, Attorney
Hammis violated SCR 20:7.1.
Practice in Bankruptcy Court While
Suspended
¶48 On August 26, 2011, Judge Robert D.
Martin suspended Attorney Hammis from
practicing before the Bankruptcy Court for
the Western District of Wisconsin. Attorney
Hammis has not been reinstated from this
suspension. In 2012, D.A. contacted
Attorney Hammis for help in filing
bankruptcy. D.A. did not know that Attorney
Hammis had been suspended from bankruptcy
practice in the Western District, where D.A.
lived. D.A. contacted and met with Attorney
Hammis several times in 2012 and 2013 about
the proposed bankruptcy. Attorney Hammis
completed the forms in a bankruptcy petition
for D.A.'s signature.
¶49 On December 3, 2013, Attorney Hammis
personally filed D.A.'s bankruptcy petition
with the Bankruptcy Court for the Western
District of Wisconsin, but he informed the
staff that D.A. was proceeding pro se.
Attorney Hammis paid the filing fee for
D.A.'s bankruptcy with a check from his law
firm bank account. In January 2014,
Attorney Hammis mailed D.A.'s pay advices to
the bankruptcy court. On January 21, 2014,
the bankruptcy trustee held a meeting of
creditors in D.A.'s bankruptcy. During the
hearing, D.A. gave conflicting statements
about the assistance he received from
Attorney Hammis. At that time, D.A. learned
that Attorney Hammis had been suspended from
practicing before the bankruptcy court.
D.A. consulted another bankruptcy attorney
and ultimately obtained a discharge of his
debts.
¶50 By virtue of entering into the
stipulation, Attorney Hammis pled no contest
to the following counts of misconduct with
respect to his representation of D.A.:
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Count Forty-Six: By failing to
consult with D.A. on the unusual means he
chose to attempt to pursue D.A.'s bankruptcy
action in light of Attorney Hammis' suspension
from Bankruptcy Court for the Western District
of Wisconsin, including attempting to conceal
Attorney Hammis' involvement with D.A.'s
bankruptcy action from the Bankruptcy Court,
Attorney Hammis violated SCR 20:1.4(a)(2).
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Count Forty-Seven: By failing to
reveal to D.A. that he was suspended from
practicing before the Bankruptcy Court and
could not represent D.A. in a bankruptcy
proceeding, Attorney Hammis violated SCR
20:1.4(a)(5).
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Count Forty-Eight: By filing
D.A.'s
bankruptcy petition and proceeding with the
bankruptcy action while suspended from
Bankruptcy Court for the Western District of
Wisconsin, Attorney Hammis violated SCR
20:3.4(c).
¶51 In her report and recommendation,
the referee found that the OLR had met its
burden to prove by clear, satisfactory, and
convincing evidence that Attorney Hammis
committed all of the counts of misconduct to
which he pled no contest. The referee noted
that virtually all of the conduct stipulated
to by Attorney Hammis occurred after the OLR
had filed its complaint in Attorney Hammis'
first disciplinary matter. The referee said
that many of the violations alleged in this
case are similar to violations that occurred
in Attorney Hammis' two previous
disciplinary matters. The referee pointed
out that Attorney Hammis stipulated to
committing five violations of SCR 20:8.4(c),
which would have required the OLR to prove
that Attorney Hammis "engaged in conduct
involving dishonesty, fraud, deceit or
misrepresentation." The referee said that
by entering a no contest plea to each of
those counts and the facts supporting the
counts, Attorney Hammis waived his right to
contest that those counts in fact involved
fraud, misrepresentation, dishonesty, or
deceit. The referee said that Attorney
Hammis' argument that those counts involved
mere negligence must be ignored.
