Disciplinary Proceedings Against Kratz
2014 WI 31, 6/6/2014 (2014)
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ATTORNEY disciplinary
proceeding. Attorney's license
suspended.
¶1 PER CURIAM. We review the report
of the referee, Reserve Judge Robert E.
Kinney, recommending the court suspend
Attorney Kenneth R. Kratz's license to
practice law for a period of four months.
No appeal has been filed.
¶2 We approve and adopt the referee's
findings of fact and conclusions of law. We
conclude that the seriousness of Attorney
Kratz's misconduct warrants a four-month
license suspension. We require that
Attorney Kratz pay the full costs of the
proceeding, which totaled $23,904.10 as of
August 20, 2012.
¶3 Attorney Kratz has been licensed to
practice law in Wisconsin since 1985. He
was appointed District Attorney of Calumet
County, Wisconsin, in 1992 and served in
that position until he resigned in October
2010. Before serving as the Calumet County
District Attorney, Attorney Kratz served as
an Assistant District Attorney in La Crosse,
Wisconsin.
¶4 Attorney Kratz has no previous
disciplinary history.
¶5 The disciplinary complaint before
us, filed by the Office of Lawyer Regulation
(OLR) on November 30, 2011, involves
allegations that Attorney Kratz sent
inappropriate text messages to a domestic
abuse crime victim, S.V.G., while serving as
the prosecutor of the perpetrator of the
domestic abuse crime. The complaint further
alleges that Attorney Kratz made
inappropriate verbal statements to two
social workers with the Calumet County Human
Services Department, S.S. and R.H. This
course of behavior served as the basis of
six counts of misconduct, to which Attorney
Kratz has pled no contest.
¶6 The OLR's complaint included an
additional five counts of misconduct. One
of those counts concerned Attorney Kratz's
text messages to S.V.G.; the remaining four
counts alleged that Attorney Kratz engaged
in inappropriate behavior toward two
additional women, J.W. and M.R. The OLR
moved for, and the referee granted, the
dismissal of three of these five counts on
June 14, 2012, a few days before the start
of the disciplinary hearing on June 19,
2012. The OLR moved for, and the referee
granted, the dismissal of the other two
counts at the outset of the disciplinary
hearing. Attorney Kratz entered no contest
pleas to the remaining six counts.
¶7 Of the six counts of misconduct to
which Attorney Kratz pled no contest, three
counts concern S.V.G. According to the
OLR's complaint, on August 12, 2009,
Attorney Kratz, while serving as Calumet
County District Attorney, filed a felony
criminal complaint against S.R.K. of
Kaukauna, Wisconsin. According to the
complaint, S.R.K. beat and strangled S.V.G.,
a former live-in partner and mother of
S.R.K.'s child. The complaint charged one
felony count of strangulation and
suffocation (pursuant to Wis. Stat. § 940.235
(1)) and one count of disorderly conduct
(pursuant to Wis. Stat. § 947.01).
¶8 Shortly after the preliminary
hearing in this matter, S.V.G. met with
Attorney Kratz alone in a conference room at
the district attorney's office. S.V.G.
requested the meeting, exercising her right
to consult with the district
attorney "concerning the disposition of a
case involving a crime of which he or she
was a victim . . . ." See Wis. Stat. §
950.04(1v)(zm) (2009-10).
¶9 During the meeting, S.V.G.
volunteered personal information to Attorney
Kratz, stating that she did not have a
current boyfriend, that she suffered from
low self-esteem, that she lived with her
mother, and that she was struggling as a
single mother.
¶10 According to S.V.G., she understood
during her meeting with Attorney Kratz that
he would be prosecuting S.R.K. S.V.G. also
relayed details of her relationship with
S.R.K., and indicated that S.R.K. had
previously abused her, including beatings
and strangulation. Attorney Kratz asked
S.V.G. if she objected to reducing the
felony charge to a misdemeanor. S.V.G.
objected to the suggestion. At the
conclusion of the meeting, Attorney Kratz
and S.V.G. exchanged cell phone numbers.
¶11 After S.V.G. left Attorney Kratz's
office, Attorney Kratz began texting S.V.G.
from his personal cell phone. Attorney
Kratz sent her three messages on October 20,
2009, the same day they met, his last
message stating, "I wish you weren't one of
this office[']s clients. You'd be a cool
person to know!"
¶12 On October 21, 2009, Attorney Kratz
sent S.V.G. 19 messages, including asking
her: "Are you the kind of girl that likes
secret contact with an older married elected
DA . . . the riskier the better? Or do you
want to stop right know [sic] before any
issues?"
¶13 On October 22, 2009, Attorney Kratz
sent S.V.G. eight more messages, telling her
that she was "beautiful," "pretty,"
that "I'm the atty. I have the $350,000
house. I have the 6 figure career. You may
be the tall, young, hot nymph, but I am the
prize! Start convincing," and that "I would
not expect you to be the other woman. I
would want you to be so hot and treat me so
well that you'd be THE woman. R U that
good?"
¶14 According to S.V.G., Attorney
Kratz's personal overtures were unwelcome
and offensive, and she was concerned that if
she failed to respond to Attorney Kratz, he
might take action with respect to the case
against S.R.K. that could potentially
adversely affect S.V.G.
¶15 On October 22, 2009, S.V.G. reported
Attorney Kratz's text messages to the
Kaukauna Police Department.
