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ATTORNEY disciplinary proceeding.
Attorney's license suspended.
¶1 PER CURIAM. Attorney Eric L.
Crandall filed an appeal from the referee's
report and recommendation that his license
to practice law in Wisconsin be suspended
for a period of five months and that he be
required to pay the full costs of this
disciplinary proceeding.
¶2 This is the second opinion regarding
this disciplinary proceeding. The complaint
filed by the Office of Lawyer Regulation
(OLR) contained both reciprocal discipline
counts (Counts 8 and 9) and "standard"
counts that related to alleged misconduct
that was not the subject of discipline in
another jurisdiction (Counts 1 through 7).
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¶3 Because of the difference in the
procedures applicable to those two types of
counts, we initially severed the reciprocal
discipline counts from the "standard"
counts. We immediately addressed the
reciprocal discipline counts and suspended
Attorney Crandall's license to practice in
Wisconsin for 30 days as discipline
reciprocal to that imposed by the Supreme
Court of Minnesota. In re Disciplinary
Proceedings Against Crandall, 2008 WI 112,
314 Wis. 2d 33, 754 N.W.2d 501.
¶4 It is the "standard" counts that are
the subject of this opinion. We referred
those counts to a referee for further
proceedings according to the standard
procedures set forth in SCRs 22.15 and
22.16. Attorney James G. Curtis was
appointed as referee.
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¶5 Both parties filed dispositive
motions. The referee denied Attorney
Crandall's motion to dismiss the complaint
against him. He granted the OLR's motion
for summary judgment in part, concluding
that the OLR was entitled to summary
judgment on Counts 4 and 7 involving
Attorney Crandall's failure to respond to
the OLR's investigations, but also ruling
that there were questions of material fact
that precluded summary judgment with respect
to Count 5, which involved certifications
Attorney Crandall had signed regarding his
client trust account.
¶6 The referee held an evidentiary
hearing at which both sides were given an
opportunity to present evidence. The OLR
filed a post-hearing brief, but Attorney
Crandall did not do so. The referee then
issued his report and recommendation. He
concluded that the OLR had met its burden of
proving misconduct by clear, satisfactory,
and convincing evidence with respect to
Counts 1, 2, 4, 6, and 7, but had failed to
meets its burden with respect to Counts 3
and 5. As noted above, the referee
recommended a five-month license suspension
and the assessment of the full costs of this
disciplinary proceeding, which were
$9,118.21 as of May 27, 2010.
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¶7 The first issue we must address is
the nature of our review. Attorney Crandall
filed a timely notice of appeal from the
referee's recommendation. He has not,
however, filed a brief in this court,
despite being granted multiple extensions of
time to do so.
¶8 Attorney Crandall's opening appeal
brief was initially due on July 6, 2010. He
did not file a brief or file a motion for an
extension of time by that date.
¶9 On August 9, 2010, Attorney Crandall
filed a motion seeking an extension of time
until September 24, 2010, to file his
opening brief. The Chief Justice, on behalf
of the court, issued an order granting him
an extension of time until September 1,
2010, and stating that no further extensions
of time would be granted. Attorney Crandall
did not file a brief or a further extension
motion by the extended due date.
¶10 On September 7, 2010, Attorney
Crandall filed a second extension motion,
again asking for an extension of time until
September 24, 2010, to file his opening
brief. Like his initial extension motion,
his second motion alleged that he needed
additional time due to the press of other
business, especially given his status as a
solo practitioner. He acknowledged that the
court had granted only a part of the
extension he had originally requested, but
he asserted that he simply needed all the
time identified in his initial motion in
order to complete and file his brief.
¶11 The court, through the Chief
Justice, granted this second extension
motion, but the order explicitly stated that
this was the "final extension" to be granted
to Attorney Crandall. This second extension
order further expressly informed Attorney
Crandall that the failure to file a brief by
the new deadline could be grounds for the
dismissal of his appeal:
Respondent-appellant's opening brief
shall
be served and filed on or before September
24, 2010. This is the final briefing
extension in this matter. No further
extensions of time shall be granted. If
respondent-appellant's opening brief is not
served and filed by September 24, 2010, such
repeated failure to comply with the court's
orders may be considered by the court as
grounds for (1) the dismissal of respondent-
appellant's appeal and (2) consideration of
the report and recommendation of the referee
under SCR 22.17(2).
¶12 Despite the clear warning of the
potential consequences of not filing a
timely brief, Attorney Crandall has never
filed a brief in this matter. His failure
to file a brief raises the question of
whether there should be a sanction, such as
the dismissal of his appeal, for his
disobedience of the court's orders.
¶13 Appeals in attorney disciplinary
proceedings are governed by the rules of
appellate procedure that apply to civil
appeals to this court. SCR 22.17(3).
Pursuant to Wis. Stat. § (Rule) 809.83(2),
the failure of a person to comply with an
appellate court's order or a requirement of
the rules of appellate procedure "is grounds
for dismissal of the appeal, summary
reversal, striking of a paper, imposition of
a penalty or costs on a party or counsel, or
other action as the court considers
appropriate." This court has construed this
statute, however, not to authorize dismissal
or summary reversal for all failures to
comply with an appellate rule or order.
