Attorney Grievance Commission v. Penn

65 A.3d 125, 431 Md. 320, 2013 WL 1760541, 2013 Md. LEXIS 273
CourtCourt of Appeals of Maryland
DecidedApril 25, 2013
DocketMisc. Docket AG No. 9
StatusPublished
Cited by15 cases

This text of 65 A.3d 125 (Attorney Grievance Commission v. Penn) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attorney Grievance Commission v. Penn, 65 A.3d 125, 431 Md. 320, 2013 WL 1760541, 2013 Md. LEXIS 273 (Md. 2013).

Opinion

BATTAGLIA, J.

Brien Michael Penn, Respondent, was admitted to the Bar of this Court on December 17, 2003. On April 9, 2012, the Attorney Grievance Commission (“Bar Counsel”), acting pursuant to Maryland Rule 16-751(a),1 filed a “Petition for Disciplinary or Remedial Action” against Penn, which incorporated a complaint from Ira Oring, on behalf of Penn’s former employer, Old Republic National Title Insurance Company (“Old Republic”). Bar Counsel’s petition charged Penn with violating several Maryland Lawyers’ Rules of Professional Conduct to include, 7.5(a) (Firm Names and Letterheads),2 and 8.4(a)-(d) (Misconduct).3 Pursuant to Rule 16-757,4 in an [324]*324order dated April 5, 2012, we referred the petition to Judge Thomas F. Stansfield of the Circuit Court for Carroll County for a hearing.

At the hearing, Bar Counsel presented testimony from Mr. Oring; Albert Boyce, Senior Vice-President and Counsel for Old Republic; Shonita Mason, Claims Counsel at Old Republic [325]*325at the time Penn was employed at Old Republic; and Kristin Sherfey, a notary and Legal Assistant at Old Republic when Penn was employed at Old Republic. Penn represented himself and testified on his own behalf and also called Jacquelyn Sheree Proctor, Center Manager at H.Q., an affiliate of the Regus Management Group that provided virtual-office space to Penn; and Ashley Bishop, an administrative assistant at Old Republic. Also, various documents were admitted into evidence, included among others, Old Republic’s employee policies; correspondence between Penn and Marco Oliveira, a judgment debtor of Old Republic; an assignment of the Oliveira judgment from Old Republic to Bennett & Kuhn, signed by Penn; an assignment of Old Republic’s interest in a security deed, executed by Lisa D. Gastgeb, to Bennett & Kuhn, also signed by Penn; copies of notes regarding the Oliveira judgment and the Gastgeb security deed that were entered into a database on Old Republic’s computer to track the claims; copies of eighteen $1,000 money orders endorsed by Penn; and bank records and formation documents of Bennett & Kuhn. Thereafter, Judge Stansfield issued the following Findings of Fact and Conclusions of Law, in which he determined that Penn violated Rules 8.4(a), (c), and (d), but did not violate Rules 7.5(a) and 8.4(b):

FINDINGS OF FACT[5]

I. General Findings of Fact

Brien Michael Penn, hereinafter referred to as “Respondent,” was admitted to the Bar of Maryland on December 17, 2003. On or about April 22, 2008, the Respondent was hired as a claims administrator under the job title “Claims Counsel” for the National Services Group, a division of Old Republic National Title Insurance Company, hereinafter “Old Republic.” The Respondent was hired by Albert Boyce, hereinafter “Boyce,” a Senior Vice President and Counsel for the National Services Group, to serve as a full-[326]*326time employee at the Old Republic office located in Columbia, Maryland. As Claims Counsel, the Respondent’s duties primarily focused upon the response and administration of claims on title insurance policies issued by Old Republic agents. For claims that required curative litigation, the Respondent was responsible for retaining outside counsel to cure title defects and/or defend litigation, as well as the supervision and monitoring of such outside counsel. As an employee and counsel for Old Republic, the Respondent represented his employer, Old Republic, and thus owed a fiduciary duty of good faith and loyalty and was required to act for the benefit of Old Republic at all times.

Old Republic is a national title insurance underwriter, incorporated in Minnesota, with its primary office located in Minneapolis, Minnesota. Old Republic is licensed to do business in Maryland, with a local office in Columbia, Maryland. At the time of the Respondent’s employment with Old Republic, Old Republic employed two (2) other claims administrators in the Columbia office. One was another attorney Claims Counsel, Shonita Mason, hereinafter “Mason,” and the second was a non-attorney claims administrator, Lisa Snowden, hereinafter “Snowden.” Both attorney and non-attorney claims administrators performed essentially the same function, however, attorney employees were expected to function at a higher level of understanding than their non-attorney counterparts. Mr. Boyce was the direct supervisor of all claims administrators in the Old Republic Columbia office. Upon their hiring, the claims administrators, including the Respondent, were provided a copy of an employee handbook which outlined and described the company policies of Old Republic, including the Code of Business Conduct and Ethics, Conflict of Interest, Internet and Email Use, and E-mail Policy. Old Republic policy prohibited employees from engaging in employment or outside activities that would be construed as not acting in the best interest of the company. Old Republic policy required that any employee serving as a director of a firm having dealings with Old Republic must disclose that fact to Old Republic so [327]*327that it may determine whether the situation presents a conflict of interest.

II. New York Unrecorded Mortgage Claims

As Claims Counsel, Respondent was assigned to oversee claims in multiple states, including Georgia, Florida, New York, California, and Nevada. Part of his responsibility as Claims Counsel included hiring or retaining outside counsel in those jurisdictions to represent the insured of Old Republic in filing claims or correcting title defects. Although, as Claims Counsel, the Respondent was given some amount of discretion in the retention of outside counsel in the various jurisdictions, the Respondent was not permitted to conduct business transactions for his own benefit with Old Republic, either directly or indirectly through outside counsel, particularly without prior approval from his direct supervisor, Mr. Boyce. The Respondent, in his capacity as Claims Counsel for Old Republic, had access to various vendors that Old Republic used and to various confidential, proprietary information of Old Republic, all of which were to be used for the benefit of Old Republic, without any self-interest or self-dealing.

In January 2009, Respondent formed a Delaware limited liability company named Bennett & Kuhn, LLC, hereinafter “B & K.” Respondent obtained a Federal EIN number for the company, leased a virtual office with a Washington, DC address, and published a website for the company that identified the Respondent as the owner and operator of the company. This entity was created by the Respondent to become involved in the legal work performed by the outside counsel retained by the Claims Counsel at Old Republic. As part of the responsibilities of Claims Counsel at Old Republic, the Respondent frequently administered claims involving unrecorded mortgages. These claims were typically resolved by retaining local counsel to file an action for declaratory relief on behalf of the insured mortgage lender. In January 2009, Respondent, on behalf of Old Republic, retained an attorney in Buffalo, New York, Jonathan S. [328]*328Hickey, Esquire, hereinafter “Hickey,” with the law firm Burden, Gulisano & Hickey LLC.

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Bluebook (online)
65 A.3d 125, 431 Md. 320, 2013 WL 1760541, 2013 Md. LEXIS 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-commission-v-penn-md-2013.