¶52 The referee also noted that Attorney
Hammis pled no contest to ten counts
involving trust account violations under SCR
20:1.15, one count involving 56 separate
prohibited transactions. The referee said,
"perhaps Hammis despises the rules of trust
accounting, has not learned them, or finds
them too difficult to comply with, and so
chooses to ignore them entirely." The
referee also said "his subsequent untruthful
explanations of what occurred . . . only
highlight his inherent dishonesty. It is
difficult to understand what lesser
corrective discipline than revocation would
prompt proper corrective action on his part
to ensure compliance with what is required."
¶53 The referee went on to say that in
this matter, as in his past disciplinary
cases, Attorney Hammis developed a pattern
whereby he would avoid answering or
responding to the OLR's requests for
information about a grievance until an order
to show cause had been issued and then would
avoid a license suspension by minimally
responding to the OLR. The referee pointed
out Attorney Hammis pled no contest to 11
counts involving his failure to respond to
the OLR's request for information. The
referee said Attorney Hammis dismisses all
of his violations of the duty to respond to
the OLR as justified or minimal and claims
little or no sanction should be imposed for
those violations.
¶54 The referee said:
It seems from the current violations that
Hammis has not changed his practices or his
conduct found in each of the prior
discipline decisions. Hammis seems to do
what he wants without regard for the Supreme
Court rules and when caught he asserts or
implies that his violations are merely
technical irregularities, a nuisance that he
cannot possibly be expected to follow. At
no point in his response brief did he
express remorse for his transgressions, or
empathy for those clients who filed
complaints against him. And, he points out
in his brief that many of the technical
violations pled to were discovered by OLR's
snooping around in his business, his files,
his record keeping. . . . Hammis' argument
misses the mark.
¶55 The referee concluded by saying:
Revocation should be imposed when there is
little hope that an attorney will chose to
modify his or her behavior to the standards
required in Chapter 20. This is Hammis'
third disciplinary action and involves the
same rule violations, the same conduct as
his other actions. Some attorneys violate
the same rules Hammis has but show a genuine
desire to correct their behavior, to learn
new practices to prevent mishaps, and commit
themselves to better communications with
their clients. Hammis is not among them.
¶56 The referee said Attorney Hammis'
two prior suspensions apparently did nothing
to provoke any change in his law business
practices. For that reason, the referee
agreed with the OLR's recommendation that
Attorney Hammis' license to practice law in
Wisconsin should be revoked. The referee
also recommended, consistent with the terms
of the stipulation, that Attorney Hammis be
required to pay restitution to R.G. in the
amount of $400, if he has not already done
so.
¶57 Attorney Hammis' appeal raises three
issues: (1) Did the referee err in the
introduction and utilization of facts and
subsequent conclusions that were not
stipulated by the parties? (2) Is the use
of the OLR of unknown and undisclosed
subpoenas and discovery with financial
institutions a violation of due process?
(3) Did the referee err in the
recommendation that Attorney Hammis' license
be revoked?
¶58 Attorney Hammis says the parties'
stipulation and his no contest plea and
separate stipulation of facts "were a
balanced and negotiated decision made by the
parties to assure that the format of the
briefing and arguments of the parties would
follow a series of facts that were the
result of the agreements of the parties."
He says the referee's report made reference
to "multiple very specific incorrect or non-
stipulated facts." He accuses the referee
of stepping outside the stipulation of facts
reached by the parties. He says "the degree
and damage to such stepping out is not
completely determinable." He says the
referee's reliance on non-stipulated facts
should be considered the "fruit of the
poisonous tree."
¶59 Attorney Hammis notes that SCR
22.03(8) provides that the OLR director may
subpoena the respondent and others and
compel any person to produce pertinent
books, papers and documents. He argues this
rule is contrary to Wis. Stat. § 805.07
which outlines the process and procedure for
the service and notification to parties of
subpoenas. He says, "once again the 'fruit
of this poisonous tree' are significant. . .
."
¶60 Most significantly, Attorney Hammis
argues that the referee erred in adopting
the OLR's recommendation that Attorney
Hammis' law license should be revoked. He
argues that his misconduct does not
demonstrate a pattern of intentionally
inflicted harm, malfeasance or financial
malfeasance to any of his clients. He says
without question he did make mistakes that
were in violation of supreme court rules,
but he attempts to paint the misconduct as
not being all that serious.
