In re Disciplinary Action Against Pearson

888 N.W.2d 319, 2016 Minn. LEXIS 818, 2016 WL 7387628
CourtSupreme Court of Minnesota
DecidedDecember 21, 2016
DocketA15-1818
StatusPublished
Cited by9 cases

This text of 888 N.W.2d 319 (In re Disciplinary Action Against Pearson) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In re Disciplinary Action Against Pearson, 888 N.W.2d 319, 2016 Minn. LEXIS 818, 2016 WL 7387628 (Mich. 2016).

Opinion

OPINION

PER CURIAM.

The Director of the Office of 'Lawyers Professional Responsibility filed a petition for disciplinary action against Todd Curtis Pearson, alleging professional misconduct for a trust-áccourit violation and failure to cooperate with the Director’s investigation. The referee determined that Pearson violated several rules of professional conduct and recommended that we impose a public reprimand and 1 year of unsupervised probation for Pearson’s misconduct. We adopt the referee’s recommendation.

I.

Todd Curtis Pearson has been licensed to practice law in Minnesota since October 23, 1992. In November 2014, Pearson began work as a full-time contract attorney doing document review for Special Counsel, a legal-staffing firm. After his transition to contract work, Pearson no longer provided legal services directly to members of the public. The balance in Pearson’s client trust account -with Wells Fargo Bank at the end of 2014 was $6.02, an amount not owed to any client.

In February 2015, a former client satisfied an outstanding invoice by wiring $5,744.00 into Pearson’s trust account. That same day, Pearson wired the $5,744.00 out of his trust account into his personal account, for which Wells Fargo Bank assessed a $15 wire-transfer charge. As a result of the wire-transfer charge, Pearson overdrew his trust account. Wells Fargo Bank notified both Pearson and the Director of the overdraft. Pearson immediately deposited $50 in his trust account to restore a positive balance. The notification, however, caused the Director to initiate an inquiry into Pearson’s trust-account overdraft. The Director sent a letter to Pearson’s office address in Minnetonka, requesting an explanation for the overdraft and copies of Pearson’s trust-account books and records.

Pearson received the Director’s letter and responded with a detailed description of the transactions -and 3 months of trust-account bank statements. Pearson’s response, however, did not include the books and records that the Director had requested. The Director sent a second letter to Pearson, which once again requested copies of Pearson’s trust-account books and records. This time, Pearson’s response stated that he did “not have any additional books and records.”

The Director sent a letter to Pearson explaining that Minn. R. Prof. Conduct 1.15(h) requires maintenance of trust-account books and records, even if account activity is minimal. The Director included a sample client-ledger form and insisted that Pearson “reconstruct [the records] at [321]*321this time.” The Director received no response. 'The Director mailed a total of four additional letters and a notice of formal investigation to Pearson’s Minnetonka office. Pearson claims that he had not been reading the mail forwarded from his Minnetonka office to his- home address in Wayzata and had assumed it was “junk” mail.

In November 2015, the Director filed with this court a petition for disciplinary action, alleging failure to cooperate with the Director’s investigation, see Minn. R. Prof. Conduct 8.1(b); Rule 25, Rules on Lawyers Professional Responsibility (RLPR), and failure to maintain trust-account books and records, see Minn. R. Prof. Conduct 1.15(h). Pearson received personal service of the petition, which he claims was his first notice of any' correspondence from the Director since the initial two letters. Pearson filed an answer to the petition and finally produced the requested trust-account books and records for the Director.

We appointed a referee to make and report findings of fact, conclusions of law, and a recommendation for discipline. The referee conducted a hearing and concluded that Pearson’s conduct violated Minn. R. Prof. Conduct 1.15(h), Minn. R. Prof. Conduct 8.1(b), and Rule 25, RLPR. The referee recommended that we impose a public reprimand and 1 year of unsupervised probation for Pearson’s misconduct. The Director urges us to double the period of probation recommended by the referee, whereas Pearson contends that his actions do not warrant any discipline.

II.

Rule 14(e), RLPR, provides that “[ujnless the respondent or Director, within ten days, orders a transcript and so notifies this Court, the findings of fact and conclusions shall be conclusive.” Because neither party ordered a transcript of the hearing, we accept as conclusive both the referee’s factual findings and-the referee’s conclusion that Pearson’s conduct violated Minn. R. Prof. Conduct 1.15(h), 8.1(b), and Rule 25, RLPR. See Rule 14(e), RLPR; In re Montez, 812 N.W.2d 58, 66 (Minn. 2012). The only issue before us, therefore, is the appropriate discipline for Pearson’s misconduct. See In re Rambow, 874 N.W.2d 773, 778 (Minn. 2016).

The purpose Of attorney discipline is to protect the public, protect the judicial system, and deter future misconduct, not to punish the attorney. In re Rebeau, 787 N.W.2d 168, 173 (Minn. 2010). Although we place great weight on the recommendation of the referee, we retain the ultimate responsibility for determining the appropriate discipline. Rambow, 874 N.W.2d at 778. Four factors guide ⅛ in determining the appropriate discipline: (1) the nature of the misconduct; (2) the cumulative weight of the rule violations; (3) the harm to the public; and (4) the harm to the legal profession. In re Nelson, 733 N.W.2d 458, 463 (Minn. 2007). We also consider any mitigating or aggravating factors related to the misconduct. In re Lundeen, 811 N.W.2d 602, 608 (Minn. 2012). Finally, we look to cases involving similar misconduct in an effort to impose consistent discipline across cases. Id.

We have considered the types of misconduct committed by Pearson to be serious. As we have stated, the “maintenance of proper trust account records is vital to the practice of the legal profession,” because “it serves to protect the client and avoid even the appearance of professional impropriety.” In re Schulte, 869 N.W.2d 674, 677 (Minn. 2015) (quoting In re Beal, 374 N.W.2d 715, 716 (Minn. 1985)) (internal quotation marks omitted); see In re Hoedeman, 620 N.W.2d 714, 718 (Minn. 2001) (“We take trust account violations serious[322]*322ly.” (quoting In re Haugen, 543 N.W.2d 372, 375 (Minn. 1996))). We have also “long recognized that it is incumbent upon an attorney to cooperate with disciplinary authorities in their investigation and resolution of complaints,” and that failure to do so is “serious misconduct.” Schulte, 869 N.W.2d at 678 (quoting In re Cartwright, 282 N.W.2d 548

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888 N.W.2d 319, 2016 Minn. LEXIS 818, 2016 WL 7387628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-disciplinary-action-against-pearson-minn-2016.