Rather, noting that dismissal of an appeal
with prejudice is a drastic sanction, we
have held that "[f]or a court to dismiss an
appeal under § (Rule) 809.83(2), there must
be a showing that the party or the party's
attorney has demonstrated bad faith or
egregious conduct, or there must be a common
sense finding that the appeal has been
abandoned." State v. Smythe, 225 Wis.
2d
456, 468-69, 592 N.W.2d 628 (1999); see
also
Raz v. Brown, 2003 WI 29, ¶18, 260 Wis.
2d
614, 660 N.W.2d 647 (applying Smythe
standard to case where court of appeals
summarily reversed portion of circuit court
ruling because party failed to file a
response brief to a cross-appeal).
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¶14 We conclude that Attorney Crandall's
conduct in this court warrants the dismissal
of his appeal in this matter. He was given
three separate deadlines to file his brief,
and he ignored each of them. Although
neither of his extension motions was filed
prior to the expiration of the then-existing
deadline, this court granted him extensions
of time to file his brief. In both of those
extension orders, Attorney Crandall was
given a specific deadline and was told that
no further extensions would be given.
Indeed, in his second extension motion
Attorney Crandall stated that he simply
needed all of the time he had originally
requested so that he could file his brief.
Although he was ultimately granted the full
extension that he sought, he never filed any
brief, leading to the inference that the
extension requests were mere ploys for
delay. We conclude that his repeated
disobedience of this court's briefing orders
constitutes egregious conduct that warrants
the dismissal of his appeal. Alternatively,
his unexplained failure to file any brief
after repeatedly asking for and being
granted more time to do so constitutes an
abandonment of his appeal.
¶15 Moreover, although the dismissal of
an appeal is rightly considered a drastic
remedy, we note that the impact of a
dismissal in an attorney disciplinary
proceeding is much less than in an ordinary
civil appeal. While a dismissal in an
ordinary appeal terminates the case and
leaves the judgment against the appellant
intact, in attorney disciplinary cases this
court still reviews the referee's report,
although we do it as if no appeal had been
timely filed under SCR 22.17(2). We still
review the referee's report and
recommendation because it is this court that
ultimately determines whether an attorney
has committed professional misconduct and,
if so, what the appropriate discipline
should be.
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¶16 Indeed, we apply the same standard
of review to the referee's report whether or
not an appeal has been filed. Specifically,
we affirm a referee's findings of fact
unless they are found to be clearly
erroneous, but we review the referee's
conclusions of law on a de novo basis. In
re Disciplinary Proceedings Against
Inglimo,
2007 WI 126, ¶5, 305 Wis. 2d 71, 740 N.W.2d
125. 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.
¶17 We now turn to the referee's
findings of fact with respect to Attorney
Crandall and the alleged misconduct at issue
in this proceeding. Attorney Crandall was
admitted to the practice of law in this
state in September 1991. He currently
maintains a law practice in New Richmond.
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¶18 Attorney Crandall has been the
subject of professional discipline on three
previous occasions. In February 2006 this
court suspended Attorney Crandall's license
for three months as discipline reciprocal to
that imposed by the Minnesota Supreme
Court. In re Disciplinary Proceedings
Against Crandall, 2006 WI 6, 287 Wis. 2d
102, 708 N.W.2d 690. His misconduct
involved neglect of client matters, failure
to communicate with clients, failure to
appear at court hearings, failure to comply
with discovery rules, and failure to
cooperate with the disciplinary
investigation.
¶19 In March 2008 this court publicly
reprimanded Attorney Crandall for knowingly
advancing a claim or defense that was
unwarranted under existing law, knowingly
advancing a factual position without a basis
to do so, failing to file a client's
affidavit or a brief in opposition to a
summary judgment motion, failing to keep his
clients reasonably informed about the status
of their matter, failing to return his
clients' file in a timely manner, and
failing to cooperate with the OLR's
grievance investigation. In re
Disciplinary
Proceedings Against Crandall, 2008 WI 14,
307 Wis. 2d 536, 745 N.W.2d 679.
¶20 Finally, as noted above, Attorney
Crandall's Wisconsin license was suspended
for 30 days as reciprocal discipline. The
misconduct that led to that discipline
included failing to act with diligence and
promptness, failing to communicate with his
clients, engaging in conduct involving
dishonesty or misrepresentation, and failing
to cooperate with the Minnesota disciplinary
authorities. In re Disciplinary
Proceedings Against Crandall, 2008 WI 112,
314 Wis. 2d 33, 754 N.W.2d 501.
¶21 Counts 1 through 4 of the OLR's
current complaint relate to Attorney
Crandall's representation of client T.H.
T.H. retained Attorney Crandall in August
2005 to defend him in a mortgage foreclosure
action and to pursue potential counterclaims
against the lender. The written fee
agreement provided that T.H. would make an
advance payment of $3,000 to Attorney
Crandall, that Attorney Crandall's fee would
be $300 per hour, and that Attorney Crandall
would receive 25 percent of any recovery
T.H. received from the lender.
