Disciplinary Proceedings Against Crandall
2021 WI 90, 12/21/21 (2021)
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ATTORNEY disciplinary proceeding.
Attorney's license suspended.
¶1 PER CURIAM. We review the report of
Referee James Evenson recommending that the
court suspend Attorney Eric L. Crandall's
license to practice law in Wisconsin for 60
days. Neither party has appealed from the
referee's report and recommendation.
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¶2 After careful review of the matter, we
adopt the referee's findings of fact and
conclusions of law with respect to Attorney
Crandall's misconduct and agree that the
misconduct warrants a 60-day suspension of
Attorney Crandall's license to practice law in
Wisconsin. The Office of Lawyer Regulation
(OLR) does not seek restitution, and we do not
order restitution. As is our usual custom, we
order Attorney Crandall to pay the full costs
of this disciplinary proceeding, which are
$5,824.25 as of October 6, 2021.
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¶3 Attorney Crandall was admitted to
practice law in Wisconsin in 1991. He was
admitted to practice law in Minnesota in
1998. He has been the subject of five prior
disciplinary proceedings. In 2006, his
Wisconsin law license was suspended for three
months as reciprocal discipline as to that
imposed by the Minnesota Supreme Court for
neglecting client matters, failing to
communicate with clients, failing to appear
at court hearings, failing to comply with
discovery rules, and failing to cooperate
with the disciplinary investigation. In re
Disciplinary Proceedings Against Crandall,
2006 WI 6, 287 Wis. 2d 102, 708 N.W.2d 690.
¶4 In 2008, Attorney Crandall was
publicly reprimanded for advancing a
frivolous claim, failing to file a client's
affidavit or a brief in opposition to a
motion for summary judgment, failing to keep
clients reasonably informed, failing to
return clients' files in a timely manner, and
failing to cooperate with the OLR's
investigation. In re Disciplinary
Proceedings Against Crandall, 2008 WI 14,
307
Wis. 2d 536, 745 N.W.2d 679.
¶5 In addition to the public reprimand
in 2008, Attorney Crandall's Wisconsin law
license was suspended for 30 days as
reciprocal discipline to that imposed by the
Minnesota Supreme Court for failing to act
with diligence and promptness, failing to
communicate with clients, engaging in conduct
involving dishonesty and misrepresentation,
and failing to cooperate with the Minnesota
disciplinary investigation. In re
Disciplinary Proceedings Against Crandall,
2008 WI 112, 314 Wis. 2d 33, 754 N.W.2d 501.
¶6 In 2011, Attorney Crandall's
Wisconsin law license was suspended for five
months for failing to hold advanced fees in
trust, failing to refund unearned fees, and
failing to cooperate with the OLR's
investigation. In re Disciplinary
Proceedings Against Crandall, 2011 WI 21,
332
Wis. 2d 698, 798 N.W.2d 183.
¶7 In 2015, Attorney Crandall was
publicly reprimanded for failing to comply
with the requirements of the supreme court
rule relating to the duties of an attorney
whose license has been suspended and failing
to cooperate with the OLR's investigation.
In re Disciplinary Proceedings Against
Crandall, 2015 WI 111, 365 Wis. 2d 682, 872
N.W.2d 649.
¶8 On September 30, 2019, the OLR filed
a seven count complaint against Attorney
Crandall alleging misconduct arising out of
Attorney Crandall's representation of J.C.
and L.S. J.C. hired Attorney Crandall in
February of 2018 to represent him in a civil
action and also to represent his girlfriend,
L.S., in a separate matter. J.C. had
retained Attorney Crandall to do legal work
for him in the past and had been satisfied
with that representation. J.C. agreed to pay
Attorney Crandall $2,500 for his matter and
$500 for L.S.'s matter. Attorney Crandall
also told J.C. he would charge a contingency
fee of 25 percent.
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¶9 On February 28, 2018, Attorney Crandall
sent
J.C. a "Hybrid Contingent Fee Retainer
Agreement" for each representation. Under the
proposed contract, if Attorney Crandall settled
the case prior to a trial judgment, J.C. or
L.S. would pay Attorney Crandall's fees at the
rate of $295 per hour, and also pay a
contingent fee of 25 percent. The agreement
did not contain language concerning the
placement of any advanced fees in Attorney
Crandall's operating account. Neither Attorney
Crandall, J.C., or L.S. signed either retainer
agreement.
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¶10 In March 2018, Attorney Crandall
asked J.C. for the $2,500 fees for his case,
and J.C. authorized Attorney Crandall to
charge him $2,500 on an American Express
credit card. On March 16, 2018, Attorney
Crandall charged $3,500 to J.C.'s American
Express card and deposited those funds, less
a processing fee, into his operating account
at U.S. Bank. After receiving the advanced
fees, Attorney Crandall took no further
action in either representation.
