Attorney Grievance Comm'n v. Donnelly

310 A.3d 1110, 486 Md. 454
Court of Appeals of Maryland·Decided February 27, 2024·No. 53ag/22·Published

Opinion

Attorney Grievance Commission of Maryland v. Vernon Charles Donnelly, AG No. 53, September Term, 2022. Opinion by Hotten, J.

ATTORNEY DISCIPLINE – SANCTIONS – DISBARMENT

Respondent, Vernon Charles Donnelly, violated Maryland Attorneys’ Rules of Professional Conduct 19-301.4 (Communication), 19-301.8(a) (Conflict of Interest; Current Clients; Specific Rules), 19-303.1 (Meritorious Claims and Contentions), 19- 303.3(a) (Candor Toward the Tribunal), 19-308.1(a) (Bar Admission and Disciplinary Matters), and 19-308.4(a)–(d) (Misconduct). These violations stemmed from Respondent entering into a loan agreement with a client without first advising the client, in writing, of the desirability of seeking the advice of independent counsel regarding the transaction; failing to repay the loan on time; continually refusing to fully repay the loan; failing to communicate with the client regarding his proposed change to the loan; misrepresenting the terms of the loan agreement before the Circuit Court for Calvert County, Bar Counsel, and during the disciplinary hearing; and engaging in conduct that is prejudicial to the administration of justice.

Considering the nature of the misconduct, the lack of mitigating factors, and the presence of various aggravating factors, the Supreme Court of Maryland concluded that disbarment is the appropriate sanction.

Circuit Court for Calvert County Case No. C-04-CV-23-000066 IN THE SUPREME COURT Argued: December 5, 2023

OF MARYLAND

AG No. 53

September Term, 2022

ATTORNEY GRIEVANCE

COMMISSION OF MARYLAND

v.

VERNON CHARLES DONNELLY

Fader, C.J.,

Watts,

Hotten,

Booth,

Biran,

Gould,

Eaves,

JJ.

Opinion by Hotten, J.

Filed: February 27, 2024

Pursuant to the Maryland Uniform Electronic Legal Materials Act (§§ 10-1601 et seq. of the State Government Article) this document is authentic.

2024.02.27

15:15:46

-05'00'

Gregory Hilton, Clerk

The Attorney Grievance Commission of Maryland (“Petitioner”), acting through Bar Counsel, filed a Petition for Disciplinary or Remedial Action against Vernon Charles Donnelly (“Respondent”) pursuant to Maryland Rule 19-721(a)(1).1 In accordance with Maryland Rule 19-722(a),2 we referred the matter to Judge Andrew S. Rappaport of the Circuit Court for Calvert County (“hearing judge”).

On August 16, 2023, an evidentiary hearing was held, following which the hearing judge issued findings of fact and conclusions of law. The hearing judge found clear and convincing evidence that Respondent violated Maryland Attorneys’ Rules of Professional Conduct (“MARPC”) 19-301.4 (Communication), 19-301.8(a) (Conflict of Interest; Current Clients; Specific Rules), 19-303.1 (Meritorious Claims and Contentions), 19- 303.3(a) (Candor Toward the Tribunal), 19-308.1(a) (Bar Admission and Disciplinary Matters), and 19-308.4(a)–(d) (Misconduct). Respondent took several exceptions to the hearing judge’s findings of fact and conclusions of law.

For the following reasons, disbarment is warranted.

THE HEARING JUDGE’S FINDINGS OF FACT We summarize and, where indicated, quote the hearing judge’s findings of fact, which have been established by clear and convincing evidence. We begin with

1 Maryland Rule 19-721(a)(1) states in relevant part: “Upon approval or direction of the [Attorney Grievance] Commission, Bar Counsel, on behalf of the Commission, shall file a Petition for Disciplinary or Remedial Action in the Supreme Court.”