¶61 Contrary to the referee's conclusion
that there is little hope Attorney Hammis
will modify his behavior and that he has
shown little remorse for his actions,
Attorney Hammis argues he has acknowledged
his errors and mistakes. Rather than
revocation of his license, he says a one-
year suspension would be an appropriate
sanction. In the alternative, he asks that
the entire referee report be set aside and a
new referee appointed "and that counts
connected to the issued subpoenas, [R.B.]
and the Trust account issues are duly
dismissed."
¶62 The OLR takes the position that this
court should endorse the referee's report,
revoke Attorney Hammis' license, and order
him to pay $400 restitution to R.G. The OLR
argues that the referee's findings of fact
are supported by the record and are not
clearly erroneous. The OLR says none of the
facts that Attorney Hammis argues were
outside of the parties' stipulation are
material to the misconduct. The OLR says,
"the facts which Hammis identifies on appeal
as erroneous or problematic were either
immaterial or properly cited in the
referee's report."
¶63 The OLR says this court should
reject Attorney Hammis' theory that the
documents subpoenaed by the OLR "poisoned"
the case. The OLR says while disciplinary
proceedings generally follow the rules of
civil procedure, OLR investigations do not,
and the supreme court rules do not require
the OLR to notify a respondent when it
subpoenas documents during a confidential
investigation.
¶64 As to the appropriate sanction, the
OLR says revocation is warranted. It points
out Attorney Hammis' misconduct involves
multiple client matters and 40 counts of
misconduct ranging from abandonment of
clients, to misleading clients, to false
notarization, to practicing bankruptcy law
while suspended, to serious trust account
malfeasance, and multiple willful failures
to cooperate with OLR investigations into
his conduct. The OLR says Attorney Hammis'
misconduct reaches almost every aspect of
practicing law and shows a pervasive pattern
of disregarding the Rules of Professional
Conduct.
¶65 The OLR also notes that the
misconduct at issue here encompass the time
frame from 2008 to 2012. The OLR notes that
frequently Attorney Hammis would resume his
obligations to his clients only after the
OLR's involvement following the filing of a
grievance. The OLR says the referee
correctly noted that the misconduct at issue
here is similar to the misconduct for which
Attorney Hammis has previously been
disciplined.
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¶66 A referee's findings of fact are
affirmed unless they are found to be clearly
erroneous. This court reviews de novo the
referee's conclusions of law. In re
Disciplinary Proceedings Against Inglimo,
2007
WI 126, ¶5, 305 Wis. 2d 71, 740 N.W.2d 125.
This court determines the appropriate level
of
discipline given the particular facts of the
case, independent of the referee's
recommendation but benefitting from it.
In re
Disciplinary Proceedings Against Widule,
2003
WI 34, ¶44, 261 Wis. 2d 45, 660 N.W.2d 686.
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¶67 By entering into the stipulation and
by pleading no contest, Attorney Hammis has
admitted the factual basis underlying the 40
counts of misconduct. The only legitimate
challenge he can lodge to the referee's
report is the recommended sanction of
revocation. It was appropriate for the
referee to note similarities between the
misconduct at issue here and the misconduct
for which Attorney Hammis was previously
disciplined, which led her to conclude he
had learned nothing from his previous
mistakes. Similarly, Attorney Hammis'
complaints about the OLR's subpoenaing his
bank records is unavailing since he has
admitted the trust account and other banking
violations.
¶68 As to the appropriate level of
discipline, the facts alleged in the amended
complaint, to which Attorney Hammis pled no
contest, show a clear pattern of neglect of
his clients' needs and objectives and an
utter disregard for his obligations as an
attorney. His misconduct was not an
isolated occurrence but occurred in nine
separate client representations over the
course of years.
