Reinstatement Proceedings of Mutschler
2019 WI 92, 9/25/19 (2019)
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ATTORNEY reinstatement proceeding.
Reinstatement denied.
¶1 PER CURIAM. The respondent-
appellant, Christopher A. Mutschler, appeals
Referee Jonathan V. Goodman's report
recommending that we deny Attorney
Mutschler's petition for reinstatement of
his license to practice law in Wisconsin,
following his 2011 consensual license
revocation. After fully reviewing this
matter, we agree that Attorney Mutschler has
not satisfied the criteria required to
resume the practice of law in this state,
and we deny his petition for reinstatement.
We also determine that Attorney Mutschler
should be required to pay the costs of this
reinstatement proceeding, which are
$4,577.90 as of December 18, 2018.
¶2 Attorney Mutschler was admitted to
practice law in Wisconsin in 1991. He
practiced out of small or solo law offices
in Milwaukee, Elkhart Lake, and Fond du Lac,
predominantly in the area of criminal
traffic defense. At the time, Attorney
Mutschler had no prior discipline with the
exception of a temporary suspension imposed
against him for his willful failure to
cooperate with the OLR's investigation
concerning the conduct that ultimately led
to his consensual license revocation.
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¶3 Attorney Mutschler's misconduct was
serious. At the time of his revocation,
there were 59 grievances pending against
him. Nearly all followed a similar pattern.
Attorney Mutschler would obtain payment of
an advance fee, often a flat fee, to
represent a client in a traffic, operating
while intoxicated (OWI), or a criminal case.
In re Disciplinary Proceedings Against
Mutschler, 2011 WI 74, 336 Wis. 2d 241,
804
N.W.2d 680. In OWI and traffic cases,
Attorney Mutschler would frequently advise
the client to enter a no contest plea and
promise that he would win the case on
appeal. In some cases, Attorney Mutschler
would never notify the client of the
scheduled hearing on the pending charge or
citation, so the client would fail to
appear. In some cases, Attorney Mutschler
himself would fail to appear at the
scheduled hearing. Consequently, the
presiding judge would enter a default
judgment against the client. In other
cases, the client would enter a guilty or no
contest plea, then Attorney Mutschler would
either fail to file an appeal or would fail
to prosecute the appeal properly, which
would lead to the dismissal of the client's
appeal. Attorney Mutschler also frequently
failed to communicate adequately with his
clients. In some cases, his clients made
dozens of telephone calls but Attorney
Mutschler never returned them. In many
cases, Attorney Mutschler simply stopped
communicating at all with the clients,
requiring them either to hire new counsel or
to proceed on their own without counsel.
¶4 In addition, in 2008, pursuant to a
plea agreement, Attorney Mutschler pled no
contest to a charge of uttering a forgery, a
felony, and to a charge of possession of an
illegally obtained prescription medication,
a misdemeanor. The forgery count was
subject to a deferred prosecution agreement
and was later dismissed on the prosecutor's
motion. These charges stemmed from Attorney
Mutschler being caught in the act of forging
prescription forms and using such forms to
obtain pain medication.
¶5 As noted, Attorney Mutschler
eventually filed a petition for consensual
license revocation which this court granted
on July 14, 2011. We noted that Attorney
Mutschler likely committed dozens of
violations of SCRs 20:1.3 (lack of
diligence), 20:1.4 (failure to communicate),
20:l.15(b)(4) (failure to hold unearned fees
in trust), 20:1.16(d) (failure to return
unearned advance payments upon termination),
and 20:8.4(c) (engaging in dishonesty,
fraud, deceit, or misrepresentation). As
part of his consensual revocation order,
Attorney Mutschler was required to make
restitution to individual clients and the
Wisconsin Lawyers' Fund for Client
Protection (the Fund) totaling $246,723,
reflecting monies owed to some 45 clients,
and to comply with SCR 22.26.
Mutschler,
336 Wis. 2d 241.
¶6 On November 10, 2017, Attorney
Mutschler filed this petition for
reinstatement. The OLR opposed his
petition. The court appointed Referee
Goodman. Referee Goodman conducted a one-
day hearing on July 12, 2018. Attorney
Mutschler testified on his own behalf, and
also elicited testimony from a friend,
Howard Schumacher. On August 13, 2018, the
referee issued a report recommending the
court deny Attorney Mutschler's petition.
Attorney Mutschler appealed and the parties
filed briefs.
