David E. Hammer v. Board of Bar Examiners

2020 WI 59, 944 N.W.2d 844, 392 Wis. 2d 384
Wisconsin Supreme Court·Decided June 25, 2020·No. 2019AP001974-BA·Published

Opinion

2020 WI 59

SUPREME COURT OF WISCONSIN CASE NO.: 2019AP1974-BA

COMPLETE TITLE: In the Matter of the Bar Admission of David E.

Hammer:

David E. Hammer,

Petitioner,

v.

Board of Bar Examiners,

Respondent.

BAR ADMISSION OF DAVID E. HAMMER

OPINION FILED: June 25, 2020 SUBMITTED ON BRIEFS: ORAL ARGUMENT:

SOURCE OF APPEAL:

COURT:

COUNTY:

JUDGE:

JUSTICES: Per Curiam. NOT PARTICIPATING:

ATTORNEYS:

For the petitioner, there were briefs filed by David E.

Hammer, Tampa, Florida. There was an oral argument by David E. Hammer.

For the respondent, there was a brief filed by Jacquelynn B. Rothstein, Director and Legal Counsel. There was an oral argument by Jacquelynn B. Rothstein.

2020 WI 59

NOTICE

This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.

No. 2019AP1974-BA

STATE OF WISCONSIN : IN SUPREME COURT

In the Matter of the Bar Admission of David E. Hammer:

David E. Hammer, FILED Petitioner, JUN 25, 2020 v. Sheila T. Reiff Clerk of Supreme Court

Board of Bar Examiners,

Respondent.

Review of Board of Bar Examiners' decision. Decision affirmed.

¶1 PER CURIAM. This is a review, pursuant to Supreme Court Rule (SCR) 40.08(7), of a final decision of the Board of Bar Examiners (Board) declining to certify that the petitioner, David E. Hammer, satisfied the character and fitness requirements for admission to the Wisconsin bar set forth in SCR 40.06(1). The Board's decision was based primarily on the fact that Mr. Hammer, who was a licensed Florida lawyer from

2006-2011, was disbarred in Florida for trust account violations and misappropriation of client funds.

¶2 Mr. Hammer resides in Florida. He graduated from the University of Florida Levin College of Law in 2005 and completed an LL.M. in Taxation in 2006. He was admitted to the Florida bar on May 19, 2006. From his admission in May 2006 until his law license was suspended on August 23, 2010, Mr. Hammer had what he describes as "an ill-advised solo practice" in Florida, built around a single client group: the family and friends of Paul Bilzerian and their companies.1 As relevant here, in 2001, long before Mr. Hammer ever worked for the Bilzerian client group, a federal district court issued a sweeping injunction limiting Bilzerian's access to the courts, in an effort to stem Bilzerian's frivolous court filings (2001 Injunction). The 2001 Injunction provides:

Paul A. Bilzerian, his agents, servants, employees and attorneys, and those persons in active concert or participation with them, who receive actual notice of this Order by personal service or otherwise, are prohibited from filing or causing the filing of any complaint, proceeding or motion in the United States Bankruptcy Court for the Middle District of Florida, or from commencing or otherwise causing the commencement of any proceedings in any court, other than in this Court or in appeals of this Court's Orders to the United States Court of Appeals for the District of Columbia, without prior application to and approval of this Court . . ..

1 Bilzerian was convicted of securities fraud and conspiracy to defraud the United States in 1989. United States v. Bilzerian, 926 F.2d 1285 (2d Cir. 1991) (affirming conviction). The Securities and Exchange Commission then filed a civil suit against him in the summer of 1989 and obtained a judgment for approximately $62 million. S.E.C. v. Bilzerian, 29 F.3d 689 (D.C. Cir. 1994) (affirming judgment).

Mr. Hammer acknowledges that he received actual notice of the 2001 Injunction in December 2006.