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¶69 We recognize, as the dissent points
out, that the misconduct at issue here
occurred prior to Attorney Hammis' 2015
suspension. The complaint in this matter was
filed in 2014 and the amended complaint was
filed in 2015. Some of the delay in the
completion of this case was caused by Attorney
Hammis' failure to cooperate in the OLR's
investigations as well as by his motion
practice and multiple extension motions.
While it may have been preferable for this
matter to have been brought to conclusion
sooner, the passage of time since Attorney
Hammis' most recent misconduct in no way
excuses or mitigates the misconduct.
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¶70 While Attorney Hammis portrays
himself as remorseful and says he has
accepted responsibility for his
transgressions, some of his statements at
oral argument call those assertions into
question. Attorney Hammis' representation
of R.G. is illustrative. R.G. retained
Attorney Hammis in November of 2011 and paid
him $400. Attorney Hammis never did the
work. R.G. terminated his representation in
December of 2011 and demanded a refund of
the $400. R.G. filed a grievance in March
of 2012. In April of 2013 she obtained a
small claims judgment against him. In
September of 2016, Attorney Hammis
stipulated that he owed R.G. $400 in
restitution. When asked at oral argument
why he had not paid R.G. the $400, Attorney
Hammis replied that he was "waiting for a
court order." The small claims court
rendered a judgment in favor of R.G. six
years ago, and Attorney Hammis stipulated
two and a half years ago that he needed to
pay R.G. the $400. The fact that this
modest sum remains unpaid in 2019 belies
Attorney Hammis' claim that he is remorseful
and has fully accepted responsibility for
his actions.
¶71 Revocation is the most serious
sanction that may be imposed under our
attorney disciplinary system and it is
reserved for the most egregious cases.
Although Attorney Hammis' misconduct was
undeniably very serious, we are not
convinced that it rises to the level of
warranting revocation. We note that the
misconduct at issue here occurred between
2008 and 2012. Attorney Hammis stated at
oral argument that he stepped away from his
general legal practice in 2011 or 2012.
Since that time he has performed some legal
work for a company with which he has a long-
term relationship. He says he currently is
representing a defendant in one felony
criminal case.
¶72 While no two disciplinary matters
are identical, we find this case to be
somewhat similar to In re Disciplinary
Proceedings Against Bryant, 2015 WI 7, 360
Wis. 2d 625, 858 N.W.2d 681. Attorney
Bryant stipulated to a three-year suspension
for 37 counts of misconduct including one
violation of SCR 20:8.4(c) and multiple
counts of failing to take meaningful action
or advance his clients' interests, failing
to properly hold unearned fees and advanced
payment of fees in trust, converting client
funds to pay himself attorney's fees, and
failing to cooperate in the OLR's
investigations. Attorney Bryant had a
previous consensual private reprimand.
¶73 In addition, this case is somewhat
similar to In re Disciplinary Proceedings
Against Dahle, 2015 WI 29, 361 Wis. 2d
430,
862 N.W.2d 582. Attorney Dahle committed 55
counts of misconduct, including borrowing or
taking some $400,000 from clients without
regard to conflict of interest restrictions
and requirements. Attorney Dahle had no
prior disciplinary history. We suspended
her law license for two years and six
months. Although the amount of money
converted or mishandled by Attorney Hammis
is much less, he does have a prior
disciplinary history and he repeatedly
failed to respond to the OLR's request for
information after his clients had filed
grievances and only when served with an
order to show cause and faced with the
possible suspension of his law license did
he finally respond to the OLR's inquiries.
Under the unique facts of this case, we
conclude that a three-year suspension of
Attorney Hammis' license to practice law in
Wisconsin is an appropriate sanction for his
misconduct.
¶74 We also deem it appropriate to
impose various conditions upon Attorney
Hammis' resumption of the practice of law,
in the event his law license is reinstated.