¶22 Attorney Crandall placed the $3,000
advance payment he received from T.H. into
his business account rather than his client
trust account. The referee found that as of
August 2005 Attorney Crandall was not aware
of the requirement that advance payments be
placed into a trust account. According to
the referee, Attorney Crandall now
understands his obligation to deposit
advance payments into his client trust
account and has changed his practices to
comply with the applicable rules.
¶23 In November 2005 Attorney Crandall
was able to obtain an order dismissing T.H.
from the action, without prejudice, due to
the insufficiency of service of process. On
January 20, 2006, this court issued its
decision suspending Attorney Crandall's
license to practice law in Wisconsin
effective February 20, 2006. 287 Wis. 2d at
105. On or about February 4, 2006, T.H.
received his entire case file from Attorney
Crandall along with a letter stating that
Attorney Crandall's representation was
concluded because T.H. had been dismissed as
a party from the foreclosure action.
¶24 At the time he declared the
representation terminated and returned the
file to the client, Attorney Crandall had
never provided an itemization of his fees or
an explanation of the application of the
$3,000 advance payment. In a subsequent
telephone conversation that occurred within
the next several days, Attorney Crandall
agreed to return $2,000 of the advance
payment. There was no specific agreement as
to when that amount would be refunded to
T.H., but Attorney Crandall stated that he
would return those funds "as soon as [he]
was able."
¶25 The suspension of Attorney
Crandall's license caused his cash flow to
decrease, and because he had not placed the
advance payment into a trust account, he
therefore did not have $2,000 to pay T.H.
until the fall of 2006. By July 27, 2006,
T.H. had contacted the OLR and had submitted
a letter inquiring about the failure of
Attorney Crandall to repay the money.
¶26 On September 28, 2006, the OLR
requested that Attorney Crandall submit a
written response to T.H.'s grievance by
October 23, 2006. On October 19, 2006,
Attorney Crandall refunded the $2,000 to T.H.
¶27 Apparently because it had not
received a response to the grievance, the
OLR sent a second letter to Attorney
Crandall on October 30, 2006, asking for a
written response by November 9, 2006. On
November 9 T.H. faxed a letter to the OLR
that stated, "After further review and
discussions with Mr. Eric L. Crandall I wish
to withdraw my complaint." The same day
Attorney Crandall faxed a letter to the OLR
stating that he understood that T.H. had
withdrawn his grievance, that he now
considered the matter closed, and that he
did not believe that any further submission
to the OLR was necessary.
¶28 The OLR responded to both T.H. and
Attorney Crandall by a letter dated November
13, 2006. In that letter, the OLR explained
that it had a duty to investigate despite
T.H.'s purported "withdrawal" of his
grievance. The letter notified Attorney
Crandall that his response to the OLR's
request for information was overdue and
stated that his response needed to be
postmarked by November 24, 2006. When
Attorney Crandall did not submit a written
response, the OLR personally served another
letter on him on December 8, 2006.
¶29 On December 12, 2006, Attorney
Crandall faxed a letter to the OLR repeating
that he considered the matter closed and
that he did not believe that the OLR had
standing to proceed with a disciplinary
investigation. The OLR then filed a motion
for an order to show cause why Attorney
Crandall's license should not be temporarily
suspended, which order was issued by this
court on January 11, 2007. On February 12,
2007, Attorney Crandall finally faxed a
response to the OLR, which then withdrew its
temporary suspension motion.
¶30 When Attorney Crandall was
subsequently interviewed by the District
Committee, he refused to provide a copy of
his fee agreement with T.H. or any other
documents from his file. He later faxed a
copy of the fee agreement to the OLR's
investigator, but refused to submit any
other non-public documents from the client's
file on the ground that the client had
directed him not to disclose attorney-client
matters.
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¶31 Based on these findings of fact, the
referee concluded that Attorney Crandall had
committed three counts of professional
misconduct with respect to the T.H.
representation and subsequent
investigation. First, he concluded that
Attorney Crandall's deposit of the $3,000
advance payment into his business account
rather than his client trust account had
violated former SCR 20:1.15(b)(4). Second,
the referee determined that Attorney
Crandall had violated former SCR 20:1.16(d)
by failing to refund the unearned fees of
$2,000 for eight months after he had agreed
to do so. Third, the referee found that
Attorney Crandall had willfully failed to
cooperate with the OLR's grievance
investigation, in violation of SCRs 22.03(2)
and (6), and 20:8.4(f).
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¶32 The referee further concluded,
however, that the OLR had failed to prove by
clear, satisfactory, and convincing evidence
that Attorney Crandall's refund of the
$2,000 after the OLR had requested a written
response to the T.H. grievance had
constituted a failure to cooperate with or
an improper interference with an OLR
investigation, in violation of SCRs 21.15
(4), 22.03(6), and 20:8.4(f).
¶33 Count 5 of the complaint alleged
that Attorney Crandall had submitted false
certifications for fiscal years 2005 through
2008 regarding having filed with the OLR a
trust account overdraft notification
agreement with the financial institution
where his client trust account was
maintained.
