In re: Paul Eric Petruska

Supreme Court of Missouri·Decided March 4, 2025·No. SC100727·Published

Opinion

SUPREME COURT OF MISSOURI en banc

Opinion issued March 4, 2025 IN RE: PAUL ERIC PETRUSKA, )

) No. SC100727

Respondent. )

ORIGINAL DISCIPLINARY PROCEEDING The Office of Chief Disciplinary Counsel (“OCDC”) alleged Paul Eric Petruska violated the Rules of Professional Conduct. After an evidentiary hearing, the disciplinary hearing panel recommended Petruska be suspended indefinitely with no leave to apply for reinstatement for three years. The panel further recommended the Court stay the suspension and place Petruska on probation for three years. Petruska accepted the panel’s recommendation, but OCDC rejected it. OCDC contends Petruska is ineligible for probation under Rule 5.175(a)(3) because he has committed acts that, absent mitigating factors, would warrant disbarment. This Court agrees. Following a de novo review of the record, this Court finds Petruska violated Rules 4-1.2(a), 4-1.3, 4-1.4, 4-3.3, and 4-8.4(c). After considering mitigating and aggravating factors, this Court finds suspension with no leave to apply for reinstatement for three years is the appropriate discipline.

Procedural History

In June 2023, OCDC determined probable cause existed that Petruska was guilty of professional misconduct. OCDC prepared an information alleging Petruska violated five

separate rules of professional conduct in his handling of a single case. Petruska filed an answer to the information. A hearing occurred in March 2024 before the panel.

The panel issued its decision in June 2024. It unanimously recommended Petruska be suspended indefinitely with no leave to apply for reinstatement for three years, but it found the suspension should be stayed with Petruska placed on probation for the same term. The panel set forth probationary terms and conditions. Petruska accepted the panel’s decision. OCDC rejected the decision, and, as a consequence, the matter was set for briefing and argument before this Court. See Rule 5.16(n); Rule 5.19(b).

Standard of Review

“This Court has inherent authority to regulate the practice of law and administer attorney discipline.” In re Prewitt, 660 S.W.3d 1, 3 (Mo. banc 2023) (internal quotation omitted). The findings and the recommendation of the panel are not binding on this Court, and this Court conducts de novo review of all evidence. Id. In this review, violations of the rules of professional conduct must be established by a preponderance of the evidence to permit discipline. Id.

Findings of Fact and Conclusions of Law Petruska was admitted to practice law in Missouri in September 1995. His license is currently in good standing, and he has no previous disciplinary history. In December 2013, Petruska was hired as a chief trial attorney for Zurich Insurance Company, doing business as the Law Office of Craig A. Hansen. The law office would defend Zurich’s insureds who were sued for claims covered by their insurance policies. As a chief trial attorney, Petruska mostly handled large, catastrophic injury claims. Petruska worked with

litigation specialists or adjusters in the Zurich claims department. Those claim professionals would normally control the final decision for settling a case.

In July 2018, Petruska was assigned a case to represent Zurich and its insured, an automobile dealership. An automobile dealership employee was involved in a serious automobile accident with a mother and her daughter. The injured parties (“plaintiffs”) sued the automobile dealership and the employee (“defendants”). The Zurich adjuster supervising the case was an individual with whom Petruska had previously worked, and Petruska found it difficult to work with this particular adjuster. Petruska and the adjuster would clash over the settlement value of cases.

As the parties proceeded with depositions in the automobile accident case, Petruska had difficulty locating the dealership’s now-former employee. Petruska hired a private investigator to locate the former employee. Although the former employee initially appeared cooperative, he repeatedly failed to appear for scheduled depositions. The plaintiffs sought sanctions, and, in early October 2019, the circuit court entered an order awarding attorney fees for the time spent filing the motion for sanctions, costs associated with all prior depositions, and the cost of the deposition of the former employee, which was to occur within one week. If the former employee failed to appear again, the court ordered the former employee’s affirmative defenses would be struck and he would be barred from testifying in the case. Petruska did not inform Zurich’s claims department or the defendants that the plaintiffs had filed a motion for sanctions or that the circuit court had entered an order for sanctions.

During discovery, plaintiffs produced a medical report that recommended surgery for one of the plaintiffs. The plaintiffs’ attorney deposed the physician, who testified consistently with the report. Petruska believed this assessment would likely increase the potential damage and resulting exposure for the insured. In June 2019, the adjuster asked Petruska to obtain an expert to counter the plaintiffs’ expert to reduce the plaintiffs’ expectations and force settlement. The adjuster repeated this request in July 2019 and December 2019.

At some point near the end of October 2019, with a trial scheduled to begin in the middle of the next month, Petruska met with plaintiffs’ counsel to discuss the cost for resolving the case. It became apparent the plaintiffs would be willing to accept $120,000 to settle the case.

On November 1, 2019, Petruska e-mailed plaintiffs’ counsel informing her explicitly: “I have authority to offer $120,000, and I am offering it. At the same time, I am trying to get a little more. One way or the other, I will be finished on Monday haggling with claims.” (Emphasis added). On November 6, Petruska followed up that he “was unable to get more” but stated “I have the $120,000 we discussed.” He inquired whether this was acceptable. The plaintiffs accepted the settlement terms on the condition the defendants paid costs, including the fees and costs awarded in the sanction order. Petruska drafted a settlement agreement and release for each plaintiff, and the plaintiffs executed those agreements. Petruska admits neither the adjuster nor the claims department gave him sufficient authority to settle the lawsuit. The defendants likewise did not give him the authority to settle the lawsuit.

On November 7, 2019, the circuit court entered an order stating, “This cause is passed for settlement[.]” Petruska drafted the order. On December 19, the plaintiffs filed a motion to enforce the settlement agreement. By agreement before the court the next day, the defendants were granted until January 10, 2020, to pay the settlement funds and other agreed fees. Petruska and plaintiffs’ counsel signed the order, which the court entered. On January 10, the settlement funds were still not paid. The court ordered the defendants to pay the settlement by January 24 and further ordered, if the funds were not paid by that deadline, post-judgment interest would be included in the settlement to run from the original settlement date. Petruska and plaintiffs’ counsel again signed the order. In each instance, the circuit court had no reason to believe Petruska lacked authority to settle the case. Petruska did not notify Zurich or the defendants of the purported settlement during this time.

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In re: Paul Eric Petruska, (Mo. 2025).

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