¶16 After photographing the text
messages on S.V.G.'s telephone and taking
S.V.G.'s statement, the Kaukauna Police
Department referred the matter to the State
of Wisconsin Department of Justice (DOJ).
¶17 After reviewing the text messages
and the report of the Kaukauna Police
Department, the DOJ determined that there
had not been any criminal activity.
Nonetheless, DOJ representatives strongly
suggested to Attorney Kratz that he step
aside from the prosecution of S.R.K. and
self-report his conduct to the OLR.
¶18 Attorney Kratz facilitated the
appointment of a special prosecutor to take
over the S.R.K. case. Attorney Kratz also
agreed to resign as chairman of the
Wisconsin Crime Victims' Rights Board.
¶19 In a December 4, 2009 letter to the
OLR that included the transcribed messages
to and from S.V.G., Attorney Kratz admitted
that he sought a personal "friendship" with
S.V.G. He expressed regret and
embarrassment for his conduct and admitted
that he had violated S.V.G.'s trust.
Attorney Kratz also noted that he was
undergoing therapy "to answer why a career
prosecutor, with a spotless record and
sterling reputation, would risk his
professional esteem on such a disrespectful
communication with a crime victim."
¶20 On September 15, 2010, the
Associated Press published a story regarding
Attorney Kratz's text messages to S.V.G.
Attorney Kratz issued a statement admitting
that he sent the texts and was embarrassed
at his lack of judgment.
¶21 On September 17, 2010, the executive
committee of the Wisconsin District
Attorneys Association issued a letter to
Attorney Kratz calling for his resignation.
¶22 After then-Governor James Doyle
initiated removal proceedings against him
pursuant to Chapter 17 of the Wisconsin
Statutes, Attorney Kratz resigned his
position as Calumet County District Attorney
on October 4, 2010.
¶23 Two counts of the OLR's complaint
involve Attorney Kratz's verbal statements
to S.S., a social worker with the Calumet
County Human Services Department.
¶24 In October of 2009, Attorney Kratz
prosecuted a termination of parental rights
case in which S.S. was a witness. Prior to
testifying, S.S. commented to Attorney Kratz
that she was nervous about testifying. In
response to S.S.'s concerns, Attorney Kratz
stated to S.S. that he "won't cum in your
mouth." Later that day Attorney Kratz
remarked to S.S. that he wanted the trial to
be over because he was leaving on a trip to
Las Vegas, where he could have "big boobed
women serve me drinks."
¶25 One count of the OLR's complaint
involves Attorney Kratz's verbal statement
to R.H., also a social worker with the
Calumet County Human Services Department.
During a court proceeding, Attorney Kratz
commented in court to R.H. that a reporter
had "big beautiful breasts."
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¶26 On the first day of the scheduled
disciplinary hearing in this matter,
Attorney Kratz entered pleas of no contest
to six counts of misconduct stemming from
his behavior toward S.V.G., S.S., and R.H.
The referee found that an adequate factual
basis existed on each of the six counts, and
accepted the no contest pleas.
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¶27 The referee concluded that, by
seeking a personal relationship with S.V.G.,
a domestic abuse crime victim and witness,
while serving as the prosecutor of the
perpetrator of the domestic abuse crime,
thereby creating a significant risk that the
representation of the State of Wisconsin
would be materially limited by his own
personal interests, Attorney Kratz engaged
in a concurrent conflict of interest in
violation of SCR 20:1.7(a).
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¶28 The referee also concluded that, by
seeking a personal relationship with S.V.G.,
a domestic abuse crime victim and witness,
and by sending her text messages carrying
sexual overtones, while prosecuting the
perpetrator of the domestic abuse crime,
Attorney Kratz engaged in offensive
personality, in violation of SCR 20:8.4(g)
and SCR 40.15.
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¶29 The referee also concluded that, by
sending deliberate, unwelcome, and
unsolicited sexually suggestive text
messages to S.V.G., a domestic abuse crime
victim and witness, while prosecuting the
perpetrator of the domestic abuse crime,
Attorney Kratz harassed S.V.G. on the basis
of her sex, in violation of SCR 20:8.4(i).
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¶30 The referee also concluded that, by
stating to S.S., a Calumet County social
worker and witness in a termination of
parental rights case, that he "won't cum in
your mouth" and that he wished the trial to
be over because he was traveling to Las
Vegas where he could have "big boobed women
serve me drinks," and by making these
comments while acting in his capacity as
Calumet County District Attorney, Attorney
Kratz engaged in offensive personality in
violation of SCR 20:8.4(g) and SCR 40.15.
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¶31 The referee also concluded that, by
stating to S.S., a Calumet County social
worker and witness in a termination of
parental rights case, that he "won't cum in
your mouth" and that he wished the trial to
be over because he was traveling to Las
Vegas where he could have "big boobed women
serve me drinks," and by making these
comments while acting in his capacity as
Calumet County District Attorney, Attorney
Kratz harassed S.S. on the basis of her sex,
in violation of SCR 20:8.4(i).
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¶32 Finally, the referee concluded that,
by making a comment during a court
proceeding to R.H., a Calumet County social
worker, that a reporter had "big beautiful
breasts," and by making this comment while
acting in his capacity as Calumet County
District Attorney, Attorney Kratz engaged in
offensive personality, in violation of SCR
20:8.4(g) and SCR 40.15.
¶33 At the June 19, 2012 disciplinary
hearing, the referee heard testimony and
received exhibits on the issue of the
appropriate discipline. The referee also
received post-hearing briefing on the
subject.