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¶34 Some background is necessary to
provide context for the referee's factual
findings and conclusions of law on this
topic. Effective January 1, 1999, this
court created SCR 20:1.15(i) to require
attorneys to maintain trust accounts in only
financial institutions that had agreed to
provide overdraft reports to the Board of
Attorneys Professional Responsibility (BAPR)
or later the OLR. S. Ct. Order 97-05, 218
Wis. 2d xiii (1998) (issued June 4, 1998;
eff. Jan. 1, 1999). The court also created
SCR 20:1.15(j), which set forth the
requirements that a financial institution
was required to follow for overdraft
notifications. Supreme court rule 20:1.15
also continued to require each lawyer to
certify on his/her annual bar dues statement
that the lawyer had complied with each of
the record-keeping requirements set forth in
the relevant subsection(s) of the rule.
¶35 Effective July 1, 2004, SCR 20:1.15
was repealed and recreated. S. Ct. Order 02-
06, 2004 WI 49, 269 Wis. 2d xiii (issued
Apr. 30, 2004; eff. July 1, 2004). The
requirement to maintain demand trust
accounts only in financial institutions that
agreed to notify the OLR of overdrafts was
moved to subsection (h)(1). The
certification requirement was moved to
subsection (i). Just as the prior version
of the rule required the lawyer to certify
that he/she had complied with the record-
keeping requirements in what was then
subsection (e), the recreated rule required
the lawyer to "explicitly certify on the
state bar certificate described in sub. (i)
(1) that the member has complied with each
of the record-keeping requirements set forth
in subs. (f) and (j)(5)." SCR 20:1.15(i)
(2). In addition, the recreated rule now
provided that a lawyer's failure to file
this certification was grounds for the
automatic suspension of the lawyer's
license, and the filing of a false
certificate constituted unprofessional
conduct and grounds for disciplinary
action. SCR 20:1.15(i)(4).
¶36 The referee found that following the
1999 amendments, BAPR had taken the position
that the rule required each member of the
bar not only to have in place an overdraft
agreement with the financial institution
that administered the trust account, but
also to file the overdraft agreement with
BAPR. The OLR has followed that same
position since its inception. The
certification contained on the annual dues
statement for fiscal years 2005 through 2008
followed this position and said that the
lawyer was certifying that he/she had an
overdraft agreement on file with the OLR.
¶37 The certification signed by Attorney
Crandall on his annual bar dues statements
for fiscal years 2005 and 2006 provided as
follows:
I hereby certify that I have trust and/or
fiduciary accounts, have complied with each
of the record-keeping requirements set forth
in SCR 20:1.15(e) and have a trust account
overdraft agreement on file with OLR for
each demand-type "Client Account"
and/or "Trust Account" into which I deposit
client or third-party funds held in
connection with a representation or in a
fiduciary capacity that directly arises in
the course of or as a result of a lawyer-
client relationship.
¶38 The certification that Attorney
Crandall signed on his annual bar dues
statements for fiscal years 2007 and 2008
was similar, but phrased slightly
differently due to the repeal and recreation
of SCR 20:1.15:
I hereby certify that I have trust and/or
fiduciary account(s) and that those accounts
are identified above and/or attached to this
certification in a separate list. I also
certify that I have complied with each of
the record-keeping requirements set forth in
SCR 20:1.15(f) and/or (j)(5). I further
certify that I have a trust account
overdraft agreement on file with OLR for
each demand-type trust account into which I
deposit client funds or 3rd party funds, and
that, with respect to each demand-type
fiduciary account, I have an overdraft
agreement on file with OLR or I am complying
with the alternative protection procedures
of SCR 20:1.15(j)(9)b. and/or (9)c.
¶39 The referee found that Attorney
Crandall, who was also licensed in
Minnesota, had maintained his client trust
account at U.S. Bank in White Bear Lake,
Minnesota. He opened the account in 1992.
The referee found that at the time of the
opening of the account Attorney Crandall had
signed numerous forms. He also found that
Attorney Crandall had relied on the bank to
submit the necessary forms to the Minnesota
and Wisconsin authorities.
¶40 Minnesota also has an overdraft
reporting requirement. Minn. R. Prof.
Conduct 1.15(k)-(l). The Minnesota rule
requires that attorneys licensed in
Minnesota may only maintain trust accounts
in financial institutions that have been
approved by the Minnesota Office of Lawyers
Professional Responsibility (MOLPR) because
those institutions have filed an agreement
with the MOLPR that they will report
overdrafts to the MOLPR. It appears from
the referee's report that he concluded that
U.S. Bank, where Attorney Crandall
maintained his trust account, was an
approved financial institution in
Minnesota. The referee also appears to have
credited Attorney Crandall's testimony that
at some point there were one or two trust
account checks issued when there were
insufficient funds in the account, and U.S.
Bank did indeed notify the lawyer regulatory
authorities in both Minnesota and Wisconsin.
