Kentucky Bar Ass'n v. Burgin

412 S.W.3d 872, 2013 WL 6145240, 2013 Ky. LEXIS 593
CourtKentucky Supreme Court
DecidedNovember 21, 2013
DocketNo. 2013-SC-000689-KB
StatusPublished
Cited by9 cases

This text of 412 S.W.3d 872 (Kentucky Bar Ass'n v. Burgin) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Bar Ass'n v. Burgin, 412 S.W.3d 872, 2013 WL 6145240, 2013 Ky. LEXIS 593 (Ky. 2013).

Opinion

[873]*873 OPINION AND ORDER

The Respondent, Russell W. Burgin,1 is alleged to have committed one violation of the Rules of Professional Conduct. A trial commissioner appointed by the Chief Justice has heard the matter, found that Bur-gin committed the violation, and recommended that he be suspended from the practice of law for 60 days, with 30 days of that suspension probated on certain conditions. This Court adopts the recommendation.

I. Background

The present case stems from KBA File 19913, which concerns the following facts.

Burgin agreed to represent Gloria Golden in a personal-injury action. In late 2007, he settled her claim for $5,000. He received a settlement check, dated December 12, 2007 and made payable to Golden. During the litigation, Medicaid had placed a lien upon the claim for medical expenses in excess of $3,000.

In early 2008, Golden signed the settlement check but was not given her portion of the settlement proceedings. Instead of depositing the check in his escrow account and then distributing the proceeds, Burgin placed the check in his file and left it there. He was unable to later explain why this occurred.

Shortly after, Golden was incarcerated, and Burgin lost contact with her. Golden was released about three years later. Soon after, she contacted Burgin and stated that she wished to finalize the personal-injury matter. Burgin located the file but did not notice the settlement check.

Golden filed a bar complaint against Burgin in May 2011. Over the next 11 months, Bar Counsel communicated with Burgin but received neither a satisfactory explanation of what had happened nor proof that the matter was resolved. In April 2012,. the Inquiry Commission issued a formal charge with one count alleging a violation of SCR 3.130-1.3 for Burgin’s lack of reasonable diligence and promptness in handling the settlement check and the Medicaid lien.

[874]*874After the charge was issued, Burgin presented his file to Bar Counsel. At that time, the original, by-then-stale settlement check was discovered. Burgin stated he had taken steps to resolve the matter by seeking to have a replacement check issued and to satisfy the Medicaid lien. However, he failed to notify Bar Counsel of his actions as requested.

Apparently, Burgin had not actually taken steps to get the check reissued and did so only when asked to do so by Bar Counsel. Finally, in November 2012, he contacted the defense attorney in the personal-injury case and provided the original check as proof that it had not been cashed. A replacement check was issued on February 25, 2013, and mailed to Burgin on March 5, 2013.

Burgin paid all $5,000 of the settlement proceeds to Golden, having had the check made payable only to her. He did not take a fee and has stated that he will satisfy the Medicaid lien out of his own funds, though he had not done so at the time of the disciplinary hearing in this matter.

The case was heard by a trial commissioner in May 2013. After the hearing, Bar Counsel submitted its post-hearing statement. Burgin, however, had some difficulty in submitting his statement, which was due on August 8, 2013. He initially emailed what purported to be a copy of the statement, but that file proved unopenable and appeared to be nothing but “a gibberish of codes and symbols.” No hard copy followed, despite Burgin’s assurances that one would, nor was one filed with the disciplinary clerk. The trial commissioner and Bar Counsel tried to contact Burgin several times via email and telephone, but they received no response until August 21, when Burgin emailed both stating that he had just received their emails and that his post-hearing statement would be forthcoming. Unfortunately, nothing came. The trial commissioner contacted the disciplinary clerk on August 26, the date when any reply or rebuttal would have been due, to confirm that no statement had been filed. It had not.

At that point, the trial commissioner decided to proceed with preparing his report, noting that “any Post Hearing Statement of the Respondent [Burgin] filed thereafter would be rejected as untimely and the Respondent [is] required to stand upon the record, without written comment.” The commissioner noted: “This in and of itself speaks volumes.”

The trial commissioner then issued a report with findings of fact consistent with the facts described above. The commissioner concluded that Burgin should have deposited the settlement check into escrow immediately after his client endorsed it, and that all his actions from that point on were untimely. The commissioner also concluded that Burgin “was unable to offer any reasonable explanation as to his continued delay.”

The commissioner also noted that Bur-gin’s failure to satisfy the Medicaid lien once the replacement check was issued, including his disbursement of the entire amount of the settlement proceeds without reserving funds for the lien, was a further, uncharged violation of SCR 3.130 — 1.15(b) & (c).2 The commissioner noted that he considered this fact.

[875]*875The commissioner noted that Burgin was truthful and sincere, and “basically admitted to the factual allegations in the Charge ... and merely argued that ... [they] did not rise to the level of a violation of the code of conduct.” Nevertheless, the commissioner found that Burgin’s conduct did violate the rule. In reaching that conclusion, the commissioner noted the length of time it took Burgin to discover the check and then request a replacement after the disciplinary action began, and Bur-gin’s failure to keep Bar Counsel informed of his undertakings in addressing the problem. The commissioner then stated in his report that he “[wa]s left to wonder if the failure to notify the KBA of any of [Bur-gin’s] undertakings was prudent in light of the potential consequences” and that this “further confirms [Burgin’s] languid, if not cavalier, attitude with regard to his practice.”

The commissioner then addressed the sanction to be imposed. He considered Burgin’s disciplinary record, which included a private admonition in 2011 and a probated 30-day suspension in March 2012, see Burgin v. Kentucky Bar Ass’n, 362 S.W.3d 331 (Ky.2012). He also considered the facts that “there was eventually no harm to Ms. Golden,” that Burgin took no fee, and that Burgin intended to satisfy the Medicaid lien. Weighing against this, the commissioner considered what he described as the facts that “it is obvious that [Burgin] exhibits an extreme[ly] lackadaisical and disconcerting nature and lack of diligence in the performance of his practice,” that “[h]is delays in taking any remedial action, despite potential for consequences, were inexcusable,” and that “[h]is pattern of conduct leaves much to be desired and exhibits a clear violation of the duties owed to his client and the profession as a whole.”

For these reasons, the commissioner recommended that Burgin be suspended from the practice of law for sixty days, ■with thirty days of the suspension probated for two years under the following conditions:

1. That Burgin “attend and complete a business management education program/seminar/class, processed through and approved by the office of Bar Counsel within one (1) year ... and which shall not be credited toward[ ] any Continuing Legal Ed- • ucation (CLE) hours”;3

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Related

Kentucky Bar Association v. Russell W. Burgin
448 S.W.3d 816 (Kentucky Supreme Court, 2015)
Kentucky Bar Ass'n v. Burgin
448 S.W.3d 256 (Kentucky Supreme Court, 2014)

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Bluebook (online)
412 S.W.3d 872, 2013 WL 6145240, 2013 Ky. LEXIS 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-bar-assn-v-burgin-ky-2013.