¶3 We focus on the Board's primary reason for declining to certify Mr. Hammer. On August 23, 2010, four years after his admission to practice law, the Supreme Court of Florida issued an emergency suspension against Mr. Hammer's law license, alleging that he had misappropriated client trust funds. A formal disciplinary complaint followed. Eventually, Mr. Hammer stipulated that in November 2009, Bilzerian had directed that certain outstanding invoices and cost reimbursements not be paid to Mr. Hammer. Mr. Hammer believed these amounts were valid and owed to him. At the time, Mr. Hammer had access to funds in a trust account belonging to another Bilzerian-related entity. In January 2010, Mr. Hammer began taking money from that trust account for his own personal use. In May 2010, the client requested the money held in trust. By then, the trust fund was approximately $27,000 short of funds. To replace the missing client funds, Mr. Hammer accessed funds from another account to which he was a signatory, paying himself director fees and other amounts.

¶4 On August 30, 2011, the Florida Supreme Court issued an order disbarring Mr. Hammer, nunc pro tunc to September 22, 2010,

for misappropriating client funds.2 Eventually, Mr. Hammer distanced himself from the Bilzerian client group, started a business, regained financial stability, and became chief information officer of Elevant, an entity that licenses a case management software program.

¶5 On January 1, 2018, Mr. Hammer applied for admission to the Wisconsin bar. In February 2018, he took and subsequently passed the Wisconsin bar exam. On January 15, 2019, the Board advised Mr. Hammer that his bar application was at risk of being denied on character and fitness grounds. Mr. Hammer, by counsel, requested a hearing and in May 2019, Mr. Hammer also voluntarily commenced an ethics tutorial with Wisconsin Attorney Dean R. Dietrich.

¶6 On August 2, 2019, the Board conducted a hearing at which Mr. Hammer appeared by counsel and testified. The Board also heard testimony from Mr. Hammer's prospective employers, who advised the Board that they will employ Mr. Hammer as an attorney if he is admitted to the Wisconsin bar. Attorney

Meanwhile, on January 21, 2011, Mr. Hammer was publicly 2

reprimanded by the Florida Supreme Court for actions in both state and bankruptcy courts that he knew or should have known were not meritorious but merely disruptive to the tribunals. Board Order, ¶12.

On March 31, 2011, the Florida Supreme Court further suspended Mr. Hammer's law license for 91 days, concurrent with his underlying suspension in the misappropriation matter, based on Mr. Hammer's failure to demonstrate that he had notified clients, opposing counsel, and tribunals of his license suspension. Board Order, ¶13.

Dietrich testified in support of Mr. Hammer's character and fitness to practice law in Wisconsin.

¶7 On September 19, 2019, the Board issued an adverse decision concluding that Mr. Hammer had failed to demonstrate to the Board's satisfaction that he has the necessary character and fitness to practice law in Wisconsin. The Board cited Mr. Hammer's Florida disbarment; abuse of process; extensive traffic record; and its conclusion that Mr. Hammer failed to demonstrate significant rehabilitation. The Board added that Mr. Hammer has not reapplied to the Florida bar.

¶8 This petition followed. Mr. Hammer asks this court to reverse the Board's adverse decision and permit him to become a member of the Wisconsin bar. He indicates that he would accept conditions on his law practice. In his initial brief Mr. Hammer presents three issues:

(1) Whether Hammer satisfies the character and fitness requirements of SCR 40.06, as interpreted by this Court's prior decisions, or Hammer should be forever banned from practicing law in the State of Wisconsin;

(2) Whether the conclusions of the [Board] that Hammer does not satisfy the requirements of SCR 40.06 are mere pretext for unconstitutional discrimination against a resident of Florida; and

(3) Whether the [Board] committed clear error in reaching certain Findings of Fact, based on the record evidence.

¶9 This court has the ultimate responsibility for

admission to the Wisconsin bar. In re Bar Admission of Rippl,

2002 WI 15, ¶16, 250 Wis. 2d 519, 639 N.W.2d 553. When, as here, we review an adverse determination, the court adopts the

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