In Re Keller

998 So. 2d 40, 2008 WL 5194445
CourtSupreme Court of Louisiana
DecidedDecember 12, 2008
Docket2008-B-1080
StatusPublished
Cited by2 cases

This text of 998 So. 2d 40 (In Re Keller) 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 Keller, 998 So. 2d 40, 2008 WL 5194445 (La. 2008).

Opinion

998 So.2d 40 (2008)

In re Kym Krystyna KELLER.

No. 2008-B-1080.

Supreme Court of Louisiana.

December 12, 2008.

*42 Charles Bennett Plattsmier, Baton Rouge, Rodney Bancroft Hastings, for applicant.

Kym Krystyna Keller, for respondent.

ATTORNEY DISCIPLINARY PROCEEDINGS

PER CURIAM.

This disciplinary matter arises from formal charges filed by the Office of Disciplinary Counsel ("ODC") against respondent, Kym Krystyna Keller, an attorney licensed to practice law in Louisiana.

UNDERLYING FACTS

In August 2005, Kelly Faris retained respondent to assist her in negotiating a lease termination agreement with her landlord, Chris Smith. Ms. Faris paid respondent $200 at the outset of the representation.

In mid-August 2005, the parties finalized the agreement, and Mr. Smith provided respondent with a check for $4,200,[1] which was made payable to respondent with the notation "Deposit in Trust Account for Kelly Faris." Respondent received the check at some point in late August 2005, but she did not have the opportunity to deposit the check into her client trust account before she evacuated ahead of Hurricane Katrina, which made landfall in New Orleans on August 29, 2005. However, respondent did take the check with her when she evacuated to Baton Rouge. Her home and office in the Lakeview area of New Orleans were subsequently flooded following Katrina.

On August 31, 2005, respondent cashed the $4,200 check but did not place the funds into her trust account. On September 9, 2005, respondent prepared a statement of services rendered, indicating that her attorney's fee for handling the lease termination matter was $1,250. Respondent also prepared a release for Ms. Faris to sign, indicating that the $1,250 fee would be deducted from the $4,200 check and Ms. Faris would receive the balance, $2,950, with the knowledge that Mr. Smith may request the return of the entire $5,000, which Ms. Faris would be solely responsible for repaying.[2]

Ms. Faris refused to sign the release and filed a complaint against respondent with the ODC in November 2005. The matter was then referred to the Louisiana State Bar Association ("LSBA") for arbitration. In February 2006, in conjunction with the arbitration proceedings, respondent forwarded a cashier's check to Ms. Faris in the amount of $2,950, representing the undisputed portion of the $4,200 check. Thereafter, the LSBA referred the matter back to the ODC because the $4,200 had never been placed in respondent's trust account. In January 2008, following the hearing committee's recommendation *43 in this matter, respondent refunded the remaining $1,250 to Ms. Faris.

DISCIPLINARY PROCEEDINGS

In 2006, the ODC filed formal charges against respondent, alleging that her conduct violated Rules 1.15(a) (safekeeping property of clients or third persons), 1.15(d) (failure to promptly deliver funds to a client or third person), 1.15(e) (failure to place disputed funds in a trust account), 8.1(c) (failure to cooperate with the ODC in its investigation), 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) of the Rules of Professional Conduct.

Respondent initially 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). Soon thereafter, counsel enrolled on behalf of respondent and filed an answer to the formal charges, denying any misconduct. Counsel also filed a motion to recall the deemed admitted order, which motion was granted.

In 2007, the ODC filed amended formal charges, adding additional alleged rule violations but no new factual allegations. Respondent, through counsel, answered the amended formal charges, again denying any misconduct. However, in an amended answer to the amended formal charges, respondent admitted that she violated Rules 1.15(a) and 1.15(e). This matter then proceeded to a formal hearing on the merits.

Hearing Committee Report

After considering the evidence presented at the hearing and the testimony of the witnesses, the hearing committee made the following factual findings:

1) In August 2005, Ms. Faris retained respondent to represent her in connection with a lease termination agreement with Mr. Smith;
2) Ms. Faris paid $200 when she first retained respondent;
3) On or about August 18, 2005, the parties reached accord on the lease termination agreement;
4) On or about August 18, 2005, Mr. Smith provided respondent with a settlement check in the amount of $4,200;
5) The check issued by Mr. Smith was made payable to respondent but included a notation: "Deposit in Trust Account for Kelly Faris";
6) The threat and subsequent damage caused by Katrina prevented Ms. Faris from completing her move;
7) Respondent did not deposit the check into her trust account prior to evacuating in connection with Katrina;
8) Respondent took the check with her when she evacuated to Baton Rouge on Saturday, August 27, 2005;
9) Respondent's home and home office were located in the Lakeview area of New Orleans and were totally destroyed as a result of the levee failure following Katrina's passage;
10) On August 31, 2005, respondent cashed the $4,200 check at a Baton Rouge branch of AmSouth Bank, the issuing bank;
11) Prior to September 9, 2005, Ms. Faris made several attempts to obtain the proceeds from the check;
12) On September 9, 2005, respondent prepared and mailed Ms. Faris a statement of services rendered, indicating that Ms. Faris owed respondent $1,250 in additional attorney's fees;
*44 13) On November 4, 2005, the ODC received a complaint against respondent filed by Ms. Faris;
14) On November 7, 2005, the matter was referred to the LSBA for submission to fee dispute arbitration;
15) On or about February 13, 2006, respondent provided Ms. Faris with a cashier's check in the amount of $2,950 from Chase Bank, which represented the undisputed portion of the funds due Ms. Faris;
16) On May 2, 2006, the LSBA referred the matter back to the ODC;
17) Although respondent received notice of the complaint, she failed or neglected to provide a written response;
18) Respondent admitted violating Rules 1.15(a), 1.15(e), and 8.1(c)[[3]] of the Rules of Professional Conduct; and
19) Respondent did not violate Rules 8.4(b) and 8.4(c) of the Rules of Professional Conduct because the related factual allegations were not proven by clear and convincing evidence.

Based on these findings, the committee determined that respondent violated Rules 1.15(a), 1.15(d), 1.15(e), and 8.1(c) of the Rules of Professional Conduct. Respondent failed to properly safeguard Ms. Faris' funds by placing them in a trust account. She also failed to promptly deliver the undisputed portion of the funds to Ms. Faris. Finally, she failed to cooperate with the ODC in its investigation of Ms. Faris' complaint.

The committee determined that the baseline sanction in this matter is a one-year suspension.

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Related

In Re Scott
32 So. 3d 789 (Supreme Court of Louisiana, 2010)

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Bluebook (online)
998 So. 2d 40, 2008 WL 5194445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-keller-la-2008.