¶34 In its post-hearing brief, the OLR
argued that Attorney Kratz's license should
be suspended for six months. The OLR
emphasized that Attorney Kratz's conduct
involved multiple women, all of them in
vulnerable or subordinate positions. The
OLR argued that Attorney Kratz did not
intend to remove himself as prosecutor in
the S.V.G. matter until DOJ officials asked
him to do so after S.V.G. reported his
actions to the police. The OLR also argued
that Attorney Kratz refused to take
responsibility for his offensive statements
to S.S. and R.H. The OLR further argued
that because Attorney Kratz blamed his
misconduct on various addictions yet offered
no competent medical testimony that he had
recovered from his addictions, a six-month
suspension would be appropriate given that
it would require him to petition the court
for reinstatement under SCR 22.28(3).
¶35 In his post-hearing brief, Attorney
Kratz argued that a public reprimand was
warranted. In support of his argument that
a license suspension was not warranted,
Attorney Kratz downplayed the seriousness of
his misconduct toward S.V.G., S.S., and R.H.
¶36 Regarding his texts to S.V.G.,
Attorney Kratz admitted they constituted
wrongful behavior, but "disagree[d] with the
OLR's characterization that the messages
contained 'sexual overtones' (as no message
included one single sexually explicit term,
nor was any sexual conduct or sex act ever
suggested)." Attorney Kratz also described
his conduct upon learning that S.V.G.
objected to his texts as praiseworthy. He
wrote:
[U]pon even the hint of a conflict of
interest, or reports of unsettling reaction
by [S.V.G.], immediate steps were taken to
eliminate even the perception of continued
violation; timely self-report to the OLR for
imposition of sanction (if required); and
aggressive steps to ensure this stupidity
never, ever repeated itself. That is the
attorney response that this Court should
praise, rather than punish.
¶37 Regarding his verbal comments to
social worker S.S. that he "won't cum in
[her] mouth" and looked forward to
having "big boobed women serve [him]
drinks," Attorney Kratz wrote that
he "recognized the disrespectful phrase
used, and apologized to the Social Worker at
the first opportunity."
¶38 Regarding his statement to social
worker R.H. that a "reporter" had "big
beautiful breasts," Attorney Kratz wrote in
his post-hearing brief that this
comment "never occurred." Attorney Kratz
argued that "the reporter referred to,
although admittedly beautiful, does NOT have
large breasts . . . this single important
factor has been relied upon by Respondent to
conclude the comment never was made, or
at the very least, [was] misinterpreted by
[R.H.]." Attorney Kratz conceded, however,
that "given the posture of this case, the
tribunal is free to include the facts of the
[R.H.] comment, and provide it such weight
in the sanctions recommendations as deemed
necessary."
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¶39 As a mitigating factor, Attorney
Kratz wrote in his post-hearing brief that
at the time of the events in question,
he "suffered from the combination of
Sexually Compulsive Disorder (SCD) and
prescription drug dependence"覧conditions
for which he has sought treatment. He also
claimed that he wanted "to settle the case"
early in the disciplinary process, but the
OLR refused to do so, in part because it
is "apparently more concerned with how 'they
look' in the zealous pursuit of an
attorney 'pelt,' rather than what
result 'should' be reached."
¶40 On July 30, 2012, the referee filed
a report and recommendation. In considering
the appropriate discipline, the referee
weighed various aggravating and mitigating
factors.
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¶41 The referee noted as aggravating
factors that Attorney Kratz acted with a
selfish motive; that S.V.G. was a vulnerable
victim; and that Attorney Kratz's misconduct
was particularly inexcusable in light of his
considerable legal experience and his
previous leadership on issues pertaining to
victims' rights.
¶42 The referee assigned neutral weight
to Attorney Kratz's self-report to the OLR
of his misconduct involving S.V.G. The
referee wrote that "at the time of the
respondent's self-report, the cat was
already out of the bag, so to speak. S.V.G.
had gone to the police, the police had
contacted the Wisconsin Department of
Justice, and that agency urged the
respondent to self-report to the OLR." The
referee found that these
circumstances "significantly undercut any
claim of virtuousness by self-reporting."
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¶43 The referee noted a variety of
mitigating factors, which, in summary
fashion, are as follows: Attorney Kratz has
no prior disciplinary history; he apologized
to S.S. for his vulgar comment shortly after
making it; he has never attempted to justify
or defend his conduct toward S.V.G.; he
cooperated with the disciplinary
proceedings; he previously enjoyed a good
professional reputation and engaged in
significant volunteer activities within the
legal profession; he has been diagnosed with
and sought treatment for narcissistic
personality disorder and sexual addiction;
he was abusing the sleeping aid Ambien, the
painkiller Vicodin, and the anti-anxiety
drug Xanax at the time of the misconduct; he
subsequently sought treatment for his
substance abuse issues; he voluntarily
obtained a mentor attorney through the State
Bar's Wisconsin Lawyer Assistance Program
(WisLAP), who reported being impressed with
Attorney Kratz's character and commitment to
recovery; and he had suffered substantial
collateral consequences from his misconduct,
including considerable negative publicity,
the loss of his district attorney position,
and significant financial difficulties.