¶7 Attorney Mutschler contends that he
has satisfied the requirements for
reinstatement. Attorney Mutschler also
reasons that the only way he will ever
satisfy his restitution obligations will be
if he is permitted to practice law again.
He asks the court to reinstate him so he can
make headway against those restitution
obligations.
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¶8 The standards that apply to
petitions for reinstatement after a
disciplinary suspension or revocation are
set forth in SCR 22.31(1). The petitioning
attorney must demonstrate by clear,
satisfactory, and convincing evidence that
he or she has the moral character necessary
to practice law in this state, that his or
her resumption of the practice of law will
not be detrimental to the administration of
justice or subversive of the public
interest, and that the attorney has complied
fully with the terms of the suspension or
revocation order and the requirements of SCR
22.26. In addition, SCR 22.31(1)
incorporates the statements that a petition
for reinstatement must contain pursuant to
SCR 22.29(4)(a)-(k) and (4m). Thus, the
petitioning attorney needs to demonstrate
that the required representations in the
reinstatement petition are substantiated.
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¶9 On review, we accept a referee's
findings of fact unless they are clearly
erroneous. We review a referee's legal
conclusions, including whether the attorney
has satisfied the criteria for
reinstatement, on a de novo basis. In re
Disciplinary Proceedings Against Jennings,
2011 WI 45, ¶39, 334 Wis. 2d 335, 801 N.W.2d
304; In re Disciplinary Proceedings
Against
Gral, 2010 WI 14, ¶22, 323 Wis. 2d 280,
779
N.W.2d 168.
¶10 The referee concluded, and we agree,
that Attorney Mutschler satisfied several of
the criteria required for reinstatement.
Attorney Mutschler has demonstrated that he
desires to have his license reinstated, SCR
22.29(4)(a); that he has not practiced law
during the periods of his suspension and
revocation, SCR 22.29(4)(b); and that he has
maintained competence and learning in the
law, SCR 22.29(4)(d). He has also explained
how he would use his license if reinstated,
SCR 22.29(4)(j), and he has outlined his
activities during his revocation, SCR
22.29(4)(k).
¶11 With respect to the remaining
prerequisites to reinstatement, our review
is complicated by the fact that the referee
did not make specific findings or
conclusions with respect to several factors.
In the absence of adverse findings, Attorney
Mutschler reasons that "as Referee Goodman
has found, Mr. Mutschler has satisfied all
of the necessary criteria for reinstatement,
other than repaying the Fund."
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¶12 The referee focused on the most
significant challenge facing Attorney
Mutschler's reinstatement petition: his
undisputed failure to make any restitution
to clients aggrieved by his misconduct.
Addressing restitution is required in all
reinstatement proceedings, see, e.g.,
SCR
22.29(4)(c) and (4m), and bears on many of
the outstanding reinstatement criteria.
Supreme Court Rule 22.29(4)(c) and (4m)
require that the petitioner has made
restitution to or settled all claims of
persons injured or harmed by the
petitioner's misconduct, including
reimbursement to the Fund for all payments
made from the Fund, or, if not, the
petitioner's explanation for the failure or
inability to do so.
¶13 Attorney Mutschler acknowledges that
he has not paid restitution. He contends,
however, that this should not preclude his
reinstatement because he has explained his
failure or inability to do so. He
attributes his failure to pay restitution to
his inability to pay. He cites his
"significantly limited income despite
efforts to obtain a higher paying position."
¶14 The referee explained his adverse
recommendation, as follows:
Mr. Mutschler has made no attempt to
make
arrangements to pay $1.00 to his
restitution, and for that matter, there has
been no evidence that he has made payments
on any of his debts. The obvious reason, of
course, is that he was unemployed and,
therefore, did not have the funds to make
any payments.
Secondly, after being employed for a period
of one year as a hotel desk clerk, he left
that employment to care for his sick
grandmother. While it is certainly noble to
take care of one's relative who is ill, this
writer cannot imagine that Mr. Mutschler
would have time to do this if he had not
lost his license, and still was in the midst
of an active practice defending traffic
violators. Yet here, he completely
abandoned a steady job, apparently without
giving any thought to paying restitution or
paying his other debts.
. . .
It appears he has had odd jobs since
he
resigned from the hotel, but nothing
permanent.
Mr. Mutschler testified that he had
not come
up with a plan for paying back his
restitution in the event that his license
was reinstated.