¶41 The referee found, however, that
Attorney Crandall did not have a trust
account overdraft agreement on file with the
OLR prior to 2008. In 2007 the OLR asked
Attorney Crandall to send it a copy of his
overdraft notification agreement. Attorney
Crandall responded that he had asked his
bank for copies of the trust account
documents that had been created when the
account had been opened in 1992 and that he
would forward those documents to the OLR
when he had received them. The OLR
nonetheless sent a blank form overdraft
agreement to Attorney Crandall. On January
3, 2008, Attorney Crandall faxed such an
overdraft agreement to the OLR, but it was
incomplete and had not been signed by a
representative of U.S. Bank. At some point
shortly thereafter, Attorney Crandall opened
a new trust account with the U.S. Bank
branch office in Hudson, Wisconsin. On July
28, 2008, Attorney Crandall faxed to the OLR
a completed overdraft notification agreement
that had been signed by both Attorney
Crandall and a U.S. Bank representative on
July 18, 2008.
¶42 The referee concluded:
There is insufficient evidence to the
standard of clear, satisfactory and
convincing evidence to conclude that
[Attorney] Crandall violated former SCR
20:1.15(i)(4) when he certified on his
annual State Bar dues statements for fiscal
years 2005 through 2008 that he had a trust
account overdraft agreement on file with the
OLR for his client trust account, when he
did not.
The referee believed that Attorney Crandall
should not be found liable on this count
because he concluded that the applicable
rules did not require a lawyer to certify
that he/she had an overdraft agreement on
file with the OLR, even though BAPR and the
OLR had taken that position. The referee
stated that the applicable rule during the
relevant years had only required the
attorney to have in place an overdraft
agreement in which the financial institution
agreed to notify the OLR of an overdraft.
The rule did not require that such an
agreement be filed with the OLR. The
referee pointed to the fact that SCR 20:1.15
(h)(8) was amended effective January 1,
2010, to specifically require that an
overdraft notification agreement be filed
with the OLR. S. Ct. Order 08-03, 2009 WI
62 (issued July 1, 2009; eff. Jan. 1,
2010). The addition of this requirement in
2010 led the referee to the conclusion that
the filing of such an agreement with BAPR or
the OLR was not mandated before 2010.
¶43 In addition, the referee noted that
the portion of former SCR 20:1.15 that
mandated the annual certification after the
2004 repeal and recreation, subsection (i)
(1), required the attorney to certify that
he/she had complied with each of the record-
keeping requirements in subsections (f) and
(j)(5). The overdraft notification
agreement requirement, however, was not set
forth in either subsection (f) or (j)(5); it
was found in subsection (h). Thus, the
referee concluded that there was no
obligation under the applicable rule to sign
any certification regarding overdraft
notification agreements.
¶44 Although the referee acknowledged
that the charge in the OLR's complaint was
that the certification signed by Attorney
Crandall was false and the certification
indeed was not accurate regarding the filing
of an overdraft agreement with the OLR, he
concluded that Attorney Crandall should not
be disciplined for falsely certifying
something that he was not obligated to
certify under the applicable rules and that
should therefore not have been included in
the certification. He further stated that
even if one would find that Attorney
Crandall's certifications had been false,
this would have been "a highly technical and
theoretical violation of the rules" for
which "no disciplinary action is warranted."
¶45 The referee further specifically
noted that Attorney Crandall was not charged
with failing to have an overdraft
notification agreement in place. Even if he
had been, the referee stated that the
evidence was unclear whether the trust
account that Attorney Crandall maintained in
Minnesota prior to 2008 complied with the
applicable Wisconsin rules. Given the
requirements of the Minnesota Rules of
Professional Conduct, the account may also
have been compliant with Wisconsin's
overdraft notification requirements.
¶46 Counts 6 and 7 of the OLR's
complaint relate to Attorney Crandall's
representation of client D.P. in a breach of
contract action. During the course of the
representation, which began on September 3,
2003, D.P. paid a total of $4,000 to
Attorney Crandall plus an additional $625
for mediation fees.
¶47 On November 19, 2004, Attorney
Crandall sent a letter to D.P. enclosing
some file documents and stating that the
representation has been completed. As of
that date, Attorney Crandall had never
provided D.P. with a billing statement or
any itemization of the work Attorney
Crandall had performed on D.P.'s behalf.
¶48 D.P. made several telephone calls
and left messages requesting an itemization
of Attorney Crandall's fees, but his calls
were not returned. At some point, D.P.
wrote an undated letter stating that he had
asked for a detailed billing statement but
had never received one and requesting that
Attorney Crandall provide one within two
weeks.
¶49 On June 5, 2006, which was after the
date D.P. sent Attorney Crandall the undated
letter, Attorney Crandall sent a letter to
D.P. stating that D.P. had paid a total of
$4,000 in fees to Attorney Crandall plus an
additional $625 to the mediator. Attorney
Crandall did not provide an itemization of
his fees nor did he state that D.P. owed him
additional fees.
¶50 D.P. filed a grievance with the OLR
in July 2006. On August 7, 2006, the OLR
sent a letter to Attorney Crandall notifying
him of the grievance and requesting a
written response.
