In re Garrett

228 So. 3d 1212, 2017 WL 5784013
CourtSupreme Court of Louisiana
DecidedNovember 17, 2017
DocketNO. 2017-B-1460
StatusPublished

This text of 228 So. 3d 1212 (In re Garrett) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Garrett, 228 So. 3d 1212, 2017 WL 5784013 (La. 2017).

Opinion

ATTORNEY DISCIPLINARY PROCEEDING

PER CURIAM

|, This disciplinary matter arises from formal charges filed by the Office of Disciplinary Counsel (“ODC”) against respondent, Wayne E. Garrett, an. attorney licensed to practice law in Louisiana.

UNDERLYING FACTS

15-DB-015

Respondent represented a client in a personal injury claim stemming from a 2006 accident, after which the client sought treatment for her injury at Natchez Rehab and Sports Specialists (“NRSS”). In June 2007, respondent sent a guarantee letter to Sherry Norman, the administrator of NRSS, in which he acknowledged that any balance remaining on the NRSS bill that was not paid by medical insurance would be paid out of the claim proceeds.

The case settled in 2010. The settlement proceeds were deposited and distributed in February 2010. The amount due to the client was paid in full; however, respondent did not notify NRSS of the settlement, and the settlement distribution statement reflects that he failed to withhold funds from the proceeds for payment of the NRSS bill.

In December 2010, Ms. Norman spoke with respondent to advise him of the situation, but subsequent calls from NRSS to respondent were not answered. In February 2011, a representative from NRSS sent a written request for payment to) 2 respondent via certified mail. Although the letter was successfully delivered, NRSS received no response from respondent.

In March' 2011, NRSS filed a complaint against respondent with the ODC. In October 2012, respondent forwarded a $500 check to NRSS along with a letter indicating that the $505 balance would be forwarded in the next thirty days. Respondent did not pay the remaining balance until December 2014.

The ODC alleged that respondent’s conduct violated the following provisions of the Rules of Professional Conduct: Rules 1.15(a) (safekeeping property of clients or third persons), 1.15(d) (failure to timely remit funds to a client or third person), and 8.4(a) (violation of the Rules of Professional Conduct).

16-DB-051

On November 26, 2014, the ODC received notice of an overdraft in respondent’s client trust account. Thereafter, the ODC’s forensic auditor performed an audit of the account for the period of June through December of 2014. According to the auditor’s report, respondent misused, commingled, and converted funds in his trust account during that time, and his records reflected procedural and accounting errors. Respondent’s trust account balance also fell below the amount necessary to honor the funds deposited. The auditor concluded that respondent failed to maintain the safety of money deposited for disbursement, did not transfer attorney’s fees as earned, and failed to properly document his records for disbursement changes to ensure that he handled the account properly.

The ODC alleged that respondent’s conduct violated the following provisions of the Rules of Professional Conduct: Rules 1.15(a), 1.15(b) (a lawyer may deposit the lawyer’s own funds in a client trust account for the sole purpose of paying bank service - charges or obtaining a waiver of those charges, but only in an amount necessary for that purpose), 1.15(d), and 8.4(a).

I ¡¡DISCIPLINARY PROCEEDINGS

In April 2015, the ODC filed formal charges against respondent in 15-DB-015. Respondent answered the formal charges and admitted to all of the factual allegations as outlined by the ODC. In explaining his conduct, respondent stated that he believed that his client’s treatment at NRSS in 2007 was in connection with a separate and distinct personal injury action, and not the action for which he represented the client.

In May 2016, the ODC filed formal charges against respondent in 16-DB-051. Respondent answered the formal charges, and generally denied any misconduct. He indicated that at the time of the overdraft, there were no client funds in the account, and thus, no client was impacted -by the overdraft.

The two sets of formal charges were consolidated before proceeding to a formal hearing on the merits.

Heating Committee Report

After considering the testimony and evidence presented at the hearing,'the hearing committee made factual findings consistent with the underlying facts set forth above; The committee also made the following additional findings:

Regarding the NRSS' matter, the evidence shows that respondent admitted that he failed to ' safeguard the funds due to NRSS under the terms of the guarantee, failed to promptly notify NRSS of the settlement of the client matter, and" failed to promptly deliver the funds to NRSS despite actual notice from NRSS of the error.

Regarding the overdraft matter, the evidence shows that respondent misused, commingled, and converted funds in his trust account during the audit period, of May 31, 2014 to December 31, 2014. His trust account balance fell below the amount necessary to honor funds deposited. He committed procedural án'd accounting errors, deposited earned attorney’s fees with client money, did not transfer money|4 as earned, failed to maintain the safety of money deposited for disbursement, used money from the trust account for personal use (loan to bookkeeper and payment to mechanic), and failed to identify disbursed attorney’s fees with á particular client.

Based on these findings, the committee determined respondent violated the Rules of Professional Conduct as alleged in the formal charges.

The committee found that respondent’s actions resulted from sloppy and unorganized bookkeeping, poor law office management, and negligence. The clients suffered little or no harm and .no restitution was needed as respondent took corrective action.

The committee found no aggravating factors present. In mitigation, the committee jbund the absence of a dishonest or selfish motive, a .cooperative attitude toward the proceedings, and remorse.

Based on these findings, the committee recommended respondent be suspended from the practice of law for six months, fully deferred, subject to a one-yeár period of probation. The committee also recommended that respondent be assessed with the costs and expenses of this proceeding.

The ODC objected to the leniency of the hearing committee’s recommended sanction.

Disciplinary Board Recommendation

After review, the, disciplinary board determined that the hearing committee’s findings of fact are supported by the record and are not manifestly erroneous. The board also found that the committee correctly determined respondent violated the Rules of Professional Conduct as charged.

The board determined respondent violated a duty to his clients. His misuse of his trust account was negligent and caused the potential for harm. His conduct caused no harm to any client and little harm, in the form of a delay in payment, to | fiNRSS. Though the delay was significant, the amount in question was relatively -small.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Caulfield
683 So. 2d 714 (Supreme Court of Louisiana, 1996)
In Re Banks
18 So. 3d 57 (Supreme Court of Louisiana, 2009)
Louisiana State Bar Ass'n v. Whittington
459 So. 2d 520 (Supreme Court of Louisiana, 1984)
Louisiana State Bar Ass'n v. Reis
513 So. 2d 1173 (Supreme Court of Louisiana, 1987)
In Re Pardue
633 So. 2d 150 (Supreme Court of Louisiana, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
228 So. 3d 1212, 2017 WL 5784013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-garrett-la-2017.