Kentucky Bar Ass'n v. Lococo

54 S.W.3d 164, 2001 Ky. LEXIS 151, 2001 WL 1143139
CourtKentucky Supreme Court
DecidedSeptember 27, 2001
DocketNo. 2001-SC-0022-KB
StatusPublished
Cited by1 cases

This text of 54 S.W.3d 164 (Kentucky Bar Ass'n v. Lococo) 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. Lococo, 54 S.W.3d 164, 2001 Ky. LEXIS 151, 2001 WL 1143139 (Ky. 2001).

Opinion

OPINION AND ORDER

Effective February 24, 2000, Respondent, Alecia Lococo, was temporarily suspended from the practice of law by this Court pursuant to SCR 3.165. Inquiry Com’n v. Lococo, Ky., 18 S.W.3d 341 [165]*165(2000). Subsequently, Respondent was found guilty by the Kentucky Bar Association Board of Governors of five counts of professional misconduct arising from two separate incidents. The Board of Governors recommended a three-year suspension and assessed Respondent the costs of the action. We adopt the recommendation of the KBA Board of Governors.

FACTS

Two bar complaints were filed against the Respondent in 1999. The first was filed by William Tackett in January of 1999. The complaint was investigated by the Office of Bar Counsel and the Inquiry Commission issued a Charge in April of 1999. This Charge was labeled KBA file 7175. The second complaint was filed by Nellie Combs, one of Respondent’s clients, in October of 1999. Again, the complaint was investigated and a second Charge was filed in December of 1999. This Charge was labeled KBA file 7664. The two KBA files were consolidated and tried as a single disciplinary case in May of 2000.

KBA File 7175

This Charge contained two counts concerning the alleged mismanagement of Respondent’s escrow account and the alleged mishandling of a client’s settlement funds. On or about October 15, 1998, Virginia Southwood, Respondent’s client, settled her personal injury case for $17,500. The settlement check was transmitted to Respondent on October 23, 1998, and was deposited into Respondent’s escrow account. However, because of pre-existing problems with the escrow account, the Southwood settlement funds were delivered to “cover” an escrow check previously issued to another client. A week or two later, Respondent authorized her secretary to issue a check on the escrow account payable to Ms. Southwood in the amount of $11,086.27, as payment of the net proceeds of the settlement that Ms. Southwood was entitled to receive. Ms. Southwood, unaware it was a cold check, endorsed the check from Respondent’s escrow account and transferred it to Engle Funeral Home as payment of a $1,242.09 debt owed by Ms. Southwood to the funeral home. The manager of the funeral home, William Tackett, accepted the check and gave Ms. Southwood a funeral home check in the amount of $9,844.18, which represented the difference between Ms. Southwood’s outstanding debt and the check she endorsed over to him. When Respondent’s escrow check was presented for payment by the funeral home, it was returned due to insufficient funds. Mr. Tackett went to Respondent’s office in December of 1998, demanding that his loss be cured. Respondent did not immediately pay the funeral home and Mr. Tackett filed his bar complaint in January 1999. Engle Funeral Home was not made whole by Respondent until approximately nine months later, in August 1999, as a result of this disciplinary proceeding.

KBA File 7661

This Charge contained three counts concerning incompetent, non-diligent representation of a client, and general office mismanagement arising from Respondent’s failure to file Ms. Combs’ lawsuit within the appropriate statute of limitations. In December of 1998, Ms. Nellie Combs employed Respondent to represent her on a personal injury claim arising out of an automobile accident. Respondent did not file Ms. Combs’ claim before April 20, 1999, the date that the statute of limitations expired on the claim. Respondent did not realize that a lawsuit had not been filed until August 1999, about four months after the statute of limitations expired. Respondent only became aware of the problem as a result of investigative activi[166]*166ties by the KBA Office of Bar Counsel in connection with KBA file 7175. As a result, Ms. Combs obtained new counsel and filed her bar complaint in October of 1999.

BOARD OF GOVERNORS’ DECISION

In January of 2001, the KBA Board of Governors rendered its decision concerning Respondent’s case. The Board agreed with the Trial Commissioner’s findings in all relevant respects.

The Trial Commissioner concluded, and the Board of Governors unanimously agreed, that Respondent was guilty of an egregious violation of Rule 1.15 as alleged in Count I of the Charge in KBA file 7175 in that:

(a) the Respondent caused or permitted the Southwood settlement funds to be converted to the Respondent’s own use as a source of money to satisfy the Respondent’s prior obligations to other clients, in violation of her duties under Rule 1.15(a), (b) and (c) [SCR 3.130-1.15(a)-(c) ];
(b) by issuing a cold check to Virginia Southwood, the Respondent also failed to promptly deliver the settlement proceeds in violation of her duties under Rule 1.15(b).

The Trial Commissioner and Board of Governors also concluded that Respondent was guilty of violating that portion of Rule 8.3(c) involving “misrepresentation,” as alleged in Count II of the Charge in KBA file 7175.

KBA File 766Í

The Trial Commissioner concluded, and the Board of Governors unanimously agreed, that Respondent was guilty of professional misconduct as charged in Counts I, II, and III of KBA file 7664, in that:

(a) the Respondent failed to provide Nellie Combs with competent representation, in violation of her duty under Rule 1.1 [SCR 3.130-1.1];
(b) the Respondent also failed to act with reasonable diligence in her representation of Ms. Combs, in violation of her duty under Rule 1.3 [SCR 3.130-1.3];
(c) the Respondent also failed to make reasonable efforts to ensure that the conduct of her employee, Donna Rit-chie, was compatible with her own professional obligations to her client, in violation of her duty under Rule 5.3 [SCR 3.130-5.3].

Recommended Sanction

The Trial Commissioner recommended the severe sanction of a three-(3) year suspension based on the Rules violations themselves and on the following non-exhaustive list of aggravating circumstances:

(a) Respondent’s completely unreasonable abdication of her professional obligations to a non-lawyer employee;
(b) The nature of the misconduct was especially detrimental to public confidence in the legal profession;
(c) Respondent’s testimony and demeanor at the hearing indicated that she fails to appreciate her own central role in the matter. She continues to assert that she is a “victim” of misconduct on the part of her employee.

The Board of Governors, in an 18 to 2 vote, agreed with the Trial Commissioner’s recommended sanction and voiced particular concern over Respondent’s continued attempts to thrust the “blame” onto her secretary.

[167]*167MISREPRESENTATION UNDER RULE 8.3(C)

Respondent argues that it defies logic to conclude that she committed an act of misrepresentation. Respondent contends that it is a “basic principle of logic that in order to misrepresent something, one must first know the truth,” and that at the time Respondent authorized that the escrow account check be written to Ms. Southwood, Respondent had no actual knowledge that there was a deficit in the escrow account.

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Bluebook (online)
54 S.W.3d 164, 2001 Ky. LEXIS 151, 2001 WL 1143139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-bar-assn-v-lococo-ky-2001.