Those conditions include practicing law
under the supervision of a legal mentor
approved by the OLR for a period of two
years after his license is reinstated; a
prohibition upon ever maintaining a trust
account; and limiting his practice to
performing legal work for his corporate
client and assisting family and friends in
legal matters. We also order Attorney
Hammis to make restitution in the amount of
$400 to R.G., and we order him to pay the
full costs of this proceeding.
¶75 IT IS ORDERED that the license of
James Edward Hammis to practice law in
Wisconsin is suspended for a period of three
years, effective July 3, 2019.
¶76 IT IS FURTHER ORDERED that James
Edward Hammis shall pay restitution of $400
to R.G.
¶77 IT IS FURTHER ORDERED that within 60
days of the date of this order James Edward
Hammis shall pay to the Office of Lawyer
Regulation the costs of this proceeding,
which are $13,160.22 as of March 4, 2019.
¶78 IT IS FURTHER ORDERED that the
restitution to R.G. specified above is to be
completed prior to paying costs to the
Office of Lawyer Regulation.
¶79 IT IS FURTHER ORDERED that, as
conditions of reinstatement of his license
to practice law in Wisconsin, James Edward
Hammis be subject to the following: (1)
practicing law under the supervision of a
legal mentor approved by the Office of
Lawyer Regulation for a period of two years;
(2) a prohibition upon ever maintaining a
trust account; and (3) limiting his practice
to performing legal work for his corporate
client and assisting family and friends in
legal matters.
¶80 IT IS FURTHER ORDERED that James
Edward Hammis 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.
¶81 IT IS FURTHER ORDERED that
compliance with all conditions of this order
is required for reinstatement. See SCR
22.28(2).
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¶82 ANNETTE KINGSLAND ZIEGLER, J.
(dissenting). Attorney Hammis stated,
both in his brief and at oral argument, that
in 2012 he virtually discontinued his legal
practice, with the exception of occasionally
assisting family members and friends——
usually without charge——and performing three
to five hours of legal work per month for a
longtime corporate client. He no longer has
a trust account and does not make his living
from practicing law. He stated he has no
intention of expanding his legal practice in
the future. He has expressed remorse for
his admitted misconduct and questions what
more he could have done in the past seven
years to alleviate concerns that his
extremely limited practice would be a threat
to his clients or the legal profession.
¶83 The majority acknowledges that all
of the misconduct at issue here occurred
prior to 2015, when Attorney Hammis' license
was suspended for 90 days, and some of the
misconduct occurred prior to the four-month
suspension imposed in 2011. Indeed, the
complaint in this matter was filed nearly
five months before the court issued its
order imposing the 2015 suspension. The
serial nature of the OLR's complaints
against Attorney Hammis appears to expose a
flaw in Wisconsin's attorney regulatory
system. If the misconduct counts at issue
in this case and the counts at issue in the
case resulting in the 90-day suspension had
been prosecuted at the same time, the
resulting discipline may well have been less
than the three years and three months that
was imposed in the two separate cases. In
spite of the fact that Attorney Hammis has
virtually not practiced law since 2012 and
has committed no misconduct since 2015, he
is nonetheless being suspended for an
additional three years in 2019 for
misconduct that occurred long ago. While
the passage of time should not excuse
misconduct, the majority fails to adequately
justify why a three-year suspension is
warranted given that the previous
suspensions were for four months and 90 days
and there has been no misconduct in the past
four years.
¶84 The Office of Lawyer Regulation
Procedures Review Committee recently filed a
series of administrative rule petitions
dealing with various aspects of Wisconsin's
attorney regulatory system. The Committee
was tasked with reporting to this court any
recommendations that would increase the
efficiency, effectiveness, and fairness of
the OLR process. In my view, this case
raises issues that warrant the court's
review when it takes up the rules petitions.
¶85 Given the facts and procedural
history of this case, I am unable to
conclude that a three-year suspension is
warranted. Therefore, I respectfully
dissent.
¶86 I am authorized to state that
Justice REBECCA GRASSL BRADLEY joins this
dissent.
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