2 Maryland Rule 19-722(a) states in relevant part: “Upon the filing of a Petition for Disciplinary or Remedial Action, the Supreme Court may enter an order designating (1) a judge of any circuit court to hear the action, and (2) the clerk responsible for maintaining the record.”

Respondent’s background and note “Respondent was admitted to the Maryland Bar on May 25, 1982[]” and “[a]t all times relevant to this matter, Respondent maintained an office for the practice of law in Calvert County, Maryland.” On February 15, 2018, this Court suspended Respondent from the practice of law for thirty days with the right to apply for reinstatement. Att’y Grievance Comm’n v. Donnelly, 458 Md. 237, 182 A.3d 743 (2018). Respondent was reinstated on May 8, 2018.

Respondent’s 2013 Loan From Mr. Kenneth Langley In 2011, a legal dispute arose between Mr. Kenneth Langley (“Mr. Langley”) and his siblings regarding the administration of their deceased mother’s estate. Langley, et al., v. Langley (“Langley v. Langley”), Case No. 04-C-11-001414. Mr. Langley retained Respondent in the matter and Respondent entered his appearance on April 9, 2012. In September 2012, the circuit court appointed Mark S. Davis as trustee to sell real property retained by the estate and to equally disburse the proceeds between the Langley children. Following the March 2013 sale, Mr. Langley received a disbursement of approximately $50,000. That same month, in an unrelated matter, a judgment was entered against Respondent for $540,793.59.

In April 2013, cognizant his client was going to receive approximately $50,000, Respondent requested Mr. Langley loan him $40,000. “Respondent did not advise Mr. Langley to seek independent counsel, nor did [Respondent] advise [Mr. Langley] of the recent [judgment] entered against him.” Respondent drafted a promissory note for the loan,

which required monthly interest payments of $167 and repayment by September 30, 2013. On April 5, 2013, Mr. Langley signed the agreement and loaned Respondent $40,000.

“From April 5, 2013, until September 30, 2013, Mr. Langley made repeated requests that Respondent honor the promissory note and make his monthly payments. Despite these entreaties, Respondent claimed he had no money and made no monthly payments on the loan.” Respondent failed to meet the September 30, 2013 deadline for repayment. In the ensuing years, Respondent made “sporadic payments” upon the insistence of Mr. Langley. As of 2019, Respondent had repaid $24,000 on the loan, but still owed $16,000 in principal and $8,000 in interest.3 Respondent’s Representation of Mr. Langley over “Pier Rights”

In 2012, Respondent initiated litigation on behalf of himself and others who owned property in Solomon’s Island, Maryland, against Calvert County and the State regarding contractual rights to develop commercial piers (“Pier Rights” litigation). In 2014, Respondent discussed the case with Mr. Langley and convinced him to purchase commercial pier rights. Following the purchase, on September 16, 2014, Mr. Langley signed a retainer and contingency fee agreement (“2014 retainer”) with Respondent for representation in the ongoing suit. The 2014 retainer made no reference to the personal loan between Mr. Langley and Respondent. In April of 2015, Respondent added Mr. Langley as a plaintiff to the Pier Rights litigation. Between 2015 and 2019, Respondent

3 While the promissory note required the loan be repaid six months following the execution, the promissory note provided an annual interest rate of five percent and a five percent late fee on any of the monthly interest payments that were missed.

regularly communicated with Mr. Langley regarding the Pier Rights litigation, but did not indicate the 2014 retainer modified or affected the 2013 loan, or that Mr. Langley would owe money in the litigation prior to success in the suit. In February of 2019, Respondent contacted Mr. Langley concerning his proportionate costs of the litigation. “Ostensibly referring to Respondent’s outstanding debt to Mr. Langley, Respondent stated[:] ‘Therefore, I am not about to go borrow money to in effect refund [] your costs. I encourage you to get off the horse named stupid and [let’s] work together to solve your immediate needs.’”

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Attorney Grievance Comm'n v. Donnelly, 310 A.3d 1110, 486 Md. 454 (Md. 2024).

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