¶44 After weighing these aggravating and
mitigating factors, the referee recommended
that Attorney Kratz's license to practice
law should be suspended for a period of four
months. In support of his recommendation
for a lighter sanction than that proposed by
the OLR, the referee emphasized the number
and weight of the mitigating factors in this
case. The referee also suggested that a
four-month suspension was consistent with
the discipline imposed in two cases that he
believed were particularly analogous to this
case. In re Disciplinary Proceedings
Against Beatse, 2006 WI 115, 297 Wis. 2d
292, 722 N.W.2d 385 (assistant district
attorney publicly reprimanded for having
spent numerous hours viewing pornography on
his work computer, lied about the source of
the pornography and the extent of his
viewing, used the state's e-mail system to
send and receive sexually explicit e-mail
messages, and made inappropriate comments to
a county employee in a work environment);
In re Disciplinary Proceedings Against
Ridgeway, 158 Wis. 2d 452, 462 N.W.2d 671
(1990) (assistant state public defender
suspended for six months for having
initiated and engaged in sexual contact with
a client he was representing as a public
defender, and for having encouraged that
client to violate the terms of her probation
by providing her with alcoholic beverages).
¶45 No appeal has been filed, so this
matter is submitted to the court pursuant to
SCR 22.17(2). We affirm a referee's
findings of fact unless they are found to be
clearly erroneous. In re Disciplinary
Proceedings Against Inglimo, 2007 WI 126,
¶5, 305 Wis. 2d 2d 71, 740 N.W.2d 125. We
review the referee's conclusions of law on a
de novo basis. Id. We determine the
appropriate level of discipline given the
particular facts of each case, independent
of the referee's recommendation, but
benefiting from it. In re Disciplinary
Proceedings Against Widule, 2003 WI 34,
¶44, 261 Wis. 2d 45, 660 N.W.2d 686.
¶46 After reviewing the record, we
conclude that the referee's factual findings
are supported by the record, and we adopt
them. We also adopt the referee's
conclusion that Attorney Kratz committed the
six counts of misconduct described above.
¶47 With respect to the appropriate
level of discipline, we agree with the
referee that a four-month suspension is
necessary discipline for Attorney Kratz's
misconduct in this matter. Attorney Kratz's
conduct toward S.V.G. was appalling.
Through a series of wheedling text messages,
Attorney Kratz attempted to convince S.V.G.,
a domestic abuse crime victim and witness,
to enter into a sexual relationship with him
while he was prosecuting the perpetrator of
the domestic crime. S.V.G. felt leveraged
by Attorney Kratz's sexual entreaties; she
feared that if she failed to respond to him,
he might take action in her domestic abuse
case that could potentially adversely affect
her. This was exploitative behavior,
harassing behavior, and a crass placement of
his personal interests above those of his
client, the State of Wisconsin. Attorney
Kratz's comments to social worker S.S. while
she served as a witness in one of his cases覧
that he "won't cum in [her] mouth" and
looked forward to "big boobed women" serving
him drinks in Las Vegas覧crossed the line
separating the unprofessional from the
acutely offensive and harassing. Attorney
Kratz's statement to social worker R.H.
during a court proceeding, in which he
voiced approval of a reporter's "big
beautiful breasts," was sufficiently boorish
as to constitute misconduct. In short,
whatever his qualities and accomplishments
as a lawyer, Attorney Kratz proved himself
during the period in question to be
sanctionably sophomoric.
¶48 Attorney Kratz has rationalized his
poor behavior by confessing to various
addictions: to Ambien, to Vicodin, to
Xanax, and to sex, though he fails to point
to either medical records or expert medical
testimony that would explain the exact
nature and severity of his conditions, or
how they may have affected his ability to
conform his behavior to ethical rules. But
regardless of how we view Attorney Kratz's
behavior覧as an involuntary byproduct of
addiction, or as a willful blindness to
professional standards覧the ugly picture
painted by the record remains the same. The
recommended four-month suspension is
deserved.
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¶49 We turn next to the issue of costs.
The OLR filed its statement of costs on
August 20, 2012, listing $23,904.10 in
costs. Supreme Court Rule 22.24(2) required
Attorney Kratz to file any objection to the
OLR's statement of costs within 21 days
after service覧or on or about September 10,
2012. On November 14, 2012覧over two months
past the deadline覧Attorney Kratz filed an
objection to the statement of costs, along
with a motion asking the court to accept his
late filing. Attorney Kratz offered no
explanation for the lateness of his filing.
¶50 We reject Attorney Kratz's unexcused
late filing. Our deadlines are not mere
suggestions. Filing documents with this
court over two months late with no semblance
of a reasonable excuse has its
consequences. As the Seventh Circuit has
explained:
We live in a world of deadlines. If
we're
late for the start of the game or the movie,
or late for the departure of the plane or
the train, things go forward without us.
The practice of law is no exception. A good
judge sets deadlines, and the judge has a
right to assume that deadlines will be
honored.
Spears v. City of Indianapolis, 74 F.3d 153,
157 (7th Cir. 1996).
¶51 Even if we were to consider Attorney
Kratz's objection to costs on its merits, it
falls well short of convincing us to impose
anything other than full costs. If
anything, Attorney Kratz's untimely
objection to costs hurts more than it helps
his cause.
¶52 In his untimely objection, Attorney
Kratz insists that he should pay no costs
whatsoever. The OLR asks us to impose full
costs consistent with our standard practice
under SCR 22.24(1m).
