Ligon v. Rees

2010 Ark. 226, 364 S.W.3d 7, 2010 Ark. LEXIS 260
Supreme Court of Arkansas·Decided May 13, 2010·No. 09-559·Published·Cited by 13 cases

Opinion

ELANA CUNNINGHAM WILLS, Justice.

|,This case is an appeal from a disciplinary action by the Supreme Court Committee on Professional Conduct (Committee) against attorney David Rees. The Committee’s Executive Director, Stark Ligón, brings this appeal from a February 23, 2009 order filed by Panel C of the Committee suspending Rees’s law license for thirty days upon a finding that he violated two provisions of the Arkansas Model Rules of Professional Conduct (Model Rules). In this appeal, Director Ligón raises four arguments for reversal or modification of the Panel’s order: (1) suspension of Rees’s law license for only thirty days was “not appropriately or proportionately substantial or severe for the overall misconduct proven”; (2) a finding of no violation of Model Rule 8.4(c) for Count H.l was clearly against the preponderance of the evidence; (3) a finding of no violation of Model Rule 8.4(c) for Count H.2 was clearly against the preponderance of the evidence; (4) a finding of no violation of Model Rule 1.6(d) for Count F.l was clearly against the preponderance of the evidence. We affirm the Panel’s border. 1

The formal charges of misconduct in this case arose from a complaint filed by Rees’s former client, Tom Papachristou, involving a fee dispute. Rees’s representation of Papachristou began after Papachristou was arrested and jailed in Crittenden County on March 18, 2004, for violating a protective order granted to his on-again, off-again companion and office manager, Kim Crockett. Papachristou paid a total of $29,500 for Rees’s representation in the protective-order matter in the form of a $27,500 check and $2,000 in cash. In May 2004, Papachristou also retained Rees’s services for his role as a target of an ongoing federal criminal investigation involving the illegal transfer of registration or serial numbers of jet aircraft engines. On May 26, 2004, Papachristou paid Rees a $125,000 retainer for representation in the federal criminal matter, followed by another check in the amount of $100,000 paid to Rees on May 31, 2004, to be held and used in the event that he was actually indicted and charged. Papachristou made additional payments for Rees’s representation in other business matters.

One such business matter involved a company called Omni Holding & Development Corporation (Omni). Attorney Kent Rubens of West Memphis originally represented Crockett in relation to various business interests she and Papachristou were engaged in, including Omni. On March 4, 2004, Joe Volpe, an Assistant United States Attorney (AUSA) for the Eastern District of Arkansas, mailed a letter to Rubens requesting an interview | ^between Crockett and FBI Special Agent John Hazen in connection with the federal criminal investigation “involving others including Ms. Crockett.” The letter stated “[a]t this time, our intention is not to prosecute Ms. Crockett given the information we have before us,” and that her “cooperation is her greatest opportunity to not be swept up in this criminal case.” A “Proffer Agreement” was attached to the letter providing Crockett with “use immunity” for any information she provided to federal agents or United States attorneys. Crockett, Rubens, and AUSA Volpe signed the immunity agreement on March 10, 2004.

In addition to the federal criminal investigation, Rubens represented Crockett in Papachristou’s aforementioned violation of her protective order on March 18, 2004. On May 7, 2004, the Crittenden County Circuit Court entered an “Agreed Order” in which Crockett and Papachristou, through their respective attorneys, Rubens and Thomas Young of the Rees Law Firm, dismissed the protective-order claim and converted the case to a paternity action.

On May 10, 2004, the circuit court entered a judgment and commitment order upon Papachristou’s guilty plea for the misdemeanor charge of violating Crockett’s protective order. According to Crockett’s March 1, 2007 affidavit, she terminated Rubens’s services as her attorney on May 27, 2004. 2 Crockett stated that she made her decision to terminate Rubens as her counsel “[a]s a result of [] conversations” with Rees and Papachristou regarding the federal criminal investigation.

On June 1, 2004, AUSA Volpe sent a fax to Rubens, Rees, and another attorney at |4the Rees Law Firm, Joe Hughes, as well as another named Steven Farese, stating that Volpe had received telephone calls from each regarding Papachristou and Crockett, and “the investigation involving the removal of data plates from aircraft” in West Memphis. The fax expressed confusion over which attorneys currently represented Papachristou and Crockett, stating that

[ojriginally, Mr. Farese contacted me as Mr. Papachristou’s attorney. Later Mr. Rees stated he and Mr. Farese represented him. Mr. Rubens originally represented Ms. Crockett, but on May 27, 2004, Mr. Rees notified me that he now represents Ms. Crockett. On May 28, 2004, Mr. Hughes contacted me to inquire about Ms. Crockett.

The letter concluded with Volpe directing the attorneys to contact him in writing regarding the federal investigation in the future to “avoid any conflict or confusion.” Rees mailed a letter to AUSA Volpe on June 2, 2004, “to notify [Volpe] that I am representing Kim Crockett and Tom Papa-christou” and that Rubens was no longer Crockett’s counsel.

Rees mailed a letter to Rubens dated June 3, 2004, with a proposed order attached that substituted Rees as Crockett’s counsel in a civil action involving Omni. Rubens signed the proposed order after receiving Rees’s letter on June 8, 2004. On June 28, 2004, Crockett, represented by attorney Joe Hughes, filed suit against Rubens in the Crittenden County Circuit Court for breach of fiduciary duty and the tort of outrage. Rubens denied Crockett’s allegations in his answer to the complaint filed on July 12, 2004, and moved for dismissal under Ark. R. Civ. P. 12(b)(6). The circuit court granted Crockett’s oral motion to nonsuit the action against Rubens on November 22, 2004.

(According to the Panel’s order in the interim between the filing and nonsuit of the complaint against Rubens, Rees went to the home Crockett shared with Papa-christou while Papaehristou was out of the county and an incident occurred that personally upset her. After Crockett related the incident to Papaehristou upon his return, they sent a letter dated October 13, 2004, to Rees stating that it was their “mutual and joint desire to terminate the attorney-client relationship between the Rees Law Firm, yourself, and us on an individual basis.” Additionally, the letter terminated Rees’s representation of either party regarding Omni, and specifically stated that Papaehristou did not want Rees to represent him “in any way” in the federal investigation or charges, and that Crockett did not want Rees to represent her “in any individual fashion,” including the action filed against Rubens. Further, Papaehristou requested that Rees “account to me for all funds which have been paid to you and provide me with a detailed accounting for time and expenses,” as well as “a complete refund of all unearned fees.” The letter closed with a notice that Rees was not to “contact us in person or by phone to discuss this matter further,” and if Rees had any questions he should direct them to Papachristou’s attorney, Paul Ford, or Crockett’s attorney, Thomas Fowler.

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Ligon v. Rees, 2010 Ark. 226, 364 S.W.3d 7, 2010 Ark. LEXIS 260 (Ark. 2010).

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