¶51 On August 26, 2006, Attorney
Crandall sent a letter to D.P. but he did
not also send a copy to the OLR. The
referee found that by that date Attorney
Crandall had prepared an itemized billing
statement, which was probably enclosed with
the August 26, 2006, letter. The text of
the letter stated for the first time that
Attorney Crandall's total fees for
representing D.P. were $8,045 and requested
that D.P. pay the balance of $4,045 by
September 11, 2006. The letter also
contained the following statement:
Finally, given these facts &
documentation,
I find your recently filed ethics complaint
to be wholly without merit. I demand that
you to [sic] withdraw it and any others you
may have filed immediately, and I further
demand that you refrain from filing any
other such merit less [sic] complaints with
any other administrative or regulatory
body. (Emphasis in original.)
¶52 On that same date Attorney Crandall
also sent a separate letter to the OLR.
That letter stated that Attorney Crandall
was submitting a short response to D.P.'s
grievance, "as I believe that [D.P.] will
soon be withdrawing his inquiry/grievance."
¶53 D.P. forwarded the letter he
received from Attorney Crandall to the OLR
with the following comments:
Mr. Crandall is creating bills now.
First he calls me [and] tries to
intimidate
me so that I withdraw my complaint and now
he all of a sudden after he closed his file
out nearly two years ago he finds out that I
owe him more [than] I paid.
¶54 On November 8, 2006, the OLR
requested that Attorney Crandall provide his
written response to the D.P. grievance by
December 1, 2006. Attorney Crandall did not
respond. After a subsequent letter from the
OLR was personally served on Attorney
Crandall, he finally submitted a written
response. The response, however, provided
only partial information and alleged that
the Wisconsin regulatory authorities lacked
jurisdiction because the work Attorney
Crandall had performed for D.P. had occurred
in Minnesota.
¶55 The OLR responded with a letter that
contained four requests for additional
information and gave Attorney Crandall a
deadline of January 11, 2007, to respond.
On February 14, 2007, Attorney Crandall
submitted a letter that responded to only
two of the four requests. The OLR then sent
another letter asking for a response to the
two other requests by February 23, 2007.
When Attorney Crandall failed to respond,
the OLR filed a motion for an order to show
cause why a temporary suspension should not
be imposed. On that same date, Attorney
Crandall finally responded in full to the
D.P. grievance, which led the OLR to
withdraw its motion.
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¶56 Based on these findings, the referee
concluded that Attorney Crandall had failed
to cooperate with a grievance investigation,
in violation of SCRs 21.15(4), 22.03(6), and
20:8.4(f), by coupling a new and unsupported
request for the payment of $4,045 in
additional fees with a demand that D.P.
immediately withdraw his grievance. In
connection with this count, the referee
specifically found not credible Attorney
Crandall's testimony that D.P. had
specifically asked him not to send an
itemized billing because he was prone to
stress and had medical issues. The referee
also emphasized that Attorney Crandall had
not mentioned that D.P. had owed any
additional fees in his previous letter of
June 2006, when he had first responded to
D.P.'s request for an itemization with a
letter that merely set forth the amounts
that D.P. had paid.
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¶57 On the final count of the complaint,
the referee also concluded that Attorney
Crandall's failure to provide a written
response to the D.P. grievance and his
failure to provide complete responses to the
OLR's supplemental request for information,
necessitating the filing of a motion for a
temporary suspension, had violated SCRs 22.03
(2) and (6).
¶58 With respect to the appropriate
level of sanction, the referee was most
troubled by Attorney Crandall's submission
of a new $4,045 bill to D.P. in conjunction
with a demand that D.P. withdraw his
grievance. Given Attorney Crandall's
erroneous belief that the withdrawal of a
grievance would terminate the investigation,
the referee viewed the August 26, 2006,
letter as "motivated by a purpose to
interfere with the grievance investigation,
and to strong-arm or coerce [D.P.] into
withdrawing the grievance" and as "an
obvious and serious interference with the
[OLR's] investigation." The referee was
also disturbed by Attorney Crandall's
consistent failure to cooperate——both with
the OLR's investigation and with the ensuing
disciplinary proceeding.
¶59 The referee also indicated that the
cases cited to him by the OLR could support
a six-month suspension of Attorney
Crandall's license to practice law in
Wisconsin. He found the case of In re
Disciplinary Proceedings Against Arrieh,
174
Wis. 2d 331, 496 N.W.2d 601 (1993) (imposing
six-month suspension) to be the most
analogous because Attorney Arrieh, like
Attorney Crandall, had improperly attempted
to pressure a client into withdrawing a
grievance.
¶60 Despite the fact that he believed a
six-month suspension could be a reasonable
level of discipline here, the referee
recommended that the court impose a five-
month suspension in this proceeding. He
acknowledged that this was a "close call,"
but felt that a six-month suspension would
work too harsh of a result because it would
require Attorney Crandall to complete the
formal reinstatement process, which would
lengthen the amount of time that Attorney
Crandall would be prohibited from practicing
law in Wisconsin. Moreover, the referee
believed that the imposition of a suspension
of six months or more and the accompanying
formal reinstatement procedure have been
reserved for situations where the misconduct
has been particularly egregious or there was
a need for the court to take a closer look
at the attorney and assure itself that the
attorney has the necessary moral character
to be granted the privilege of practicing
law in this state. The referee did not
believe that this case fell into either
category. Although he stated that under the
court's policy of progressive discipline the
suspension should be longer than the three-
month suspension previously imposed on
Attorney Crandall, the referee did not
believe that the suspension should extend to
six months. He therefore recommended that
the court impose a five-month suspension.