¶53 The referee has recommended an equal
split of the costs. In his report, the
referee stated that although the court's
general policy is to impose all costs
against a respondent upon a finding of
misconduct, "[o]ne of the relevant factors
set forth in SCR 22.24(1m) warrants
deviation from the standard rule." That
factor, according to the referee, is SCR
22.24(1m)(a): "[t]he number of counts
charged, contested, and proven." The
referee noted that the OLR spent "more than
the usual time and effort" in locating and
arranging for the testimony of the two
grievants, J.W. and M.R., whose claims
formed the basis for four misconduct counts
that the OLR dismissed at or shortly before
the start of the scheduled disciplinary
hearing. The referee explained that
although it is "not at all unusual" for the
OLR to dismiss claims during the course of a
disciplinary proceeding, it "would seem
unfair . . . to impose all the costs on the
respondent."
¶54 We disagree with both the referee
and Attorney Kratz and impose full costs.
Under SCR 22.24, the court has the exclusive
authority to decide the appropriate
assessment of costs against a disciplined
lawyer. We note that at the time the
referee filed his report recommending
halving the costs normally assessable
against Attorney Kratz, the referee was
operating at an informational disadvantage.
Consistent with SCR 22.24(2), the OLR filed
its statement of costs and an itemization of
costs several weeks after the referee filed
his report.
¶55 Reviewing the costs issue de novo,
we disagree with the referee's
recommendation that the costs assessed
against Attorney Kratz should be essentially
proportional to the percentage of counts on
which the OLR prevailed. It is true, as the
referee emphasized, that SCR 22.24(1m)(a)
lists as a factor to consider in reducing
costs the "number of counts charged,
contested, and proven." Our rules, however,
require that to impose less than full costs
on the lawyer disciplined, the court must
first find "extraordinary circumstances."
SCR 22.24(1m). Only if and when the court
finds that "extraordinary circumstances"
exist in a particular case may the court
consult the factors listed in SCR 22.24(1m)
(a) through (f) to guide the court's
imposition of costs.
¶56 We do not find extraordinary
circumstances present here. To begin with,
it is not extraordinary for the OLR to
prosecute all misconduct counts for which
the Preliminary Review Committee found cause
to proceed. And, in the words of the
referee, it is "not at all unusual" for the
OLR to dismiss claims during the course of a
disciplinary proceeding, as was the case
with the five misconduct counts dismissed
here. As for who should pay the cost of
litigating dismissed misconduct charges覧the
disciplined lawyer or the other attorneys in
this state覧this court has chosen the
former, barring "extraordinary
circumstances" which, by definition, we do
not normally find. See SCR 22.24(1m); see
also In re Disciplinary Proceedings
Against
Pangman, 216 Wis. 2d 440, 460-61, 574
N.W.2d
232 (1998) (rejecting objections to full
assessments of costs based on an
apportionment of the number of misconduct
allegations established); In re
Disciplinary
Proceedings Against Johnson, 165 Wis. 2d
14,
20, 477 N.W.2d 54 (1991) (same).
¶57 We also find nothing extraordinary
about Attorney Kratz's claim, stridently
advanced in his untimely objection to costs,
that he was willing to conditionally admit
some of the misconduct charges several
months before the scheduled disciplinary
hearing. We reject the premise of Attorney
Kratz's argument: that he has been dragged
through an expensive disciplinary process
while furiously waving the white flag of
surrender from the very beginning. This
simply is not true.
¶58 The primary basis for Attorney
Kratz's claim that these disciplinary
proceedings were unnecessary is a single e-
mail, dated about two weeks after the OLR
filed its complaint, from Attorney Kratz to
the OLR's counsel. In this e-mail, Attorney
Kratz stated his willingness to enter no
contest pleas to some, but not all, of the
counts to which he ultimately pled no
contest. He offered to enter no contest
pleas to the three counts involving S.V.G.
to which he ultimately pled no contest. He
denied misconduct toward R.H. He stated he
had "no recollection" of making the vulgar
remarks to S.S. and would "prefer not to
admit to something I do not recall," and he
denied that any "one-time crude remarks"
could constitute harassment under SCR 20:8.4
(i). He stated that "[t]his count"覧
presumably, the offensive personality count
under SCR 20:8.4(g) and SCR 40.15 concerning
S.S.覧"could result in a 'no contest' plea
if you want a 2nd 'incident' to hang your
hat on, other than [S.V.G.]" He stated that
although he would accept a six-month
suspension, he wanted the suspension to take
effect less than three weeks later, and to
be given "credit" against his suspension for
an over five-month period during which he
had "removed [himself] from the practice of
law." We note that with his request for an
over five-month credit against his proposed
six-month suspension, Attorney Kratz was
proposing that he receive a net suspension
of about three weeks. Attorney Kratz
explained that he intended to move out of
state, and his "opportunity to be licensed
elsewhere requires my reinstatement here."
¶59 In its reply to Attorney Kratz's
untimely objection to costs, the OLR informs
us that it chose not to accept the terms
stated in Attorney Kratz's e-mail. The OLR
states that it did not agree with Attorney
Kratz's suggestion that the time he
allegedly refrained from practicing law
should be "credited" against any imposed
suspension. The OLR also did not agree to
starting the suspension period less than
three weeks after the date of the e-mail.
The OLR further informs us that it reminded
Attorney Kratz that this court prohibits
parties in OLR cases from engaging in plea
bargaining. See, e.g., Inglimo, 305
Wis. 2d
71, ¶85. Finally, the OLR tells us that at
the time of Attorney Kratz's e-mail, the OLR
director "reconsidered the viability of each
misconduct count and determined it would be
inappropriate to drop the counts suggested
by Attorney Kratz."
