Inquiry Into the Conduct of the Blakely

772 N.W.2d 516, 2009 Minn. LEXIS 601, 2009 WL 2959692
CourtSupreme Court of Minnesota
DecidedSeptember 17, 2009
DocketA08-1445
StatusPublished
Cited by8 cases

This text of 772 N.W.2d 516 (Inquiry Into the Conduct of the Blakely) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inquiry Into the Conduct of the Blakely, 772 N.W.2d 516, 2009 Minn. LEXIS 601, 2009 WL 2959692 (Mich. 2009).

Opinions

OPINION

PER CURIAM.

The Honorable Timothy Blakely, a judge in the First Judicial District, challenges the recommendation of the Minnesota Board on Judicial Standards (“Board”) that he be removed from office as a result of his actions in negotiating and obtaining [518]*518a substantial legal fee reduction from his personal attorney while contemporaneously appointing her to provide mediation or related services in matters pending before him. The fact finding panel appointed to conduct a hearing on the charges recommended censure and suspension from judicial duties for 6 months without pay. The Office of Lawyers Professional Responsibility recommends a suspension from the practice of law for 6 months if we accept the Board’s recommendation of removal. Judge Blakely asks the court to reject any sanction exceeding censure and asserts that lawyer discipline in addition to judicial discipline would be excessive. We conclude that the appropriate judicial discipline is censure and suspension from judicial duties for 6 months without pay. We further conclude that the appropriate attorney discipline is a public reprimand.

Judge Blakely was elected as a judge for Minnesota’s First Judicial District in 1998. He was reelected to a second 6-year term in 2004. His current term expires in January 2011.

In October 2002, Judge Blakely retained William Haugh of the St. Paul law firm of Collins, Buckley, Sauntry & Haugh, PLLP (“CBSH”) to represent him in dissolution proceedings. When he retained CBSH, Judge Blakely agreed to pay the “usual hourly rate” charged by CBSH attorneys. At the time, Judge Blakely anticipated that his divorce could be resolved quickly and that his legal fees would be minimal. Judge Blakely’s case failed to settle, however, and Christine Stroemer of CBSH took over as the lead attorney in December 2002. Judge Blakely incurred substantial legal fees during the divorce proceedings and was not able to keep current with his bill.

In addition to representing parties in divorce and other proceedings, CBSH provides mediation services. Between 2000 and 2002, before Judge Blakely retained CBSH to represent him in his divorce, CBSH Mediation Services made a presentation to the judges in the First Judicial District, offering mediation services in family court dissolution actions. Judge Blakely attended the presentation. Although Judge Blakely was impressed with CBSH, his first mediation appointment of CBSH was not until December 2003, when he appointed Stroemer to mediate a Scott County dissolution action. At the time of the appointment, Stroemer was representing Judge Blakely in his divorce, and Judge Blakely owed CBSH more than $42,000 in legal fees. Over the course of the next three and a half years, Judge Blakely appointed Stroemer as a mediator or third-party neutral in another sixteen cases.

In addition to the mediation appointments, Judge Blakely referred people he knew to Stroemer for direct representation. Judge Blakely referred his personal tax accountant to Stroemer for representation in her divorce. The case ultimately generated significant fees for CBSH. While not aware of the exact amount, Judge Blakely believed the fees were similar to his own. Judge Blakely and his second wife also referred families using the wife’s daycare business to Stroemer for representation.

By the time the final dissolution decree was entered in his divorce in September 2004, Judge Blakely had made payments totaling $8,640 to CBSH, and owed approximately $98,000 in unpaid fees. Although Stroemer had agreed to accept monthly payments toward the bill, after the case was concluded she advised Judge Blakely that he needed “to make substantial payments to this office.” Stroemer offered to work with Judge Blakely to establish a reasonable payment plan, but also stressed her inability to continue car[519]*519rying such a large outstanding balance on CBSH’s books.

On February 16, 2005, Judge Blakely called Stroemer to protest the interest CBSH was assessing on the unpaid balance on his account. Stroemer responded by e-mail, defending CBSH’s ability to charge interest. She also stated “[QJuite frankly, when the dissolution ends, the client is to pay the outstanding balance ... with[in] 30 days.” Nonetheless, Stroemer agreed to suspend the interest as long as Judge Blakely was making reasonable, regular payments. After acknowledging Judge Blakely’s financial situation, Stroemer thanked him for the mediation appointments, stating in her e-mail message, “I DO want to thank you for the referrals and certainly appreciate the work. I’ll do my best to get those cases resolved and off the court calendar.”

On October 19, 2005, Judge Blakely advised Stroemer by e-mail that he was “in a serious bind.” He asked Stroemer to consider “a compromise lump sum payment of fees.” He expressed hope that she would agree to accept the proceeds from the sale of his home “and forego any more fees.” He acknowledged his request would result in a deep discount, but reminded her about the referrals. He stated:

I recognize this may not be a small compromise in your view. On the other hand, a sizeable lump sum now may be preferable to very long-term payments. There is also very substantial past, and future, benefit to you from significant business referrals we have made in excess of the compromise we are asking for.

Judge Blakely testified before the fact finding panel that the “business referrals we have made” referred to the direct representation referrals that both he and his second wife had made. He denied that he was referring in any way to the mediation appointments.

Stroemer responded to Judge Blakely’s offer by e-mail 2 days later, expressed her willingness to consider a settlement, and again thanked him for the mediation referrals. She stated:

Tim, I would certainly consider a compromised [sic] lump sum payment in lieu of future small monthly payments. I certainly appreciate the mediation referrals you have sent my way and hope that you continue to do so.

Despite his subsequent claim that there was no connection between the mediation referrals and the negotiation of a discount on his legal bill, Judge Blakely did nothing to respond to Stroemer’s statement.

On February 1, 2006, Judge Blakely informed Stroemer of a possible purchase offer on his home and pledged to pay “[e]very dime” of an expected $30,000-$31,000 in net proceeds to settle his $94,545.62 bill. Stroemer responded that he was asking her to “forego over $60,000 in earned fees.” She stated:

Nonetheless, it is my hope that we continue a good relationship and that you continue to refer cases to me to assist in mediation/arbitration of family court matters. I have appreciated the referrals in the past. Thus, I will accept no less than $31,000 as a final payment on the account, to be paid at the time of the house closing.

Once again, Judge Blakely did not respond to Stroemer’s statement regarding the mediation referrals.

On April 4, 2006, Stroemer accepted Judge Blakely’s offer of settlement. Judge Blakely paid CBSH a lump sum of $31,982.84 from the sale of his home to settle his outstanding bill of $94,545.62. Ultimately, Judge Blakely paid $45,372 out of a total bill of $109,501; CBSH wrote off $64,128. On the day of the settlement, [520]*520Stroemer sent Judge Blakely an e-mail that addressed the compromise. She stated:

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Inquiry Into the Conduct of the Blakely
772 N.W.2d 516 (Supreme Court of Minnesota, 2009)

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Bluebook (online)
772 N.W.2d 516, 2009 Minn. LEXIS 601, 2009 WL 2959692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inquiry-into-the-conduct-of-the-blakely-minn-2009.