Cleveland Metropolitan Bar Association v. Donchatz

2017 Ohio 2793, 80 N.E.3d 444, 150 Ohio St. 3d 168
CourtOhio Supreme Court
DecidedMay 16, 2017
Docket2016-0859
StatusPublished
Cited by1 cases

This text of 2017 Ohio 2793 (Cleveland Metropolitan Bar Association v. Donchatz) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleveland Metropolitan Bar Association v. Donchatz, 2017 Ohio 2793, 80 N.E.3d 444, 150 Ohio St. 3d 168 (Ohio 2017).

Opinion

Per Curiam.

{¶ 1} Respondent, Kenneth R. Donchatz, of Columbus, Ohio, Attorney Registration No. 0062221, was admitted to the practice of law in Ohio in 1993.

{¶ 2} On March 23, 2015, relator, Cleveland Metropolitan Bar Association, filed an amended complaint with the Board of Professional Conduct charging Donchatz with multiple violations of the Rules of Professional Conduct in four separate legal matters. Specifically, the complaint alleged that Donchatz engaged in dishonest conduct in three separate matters and failed to timely communicate with a client regarding the nature and scope of his legal representation and his fee in a fourth matter.

{¶ 3} The parties entered into stipulations of fact. A panel of the board conducted a hearing, at which it received numerous exhibits and heard testimony from several witnesses, including Donchatz. Thereafter, the panel issued a report containing findings of fact, misconduct, and aggravating and mitigating factors and recommending that Donchatz be suspended from the practice of law *169 for two years with six months stayed on the condition that he engage in no further misconduct.

{¶ 4} The board adopted the panel’s findings and recommended sanction. Donchatz objects to the board’s findings of misconduct with respect to Counts Three and Four, arguing that they are against the manifest weight of the evidence. Both parties object to the recommended sanction.

{¶ 5} For the reasons that follow, we adopt the board’s findings of fact and misconduct, make additional findings of fact, and indefinitely suspend Donchatz from the practice of law in Ohio.

Misconduct

Count One—The Davey Tree Litigation

{¶ 6} In January 2010, Davey Tree Expert Company obtained a default judgment against Donchatz on unpaid invoices. Without investigating or confirming that the judgment had been paid and without receiving authorization from Davey Tree, Donchatz filed a satisfaction of judgment in the Franklin County Municipal Court.

{¶ 7} Thereafter, Davey Tree’s counsel informed Donchatz that a balance remained due and asked him to withdraw the satisfaction of judgment. Donchatz confirmed that the judgment remained unpaid, but he did not withdraw his filing. The court later granted Davey Tree’s motion to vacate the satisfaction and reinstated the judgment.

{¶ 8} In October 2013, more than three years after the default judgment was entered and nearly 18 months after it was reinstated, Donchatz moved the court to reconsider the default judgment. Determining that the motion was frivolous and without merit, the court denied it and awarded sanctions to Davey Tree. But Donchatz did not pay the judgment or sanctions until April 15, 2014.

{¶ 9} Based on this conduct, the board found that Donchatz violated Prof.Cond.R. 3.1 (prohibiting a lawyer from bringing or defending a proceeding that is unsupported by law or lacks a good-faith argument for an extension, modification, or reversal of existing law), 3.3(a)(1) (prohibiting a lawyer from knowingly making a false statement of fact or law to a tribunal), 3.4(c) (prohibiting a lawyer from knowingly disobeying an obligation under the rules of a tribunal), 8.4(c) (prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation), and 8.4(d) (prohibiting a lawyer from engaging in conduct that is prejudicial to the administration of justice). We adopt these findings of fact and misconduct.

*170 Count Two—The Cracknell Matter

{¶ 10} In early 2007, Donchatz began to represent a friend, Linda Cracknell, in the dissolution of a family partnership. At the outset of the representation, Donchatz and Cracknell agreed that there would be no fee, and there was never a written fee agreement. Cracknell testified that whenever she later would offer to pay Donchatz for representing her, he would respond, “Don’t worry about it.” Donchatz testified that he had told Cracknell from the beginning that his representation would be pro bono, but the evidence suggested otherwise. Specifically, in a May 2013 e-mail, he suggested that she file a fee-arbitration claim because she had not responded to his inquiry regarding his fee and he did not want to be left “holding the bag on the legal fees.” In addition, during the representation, Donchatz accepted an antique desk, which he later refurbished, as a gift from Cracknell. And on September 17, 2009, Donchatz borrowed $100,000 from Cracknell.

{¶ 11} Cracknell testified that Donchatz never advised her in writing that there were special rules governing transactions between lawyers and their clients, that there were potential conflicts of interest between lawyers and their clients in such transactions, or that she should seek independent counsel before making the loan to him. Nor did he provide her with a promissory note setting forth the terms of the loan as she requested. In December 2014, Cracknell agreed to accept $57,000 ($17,000 that Donchatz had already paid, plus an additional payment of $40,000) and the return of the antique desk as repayment of the loan.

{¶ 12} At the hearing, Donchatz admitted that he accepted the $100,000 check from Cracknell without providing the written notices required by Prof.Cond.R. 1.8(a) (prohibiting a lawyer from entering into a business transaction with a client unless the client is advised in writing of the desirability of obtaining independent legal counsel and the terms of the transaction are fair, reasonable, and fully disclosed in a writing signed by the client) and therefore violated the rule the moment he took the loan. In addition to finding a violation of that rule, the board found that he violated Prof.Cond.R. 1.5(b) (requiring an attorney to communicate the basis or rate of the fee and expenses within a reasonable time after commencing the representation, preferably in writing). Donchatz does not dispute these findings of fact or misconduct, and after independently reviewing the record, we adopt them.

Count Three—The Hampton Matter

{¶ 13} Donchatz represented attorney Carol Hampton in a disciplinary proceeding in 2014. In a deposition, Hampton testified that J.T. Holt, counsel for the person who had filed a grievance against her, had tape-recorded three meetings with Hampton regarding her alleged misconduct. Upon request, assistant disciplinary counsel Karen Osmond provided Donchatz with copies of *171 two recorded conversations but informed him that she did not have a recording of a third conversation. After Donchatz made a second request for the alleged recording of the third meeting, Osmond contacted Holt and was informed that Holt had not recorded that meeting. On April 29, 2014, Osmond informed Donchatz that Holt had denied having recorded the third meeting, provided him with Holt’s phone number, and invited him to speak directly with Holt to verify that there was no recording of the third meeting.

{¶ 14} The next day, Donchatz filed a motion in limine claiming that Holt had recorded the third meeting and further stating:

[DJespite two requests to do so, Relator has not produced this recording, instead taking the position that because Relator does not possess it, Relator does not have to produce it.

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Cite This Page — Counsel Stack

Bluebook (online)
2017 Ohio 2793, 80 N.E.3d 444, 150 Ohio St. 3d 168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-metropolitan-bar-association-v-donchatz-ohio-2017.