Attorney Grievance Comm'n of Md. v. Donnelly

182 A.3d 743, 458 Md. 237
CourtCourt of Appeals of Maryland
DecidedFebruary 15, 2018
Docket3ag/16
StatusPublished
Cited by14 cases

This text of 182 A.3d 743 (Attorney Grievance Comm'n of Md. v. Donnelly) 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 Comm'n of Md. v. Donnelly, 182 A.3d 743, 458 Md. 237 (Md. 2018).

Opinion

Watts, J.

This attorney discipline proceeding involves a lawyer who was a member of a limited liability company and had been designated as the company's counsel. As counsel for the company, the lawyer, who had no prior history of disciplinary action, in a lapse of judgment, apparently brought about by his dual role as counsel and a member of the company, engaged in actions not authorized by the company. The lawyer filed a complaint for partition of property against one of the company's members who owned property jointly with the company, and drafted and executed a document assigning the company's property to a trust, appointing himself as the trustee. The lawyer failed to provide the complaint and assignment to the company, failed to communicate changes to a fee agreement and to have a contingent fee agreement signed by members who owned a majority of the company, and failed to move to dismiss the partition case and promptly surrender the company's papers upon the termination of his representation.

Vernon Charles Donnelly, Respondent, a member of the Bar of Maryland, was one of six people who formed Solomons One, LLC. The other five people were: Deborah Steffen, who is Donnelly's girlfriend; Dr. Alfred Greenberg and Halina Greenberg, who are spouses; and Christine McNelis and Catherine Erickson-File. Solomons One's members signed a Memorandum of Understanding and Agreement ("the MOU"), in which Solomons One retained Donnelly as its counsel. Solomons One's purpose was to purchase and develop a piece of real property that was adjacent to the Patuxent River. Solomons One and McNelis acquired ownership interests in the property; Solomons One owned a 70% interest in the property, and McNelis owned a 30% interest. Donnelly and Steffen owned an adjoining property. It was Donnelly's understanding that he, Steffen, Solomons One, and McNelis had the right to build a pier over the Patuxent River, adjacent to the two properties. On behalf of himself and Solomons One, Donnelly submitted to Calvert County and the State a joint application to build such a pier. Ultimately, Calvert County and the State denied the joint application.

Solomons One's members debated whether to sue Calvert County and the State to secure its right to build a pier. Donnelly drafted, and he and Steffen signed, an Attorney-Client Agreement, naming Solomons One as the client and Donnelly as the attorney for Solomons One. On behalf of himself and Solomons One, Donnelly filed a complaint against Calvert County and the State, seeking the right to build a pier. Donnelly contended that he forwarded to the members of Solomons One a cover letter describing the Attorney-Client Agreement, with the Agreement and the complaint as attachments. While the pier rights litigation was pending, Donnelly drafted an Assignment of Contract Rights, in which Solomons One purportedly assigned its right to build a pier to Donnelly to hold as a trustee for Solomons One's members. The Assignment of Contract Rights changed the contingency fee arrangement that was set forth in the Attorney-Client Agreement. Donnelly and Steffen were the only members of Solomons One who signed the Assignment of Contract Rights.

On Solomons One's behalf, Donnelly filed a complaint against McNelis, seeking a partition of the property owned by Solomons One and McNelis. Subsequently, at a meeting of Solomons One's members, members who owned a majority of Solomons One voted to revoke the MOU and discharge Donnelly as Solomons One's counsel. Donnelly, however, continued to act on Solomons One's behalf in the pier rights litigation. Donnelly's position was that, although the revocation of the MOU terminated him as Solomons One's counsel for general purposes, the Attorney-Client Agreement independently authorized him to continue to represent Solomons One in the pier rights litigation. This litigation was ultimately successful, with Solomons One gaining the right to build a pier.

Jennifer Kneeland, counsel for the Greenbergs, and Laurence W.B. Cumberland, counsel for Erickson-File and McNelis, filed complaints against Donnelly with Bar Counsel.

In the complaints, Kneeland and Cumberland alleged that, among other misconduct, Donnelly acted without Solomons One's authorization in continuing to represent Solomons One in the pier rights litigation, drafting and executing the Assignment of Contract Rights, and filing the complaint to seek a partition of Solomons One's and McNelis's property.

On March 29, 2016, on behalf of the Attorney Grievance Commission, Petitioner, Bar Counsel filed in this Court a "Petition for Disciplinary or Remedial Action" against Donnelly, charging him with violating Maryland Lawyers' Rules of Professional Conduct ("MLRPC") 1.2 (Scope of Representation and Allocation of Authority Between Client and Lawyer), 1.4 (Communication), 1.5(a), (b), and (c) (Fees), 1.7 (Conflict of Interest: General Rule), 1.8(i) (Conflict of Interest: Current Clients: Specific Rules: Proprietary Interest), 1.13 (Organization as Client), 1.15(a) and (d) (Safekeeping Property), 1.16(a) and (d) (Terminating Representation), 3.1 (Meritorious Claims and Contentions), 3.3(a)(1) and (2) (Candor Toward the Tribunal), 4.2(a) (Communication with Person Represented by Counsel), 4.4(a) (Respect for Rights of Third Persons), 8.1 (Disciplinary Matters), 8.4(b) (Criminal Act), 8.4(c) (Dishonesty, Fraud, Deceit, or Misrepresentation), 8.4(d) (Conduct That Is Prejudicial to the Administration of Justice), and 8.4(a) (Violating the MLRPC). 1

On April 7, 2016, this Court designated the Honorable Nicholas E. Rattal ("the hearing judge") of the Circuit Court for Prince George's County to hear this attorney discipline proceeding. Between February 13, 2017 and April 4, 2017, on thirteen non-consecutive days, the hearing judge conducted a hearing. On June 20, 2017, the hearing judge filed in this Court an opinion including findings of fact and conclusions of law, concluding that Donnelly had violated MLRPC 1.2, 1.4, 1.5, 1.8(i), 1.13(a), 1.15(d), 1.16(a)(3) and (d), 3.1, 3.3(a)(1), 8.1, and 8.4(c), (d), and (a), but had not violated MLRPC 1.7, 4.2(a), 4.4(a), or 8.4(b).

On October 6, 2017, we heard oral argument. For the below reasons, we suspend Donnelly from the practice of law in Maryland for thirty days.

BACKGROUND

The hearing judge found the following facts, which we summarize. In May 1982, this Court admitted Donnelly to the Bar of Maryland. Donnelly maintains an office for the practice of law in Solomons, Maryland.

Donnelly's Purchase of Property

In 1993, Donnelly purchased a property at 14532 Solomons Island Road in Solomons, Maryland, next to the Patuxent River. Subsequently, Donnelly learned that his property and a property adjacent, 14538 Solomons Island Road ("the Property"), included the right to build a commercial pier. In 1995, Donnelly began a personal relationship with Steffen. At some point, Steffen acquired an ownership interest in the property that Donnelly had purchased at 14532 Solomons Island Road.

The Operating Agreement

On June 1, 2005, Donnelly, Steffen, the Greenbergs, Erickson-File, and McNelis signed an Operating Agreement ("the Operating Agreement"), creating Solomons One. Solomons One's purpose was to develop, manage, lease, and sell real property. Solomons One had six members, each with the following interests: Donnelly, 24 1/3%, Steffen, 24%, the Greenbergs jointly, 48 1/3%, Erickson-File, 2 1/3%, and McNelis, 1%.

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Cite This Page — Counsel Stack

Bluebook (online)
182 A.3d 743, 458 Md. 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-commn-of-md-v-donnelly-md-2018.