In Re Pennington

713 S.E.2d 261, 393 S.C. 300, 2011 S.C. LEXIS 221
CourtSupreme Court of South Carolina
DecidedJuly 11, 2011
Docket26999
StatusPublished
Cited by6 cases

This text of 713 S.E.2d 261 (In Re Pennington) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Pennington, 713 S.E.2d 261, 393 S.C. 300, 2011 S.C. LEXIS 221 (S.C. 2011).

Opinion

*301 PER CURIAM.

In this attorney discipline matter, Respondent Clyde Louis Pennington has been accused of misconduct including, among other things, failure to remit funds owed to third parties, failure to refund unearned fees, failure to protect client interests upon suspension from the practice of law, and failure to respond to inquiries by the Office of Disciplinary Counsel. At the time these formal charges were filed, Respondent was subject to a two-year suspension for other misconduct. Respondent appeared pro se before a panel of the Commission on Lawyer Conduct (“the Panel”), and a majority of the Panel recommended Respondent be disbarred. Respondent has not opposed this recommendation. We concur in the Panel’s recommendation, and therefore, Respondent is disbarred.

I.

In October 2008, Respondent was suspended from the practice of law for two years as a result of misconduct violating Rules of Professional Conduct 1.1, 1.2, 1.3, 1.4, 1.5, 1.7, 1.8(h), 1.15, 3.1, 3.2, 3.4, 8.1, and 8.4. See In re Pennington, 380 S.C. 49, 668 S.E.2d 402 (2008). The Office of Disciplinary Counsel has now received six additional complaints alleging misconduct on the part of Respondent. These six complaints, summarized below, are the subject of the current proceeding.

A.

Misconduct in the handling of client funds

In Matters I and II, Respondent accepted fees for the purpose of representing clients in criminal matters, did no work on the matters prior to his suspension, and failed to refund the unearned attorney’s fees.

In Matter III, a client facing fraudulent check charges entrusted Respondent with funds to pay the checks at issue. Respondent failed to make the payments, and the client went to jail.

In Matter IV, Respondent obtained a personal injury settlement on behalf of his client in 2003, but he failed to pay the client’s medical providers and insurers out of the settlement funds. The funds owed to third parties totaled over $17,000. *302 At the time of his suspension in 2008, the funds in Respondent’s trust account were insufficient to cover the amount due. Respondent had not maintained the trust account records required by Rule 417, SCACR.

B.

Failure to protect client interests upon suspension

In Matter II, Respondent did not notify his client of his suspension from the practice of law. In Matter V, Respondent likewise failed to notify his client of his suspension, even though Respondent had agreed to file an appeal on his client’s behalf and had not yet done so at the time he was suspended. Respondent did not instruct his client regarding the steps necessary to protect his client’s interests.

C.

Acting as a surety

In Matter VI, Respondent posted bond for a client in violation of Rule 604, SCACR, which provides: “An attorney or other officer of any court of this State shall not: (1) Be ... a surety upon any recognizance or undertaking in any court of this State.... ”

D.

Failure to respond

Respondent failed to respond to the Notices of Full Investigation regarding Matters I, II, and V. He also failed to appear at the investigatory interview regarding those matters. See Rule 19, RLDE, Rule 413, SCACR (permitting Disciplinary Counsel to “issue subpoenas ... conduct interviews and examine evidence to determine whether grounds exist to believe the allegations of complaints”).

Respondent did not respond to the Notice of Formal Charges. However, he did appear at the hearing before the Panel and present evidence in mitigation.

*303 II.

The Panel found Respondent violated the following Rules of Professional Conduct, Rule 407, SCACR: Rule 1.1 (competence), Rule 1.2 (scope of representation), Rule 1.3 (diligence), Rule 1.4 (communication), Rule 1.15 (safekeeping property), Rule 1.16 (declining or terminating representation), Rule 8.1 (bar admission and disciplinary matters), and Rule 8.4(e) (conduct prejudicial to the administration of justice).

The Panel considered three aggravating factors: Respondent’s disciplinary history, his pattern of misconduct, and his “indifference to the disciplinary process.” In mitigation, the Panel considered Respondent’s testimony regarding “personal and family issues” and his acknowledgement of wrongdoing. The Panel did not consider Respondent’s testimony that the funds missing from his trust account were not taken for his individual use. Respondent failed to present records in support of such testimony, and therefore, the Panel applied a “presumption that [Respondent] failed to safekeep his clients’ money.”

In light of these findings, three members of the Panel recommended Respondent be disbarred, while two members recommended he be suspended for a definite period of three years. In addition, the Panel recommended Respondent be ordered to pay costs and restitution and, prior to seeking reinstatement, complete the Legal Ethics and Practice Program and Trust Account School.

Respondent took no exception to the Panel report.

III.

This Court “may accept, reject, or modify in whole or in part the findings, conclusions and recommendations of the Commission.” Rule 27(e)(2), RLDE, Rule 413, SCACR. An attorney’s failure to answer the formal charges against him is an admission of the factual allegations set forth in those charges. Rule 24(a), RLDE, Rule 413, SCACR.

IV.

We find Respondent has committed misconduct in the respects identified by the Panel. Thus, we find Respondent *304 violated the following Rules of Professional Conduct, Rule 407, SCACR: Rule 1.1 (competence), Rule 1.2 (scope of representation), Rule 1.3 (diligence), Rule 1.4 (communication), Rule 1.15 (safekeeping property), Rule 1.16 (declining or terminating representation), Rule 8.1(b) (knowing failure to respond to a lawful demand for information from a disciplinary authority), and Rule 8.4(e) (conduct prejudicial to the administration of justice).

Further, we concur in the Panel’s findings that Respondent’s prior disciplinary history, pattern of misconduct, and disregard for the disciplinary process are aggravating factors. Respondent was suspended in October 2008 for misconduct violating Rules of Professional Conduct 1.1, 1.2, 1.3, 1.4, 1.5, 1.7,1.8(h), 1.15, 3.1, 3.2, 3.4, 8.1, and 8.4. In addition, Respondent’s disciplinary history includes an October 2000 letter of caution citing Rule 8.1 and a December 2001 confidential admonition citing Rules 8.1 and 8.4(e). 1 Respondent’s testimony in mitigation does not excuse his persistent pattern of failures to exercise appropriate diligence, safekeep his clients’ property, and cooperate with the Office of Disciplinary Counsel.

We find that disbarment is an appropriate sanction in this case. See, e.g., In re Dicks-Woolridge, 371 S.C.

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Bluebook (online)
713 S.E.2d 261, 393 S.C. 300, 2011 S.C. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-pennington-sc-2011.