In re Hodge

999 So. 2d 1131, 2009 La. LEXIS 26, 2009 WL 279711
CourtSupreme Court of Louisiana
DecidedFebruary 6, 2009
DocketNo. 2008-B-2296
StatusPublished
Cited by1 cases

This text of 999 So. 2d 1131 (In re Hodge) 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 Hodge, 999 So. 2d 1131, 2009 La. LEXIS 26, 2009 WL 279711 (La. 2009).

Opinion

[1132]*1132ATTORNEY DISCIPLINARY PROCEEDINGS

PER CURIAM.

| ]This disciplinary matter arises from formal charges filed by the Office of Disciplinary Counsel (“ODC”) against respondent, Robert M. Hodge, an attorney licensed to practice law in Louisiana but currently on interim suspension.

UNDERLYING FACTS

Count I — The Azar- Matter

In March 2005, respondent’s law firm, Hoyt, Hodge and Stanford, LLC (hereinafter referred to as “HHS”), entered into an exchange agreement with Rosemary Azar wherein HHS would deposit the proceeds from the sale of her property into interest bearing accounts on her behalf. HHS opened three interest bearing accounts to hold the proceeds: one at St. Martin Bank & Trust, one at Whitney National Bank, and one at Home Bank.

Between March 18, 2005 and November 28, 2005, respondent took a total of $29,232.15 from the St. Martin Bank & Trust account for his personal use. On August 2, 2005, he took an additional $2,543.38 from the Home Bank account for his personal use. In total, he converted $31,775.53 of Ms. Azar’s funds.

_]2Count II — The Olympic Matter

Olympic Crane & Fabrication, Inc. (hereinafter referred to as “Olympic”) requested that HHS hold its customer’s prepaid funds in escrow. The funds were deposited into HHS’s client trust account on August 4, 2005. On August 30, 2005, respondent withdrew $30,543.80 of Olympic’s funds to cover the funds he converted from Ms. Azar, thus converting Olympic’s funds as well.

Count III — The Charles Matter

Blake Charles sought to use HHS as a qualified intermediary for a § 1031 tax deferred exchange transaction. On November 29, 2005, HHS opened an interest bearing account at St. Martin Bank & Trust to hold Mr. Charles’ funds. Between November 30, 2005 and January 6, 2006, respondent withdrew $26,000 from the account for his personal use. On December 14, 2005, he withdrew an additional $30,543.80 to cover the funds he converted from Olympic. In total, he converted $56,543.80 from Mr. Charles.

DISCIPLINARY PROCEEDINGS

In January 2006, respondent self-reported the above misconduct to the ODC. In March 2006, the parties filed a joint petition for interim suspension, which we granted on March 29, 2006. In re: Hodge, 06-0634 (La.3/29/06), 924 So.2d 990.

Formal Charges

In March 2007, the ODC filed three count of formal charges against respondent, alleging that his conduct violated Rules 8.4(a) (violation of the Rules of Professional Conduct), 8.4(b) (commission of a criminal act that reflects adversely | aon the lawyer’s honesty, trustworthiness, and fitness as a lawyer), and 8.4(c) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation) of the Rules of Professional Conduct in each of the three counts. Respondent was personally served with the formal charges but failed to answer. Accordingly, the factual allegations contained therein were deemed ad[1133]*1133mitted and proven by clear and convincing evidence pursuant to Supreme Court Rule XIX, § 11(E)(3). No formal hearing was held, but the parties were given an opportunity to file with the hearing committee written arguments and documentary evidence on the issue of sanctions. Respondent filed nothing for the hearing committee’s consideration.

Hearing Committee RepoR

After considering the ODC’s deemed admitted submission, the hearing committee made seventeen factual findings, including the following:

3. Respondent engaged in multiple instances of unauthorized withdrawals, “rolling conversions,” and commingling of client funds, primarily in 2005. Three separate clients were affected: Rosemary Azar, Olympic Crane & Fabrication, Inc., and Blake Charles.

4. Respondent converted a total of approximately $56,543.80.

12. Respondent’s former law partners made full and complete restitution to the affected clients.

13. As of January 2007, respondent still had not made any restitution payments to his former law partners.

Based on these findings, the committee determined that respondent violated the Rules of Professional Conduct as alleged in the formal charges, as well as Rule 1.15 (safekeeping property of clients or third parties). The committee also determined:

|4Not only did the Respondent knowingly, intentionally and negligently violate the obligations and duties owed to his clients, but he also knowingly and intentionally violated the obligations and duties owed to the general public and to the legal community. By so doing, the Respondent exhibited a flagrant disregard for the well being of his clients and the ethical obligations of his profession. The Respondent committed the most serious of ethical violations, causing his clients, colleagues and others substantial harm.

Based on the ABA’s Standards for Imposing Lawyer Sanctions, the committee determined that the applicable baseline sanction in this matter is disbarment.

In aggravation, the committee found a dishonest or selfish motive, a pattern of misconduct, vulnerability of the victim, and substantial experience in the practice of law (admitted 1995). The committee found the following mitigating factors are present: absence of a prior disciplinary record, full and free disclosure to the ODC as evidenced by respondent’s self-report to the ODC, and apparent remorse.

Turning to the issue of an appropriate sanction, the committee found instructive Guideline 1 of the permanent disbarment guidelines set forth in Supreme Court Rule XIX, Appendix E.1 The committee also determined that respondent acted with careless disregard for the damage he was causing and lacks the fitness necessary to practice law in Louisiana.

Accordingly, the committee recommended that respondent be permanently disbarred.

Neither respondent nor the ODC filed an objection to the hearing committee’s recommendation.

\ñDisciplinan/ Board Recommendation

After reviewing this matter, the disciplinary board determined that the hearing committee’s factual findings are supported by the factual allegations in the formal charges and/or by the evidence submitted in support of the allegations. The board [1134]*1134further determined that respondent violated the Rules of Professional Conduct as alleged in the formal charges. He also violated Rule 1.15.

The board adopted the committee’s findings regarding respondent’s mental state, duties violated, and aggravating and mitigating factors. With respect to the harm, the board disagreed with the committee that respondent caused substantial harm to his clients. Rather, the board reasoned that respondent’s clients suffered little or no harm in the end because they received full restitution from respondent’s former law partners. However, the board noted that respondent’s former law partners remain unpaid in the approximate amount of $56,543.80.2 The board also agreed with the committee that disbarment is the baseline sanction.

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

Related

In Re Hackett
42 So. 3d 972 (Supreme Court of Louisiana, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
999 So. 2d 1131, 2009 La. LEXIS 26, 2009 WL 279711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-hodge-la-2009.