Referee Rpt. p. 4. The referee concluded, "
[t]here is nothing in this record that gives
the Referee confidence that Mr. Mutschler
would engage in a program to repay his
restitution once he became employed if his
license was reinstated."
¶15 Essentially, on appeal, Attorney
Mutschler says the referee's finding that he
has no repayment plan in mind is clearly
erroneous. He cites the following exchange
from the evidentiary hearing:
Referee: Okay. Have you developed any
kind
of a plan for starting to repay this
approximately $250,000 debt to either the
client compensation fund of the state bar or
to individual clients assuming that you were
able to begin practicing law again with the
Melowski law firm?
Respondent: Yes, I actually have
discussed
with [his potential future employer] that I
have this outstanding debt that I owe to the
state bar client protection fund, and I told
him that - or I asked him, I guess, not told
him - it was more of a question - as to
whether or not, when I get paid, if it would
be possible to set something up whereby
instead of getting my whole paycheck, a
certain amount could just be straightaway
sent off to the bar as part of my
compensation, or if that was something that
was just too complicated to do and that I
would have to pay out of my, you know, own
account to the bar. So, yeah, I actually did
mention that to [his prospective
employer].
Referee: And do you have a figure in
mind
that you would be able to pay per paycheck
or per month to start paying this debt
off?
Respondent: I guess that depends on
what we
negotiate the salary to be. I mean,
ultimately, you know, if it's a $40,000
salary versus, let's say, I could negotiate
a $60,000 salary - it's going to be a vastly
different amount. But I - at this time, I
really don't have a specific number until I
know what I'm getting compensated.
R37 at 104:23 to 106:l; R-App. at 112-114.
¶16 The referee's conclusion that
Attorney Mutschler has failed to adequately
satisfy his restitution obligation in a
manner sufficient to warrant reinstatement
rests on implicit and intertwined findings
about the credibility of Attorney
Mutschler's claim that he made adequate
efforts to do so. Typically, we defer to a
referee's credibility determinations. See,
e.g., In re Disciplinary Proceedings
Against
Gamiño, 2011 WI 42, 334 Wis. 2d 279, 801
N.W.2d 299. When a court does not make an
explicit finding, an implicit finding may
suffice, but only if the facts of record
support it. State v. Echols, 175 Wis.
2d
653, 672, 499 N.W.2d 631 (1993).
¶17 Attorney Mutschler owes $246,723 in
restitution. He has made no restitution
payments. He attributes this to his
inability to pay. The record indicates that
after his revocation, Attorney Mutschler
worked for a period of time at minimum wage
as a third-shift night clerk at the
Candlewood Suites in Brown Deer, Wisconsin.
He left this position to care for a family
member. He was later employed at La Coppa,
LLC, which manufactured and sold sorbet and
gelato until the company closed. While
employed at La Coppa, Attorney Mutschler
acted as a human resources manager,
promulgating an employee handbook, hiring
and training cafe workers, ordering food
supplies, and organizing participation in
festivals across the state. Since then,
Attorney Mutschler has only performed
sporadic, small odd jobs, such as yard work,
painting, and furniture moving. He subsists
on a small stipend from a family member and
resides with his mother. He has not been
regularly employed since 2014. Attorney
Mutschler maintains, however, that he has
unsuccessfully applied for literally
hundreds of jobs.
¶18 In response to the OLR's suggestion
that he has been unrealistic in his job
search, Attorney Mutschler vigorously
defends his efforts to obtain employment.
He points to his friend's uncontested
testimony at the hearing that Attorney
Mutschler applied for "numerous" jobs and
was repeatedly rejected, but it was never
for a lack of trying. Attorney Mutschler
asserts, as well, that he did apply on more
than one occasion to such minimum-wage
employers as McDonald's, WalMart, Kwik Trip,
et al., all without success. He says that,
"[f]or the OLR to even imply there was a
lack of either willingness or diligence on
Mr. Mutschler's part to gain employment is
beyond ludicrous and borders on the cruel."
Attorney Mutschler says that "this Court can
rest assured that any failure to repay the
Fund to this point was not the product of an
uncaring, indifferent, or callous attitude
on Mr. Mutschler's part."
¶19 We conclude that the facts of record
support the referee's determination that, "
[t]here is nothing in this record that gives
the Referee confidence that Mr. Mutschler
would engage in a program to repay his
restitution once he became employed if his
license was reinstated." We take no
position as to whether Attorney Mutschler
might have approached his job search
differently, or his decision to leave a
stable job to care for a family member.
