Office of Lawyer Regulation v. Michael B. Padden

2025 WI 47
CourtWisconsin Supreme Court
DecidedNovember 12, 2025
Docket2024AP002110-D
StatusPublished

This text of 2025 WI 47 (Office of Lawyer Regulation v. Michael B. Padden) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Office of Lawyer Regulation v. Michael B. Padden, 2025 WI 47 (Wis. 2025).

Opinion

2025 WI 47

IN THE MATTER OF DISCIPLINARY PROCEEDINGS AGAINST MICHAEL B. PADDEN, ATTORNEY AT LAW OFFICE OF LAWYER REGULATION, Complainant, v. MICHAEL B. PADDEN, Respondent.

No. 2024AP2110-D Decided November 12, 2025

ATTORNEY DISCIPLINARY PROCEEDING

¶1 PER CURIAM. In this reciprocal discipline matter, we consider what sanction we should impose on Attorney Michael B. Padden as discipline reciprocal to the disbarment ordered by the Minnesota Supreme Court in August 2024. For the reasons discussed below, we determine that revocation of Attorney Padden’s Wisconsin law license is appropriate reciprocal discipline. Because we are resolving this matter without appointing a referee, no costs are imposed.1

1 We note that on October 22, 2025, the parties filed a stipulation that we rejected by order of November 6, 2025. In that order, we returned the parties to the positions they occupied before filing the stipulation, as set forth in their pleadings and briefs in this proceeding. IN THE MATTER OF DISCIPLINARY PROCEEDINGS AGAINST ATTORNEY MICHAEL B. PADDEN Per Curiam

¶2 Attorney Padden was admitted to practice law in Wisconsin in 2002. He was admitted to practice law in Minnesota in 1986. Attorney Padden has not been the subject of previous professional discipline in Wisconsin. According to the Minnesota Supreme Court decision that forms the basis of this reciprocal disciplinary action, In re Disciplinary Action Against Padden, 10 N.W.3d 291 (Minn. 2024), Attorney Padden has the following disciplinary history in Minnesota:

 In 1996, Attorney Padden received a private admonition for failing to enter into a written contingent fee agreement with a client and failing to return that client’s file upon request.

 In 2017, Attorney Padden received a public reprimand for agreeing to settle a case without his client’s consent, failing to communicate the settlement agreement to the client, providing financial assistance to his client, and making a false statement to the court.

 In 2019, Attorney Padden received a private admonition for failing to deposit advanced costs into a trust account and failing to maintain receipts of cash payments, countersigned by the payor.

Id. at 294.

¶3 On January 17, 2023, the Director of the Office of Lawyers Professional Responsibility (Director) in Minnesota filed a petition and a supplementary petition for disciplinary action against Attorney Padden. Id. at 293. Attorney Padden answered the initial petition, but he failed to answer the supplementary petition. Id. at 293-94. Based on Attorney Padden’s failure to answer, the referee deemed the allegations in the supplementary petition admitted. Id. at 294. After a three-day evidentiary hearing in October 2023, the referee found that Attorney Padden had committed additional misconduct based on the allegations in the initial petition, and that he had failed to prove the existence of any mitigating factors. Id. at 294, 301-02. Ultimately, the referee recommended that Attorney Padden be disbarred. Id. at 294.

¶4 Attorney Padden appealed. The Minnesota Supreme Court agreed with the referee’s recommendation for disbarment. It based its decision solely on the allegations deemed admitted in the supplementary

2 IN THE MATTER OF DISCIPLINARY PROCEEDINGS AGAINST ATTORNEY MICHAEL B. PADDEN Per Curiam

petition, which it held were “serious enough—on their own—to warrant disbarment.” Id. at 295. The matters deemed admitted are as follows.

¶5 In one client matter, Attorney Padden was subject to a fee agreement that, by its terms, required him to return $25,000 in fee payments to the client due to the outcome of the case. Id. at 295. Attorney Padden met with the client in custody and asked the client’s permission to retain the $25,000. Id. The client declined. Id. When the client’s wife asked for the money to be returned, Attorney Padden sent her an amendment to the fee agreement that appeared to be executed by Attorney Padden and the client. Id. But Attorney Padden had never presented this amendment to the client, and the client did not execute the amendment or agree that Attorney Padden could retain the $25,000. Id. Instead, the client’s signature on the amendment was forged. Id. Ultimately, Attorney Padden returned no portion of the $25,000 to the client or his wife, which caused them serious financial harm. Id. The Minnesota Supreme Court concluded that Attorney Padden committed misconduct by creating a forged fee agreement purportedly entitling himself to $25,000 and failing to remit any portion of those funds; by making knowingly false representations to the client’s wife; and by making knowingly false representations to the Director in sending her the forged fee agreement in connection with her investigation and claiming that the client signed the agreement. Id. at 295-96.

¶6 In the second client matter, a client retained Attorney Padden and signed a fee agreement, pursuant to which the client paid an $8,500 advance fee. Id. at 296. Attorney Padden did not obtain a receipt countersigned by the client for this payment, and he did not deposit the fee into his trust account. Id. Three days after retaining Attorney Padden, the client terminated the representation and requested a full refund, which Attorney Padden refused, claiming that he had spent more than 30 hours on the matter and that the $8,500 was a “lump sum.” Id. The Minnesota Supreme Court concluded that Attorney Padden committed misconduct by failing to obtain a receipt countersigned by the client; by failing to refund the unearned portion of the $8,500 flat fee; and by failing to deposit the $8,500 advance fee into his trust account until earned. Id.

¶7 In the third client matter, Attorney Padden represented a client in several cases for a $5,000 flat fee. Id. A few months later, Attorney Padden withdrew from each case, though they were pending, and failed to refund the unearned portion of the fee. Id. The Minnesota Supreme Court

3 IN THE MATTER OF DISCIPLINARY PROCEEDINGS AGAINST ATTORNEY MICHAEL B. PADDEN Per Curiam

concluded that Attorney Padden committed misconduct by failing to refund the unearned portion of the $5,000 flat fee. Id.

¶8 The Minnesota Supreme Court also held that Attorney Padden committed misconduct in four additional client matters by failing to appear for at least five court hearings, including twice failing to appear for a client’s plea hearing, failing to appear for another client’s sentencing hearing, and failing to appear for another client’s criminal trial. Id. at 296- 97. ¶9 Finally, the Minnesota Supreme Court held that Attorney Padden committed misconduct by failing to cooperate with the Director’s investigation of his trust account and client matters. Id. at 297.

¶10 The Minnesota Supreme Court agreed with the referee that no mitigating factors were present, and that disbarment was the appropriate discipline for Attorney Padden’s misconduct. Id. at 299-302.

¶11 The Office of Lawyer Regulation (OLR) filed a complaint against Attorney Padden and an order to answer on October 17, 2024. The OLR complaint alleged that by virtue of the Minnesota disbarment, Attorney Padden is subject to reciprocal discipline in Wisconsin pursuant to SCR 22.22. The OLR complaint included a motion asking this court to issue an order directing Attorney Padden to show cause why any of the exceptions to reciprocal discipline in SCR 22.22(3) 2 applied and why reciprocal discipline should not be imposed. Attorney Padden accepted service of the complaint and order to answer on November 12, 2024.

2 SCR 22.22(3) states: “The supreme court shall impose identical discipline or license suspension unless one or more of the following is present:

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Bluebook (online)
2025 WI 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/office-of-lawyer-regulation-v-michael-b-padden-wis-2025.