In re Grady

782 So. 2d 570, 2001 La. LEXIS 823, 2001 WL 267994
CourtSupreme Court of Louisiana
DecidedMarch 16, 2001
DocketNo. 2000-B-3524
StatusPublished

This text of 782 So. 2d 570 (In re Grady) 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 Grady, 782 So. 2d 570, 2001 La. LEXIS 823, 2001 WL 267994 (La. 2001).

Opinion

ATTORNEY DISCIPLINARY PROCEEDINGS

| .PER CURIAM.

This attorney disciplinary proceeding arises from formal charges filed by the Office of Disciplinary Counsel (“ODC”) against Charles R. Grady, an attorney licensed to practice law in the State of Louisiana, but currently suspended.1

UNDERLYING FACTS

Janie Smith Matter

In March 1998,- Janie Smith, a Georgia resident, sold a piece of property in Orleans Parish for $20,000. Respondent was the closing attorney in the transaction and received $20,628.01 at the time of the sale for disbursement. Respondent forwarded a check to Ms. Smith in the amount of $18,933.01, which represented the proceeds from the sale, after deduction of closing costs and taxes. Subsequently, respondent’s check was returned for insufficient funds.

Later analysis of respondent’s bank records by an accountant retained by the ODC indicated that the account on which the check was drawn was not titled as a trust account, nor was it registered as an IOLTA account. It was apparently used by [^respondent as a trust account, operat[571]*571ing account and personal account. The bank records indicated the account was overdrawn on several occasions.

Thereafter, Ms. Smith retained William Skinner, a Georgia attorney, to assist her in her collection efforts against respondent. After several months, respondent paid Ms. Smith the full amount he owed her, including her collection costs. Mr. Skinner then filed a complaint with the ODC on Ms. Smith’s behalf.

Polly and Mary Smith Matter

In February 1997, Polly (also spelled Paulie) Smith, Jr. and Mary Smith2 retained respondent for $8,500 to pursue a malpractice claim against their accountant arising out of a city tax dispute. At this time, respondent was ineligible to practice law because he failed to comply with his mandatory continuing legal education requirements, but failed to inform the Smiths of this fact.

Over the next several months, respondent took no action in the case. On August 27,1997, a petition for damages in the Smiths’ case was filed in First City Court for the City of New Orleans, bearing the signature of attorney Vernon Thomas.3 Mr. Smith later testified that respondent never informed him that Vernon Thomas would be filing the suit on his behalf, nor did he have any knowledge of Mr. Thomas or the filing of the petition.

Respondent did no further work on the Smiths’ case. He did not account for the fees he received, nor did he return any unearned fees.

^DISCIPLINARY PROCEEDINGS

Formal Charges

After investigation, the ODC filed two counts of formal charges against respondent. The first count, relating to the Janie Smith matter, alleged respondent violated Rules 1.15 ( failing to properly safeguard property), 8.1 (failing to cooperate in a disciplinary investigation), 8.4(a) (violating the Rules of Professional Conduct), 8.4(c) (engaging in conduct involving dishonesty, fraud, deceit or misrepresentation), 8.4(d) (engaging in conduct prejudicial to the administration of justice), and 8.4(g) (failing to cooperate with the ODC’s investigation of alleged misconduct) of the Rules of Professional Conduct. The second count, relating to the Polly and Mary Smith matter, alleged respondent’s conduct violated Rules 1.1 (competent representation), 1.2 (scope of representation), 1.3 (diligence), 1.4 (communication), 1.5(fee arrangements), 1.16(d) (termination of the representation), 5.5 (unauthorized practice of law), 8.1, 8.4(a), 8.4(c), 8.4(d), and 8.4(g) of the Rules of Professional Conduct.

Respondent filed an answer, asserting a blanket denial. A formal hearing was scheduled before the committee. The ODC presented evidence and testimony at the hearing; respondent failed to appear.

Hearing Committee Report

After consideration of the evidence, the hearing committee found respondent violated the professional rules as charged. In the Janie Smith matter (Count I), the hearing committee concluded respondent converted third party funds by placing the proceeds from the sale in a personal account and issuing Ms. Smith a worthless check. As to Polly and Mary Smith matter (Count II), the committee found Lrespondent took money to represent the Smiths while he was ineligible to practice law. It concluded respondent did not pur[572]*572sue the matter and did not earn or return the fee.

In determining an appropriate sanction, the hearing committee recognized the presence of the following aggravating factors: prior misconduct;4 failure to cooperate; vulnerability of the victim; and incomplete or late restitution. It identified no mitigating factors. Applying Standards 4.11 and 8.1(b) of the ABA’s Standards for Imposing Lawyer Sanctions,5 the committee recommended respondent be disbarred.

Disciplinary Board Report

The disciplinary board agreed with the hearing committee’s finding that respondent knowingly and intentionally violated duties owed to his clients, the public, the legal system and the profession, and caused significant injury to his clients by failing to properly safeguard and converting third party property; failing to complete work, failing to use reasonable diligence, failing to provide competent representation and communicate with his clients; deceiving his clients; failing to inform them he was ineligible to practice; failing to charge a reasonable fee and failing to return unearned fees.

The board adopted the aggravating factors cited by the committee and agreed there is no evidence in support of any mitigating factors. Citing prior jurisprudence |fifrom this court and the ABA’s Standards for Imposing Lawyer Sanctions, the board agreed with the committee’s recommendation that respondent be disbarred from the practice of law. In support, it observed respondent’s prior discipline “has not been effective in deterring him from his pattern of misconduct” and that respondent’s “disregard for his professional obligations is made readily apparent by his failure to participate in these proceedings and by his failure to fulfill his mandatory continuing legal education responsibilities.”

Neither respondent nor the ODC filed an objection in this court to the disciplinary board’s recommendation.

DISCUSSION

The record supports the factual findings of the hearing committee. Therefore, the sole issue before us is the appropriate penalty for respondent’s misconduct.

In determining an appropriate sanction, we are mindful that disciplinary proceedings are designed to maintain high standards of conduct, protect the public, preserve the integrity of the profession, and deter future misconduct. Louisiana State Bar Ass’n v. Reis, 513 So.2d 1173 (La.1987). The discipline to be imposed depends upon the facts of each case and the seriousness of the offenses involved, considered in light of any aggravating and mitigating circumstances. Louisiana State Bar Ass’n v. Whittington, 459 So.2d 520 (La.1984).

[573]*573Respondent’s misconduct in the Janie Smith matter is serious in nature. The bank account records demonstrate that respondent placed her funds in an account which he treated as his personal account.

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Related

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)
La. State Bar Ass'n v. Hinrichs
486 So. 2d 116 (Supreme Court of Louisiana, 1986)
In Re Grady
731 So. 2d 878 (Supreme Court of Louisiana, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
782 So. 2d 570, 2001 La. LEXIS 823, 2001 WL 267994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-grady-la-2001.