In re Disciplinary Proceedings Against Knight

523 N.W.2d 559, 188 Wis. 2d 84, 1994 Wisc. LEXIS 116, 1994 WL 651107
CourtWisconsin Supreme Court
DecidedNovember 17, 1994
DocketNo. 93-1985-D
StatusPublished

This text of 523 N.W.2d 559 (In re Disciplinary Proceedings Against Knight) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Disciplinary Proceedings Against Knight, 523 N.W.2d 559, 188 Wis. 2d 84, 1994 Wisc. LEXIS 116, 1994 WL 651107 (Wis. 1994).

Opinion

PER CURIAM.

Attorney disciplinary proceeding; attorney's license revoked.

This is an appeal from the referee's report recommending that the license of Robert C. Knight to practice law be revoked as discipline for professional misconduct in his handling of an estate and in failing to respond to requests from the Board of Attorneys Professional Responsibility (Board) for information concerning his conduct in that estate and in another matter. Attorney Knight appealed from that recommendation and from the referee's granting of the Board's motion for a default judgment.

We determine that the seriousness of the professional misconduct established in this proceeding warrants the revocation of Attorney Knight's license to practice law. His unauthorized and improper distribution of estate assets, his unauthorized payment to himself of attorney fees in the estate and failure to comply with a court order to return those fees, his failure to account for a portion of estate assets, failure to appear pursuant to subpoena at a court hearing in the estate and his failure to respond to the Board, taken together, demonstrate that Attorney Knight is unfit to be licensed to represent others in the legal system. He has placed his own pecuniary interest above those of his client and has ignored the authority of the probate court to ensure the orderly conduct of estate proceedings and the authority of this court to regulate attorney conduct. In addition to the license revocation, we accept the referee's recommendation that Attorney Knight be required to make an accounting for the estate assets that were unaccounted for and return to the estate the fees he took for himself without authorization.

[87]*87Attorney Knight was admitted to practice law in Wisconsin in 1965 and maintains his law office in Wal-worth county. He has not been the subject of a prior disciplinary proceeding but has been prohibited from practicing law since June, 1994 for his failure to comply with continuing legal education requirements.

The Board filed its complaint on July 26,1993. The referee, Attorney Charles Herró, extended the time for Attorney Knight to file a responsive pleading to September 10, 1993 but no responsive pleading was filed. Thereafter, the referee ordered a scheduling conference to be conducted by telephone on October 19,1993 but the day before that scheduled conference, Attorney Knight requested a postponement and the conference was rescheduled for October 27, 1993. When the referee telephoned him on that date to conduct the conference, Attorney Knight was not in his office and did not appear. The Board then filed a motion for a default j udgment.

Thereafter, Attorney Knight spoke with Board staff concerning his intention to file a petition for the consensual revocation of his license and sent such a petition to the Board in November, 1993. The Board objected to the petition because it did not address two rules violations the Board had alleged in its complaint concerning Attorney Knight's handling of funds in an estate. The referee then set a scheduling conference for December 22, 1993 but Attorney Knight did not appear. Attorney Knight later claimed he personally had not received the notice of the scheduling conference the referee had mailed to him. At that scheduling conference, the referee heard the Board's objection to the proffered consensual license revocation petition and granted its motion for default judgment in the disciplinary proceeding. Pursuant to that default judg[88]*88ment, the referee made findings of fact as alleged in the Board's complaint.

In August, 1986, Attorney Knight was appointed personal representative in the intestate administration of an estate and he also served as attorney for that estate. The decedent apparently left no relatives or interested persons in the United States and the intestate administration petition stated that she had five second cousins living in Sweden. When no heirs came forward following publication of the required newspaper notice regarding proof of heirship, Attorney Knight wrote to one of the second cousins telling him that he and his four sisters likely would be sharing equally in the estate.

In May, 1987, Attorney Knight filed a general inventory setting forth estate assets totaling $246,000, approximately $150,000 of which were liquid assets and the balance real estate. Attorney Knight obtained and filed a surety bond in the amount of $125,000 to cover his acts as personal representative in the estate and in June, 1987, he made a partial distribution of $125,000 to the five second cousins in Sweden. He made that distribution without proof establishing the heirship of the second cousins and without an order from the probate court authorizing a partial distribution.

In July, 1987, an attorney for two other second cousins of the decedent, both of whom resided in the United States, contacted Attorney Knight and it then appeared that the estate might have to be distributed in seven equal shares. The probate court held a hearing on proof of heirship in November, 1987 and, notwithstanding testimony from one of the second cousins that there were no heirs of closer relationship to the decedent, the court appointed an attorney to act as [89]*89guardian ad litem for unknown heirs. Attorney Knight retained a genealogy service in Sweden during the following year to locate other possible heirs but that service never completed a report of heirship.

•During a hearing in August, 1990 on a petition by the guardian ad litem for an accounting, Attorney Knight disclosed that he had paid himself $20,000 from the estate as legal fees, whereupon the court ordered him to repay that amount to the estate immediately. After learning that Attorney Knight had made a substantial distribution to certain alleged heirs in Sweden, the court ordered a genealogy report on heirship to be made.

In June, 1991, an attorney appeared in court on behalf of a woman claiming to be a first cousin of the decedent, which claim was subsequently confirmed by a genealogy service report. A new proof of heirship filed by the woman's attorney in April, 1992 established that she was the next of kin and sole heir of the decedent. At the hearing on the proof of heirship, the court discharged Attorney Knight as personal representative and attorney for the estate, appointed a new personal representative and appointed the guardian ad litem as attorney for the estate.

In June, 1992, at a hearing on the motion of the estate's new attorney, which Attorney Knight failed to attend despite having been subpoenaed to do so, the court found that Attorney Knight had wrongfully distributed more than $125,000 to persons who were not the next of kin of the decedent and did so without authority of the court. The court held the surety company liable for the face amount of its bond and, because Attorney Knight had not restored the distributions to the estate, ordered payment on the bond to be transferred to the estate. The court also made absolute a [90]*90$20,000 lien it had previously ordered placed against Attorney Knight's former residence in the course of a divorce action because of his potential liability for repaying the funds he had paid himself from the estate as a legal fee without authorization. The court order directed the personal representative to enforce that lien.

Shortly after that hearing, the judge wrote to the Board about Attorney Knight's conduct in the estate.

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523 N.W.2d 559, 188 Wis. 2d 84, 1994 Wisc. LEXIS 116, 1994 WL 651107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-disciplinary-proceedings-against-knight-wis-1994.