¶61 We turn first to the referee's
findings of fact and conclusions of law.
Since Attorney Crandall did not file a brief
and since the OLR did not appeal from the
referee's report, there are no challenges to
any of the referee's findings of fact. We
also do not find that any of the findings of
fact are clearly erroneous, and we therefore
adopt them.
¶62 We also agree with the referee's
conclusions of law with respect to whether
Attorney Crandall engaged in professional
misconduct as alleged in the complaint.
There is no question that Attorney Crandall
improperly deposited an advance payment into
a business account instead of a client trust
account, that he unreasonably delayed the
repayment of an unearned fee after the
termination of a representation, and that he
on multiple occasions failed to respond in a
timely and complete manner to the OLR's
inquiries during its investigations.
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¶63 We further agree with the referee
that Attorney Crandall's interactions with
D.P. after the termination of the
representation and after the OLR had
notified Attorney Crandall of D.P.'s
grievance constituted an improper
interference with the OLR's investigation,
in violation of SCRs 21.15(4), 22.03(6), and
20:8.4(f). Attorney Crandall never sent a
bill or requested the payment of additional
funds when he terminated the representation
in 2004 or when he sent D.P. a letter in
2006 in response to D.P.'s request for an
itemization of the work performed. Only
after Attorney Crandall learned that he was
being investigated did he notify D.P. that
D.P. owned him an additional $4,045, which
was more than D.P. had previously paid him.
Moreover, Attorney Crandall coupled that
demand for the payment of a substantial sum
of additional money with a demand that D.P.
withdraw his grievance. Given Attorney
Crandall's belief at the time that the
withdrawal of a grievance would terminate an
OLR investigation, it is clear that Attorney
Crandall's August 26, 2006, letter was an
improper attempt to interfere with the OLR's
investigation.
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¶64 As the referee concluded, there was
not the same type of evidence linking
Attorney Crandall's refund of money to T.H.
with T.H.'s withdrawal of his grievance
against Attorney Crandall. Although
Attorney Crandall refunded $2,000 to T.H.
only after he learned that T.H. had filed a
grievance against him and T.H. then
submitted a letter purporting to withdraw
his grievance, there is no direct evidence
that Attorney Crandall put pressure on or
offered an incentive to T.H. in an attempt
to persuade T.H. to withdraw the grievance.
When T.H. was deposed, he repeatedly stated
that he could not recall the substance of
any conversations with Attorney Crandall
regarding the refund of the unearned fee
payment. Thus, there simply is not enough
evidence here to meet the standard of clear,
satisfactory, and convincing evidence of a
violation. See SCR 22.16(5) ("The office of
lawyer regulation has the burden of
demonstrating by clear, satisfactory and
convincing evidence that the respondent has
engaged in misconduct.") Accordingly, we
uphold the referee's determination that the
OLR did not meet its burden of proof with
respect to Count 3.
¶65 With respect to the certification
regarding having a trust account overdraft
agreement on file with the OLR, we conclude
that Attorney Crandall should not be
disciplined on this count. The referee is
correct that this court's rules did not
require an attorney to certify that he/she
had a trust account overdraft agreement on
file with the OLR during the relevant
years. The applicable versions of the rule
required an attorney to list the name of the
financial institution and the account number
of the client trust account and to certify
that the attorney had complied with the
record-keeping requirements of either SCR
20:1.15(e) (prior to July 1, 2004) or SCR
20:1.15(f) and (j)(5) (after July 1, 2004).
None of these subsections made any mention
about a trust account overdraft notification
agreement or the need to file such an
agreement with the OLR. Thus, we conclude
that it would not be appropriate to sanction
an attorney for signing a technically
inaccurate certificate when the inaccurate
information was not required to be contained
within the certificate.
¶66 Turning to the question of the
appropriate level of discipline, we conclude
that a five-month suspension is proper in
this case. Like the referee, we are most
troubled by Attorney Crandall's letter to
D.P. demanding payment of an additional
$4,045 and the withdrawal of D.P.'s
grievance. While the letter does not
explicitly state that Attorney Crandall
would forego the $4,045 in fees in exchange
for the withdrawal of the grievance, given
the fact that Attorney Crandall had never
before alleged that D.P. owed him additional
money, it is clear that the claim for an
additional $4,045 in fees was retaliation
for D.P.'s grievance and an incentive for
D.P. to withdraw that grievance. Although
the investigation would have continued even
if D.P. had "withdrawn" the grievance, the
letter is a serious violation of Attorney
Crandall's obligation to cooperate with the
OLR's investigation.
¶67 Although we agree with the referee
that the situation in Arrieh is the most
analogous to the present case because both
involved attempts by attorneys to convince
clients to withdraw grievances, we conclude
that the Arrieh decision and its six-
month
suspension are partially distinguishable.
