Disciplinary Counsel v. Parnoff

CourtConnecticut Appellate Court
DecidedJuly 7, 2015
DocketAC36319
StatusPublished

This text of Disciplinary Counsel v. Parnoff (Disciplinary Counsel v. Parnoff) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Disciplinary Counsel v. Parnoff, (Colo. Ct. App. 2015).

Opinion

****************************************************** The ‘‘officially released’’ date that appears near the beginning of each opinion is the date the opinion will be published in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the beginning of all time periods for filing postopinion motions and petitions for certification is the ‘‘officially released’’ date appearing in the opinion. In no event will any such motions be accepted before the ‘‘officially released’’ date. All opinions are subject to modification and technical correction prior to official publication in the Connecti- cut Reports and Connecticut Appellate Reports. In the event of discrepancies between the electronic version of an opinion and the print version appearing in the Connecticut Law Journal and subsequently in the Con- necticut Reports or Connecticut Appellate Reports, the latest print version is to be considered authoritative. The syllabus and procedural history accompanying the opinion as it appears on the Commission on Official Legal Publications Electronic Bulletin Board Service and in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be repro- duced and distributed without the express written per- mission of the Commission on Official Legal Publications, Judicial Branch, State of Connecticut. ****************************************************** DISCIPLINARY COUNSEL v. LAURENCE PARNOFF (AC 36319) Beach, Prescott and Bear, Js. Argued March 4—officially released July 7, 2015

(Appeal from Superior Court, judicial district of Fairfield, Bellis, J.) Suzanne B. Sutton, first assistant chief disciplinary counsel, with whom were Beth L. Baldwin, assistant disciplinary counsel, and, on the brief, Patricia A. King, chief disciplinary counsel, for the appellant (plaintiff). Paul E. Pollock, for the appellee (defendant). Opinion

PRESCOTT, J. In this attorney presentment proceed- ing brought pursuant to Practice Book § 2-47, the plain- tiff, Disciplinary Counsel, appeals from the judgment of the trial court reprimanding the defendant, Laurence Parnoff, for violating rule 1.15 (f) of the Rules of Profes- sional Conduct. Disciplinary Counsel claims that the court (1) applied an incorrect legal standard in determining that the defendant had not knowingly mis- appropriated his client’s funds and, thus, was not sub- ject to mandatory disbarment in accordance with Practice Book § 2-47A; (2) made several clearly errone- ous factual findings; and (3) abused its discretion by deciding not to impose sanctions beyond a reprimand. We affirm the judgment of the trial court. This disciplinary proceeding arises out of a long- standing dispute over attorney’s fees between the defen- dant, his former client, Darcy Yuille, and Attorney Laura Mooney. The fee dispute has spawned several civil actions and prior appeals to this court. See Parnoff v. Yuille, 139 Conn. App. 147, 57 A.3d 349 (2012), cert. denied, 307 Conn. 956, 59 A.3d 1192 (2013); Parnoff v. Mooney, 132 Conn. App. 512, 35 A.3d 283 (2011). The following procedural history is relevant to the present appeal. On April 23, 2011, Yuille filed a griev- ance against the defendant alleging that he had violated the Rules of Professional Conduct by improperly taking funds from an escrow account that had been established to safeguard money recovered by Yuille in a civil action until the parties’ fee dispute finally could be resolved.1 The Fairfield Judicial District Grievance Panel deter- mined that there was probable cause to believe that the defendant had violated the Rules of Professional Conduct. Subsequently, following several days of hear- ings, a reviewing committee of the Statewide Grievance Committee found by clear and convincing evidence that the defendant had violated rule 1.15 (f) of the Rules of Professional Conduct, which provides in relevant part: ‘‘When in the course of representation a lawyer is in possession of property in which two or more persons (one of whom may be the lawyer) claims interests, the property shall be kept separate by the lawyer until the dispute is resolved.’’ The reviewing committee directed Disciplinary Counsel to file a presentment with the Superior Court. Disciplinary Counsel filed the present- ment on December 7, 2012. Following three days of trial, the court rendered the decision that is the subject of the present appeal. In its September 19, 2013 memorandum of decision, the court set forth the following factual findings, which provide a detailed account of the parties’ fee dispute: ‘‘[Yuille] had been employed by Bridgeport Hospital as a nurse prior to her termination following a 1994 a contingent fee agreement with Laurence V. Parnoff, P.C. The agreement, which authorized [the defendant] to prosecute a bad faith claim handling of the workers’ compensation claim and listed Bridgeport Hospital as the defendant, essentially set forth a 40 percent contin- gency fee arrangement. Yuille did not retain a copy of the agreement and has no recollection of having read it. ‘‘[The defendant] filed suit against Bridgeport Hospi- tal, and thereafter, the parties agreed to go to binding arbitration. Subsequent to that agreement but before the final arbitration award, [Mooney], who represented Yuille in the underlying workers’ compensation claim, filed an appearance in the Bridgeport Hospital lawsuit filed by [the defendant]. Over the objection of [the hos- pital’s] counsel, Mooney appeared at the 2004 arbitra- tion hearing, although she was not permitted to participate. The hearing resulted in an arbitration award in favor of Yuille of approximately $1.1 million. ‘‘[The defendant] first learned that Yuille was ques- tioning [their] fee agreement after the arbitration award. Mooney wrote the arbitrators, asking them to open [the award]. Additionally, Attorney William F. Gallagher of the Gallagher Law Firm wrote [to the defendant], requesting that part of the fee from the arbitration award be allocated to Mooney. Finally, Yuille e-mailed defense counsel to the arbitration, instructing them to add Mooney as a payee on all checks related to the arbitration award. ‘‘The relationship between [the defendant] and Yuille began to deteriorate to the point where their communi- cations were reduced to writing. While Yuille had sus- pected at some point prior to the arbitration that her agreement with [the defendant] called for a 40 percent contingency fee, her suspicions were confirmed when she received the settlement statement from [the defen- dant]. By letter dated August 18, 2004, and again by e-mail on August 24, 2004, [the defendant] told Yuille to write in and initial the fee amount that she agreed [the defendant] should be paid and to return the signed settlement statement and that he would hold the dis- puted amount in escrow. ‘‘On August 30, 2004, Yuille signed the statement, crossing out the $438,413.17 in attorney’s fees listed in the statement, and authorizing [the defendant] to take $125,000 toward his legal fee and escrow the remaining balance until the fee dispute was resolved. Yuille made clear at that time her position that not only was the 40 percent fee excessive, but that Mooney should share in the fee. Yuille reiterated, in subsequent e-mails to [the defendant], her instructions that the arbitration check should be made payable to [the defendant], Moo- ney, and Yuille, and that the remaining attorney’s fee, exclusive of the $125,000 payment she had authorized to [the defendant], was to be escrowed. [The defendant] received the arbitration award checks on October 18, 2004; by letter on that same date, [the defendant] con- firmed to Yuille that he would escrow the disputed fee.

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Disciplinary Counsel v. Parnoff, Counsel Stack Legal Research, https://law.counselstack.com/opinion/disciplinary-counsel-v-parnoff-connappct-2015.