In re Howay

219 So. 3d 1070, 2017 WL 2209955, 2017 La. LEXIS 1110
CourtSupreme Court of Louisiana
DecidedMay 19, 2017
DocketNO. 2017-B-0452
StatusPublished

This text of 219 So. 3d 1070 (In re Howay) 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 Howay, 219 So. 3d 1070, 2017 WL 2209955, 2017 La. LEXIS 1110 (La. 2017).

Opinion

[1071]*1071ATTORNEY DISCIPLINARY PROCEEDING

PER CURIAM.

11 This disciplinary matter arises . from formal, charges filed by the Office of Disciplinary Counsel (“ODC”) against respondent, Candace P. Howay, an attorney licensed to practice law in Louisiana but currently ineligible to. practice.1

FORMAL CHARGES

By way of background, respondent was previously employed by the law firm of Lundy, Lundy, Soileau & South, LLP (“Lundy”). During her employment with Lundy, respondent was responsible for handling real estate matters and the business interests, of Matheson Tri-Gas (“Matheson”), a pipeline company.

On January 14, 2015, respondent voluntarily resigned from her position at Lundy in order to become a named partner at the law firm. of Bradley, Moreau, Howay & Stagg, APLC (“Bradley”). Shortly thereafter, Matheson sent Lundy a letter terminating its attorney-client relationship and indicating its intention to hire Bradley to represent its interests.

In the process of locating all of Mathe-son’s files for transfer to Bradley, Lundy noticed irregularities in the client trust account for Matheson. For example, respondent requested, and received, a $9,000 check from Matheson’s trust account l2funds made payable to Maury Miller. Respondent never submitted to Lundy’s accounting department an invoice, statement, or. receipt to explain the nature or purpose of the payment to Mr. Miller. Following her resignation, respondent did not respond to Lundy’s attempt to contact her for information about this payment. Lundy later traced the payment and determined that Mr. Miller is respondent’s cousin, and the check was deposited into a bank account belonging to Mr. Miller and Cynthia Pousson, who is respondent’s mother.

Lundy also discovered that, in June 2014, respondent requested, and received, a $1,800 check from Lundy’s operating account made payable to “The Bank.” The check request did not indicate the ptirpose of the payment other than to suggest the funds' were an advance regarding the “Matheson 2014 Pipeline Acquisitions” file. Respondent never instructed the accounting department to invoice Matheson for this payment. Lundy obtained a copy of the deposit slip corresponding to the check, which showed the funds were applied to interest for a bank loan extended [1072]*1072on behalf of Pouvoir Ventures, LLC (“Pou-voir”), a business owned by respondent’s mother, Cynthia Pousson. Respondent is currently the registered agent for Pouvoir.

After Lundy filed a disciplinary complaint against respondent, Matheson informed the ODC that respondent had complete authority to use Matheson funds at her own discretion. When specifically advised of the $9,000 payment to Mr. Miller, Matheson expressed no concern and reiterated that respondent had authority to utilize the funds in any manner she deemed necessary. Matheson also suggested that the $1,800 payment to The Bank came from funds that were part of Mathe-son’s trust account balance. However, Matheson had no authority to direct respondent to take funds from Lundy’s operating account, which contained only firm-owned funds.

^Respondent’s written response to Lun-dy’s disciplinary complaint only addressed the $9,000 paid to Mr. Miller from Mathe-son’s trust account funds. She did not address the $1,800 paid to The Bank from Lundy’s operating account. During a sworn statement given to the ODC on August 20, 2015, respondent explained her use of Lundy’s operating account funds to pay a debt owed by Pouvoir by suggesting that Pouvoir may have been a potential Matheson vendor at one time. However, respondent confirmed that Pouvoir never supplied services to Lundy or Matheson. During the sworn statement, respondent also indicated she would re-examine her files to determine the reason for the disbursement of the $1,800 from Lundy’s operating account. The ODC never received any further evidence or communication from respondent.

DISCIPLINARY PROCEEDINGS

In December 2015, the ODC filed formal charges against respondent, alleging that her conduct, as set forth above, violated the following provisions of the Rules of Professional Conduct: Rules 8.4(a) (violation of the Rules of Professional Conduct), 8.4(b) (commission of a criminal act that reflects adversely on the lawyer’s honesty, trustworthiness, or fitness as a lawyer), and 8.4(c) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation). Respondent failed to answer the formal charges. Accordingly, the factual allegations contained therein were deemed admitted 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.

LHearing Committee Report

After considering the ODC’s deemed admitted submission, the hearing committee determined that the factual allegations in the formal charges were deemed admitted and proven by clear and convincing evidence. Specifically, the committee found that respondent procured the $1,800 check from Lundy and used it to pay interest for a loan benefitting her mother’s business, of which respondent is the registered agent. No legitimate Lundy business existed for this transaction. During her sworn statement, respondent acknowledged the obvious suspicions regarding this transaction but could not put forth any explanation. Respondent has never offered proof of the legitimacy of the $1,800 transaction. Based on these facts, the committee determined respondent violated the Rules of Professional Conduct as alleged in the formal charges.

The committee then determined that respondent acted knowingly and intentionally. Nevertheless, her conduct caused no harm to any clients. The committee further [1073]*1073determined that, under the ABA’s Standards for Imposing Lawyer Sanctions, the baseline sanction is disbarment.

In aggravation, the committee found a dishonest or selfish motive, refusal to acknowledge the wrongful nature of the conduct, and indifference to making restitution. In mitigation, the committee found the absence of a prior disciplinary record and inexperience in the practice of law (admitted 2009).

After also considering this court’s prior jurisprudence addressing similar misconduct and noting that the amount of funds at issue was relatively small, the committee recommended respondent be suspended from the practice of law for one year. The committee further recommended respondent be ordered to make $1,800 in restitution to Lundy.

The ODC objected to the hearing committee’s recommended sanction, arguing that a suspension for one year and one day is warranted.

\ ¿Disciplinary Board Recommendation

After review, the disciplinary board determined that the factual allegations in the formal charges were deemed admitted and proven. The board also determined that the hearing committee’s additional findings are supported by the factual allegations asserted in the formal charges and/or by the evidence submitted in support of the factual allegations. Based on these findings, the board concluded that the committee correctly applied the Rules of Professional Conduct.

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

Related

In Re Banks
18 So. 3d 57 (Supreme Court of Louisiana, 2009)
In Re Sharp
16 So. 3d 343 (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 Kelly
713 So. 2d 458 (Supreme Court of Louisiana, 1998)
In re Donnan
838 So. 2d 715 (Supreme Court of Louisiana, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
219 So. 3d 1070, 2017 WL 2209955, 2017 La. LEXIS 1110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-howay-la-2017.