¶60 We decline to equate Attorney
Kratz's highly optimistic settlement offer
with an extraordinary circumstance
sufficient to justify a reduction in costs.
Although we have long allowed lawyers and
the OLR to enter into stipulations of fact
and law and jointly request the imposition
of a justifiable level of discipline, we
refuse Attorney Kratz's invitation to
undertake the task of evaluating the
parties' efforts to reach such a
stipulation; i.e., to review the history of
the parties' case discussions in order to
determine who was willing to stipulate to
what, when, and at what consequence; whether
a stipulated outcome was reasonably
achievable; and how much the SCR 22.24 costs
totaled at the relevant point(s) in time.
¶61 This is not to say that it is
impossible for an attorney to limit, or even
eliminate, the imposition of costs under SCR
22.24. An attorney may entirely avoid
paying the costs of a proceeding by entering
into a comprehensive, court-approved
stipulation prior to the appointment of a
referee. See, e.g., In re
Disciplinary
Proceedings Against Compton, 2010 WI 112,
¶13, 329 Wis. 2d 318, 787 N.W.2d 831 (citing
SCR 22.12). This was not done here. After
the appointment of a referee, an attorney
may stop the running of SCR 22.24 costs by
entering into a stipulation that eliminates
the need for further litigation. This was
not done here.
¶62 What was done here, according to the
record, is that Attorney Kratz e-mailed a
stipulation proposal written in self-
interested terms, and the OLR rejected it.
This is not an "exceptional circumstance":
to modify a familiar refrain, you can't
always get what you want, or what you need.
¶63 We do not find the costs incurred
extraordinary either. The costs consist of
about $15,000 in fees and disbursements from
the OLR's counsel; about $5,700 in referee's
fees and mileage expenses; and about $2,900
in court reporting and other costs.
Attorney Kratz does not argue that these
costs were in any way inflated. He does not
challenge the billable rates of the OLR's
counsel or the referee, or the time spent by
either on any particular task. He does not
challenge any disbursements or expenses as
excessively high. He does not do what SCR
22.24(2) instructs: "explain, with
specificity, the reasons for the objection
[to costs] and . . . state what he . . .
considers to be a reasonable amount of
costs."
¶64 In place of specificity Attorney
Kratz resorts to hyperbole. He writes in
his tardy objection to costs:
As this Court should by now have
undeniably
determined, there is nothing ORDINARY about
this disciplinary case brought by the OLR
against the Respondent, and the assessment
of ANY costs against the Respondent, as a
result of the OLR's insistence on a formal
hearing, is unjust and borders on the
intellectually insulting.
[I]t was the Respondent himself
who has done
everything, since well before any formal
grievance was filed with the OLR, to resolve
this entire matter with professional
humility, having immediately and
consistently taken full responsibility for
any possible Supreme Court Rule
violation . . . .
¶65 The record proves otherwise. In
every stage of these proceedings, Attorney
Kratz has employed a tooth-and-nail
litigation approach. He denied all
misconduct in his answer to the OLR's
complaint and raised various constitutional,
jurisdictional, and procedural defenses. He
accused the OLR of operating under a
conflict of interest and of unethically
leaking information. He moved to dismiss
the OLR's complaint on nine separate
grounds; the referee later rejected the
motion as "replete with bare assertions of
fact" which were "not properly before the
referee and may not be considered." He
engaged in vigorous discovery practice,
including propounding over 125
interrogatories, filing discovery motions,
and attempting to compel the production of
documents from third parties. He raised
arguments that ranged from the incredible
(e.g., disputing his text messages to S.V.G.
contained sexual overtones); to the hyper-
technical (claiming the OLR complaint was
barred by the civil doctrines of issue and
claim preclusion because an OLR investigator
initially declined to forward S.V.G.'s
grievance for formal investigation); to the
inconsistent (denying any recollection of
making inappropriate comments to S.S. but
claiming credit for having recognized their
inappropriateness and apologized); to the
puzzling (arguing that he could not have
told R.H. that a reporter had "big beautiful
breasts" because the reporter in question
was beautiful, but not large breasted).
¶66 It was, of course, Attorney Kratz's
right to vigorously contest the misconduct
charges. But SCR 22.24(1m) makes clear that
when a lawyer whom this court ultimately
finds guilty of misconduct imposes costs on
the disciplinary system, he or she must
expect to pay. And litigation, as every
litigant knows, is not cheap. We refuse to
transfer the litigation costs that Attorney
Kratz has generated to the other attorneys
of the state who are innocent of any
wrongdoing.
¶67 In the end, there is
nothing "extraordinary" here from a costs
perspective. Our general rule is to impose
full costs upon a finding of misconduct, and
we do so here. See SCR 22.24(1m).
¶68 IT IS ORDERED that the license of
Kenneth R. Kratz to practice law in
Wisconsin is suspended for a period of four
months, effective July 11, 2014.
¶69 IT IS FURTHER ORDERED that Kenneth
R. Kratz 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.
¶70 IT IS FURTHER ORDERED that within 60
days of the date of this order, Kenneth R.
Kratz shall pay to the Office of Lawyer
Regulation the costs of this proceeding.
¶71 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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¶72 SHIRLEY S. ABRAHAMSON,
C.J. (concurring). I join the per
curiam opinion.
