In re the Suspension of Welcome

60 V.I. 240, 2013 WL 6386121, 2013 V.I. Supreme LEXIS 91
Supreme Court of The Virgin Islands·Decided December 5, 2013·No. S. Ct. Civil No. 2013-0075·Published·Cited by 1 cases

Opinion

OPINION OF THE COURT

(December 5, 2013)

Per Curiam.

This matter comes before the Court pursuant to an appeal filed by B. Patricia Welcome, Esq., from an adverse disposition of the Ethics and Grievance Committee of the Virgin Islands Bar Association (“EGC”). Also before the Court is a request by the EGC to approve its recommended sanction of a six month suspension and payment of $60,000 in restitution or, if this Court does not approve the restitution award, disbarment. Because we agree with Welcome that the underlying conduct does not warrant any sanction, we sustain her appeal, deny the EGC’s request for disciplinary action, and direct the EGC to dismiss the underlying grievance.

I. BACKGROUND

Joseph Wiegand and David Nelson jointly purchased a property in St. Croix in 1990, which they occupied as tenants by the entirety. Although Wiegand left St. Croix in 1997, Nelson continued to occupy the property. In early 2002, Wiegand executed two documents, both dated March 19, 2002, that gave Nelson a power of attorney so that he could sell the property. In one document, signed only by Wiegand and Nelson, Wiegand provided Nelson with a power of attorney conditioned on payment of $15,000 on or before sale of the property, with Nelson agreeing to pay all liens; another document, signed by Wiegand and Nelson in the presence of two witnesses and a notary, granted Nelson power of attorney over all matters pertaining to Wiegand’s estate, finances, and investments, with no mention of any payments.

In early 2003, one of Wiegand’s friends informed him that Nelson had found a buyer for the property and intended to sell it without giving advance notice to Wiegand. Rather than attempt to speak with Nelson, Wiegand contacted a loan officer at Scotia Bank — which had a mortgage on the property — who informed him that the house was likely selling, [245]*245and recommended that he obtain legal representation. Wiegand spoke with Welcome on the telephone on April 10, 2003. It is undisputed that during their discussion, Wiegand explained the situation to Welcome, who orally agreed that she would represent him at the closing for the sale of the property. Wiegand, however, contends that Welcome stated that she would revoke the power of attorney, whereas Welcome maintains that she instructed Wiegand to revoke it himself.

The next day, Welcome mailed a letter to the realtor, which stated that Wiegand had revoked Nelson’s power of attorney and requested that she be contacted with respect to all matters related to the property’s sale. On May 6, 2003, Welcome mailed a retainer agreement to Wiegand, along with a power of attorney form that, once executed, would give Welcome a power of attorney to sell the property. In this mailing, Welcome also enclosed the Offer to Purchase that Nelson had signed and provided to the realtor. The May 6, 2003 letter also identified all of the liens on the property. Wiegand mailed the executed documents to Welcome on May 13, 2003; Welcome, however, maintained that she did not receive them until June 9, 2003.

On June 9, 2003, Welcome faxed the documents to the realtor and to Nelson’s counsel. However, unbeknownst to Wiegand or Welcome, Nelson had used Wiegand’s earlier grant of a power of attorney to execute a deed of gift on April 24, 2003, in which he transferred Wiegand’s interest in the property to himself. Nelson recorded that deed of gift on May 20, 2003, and ultimately sold the property on May 24,2003, with the sale recorded on May 30, 2003. After paying all encumbrances, Nelson received a net $99,230.42 from the sale, but did not provide Wiegand with any portion of the proceeds.

Shortly afterwards, Wiegand repeatedly called Welcome. Again, Wiegand and Welcome dispute the contents of those calls; while Wiegand maintains that he never spoke with Welcome personally, Welcome contends that she advised him of the status of the transaction, and that any attempt at a recovery in light of what had transpired in late April and May 2003 would require litigation which was outside the scope of the retainer agreement. Welcome also maintains that Wiegand used many of these telephone calls to pester her or to complain about Nelson’s betrayal, and therefore eventually stopped accepting his calls.

Wiegand filed a grievance against Welcome with the EGC on August 1, 2003; however, for inexplicable reasons, the matter simply remained [246]*246dormant for several years. Ultimately, Welcome submitted an answer on June 29, 2009. On December 17, 2009, the panel issued a Notice of Hearing, stating that probable cause existed to establish that Welcome violated Model Rules of Professional Conduct 1.1 and 1.4, and scheduled a hearing for February 6, 2010. After considering both testimony and documentary evidence introduced at the February 6, 2010 hearing, the panel issued its decision on August 8, 2012, which found that Welcome violated Model Rules 1.1 and 1.4 and, as a sanction, recommended a six month suspension from the practice of law and payment of $60,000 in restitution and $1,572.75 in costs. However, in the alternative, the panel recommended disbarment. One member of the panel, however, dissented solely as to the restitution amount, finding restitution inappropriate in light of the fact that Welcome had never collected any fee from Wiegand or stolen any of his funds. Welcome moved for an extension of time to file a motion for reconsideration of the panel decision, which the panel chair granted; however, in a May 29, 2013 Order, the panel denied Welcome’s motion for reconsideration. Welcome filed her notice of appeal with this Court on September 12, 2013.

II. JURISDICTION AND LEGAL STANDARD

“This Court, as the highest court of the Virgin Islands, possesses both the statutory and inherent authority to regulate the practice of law in the Virgin Islands.” In re Gonzalez, 59 V.I. 862, 864 (V.I. 2013) (citing 4 V.I.C. § 32(e)). This authority encompasses the power to discipline attorneys for ethical misconduct. In re Suspension of Adams, 58 V.I. 356, 361 (V.I. 2013). The EGC, an arm of this Court, assists in this function by “performing] quasi-judicial functions” that “are subject to clearly defined rules and procedures adopted and approved by this Court.” In re Rogers, 57 V.I. 553, 561 (V.I. 2012). When reviewing a decision rendered by the EGC,

we exercise independent judgment with respect to both findings of fact and conclusions of law on all issues, including the sanction recommended by the Bar. Under our independent review, we carefully consider the adjudicatory panel’s analysis, but must separately determine, like the adjudicatory panel, whether there is clear and convincing evidence that the respondent violated the Model Rules of Professional Conduct. Our review in this respect is virtually de novo, except we do [247]*247not hear and consider anew live testimony. If we find that the respondent has violated the rules, we must also decide whether to adopt the panel’s recommended discipline or whether some other type of discipline is warranted.

V.I. Bar v. Brusch, 49 V.I. 409, 411-12 (V.I. 2008) (footnotes and citations omitted).

III. DISCUSSION

As noted above, the EGC only charged Welcome with violating Rules 1.1 and 1.4 of the Model Rules of Professional Conduct, and ultimately concluded that she violated both of these ethical rules. We address each conclusion in turn.

A.

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In re the Suspension of Welcome, 60 V.I. 240, 2013 WL 6386121, 2013 V.I. Supreme LEXIS 91 (virginislands 2013).

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