Columbus Bar Assn. v. Okuley (Slip Opinion)

2021 Ohio 3225, 184 N.E.3d 58, 166 Ohio St. 3d 191
CourtOhio Supreme Court
DecidedSeptember 21, 2021
Docket2021-0231
StatusPublished

This text of 2021 Ohio 3225 (Columbus Bar Assn. v. Okuley (Slip Opinion)) 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
Columbus Bar Assn. v. Okuley (Slip Opinion), 2021 Ohio 3225, 184 N.E.3d 58, 166 Ohio St. 3d 191 (Ohio 2021).

Opinion

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Columbus Bar Assn. v. Okuley, Slip Opinion No. 2021-Ohio-3225.]

NOTICE This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.

SLIP OPINION NO. 2021-OHIO-3225 COLUMBUS BAR ASSOCIATION v. OKULEY. [Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Columbus Bar Assn. v. Okuley, Slip Opinion No. 2021-Ohio-3225.] Attorneys—Misconduct—Violations of the Rules of Professional Conduct, including representing multiple clients with conflicting interests, continuing to practice law while license suspended, false communication regarding lawyer’s services, and failing to cooperate in disciplinary investigation— Permanent disbarment. (No. 2021-0231—Submitted March 31, 2021—Decided September 21, 2021.) ON CERTIFIED REPORT by the Board of Professional Conduct of the Supreme Court, No. 2019-029. __________________ Per Curiam. {¶ 1} Respondent, John Joseph Okuley, of Columbus, Ohio, Attorney Registration No. 0076748, was admitted to the practice of law in Ohio in 2003. On September 26, 2018, we suspended him from the practice of law for one year with SUPREME COURT OF OHIO

six months conditionally stayed for his intentionally causing a collision with a bicyclist, provoking a physical altercation with an eyewitness to the collision, and making false statements about the incident to law enforcement and during the ensuing criminal, civil, and disciplinary proceedings. Columbus Bar Assn. v. Okuley, 154 Ohio St.3d 124, 2018-Ohio-3857, 111 N.E.3d 1173. We denied Okuley’s amended motion for reinstatement in November 2019, and that suspension remains in effect. Columbus Bar Assn. v. Okuley, 157 Ohio St.3d 1492, 2019-Ohio-4738, 134 N.E.3d 1204. {¶ 2} In a seven-count second amended complaint filed on October 18, 2019, relator, Columbus Bar Association, charged Okuley with professional misconduct arising from his representation of multiple clients with conflicting interests in litigation and in business transactions. The complaint further alleged that Okuley had continued to practice law while he was under suspension, had failed to update his online biographical information following his suspension, had failed to cooperate in two of the ensuing disciplinary investigations, and is no longer fit to practice law. {¶ 3} The parties submitted stipulations of fact and numerous exhibits. A three-member panel of the Board of Professional Conduct conducted a hearing and heard testimony from Okuley and eight other witnesses. The panel issued a report finding that Okuley committed most of the charged misconduct and recommending that he be permanently disbarred.1 The board adopted the panel’s report in its entirety and no objections have been filed. {¶ 4} After independently reviewing the record in this case, we adopt the board’s findings of misconduct with one exception, and we permanently disbar Okuley from the practice of law in Ohio.

1. The panel unanimously dismissed 13 of the alleged rule violations based on the insufficiency of the evidence. Because those dismissals included dismissing all the violations alleged in Count Four, Count Four will not be discussed in this opinion.

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Misconduct Counts One and Two: Conflicts of Interest Relating to the Rivers Edge Building {¶ 5} In January 2009, Jerry Mueller, Gerald Smith, and Okuley practiced at the law firm of Mueller, Smith & Okuley, L.L.C., which had offices located at 7700 Rivers Edge Drive in Columbus, Ohio. The Rivers Edge building was owned by 7700 RED One, Ltd. (“RED One”). RED One was owned by Mueller and Smith, Ltd., and B&O Capital, Ltd., which was owned by Okuley and his wife. {¶ 6} Mueller left the firm in July 2011 following a dispute. The terms of his departure and valuation of his membership interest in Mueller and Smith, Ltd., were set forth in a termination agreement. Upon Mueller’s departure, Okuley and Smith began operating as Okuley Smith, L.L.C., in the Rivers Edge building. Mueller and Smith, Ltd., then changed its name to Bluffview Edge, Ltd., and its sole member going forward was the Gerald L. Smith Trust. {¶ 7} In December 2011, Mueller filed a lawsuit against Smith, Okuley, and a number of business entities including RED One, B&O Capital, and Bluffview Edge to enforce the terms of his termination agreement (“the Mueller litigation”). During the course of that litigation, Okuley appeared as legal counsel for RED One, B&O Capital, and himself, and he also represented the interests of Bluffview Edge. On one or more occasions, he also provided legal representation to Smith and to other related business entities. Although the parties entered into a formal settlement agreement in September 2016, disputes arose regarding the enforcement of that agreement. All told, the Mueller litigation spanned more than seven years. {¶ 8} In 2013, the members of RED One adopted a resolution authorizing Okuley to serve as that entity’s chief operating officer and tax-matters partner and to use the company’s funds to perform necessary repairs and maintenance to the Rivers Edge building. By the end of 2016, the property taxes for the building were delinquent, the building had heating and air-conditioning problems, and Okuley Smith, L.L.C., was behind in its rent payments.

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{¶ 9} According to Okuley, B&O Capital in November 2016 was prepared to invest in RED One to pay off tax liens on the building and to pay money that was owed under the settlement agreement in the Mueller litigation. To that end, Okuley prepared, executed, and recorded a $354,000 mortgage on behalf of RED One in favor of B&O Capital—while he represented both RED One and B&O Capital in the Mueller litigation. Following Smith’s death on January 3, 2017, Smith’s heirs objected to the mortgage. That mortgage was never funded and Okuley eventually released it. {¶ 10} Okuley later arranged for RED One to borrow a total of $65,000 from Three Sisters Capital, Ltd., a company owned by his wife, his sister, and his sister-in-law, to pay approximately one-half of the money owed under the terms of the settlement that had been reached in the Mueller litigation. In an August 2017 filing with the Ohio secretary of state, Okuley represented that he was the attorney for Three Sisters. He then prepared a mortgage to secure the $65,000 loan. Okuley executed and recorded the mortgage on behalf of RED One on November 1, 2017. By that time, Bluffview Edge and Smith’s son, as trustee on behalf of the Gerald L. Smith Trust, had filed a motion in the ongoing Mueller litigation to place RED One and the Rivers Edge property in receivership. That motion was granted on November 17, 2017, and the building was sold in May 2018. RED One was dissolved and the proceeds of the sale were distributed to various parties, with Three Sisters receiving a $30,000 settlement for its $65,000 loan. {¶ 11} At Okuley’s disciplinary hearing, Paul Rose, a professor at the Ohio State University Moritz College of Law, the college’s director of the Law, Finance, and Governance Program, and the Associate Dean for Strategic Initiatives, testified regarding the business relationships at issue in this case. Rose—whose scholarship, teaching, and work as a lawyer have focused on corporate and business-entity formation and governance—spent approximately 17 hours reviewing documents supplied by relator and wrote a comprehensive report.

4 January Term, 2021

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2021 Ohio 3225, 184 N.E.3d 58, 166 Ohio St. 3d 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbus-bar-assn-v-okuley-slip-opinion-ohio-2021.