¶73 The OLR disciplinary system is about
15 years old. Several anomalies and
proposed amendments have been brought to the
court's attention. It is time for the court
to institute a review of the system rather
than to make piecemeal adjustments at this
time. See my writings in OLR v. Johns,
2014 WI 32, _ Wis. 2d _, _ N.W.2d _;
OLR v. Osicka, 2014 WI 33, _ Wis. 2d
_, _ N.W.2d _; and OLR v. Osicka,
2014 WI 34, _ Wis. 2d _, _ N.W.2d _;
of even date.
¶74 I welcome Justice Prosser's support
for an impartial, objective, thorough review
of OLR practices and procedures, support he
gave at the open rules petition conference
in October 2013. For a history of a
proposal for such a review, listen to the
open rules petition conference of October
25, 2013, in connection with proposals for
change in OLR's practices.
¶75 The question of instituting such a
review will come before the court again. I
hope it will get four votes.
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¶76 DAVID T. PROSSER, J. (concurring
in part, dissenting in part). From time
to time every government agency would
benefit from an impartial, objective review
of the agency's practices and procedures.
There is increasing evidence of the need for
such an evaluation of the Office of Lawyer
Regulation (OLR). This case highlights some
of the problems facing the agency and why an
objective review would be desirable.
¶77 It must be stated at the outset that
the misconduct of Attorney Kenneth Kratz
requires discipline. I concur in the
recommendation of the referee that Attorney
Kratz receive a four-month suspension, which
is the suspension approved by the court.
¶78 OLR wanted a six-month suspension.
A six-month suspension would require
Attorney Kratz to seek readmission from this
court, a process that often takes the better
part of a year. A suspension of that
duration would have been unreasonable.
¶79 OLR also asked that Attorney Kratz
pay all costs of the proceeding, namely,
$23,904.10, and the court approves these
costs, contrary to the recommendation of the
referee. The exorbitant costs requested by
OLR覧and granted by this court覧require
discussion and prompt this partial dissent.
¶80 OLR charged Attorney Kratz with 11
counts of misconduct. The first four counts
involved S.V.G. One of these counts was
later dismissed by OLR. The counts
involving S.V.G. are the reason why Attorney
Kratz requires discipline. They are
described in ¶¶7-22 of the Per Curiam
opinion.
¶81 Attorney Kratz's conduct was highly
inappropriate and cannot be defended. What
is important for this concurrence/dissent,
however, is that the substance of these
counts, including all text messages between
Attorney Kratz and S.V.G., were self-
reported by Kratz to OLR on December 4,
2009, making proof of ethical violations
easy to accomplish. Thus, one of the first
issues to examine is why OLR did not file
any charges against Attorney Kratz until
November 30, 2011.
¶82 It seems obvious, in retrospect,
that Attorney Kratz suffered a serious
breakdown of some sort by October 2009. He
had been through considerable stress from
2005 through 2009 as special prosecutor in
the high profile murder trials of Steven
Avery and Brendan Dassey in Manitowoc
County. Post-conviction proceedings in
Dassey's case were still pending in the fall
of 2009, culminating in a five-day hearing
in 2010. Attorney Kratz and his then-wife
separated in October 2009, during this
stressful period, and he began to abuse
prescription drugs. Whether these stresses
and difficulties contributed to Attorney
Kratz's October conduct is speculative, but
the stresses and difficulties are not
speculative.
¶83 Counts 1, 3, 4, 5, and 6 are based
on incidents that occurred during October
2009. No date is given for the incident in
Count 7.
¶84 Attorney Kratz's unacceptable text
messages with respect to S.V.G. took place
over a period of three days in October 2009,
approximately a week after separation from
his wife. On the third day S.V.G. took the
matter to local police. Within two weeks,
Kratz had removed himself from the criminal
case in which S.V.G. was the victim. After
the Wisconsin Department of Justice (DOJ)
was notified of Attorney Kratz's conduct, it
pressured Attorney Kratz to resign as chair
of the Wisconsin Crime Victims' Rights Board
and to self-report his misconduct to OLR.
He did the latter on December 4, 2009,
admitting his misconduct and expressing his
embarrassment for it.
¶85 When OLR received Attorney Kratz's
communication, including all the text
messages, it commenced an investigation.
Thereafter, on February 4, 2010, OLR
received a grievance from S.V.G. On
February 18 an OLR investigator wrote to
S.V.G. asking that she contact the
investigator. On March 5, having received
no response from S.V.G., the investigator
notified S.V.G. that the matter had been
closed. Attorney Kratz was notified of this
action. In sum, three months after it
received all the information necessary to
prosecute Attorney Kratz and barely a month
after receiving the grievance from S.V.G.,
OLR closed the case.
¶86 The record does not indicate why
S.V.G. did not follow up on her grievance.
The record does not indicate why OLR closed
the matter when it had ample evidence to
proceed if it wished to do so. OLR's letter
to S.V.G. stated that Attorney Kratz's
conduct "did not appear to involve possible
professional misconduct."
¶87 Six months later, Keith Sellen,
director of the OLR, was contacted by Ryan
Foley, a reporter for the Associated Press
(AP). Sellen later indicated in an
affidavit that he had not been aware of the
Kratz matter before the Foley inquiry.
¶88 The following day, September 15,
2010, Foley wrote a news story based on
information he obtained from a police report
released by the Kaukauna Police Department.
Foley did not reveal how he learned about
the police report describing Attorney
Kratz's conduct.
¶89 Foley's AP story triggered a
political firestorm less than two months
before the 2010 general election. There
were immediate calls for Attorney Kratz's
resignation as Calumet County District
Attorney. When Attorney Kratz did not
resign, Governor James Doyle initiated
proceedings to remove him from office.