In that case, Attorney Arrieh was found to
have committed additional misconduct that is
more serious than the other misconduct
committed by Attorney Crandall. Most
importantly, Attorney Arrieh twice made a
false statement to BAPR that the client had
agreed to withdraw the client's grievance,
when the client had never agreed. In
addition, Attorney Arrieh failed to notify
his client for years that Attorney Arrieh
had received over $1,500 from the client's
insurance company in settlement of a claim,
that he had cashed the insurance company's
check, and that, after deducting his fees
and other expenses, he had allegedly applied
the proceeds to the upkeep of the client's
real property. Attorney Arrieh also failed
on multiple occasions to provide accountings
to the client regarding Attorney Arrieh's
fees and his handling of the client's money
and property.
¶68 Moreover, in addition to the more
serious nature of Attorney Arrieh's
misconduct, we also note that at the time
that we imposed the six-month suspension on
Attorney Arrieh, he was already serving a
one-year suspension. Thus, although
Attorney Crandall has been the subject of
professional discipline on several previous
occasions, Attorney Arrieh's disciplinary
history involved a much stronger sanction
than has previously been imposed on Attorney
Crandall.
¶69 It is important to note that none of
the five counts of misconduct found in this
matter involves Attorney Crandall's
deficient representation of any client. In
addition, there is no finding that either of
the two clients involved in this matter
suffered financial harm because of Attorney
Crandall's conduct and that he should be
required to pay restitution. The OLR also
did not charge Attorney Crandall with
dishonest conduct, even with respect to the
additional $4,045 in fees that Attorney
Crandall belatedly sought to collect from
D.P. Finally, although Attorney Crandall's
failure to provide timely and adequate
responses to the OLR's inquiries is a
significant violation of the rules that
cannot be condoned, we do note that Attorney
Crandall did ultimately provide responses
that allowed the OLR to continue its
investigations.
¶70 We wish to point out that our
decision on discipline is not determined by
the fact that a six-month suspension would
necessarily entail a longer period of
suspension while Attorney Crandall would go
through the formal reinstatement
procedure. "When the facts have warranted a
six-month suspension, we have imposed that
discipline, regardless of the accompanying
need for a formal reinstatement
proceeding." In re Disciplinary
Proceedings
Against Lister, 2007 WI 55, ¶77, 300 Wis.
2d
326, 731 N.W.2d 254. We merely conclude
that a six-month suspension and a formal
reinstatement proceeding are not appropriate
for the misconduct found in this matter and
are not necessary to accomplish the goals of
lawyer discipline in this case.
¶71 A five-month suspension is a
significant sanction for Attorney Crandall
to suffer for his serious professional
misconduct. It comports with our policy of
imposing progressively harsher sanctions
when an attorney continues to engage in
similar misconduct. Moreover, it should be
abundantly clear to Attorney Crandall that
his conduct has not been acceptable and that
any further misconduct could result in the
loss of his license to practice in this
state for an extended period of time and the
possibility that he will have to prove his
fitness to regain the privilege of
practicing law in a formal reinstatement
proceeding. His efforts should be directed
toward understanding and complying with his
ethical obligations rather than attempting
to minimize the consequences after he fails
to comply.
¶72 Finally, we determine that Attorney
Crandall should be required to pay the full
costs of this disciplinary proceeding. We
note that Attorney Crandall did not object
to the statement of costs filed by the OLR.
We find no reason to deviate from our
general practice of imposing the full costs
of a disciplinary proceeding on the attorney
whose conduct necessitated the proceeding.
¶73 IT IS ORDERED that the license of
Eric L. Crandall to practice law in
Wisconsin is suspended for a period of five
months, effective May 31, 2011.
¶74 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 costs of this proceeding. If
the costs are not paid within the time
specified and absent a showing to this court
of his inability to pay those costs within
that time, the license of Eric L. Crandall
to practice law in Wisconsin shall remain
suspended until further order of this court.
¶75 IT IS FURTHER ORDERED that Eric L.
Crandall shall comply with the requirements
of SCR 22.26 pertaining to the duties of a
person whose license to practice law in
Wisconsin has been suspended.
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¶76 SHIRLEY S. ABRAHAMSON,
C.J. (dissenting in part). This is
the fourth disciplinary proceeding against
Attorney Crandall and the third time that
his license to practice law in Wisconsin has
been suspended. Consistent with this
court's policy of imposing progressive
discipline against repeat violators of the
Rules of Professional Conduct, see,
e.g., In re Disciplinary Proceedings
Against Nussberger, 2006 WI 111, ¶27, 296
Wis. 2d 47, 719 N.W.2d 501, I would suspend
Attorney Crandall's license for a period of
six months, as the Office of Lawyer
Regulation requested. A six-month
suspension would require Attorney Crandall
to comply with the formal reinstatement
procedure set forth in SCRs 22.29-22.33 and
to demonstrate, among other things, that he
has a proper understanding and appreciation
of the ethical standards that are required
of Wisconsin lawyers and will act in
conformity with those standards. Because
the majority opinion does not impose a
sufficient suspension to require a formal
reinstatement proceeding, I respectfully
dissent in part as to the appropriate level
of discipline.
¶77 I am authorized to state that
Justice ANN WALSH BRADLEY joins this opinion.
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