¶11 Attorney Crandall never provided J.C.
or L.S. with notices stating Attorney
Crandall's obligation to refund any unearned
advanced fees and provide an accounting at
the termination of the representation;
Attorney Crandall's obligation to submit any
unresolved fee disputes to binding
arbitration within 30 days of receiving
written notice of a dispute; and the ability
of J.C. or L.S. to file a claim with the
Wisconsin Lawyers' Fund for Client Protection
in the event Attorney Crandall failed to
refund unearned advanced fees.
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¶12 J.C. emailed and called Attorney
Crandall numerous times to inquire about the
status of his matter, but Attorney Crandall
did not substantively respond beyond a single
promise that he would file a complaint within
a few weeks.
¶13 J.C. terminated Attorney Crandall's
representation in August 2018 in both
matters. J.C. requested Attorney Crandall
return the client files and refund the
$3,500. On August 14, 2018, Attorney
Crandall mailed J.C. the files, and indicated
he would refund the advanced fees soon but
failed to do so.
¶14 J.C. filed a grievance with the OLR
on September 4, 2018. The OLR wrote to
Attorney Crandall on November 15, 2018 asking
him to respond to the grievance and
requesting a copy of J.C.'s and L.S.'s files
as well as Attorney Crandall's records
regarding the $3,500 fee.
¶15 Attorney Crandall refunded J.C. the
$3,500 advanced fee on November 16, 2018.
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¶16 On December 10, 2018, the date by
which the OLR had asked Attorney Crandall to
respond to the grievance, Attorney Crandall
faxed a letter to the OLR asking for more
time to respond. After Attorney Crandall
failed to respond to two more OLR requests
for a response to the grievance, on February
13, 2019, the OLR moved this court for an
order to show cause as to why Attorney
Crandall's license should not be suspended
for failure to cooperate in the
investigation. Attorney Crandall eventually
sent the OLR a response sufficient for it to
continue its investigation. On May 1, 2019,
this court granted the OLR's request to
withdraw its motion for a temporary
suspension.
¶17 The OLR's complaint alleged the
following counts of misconduct:
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Count 1: By agreeing to perform
legal services pursuant to a fee agreement with
a contingent fee component, where J.C. had not
signed the agreement, Attorney Crandall
violated SCR 20:1.5(c).
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Count 2: By charging $3,500 to
J.C.'s American Express credit card, an amount
that exceeded what J.C. had authorized,
Attorney Crandall violated SCR 20:8.4(c).
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Count 3: By accepting advanced fees
from J.C. and depositing the fees in his
business account, with no evidence of an
intention to utilize the alternative protection
for advanced fees permitted under SCR
20:1.5(g), Attorney Crandall violated SCR
20:1.5(f).
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Count 4: By failing to take any
action on J.C.'s or L.S.'s legal matters,
Attorney Crandall violated SCR 20:1.3.
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Count 5: By failing to respond to
J.C.'s multiple requests for information
regarding his legal matter, Attorney Crandall
violated SCR 20:1.4(a)(4).
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Count 6: By failing to promptly
refund the unearned advanced fees of $3,500,
Attorney Crandall violated SCR 20:1.16(d).
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Count 7: By willfully failing to
timely provide information in response to the
OLR's investigation, Attorney Crandall violated
SCR 22.03(2) and SCR 22.03(6), enforceable via
SCR 20:8.4(h).
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¶18 Attorney Crandall filed an answer to
the OLR's complaint on October 31, 2019.
¶19 A hearing was held before the referee
on May 11, 2021. Two witnesses testified at
the hearing: Attorney Crandall and J.C.
J.C. was an angry witness, refused Attorney
Crandall's request to refer to him as either
Attorney Crandall or Mr. Crandall, claimed
that after he terminated Attorney Crandall's
representation no other lawyer would touch
his case because Attorney Crandall had
tainted it, although he refused to disclose
the names of attorneys that he had tried to
retain. At the end of his testimony, J.C.,
said, "[y]ou're a bad person, dude. You're a
bad, bad individual. . . . I don't respect
you. You screwed me over, . . . I'm telling
you, you're a bad person, and I hope you're
happy. . . . you're a treat. You're a real
tool, dude."
¶20 The referee found that the OLR had
established by clear, satisfactory, and
convincing evidence that Attorney Crandall
violated all of the professional rules of
conduct detailed in the OLR's complaint. As
to the appropriate sanction, the referee
agreed with the OLR that Attorney Crandall's
license should be suspended for 60 days.