¶90 The Kratz matter became a
political issue. Scott Hassett, the
Democratic candidate for attorney general,
accused his opponent, incumbent Attorney
General J.B. Van Hollen, of knowing about
the Kratz matter for nearly a year and
doing "nothing about it." Democratic Party
Chair Mike Tate accused Van Hollen of
a "cover up" "after discovering the sexually-
harassing text messages fellow Republican
and political ally Ken Kratz sent to a woman
whose boyfriend he was trying for nearly
strangling her to death."
¶91 Attorney General Van Hollen
responded to these attacks with assertions
that the DOJ pressured Kratz to resign from
the Crime Victims Rights Board and advised
him to self-report his conduct to
OLR. "There are no bones about the fact
that the Office of Lawyer Regulation dropped
the ball here," Van Hollen told the
Post-Crescent newspaper in Appleton. He
said he was surprised to learn that OLR had
told S.V.G. that Attorney Kratz's
conduct "did not appear to involve possible
professional misconduct." "I personally am
very concerned with the fact that the Office
of Lawyer Regulation determined that there
was nothing wrong with this activity," he
added.
¶92 OLR, having now received a letter
from S.V.G.'s attorney, Michael Fox,
reopened the Kratz investigation.
Additional complaints came in. More than 13
months later, OLR filed its complaint.
¶93 From all appearances, OLR was
determined to make up for "dropping the
ball." It selected as outside counsel
Thomas Basting, who filed 11 charges against
Attorney Kratz, including seven counts
related to four new matters. In one of
these charges, OLR essentially accused
Attorney Kratz of sexual assault:
After various phone
conversations, Kratz asked to visit JW at
her apartment. JW asserts that Kratz
arrived at her apartment and after
threatening JW, forced her to have
sex. . . .
On September 28, 2010, JW
provided the information about Kratz to her
probation officer at the Department of
Corrections (DOC). The DOC reported the
issue to the DOJ.
The DOJ interviewed JW who
provided a statement. The statement JW
provided alleges that Kratz, while District
Attorney of Calumet County, had forcible sex
with an emotionally vulnerable woman after
previously prosecuting the woman.
(Emphasis added.)
¶94 In filing this sensational charge
pertaining to alleged sexual assault, OLR
not only discredited Attorney Kratz but also
implicitly criticized the DOJ and local law
enforcement authorities for failing to
prosecute him. It later quietly dismissed
the charge.
¶95 As noted above, OLR also asked that
Attorney Kratz be suspended from the
practice of law for six months.
¶96 Looking backward, OLR forced
Attorney Kratz to defend his law license to
avoid being required to apply for
readmission to the bar, and to defend
himself against alleged criminal conduct.
Attorney Kratz admitted the S.V.G. counts
but disputed that he should be suspended for
six months because of them. In time OLR
dropped FIVE counts, including the alleged
sexual assault count. The only new charges
on which OLR prevailed were three counts
involving tasteless sexual comments that
Attorney Kratz made to two co-workers. The
co-worker in Counts 5 and 6 acknowledged
that Attorney Kratz's comments were out of
character and that Attorney Kratz apologized
and told her his comments were inappropriate
and he should not have made them. The co-
worker in Count 7 also said Attorney Kratz's
comment was out of character.
¶97 In the years following S.V.G.'s
complaint to the Kaukauna police, Attorney
Kratz was forced to resign as Calumet County
District Attorney. He went through a
divorce. He lost his home and his car. He
was sued by S.V.G. in the United States
District Court and settled the lawsuit. He
filed for bankruptcy. It is unlikely that
Attorney Kratz is in any position to pay
$23,904.10 in court costs. These
extravagant costs will pose a serious
hardship to Attorney Kratz, cannot be
justified on the basis of the OLR
prosecution, and are manifestly unfair.
¶98 The Kratz case underscores the
need for a thorough review of OLR practices
and procedures.
¶99 First, OLR closed the investigation
against Attorney Kratz without the knowledge
of the OLR director, Keith Sellen. How did
that happen?
¶100 Second, after reopening the
investigation, OLR took 13 months to file a
complaint against Attorney Kratz. What is
the justification for this lengthy delay?
¶101 Third, after a long investigation,
OLR filed three sensational counts
against Attorney Kratz that it later
dismissed for lack of proof. Why did OLR's
Preliminary Review Committee permit these
counts to be filed? Is the Preliminary
Review Committee serving its intended
purpose of screening out improvident charges
when it approves 98 percent of the OLR
staff's recommendations?
¶102 Fourth, OLR expects Attorney Kratz
to pay all costs related to the prosecution
of its improvident charges and its harsh
desired level of discipline. Should a
respondent attorney be expected to pay OLR's
costs for charges that are not proven and a
level of discipline sought but not imposed?
¶103 Fifth, OLR appears to be unwilling
or unable to drop charges it has filed
unless it acknowledges that the charges
cannot be proved. It could likely have
settled the Kratz matter much sooner if
it had been able to bargain for something
less than unconditional surrender. Should
OLR have the authority to plea bargain with
respondents? If so, under what conditions?
¶104 No doubt other questions could be
raised about OLR's handling of the Kratz
case. But apart from this single case,
there are many reasons for this court to
launch a thorough覧strictly objective覧
review of the agency. If that review is
undertaken, something useful may yet come
out of this unfortunate tragedy.
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