What stands out is the undisputed fact that
in the nearly seven years between the time
his license was revoked and his
reinstatement petition, Attorney Mutschler
never made any contact with the Fund or his
former clients to make any arrangements for
repayment of any part of his restitution
obligation.
¶20 As the OLR observed, there is a
difference between not having enough money
to fully pay restitution, and "making
absolutely no discernable efforts to
directly address one's obligations to the
many victims of his misconduct." In the
OLR's view, Attorney Mutschler falls into
the latter category. The referee
reluctantly agreed and we defer to his
credibility determination and his resulting
conclusion that Attorney Mutschler failed to
carry his burden of proof regarding SCR
22.29(4)(4m), requiring a lawyer to
demonstrate that he or she has made
restitution to or satisfied all claims of
persons injured or harmed by his misconduct,
and SCR 22.29(4)(c), requiring that he
comply with the terms of the suspension and
revocation orders. See also SCR
22.31(1)(d)
(requiring clear and convincing evidence
that he "has complied fully with the terms
of the order of suspension or revocation and
with the requirements of SCR 22.26.").
¶21 Attorney Mutschler's failure to
satisfy this prerequisite regarding
restitution precludes his reinstatement. Our
decision in this regard is consistent with
another matter in which we recently denied
reinstatement to a lawyer who was also
revoked by consent, largely because he
failed to provide an accounting or make
restitution to a number of clients and his
former law firm as ordered by the court.
See In re Disciplinary Proceedings
Against
Mularski, 2018 WI 99, 384 Wis. 2d 97, 919
N.W.2d 368. Unlike Attorney Mutschler,
Attorney Mularski had actually made
substantial restitution payments. Id.,
¶4.
¶22 As noted, the referee did not make
specific findings or conclusions on several
of the remaining reinstatement criteria. We
opt not to remand this matter to the referee
for additional findings and conclusions
because further proceedings before the
referee would incur additional costs that
would be assigned to Attorney Mutschler, yet
would not alter our determination that
reinstatement is not warranted at this time.
¶23 We would be remiss and our opinion
incomplete, however, if we failed to address
an important aspect of Attorney Mutschler's
personal history that he raises in his
petition. When much of the underlying
misconduct occurred, Attorney Mutschler was
grappling with opiate addiction. Attorney
Mutschler reports having been sober since
2008; there is nothing in the record to the
contrary. This is highly commendable. The
OLR expresses great concern that Attorney
Mutschler does not regularly participate in
addiction programing or counseling. In the
absence of any record evidence indicating
that Attorney Mutschler's recent or present
conduct is actively affected by addiction or
depression, we are deeply reluctant to
suggest Attorney Mutschler's management of
these medical issues is somehow an adverse
factor in this reinstatement proceeding.
¶24 On a related note, Attorney
Mutschler cites case law suggesting he
believes that the question of medical
incapacity may be relevant here. We
disagree. Attorney Mutschler was not found
to be subject to a medical incapacity in his
underlying petition for consensual license
revocation.
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¶25 This court has repeatedly reaffirmed
that a lawyer does not enjoy a presumption
of rehabilitation, see In re
Disciplinary
Proceedings Against Hyndman, 2002 WI 6,
¶4,
249 Wis. 2d 650, 638 N.W.2d 293; and there
is no right to reinstatement, see In
re
Disciplinary Proceedings Against Banks,
2010
WI 105, 329 Wis. 2d 39, 787 N.W.2d 809. The
cases Attorney Mutschler cites, including
In
re Disciplinary Proceedings Against Belke,
2015 WI 41, 362 Wis. 2d 55, 862 N.W.2d 861,
do not persuade us that he has satisfied the
requirements for license reinstatement.
¶26 Finally, with respect to the costs
of this reinstatement proceeding, it is our
general practice to assess the full costs of
the proceeding against the petitioning
attorney. See SCR 22.24(1m). Nothing
in
this case warrants a reduction in the costs,
and we impose the full costs of the
reinstatement proceeding on Attorney
Mutschler.
¶27 IT IS ORDERED that the petition for
reinstatement is denied.
¶28 IT IS FURTHER ORDERED that within 60
days of the date of this order, Christopher
A. Mutschler shall pay to the Office of
Lawyer Regulation the costs of this
proceeding, which are $4,577.90 as of
December 18, 2018.
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