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¶21 The referee acknowledged that Attorney
Crandall has a lengthy history of disciplinary
matters, and the referee noted that this court
generally follows the concept of progressive
discipline. However, the referee noted that
J.C. was a very difficult witness who displayed
extreme anger toward Attorney Crandall even
though J.C. indicated he had been satisfied
with Attorney Crandall's handling of prior
legal matters.
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¶22 The referee also noted that Attorney
Crandall indicated that during his
representation of J.C. and L.S., he was
experiencing family health issues that
included taking care of his father who was
suffering from dementia, and he was trying to
balance his law practice with his family
responsibilities. The referee said these
factors caused Attorney Crandall to be
distracted and impacted his ability to manage
his client responsibilities although they did
not relieve him of meeting those
responsibilities. The referee said although
Attorney Crandall's family situation was not
necessarily a mitigating factor for the
misconduct, it did at least explain, to some
extent, some of the conduct.
¶23 The referee noted that Attorney
Crandall's prior disciplinary matters
involved conduct somewhat similar to what
occurred in this case, i.e. neglect of client
matters, failing to communicate with clients,
failing to return client files in a timely
manner, and failing to cooperate with the
OLR's investigation. Although Attorney
Crandall had suggested that a public
reprimand would be an appropriate level of
discipline, the referee said a reprimand
would minimize the significance of Attorney
Crandall's prior disciplinary history and the
similarity of his past violations to the ones
at issue here. The referee said even though
the record would support a longer suspension,
given the circumstances surrounding the
entire matter, the referee deemed a 60-day
suspension appropriate.
¶24 We will affirm a referee's findings
of fact unless they are clearly erroneous.
See In re Disciplinary Proceedings
Against
Eisenberg, 2004 WI 14, ¶5, 269 Wis. 2d 43,
675 N.W.2d 747. The court may impose
whatever sanction it sees fit, regardless of
the referee's recommendation. See In
re
Disciplinary Proceedings Against Widule,
2003
WI 34, ¶44, 261 Wis. 45, 660 N.W.2d 686.
¶25 There is no showing that any of the
referee's findings of fact are clearly
erroneous and we adopt them. We also agree
with the referee's legal conclusions that
Attorney Crandall violated the Supreme Court
Rules noted above.
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¶26 With respect to the appropriate
sanction, upon careful consideration, we
agree that a 60-day suspension of Attorney
Crandall's law license is appropriate. We
reach this conclusion in spite of the fact
that this is Attorney Crandall's sixth
disciplinary proceeding, and, as the referee
pointed out, there does appear to be a common
theme running through the proceedings, which
is Attorney Crandall's failure to perform the
work for which he was hired.
¶27 We note, however, that it has been
ten years since Attorney Crandall's last
suspension, and the misconduct at issue in
this case does not appear to rise to the
level of the misconduct that gave rise to
that five-month suspension.
¶28 Although no two disciplinary matters
are identical, the imposition of a 60-day
suspension is somewhat similar to the
sanction imposed in In re Disciplinary
Proceedings Against Harris, 2021 WI 31, 396
Wis. 2d 374, 956 N.W.2d 891, in which an
attorney who had six prior disciplinary cases
received a 60-day suspension for four counts
of misconduct that involved failing to keep
his clients informed about the status of
their cases and failing to meet basic
requirements with respect to court filings
and court dates. In addition, this case is
somewhat analogous to in In re Disciplinary
Proceedings Against Hudec, 2019 WI 39, 386
Wis. 2d 371, 925 N.W.2d 540. In that case,
an attorney who had been a subject of five
prior disciplinary proceedings received a 60-
day suspension for six counts of misconduct
involving failing to act with reasonable
diligence and promptness in representing a
client and failing to keep a client
reasonably informed about the status of the
matter. Based on the particular
circumstances of this case, and guided by
past precedent, we conclude that a 60-day
suspension of Attorney Crandall's license is
an appropriate sanction.
¶29 As is our normal practice, we deem it
appropriate to impose the full costs of this
proceeding on Attorney Crandall.
¶30 IT IS ORDERED that the license of
Eric L. Crandall to practice law in Wisconsin
is suspended for a period of 60 days,
effective February 1, 2022.
¶31 IT IS FURTHER ORDERED that within 60
days of the date of this order, Eric L.
Crandall shall pay to the Office of Lawyer
Regulation the full costs of this proceeding,
which are $5,824.25 as of October 6, 2021.
¶32 IT IS FURTHER ORDERED that Eric L.
Crandall shall comply with the provisions of
SCR 22.26 concerning the duties of a person
whose license to practice law in Wisconsin
has been suspended.
¶33 IT IS FURTHER ORDERED that compliance
with all conditions of this order is required
for reinstatement. See SCR 22.28(2).
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