In Re Schwenke

865 P.2d 1350, 227 Utah Adv. Rep. 21, 1993 Utah LEXIS 149, 1993 WL 497145
CourtUtah Supreme Court
DecidedDecember 1, 1993
Docket920480
StatusPublished
Cited by3 cases

This text of 865 P.2d 1350 (In Re Schwenke) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Schwenke, 865 P.2d 1350, 227 Utah Adv. Rep. 21, 1993 Utah LEXIS 149, 1993 WL 497145 (Utah 1993).

Opinion

HALL, Chief Justice:

A. Paul Schwenke appeals an order of the Board of Bar Commissioners (“the Board”) affirming a hearing panel’s findings of fact, conclusions of law, and recommendation of discipline that included a recommendation that Schwenke be disbarred and pay restitution in the amount of $97,250. We affirm.

In 1985, Schwenke represented Caren Serr in a personal injury action. In 1987, Serr and her husband Ron Serr filed a complaint with the Office of Bar Counsel (“the Bar”) alleging that Schwenke had violated the Rules of Professional Conduct by misappropriating approximately $100,000 in the course of settling Serr’s personal injury ease. The matter was then held in abeyance pending the outcome of civil litigation between the parties. On September 19, 1989, the parties entered into a stipulation in the third district court in which Schwenke agreed to a $100,-000 judgment against him based on fraud, not dischargeable in bankruptcy.

On December 4, 1990, a summons and formal complaint that incorporated by reference the September 1989 stipulation were issued. Schwenke’s actual whereabouts were unknown to the Bar. The Bar investigated and determined that if the summons and formal complaint were mailed to Sehwenke’s address shown on the official roster of attorneys, it was unlikely that Schwenke would receive them. Consequently, the summons and formal complaint were served upon Schwenke by certified mail directed to the office where Schwenke was known to have been practicing law. Before the summons and formal complaint were mailed, however, Bar counsel Stephen A. Trost met with Jamis M. Johnson, an attorney who subleased office space to Schwenke at the time. Johnson assured Trost that all mail sent by the Bar to Johnson’s office (the same address where Schwenke had been practicing) would be forwarded to Schwenke. Accordingly, the summons and formal complaint were mailed to this address.

It appears that sometime in the middle of January 1991, Schwenke left the state and *1352 did not provide the Bar with his new address. While Schwenke’s whereabouts were unknown to the Bar between the time the summons and formal complaint were served and the time he left in mid-January, Johnson claimed that Schwenke remained in contact with his office. On January 11,1991, a notice of intent to default was sent by certified mail to the address where Schwenke had conducted his law practice. On March 5, 1991, a request for entry of default was submitted to the executive director of the Bar, and on March 19, 1991, default was entered against Schwenke.

On March 28, 1991, the Bar mailed a request for a sanctions hearing to the office where Schwenke had been practicing law. On May 24, 1991, notice of a sanctions hearing set for July 22, 1991, was mailed to the same address. On December 6, 1991, notice of the sanctions hearing reset for March 2, 1992, was sent by certified mail, this time to Schwenke’s last known address as shown on the Bar roster. In addition, a copy of the notice of hearing was sent to a Las Vegas, Nevada, residence.

Between the time the notice of hearing was sent and the date of the hearing, Schwenke did not answer the complaint. On March 2, 1992, the sanctions hearing was held. Schwenke appeared at the hearing, admitting that he learned of the sanctions hearing on approximately February 6, 1992, and that he knew of the sanctions hearing from the notice that had been sent to the Las Vegas address. Even though default had been entered against Schwenke, the merits of the complaint were addressed. The Bar called witnesses and introduced documentary evidence establishing the facts and violations charged in the formal complaint. Schwenke cross-examined the witnesses and testified in his own behalf. At the conclusion of the hearing, the panel entered findings of fact, conclusions of law, and a recommendation that Schwenke be disbarred. The panel further recommended that he make restitution to Serr in the amount of $97,250. 1

On May 4, 1992, the Board approved by order the hearing panel’s findings, conclusions, and recommendation of discipline. On May 19, 1992, Schwenke moved for reconsideration of the order. He contended that he was not properly served with the summons and formal complaint and that the only pleading he received was the notice of hearing resetting the sanctions hearing for March 2, 1992. He sought an order requiring “adequate and proper” service of the summons and formal complaint. He asserted that the hearing panel’s findings, conclusions, and recommendation of discipline were racially motivated. The Board granted a hearing on Schwenke’s motion for reconsideration. 2

At the May 28, 1992, hearing on Schwenke’s motion for reconsideration, Schwenke withdrew his contention that the hearing panel’s action was racially motivated. After considering all the facts and circumstances, the Board concluded that the hearing panel had appropriately found that Schwenke was properly served with the summons and formal complaint. In addition, the Board concluded that Schwenke had been afforded a fair hearing on the merits of the complaint in that he appeared at the hearing, confronted the witnesses against him, examined the evidence, and presented matters in his own defense. Notwithstanding, the Board granted Schwenke’s motion for reconsideration and afforded him the opportunity to file an answer, after which the hearing panel would reconvene and consider any additional matters presented by the parties. Accordingly, the Board ordered Schwenke to file an answer to the complaint. Instead of filing an answer, however, he filed an objection to the Board’s order granting his motion *1353 for reconsideration, arguing that despite the Board’s findings, he had not been properly served and therefore could not be ordered to file an answer.

On July 7, 1992, the Bar caused Schwenke to be personally served with the summons and formal complaint. He again failed to file a responsive pleading, and on July 31, 1992, default was again entered against him. On August 5, 1992, nine days after the prescribed time had expired, Schwenke filed an answer to the July 7, 1992, summons and formal complaint. He contended that he thought he had hand-delivered a copy of the answer along with some other documents relating to another matter to the Bar on July 17, 1992. Later, he learned that instead of putting a copy of the answer in the envelope with the other documents, he had “inadvertently” placed it in his file. As a result, the answer was not filed within the time prescribed in the summons. He claims that when he learned of the mistake, he filed a late answer even though default had been entered against him.

On August 10, 1992, the Board considered and denied Schwenke’s objection to their earlier order on the ground that the objection was rendered moot by personal service of the July 7,1992, summons and formal complaint. 3 On August 10, 1992, the Bar filed a motion with the Board to affirm the hearing panel’s findings, conclusions, and recommendation of discipline entered following the March 2, 1992, sanctions hearing. On August 11,1992, Schwenke moved to set aside the default certificate pertaining to the default entered July 31, 1992. The Bar responded, opposing Schwenke’s motion to set aside the default.

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Related

In Re Schwenke
2004 UT 17 (Utah Supreme Court, 2004)
Schwenke v. Smith
942 P.2d 335 (Utah Supreme Court, 1997)

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Bluebook (online)
865 P.2d 1350, 227 Utah Adv. Rep. 21, 1993 Utah LEXIS 149, 1993 WL 497145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-schwenke-utah-1993.