People v. Rhodes

107 P.3d 1177, 2005 Colo. Discipl. LEXIS 19, 2005 WL 638129
CourtSupreme Court of Colorado
DecidedFebruary 7, 2005
Docket04PDJ044
StatusPublished
Cited by2 cases

This text of 107 P.3d 1177 (People v. Rhodes) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Rhodes, 107 P.3d 1177, 2005 Colo. Discipl. LEXIS 19, 2005 WL 638129 (Colo. 2005).

Opinions

[1179]*1179On November 8,2004, a Hearing Board

consisting of

CYNTHIA F. COYELL and HAL B. WARREN, both members of the bar, and WILLIAM R. LUCERO, the Presiding Disciplinary Judge (“PDJ”) conducted a hearing pursuant to C.R.C.P. 251.18(d). JAMES S. SUDLER appeared on behalf of the People, and CRAIG L. TRUMAN appeared on behalf of Respondent, BRADLEY S. RHODES,

who was also present. The Hearing Board issues the following opinion:

OPINION AND ORDER IMPOSING SANCTIONS

SANCTION IMPOSED: DISBARMENT

I. ISSUE

In Colorado, disbarment is almost always the appropriate sanction when a lawyer converts client money entrusted to him by the client. Before deciding an appropriate sanction, however, a hearing board must properly weigh the duty breached, the mental state of the lawyer, the injury caused, and the aggravating and mitigating, factors presented. Where an attorney consciously converts client funds but presents significant evidence in mitigation, is a sanction short of disbarment appropriate?

II. PROCEDURAL HISTORY AND BACKGROUND

The procedural history of this case is as follows. On May 19, 2004, the Office of Attorney Regulation Counsel (“OARC”) filed a Complaint against attorney Bradley S. Rhodes (“Respondent”). On June 1, 2004, the Colorado Supreme Court issued an ORDER immediately suspending Respondent pursuant to C.R.C.P. 251.8(a). On July 23, 2004, Respondent filed an Answer to the [1180]*1180Complaint. On August 2, 2004, the People moved for Judgment on the Pleadings. Respondent stipulated to the facts in the Complaint, which establish the rule violations alleged therein. On August 27, 2004, the Presiding Disciplinary Judge (“PDJ”) granted the OARC’s motion for Judgment on the Pleadings.

Based upon the Judgment on the Pleadings, Claims I, II, and III are proven. These claims relate, respectively, to violations of: Colo. RPC 8.4(e) (conduct involving dishonesty, fraud, deceit, and misrepresentation); Colo. RPC 1.15(a) (failure to keep client funds separate from Respondent’s own property); and Colo. RPC 1.15(b) (failure to promptly deliver client funds that the client is entitled to receive). Thus, the only issue for the Hearing Board to decide is the appropriate sanction for these rule violations.

Two witnesses testified at the hearing: David Japha on behalf of the People, and Respondent on his own behalf. The Hearing Board also considered the arguments of the People and Respondent, evidence in mitigation and aggravation, the parties’ respective trial briefs, and the Stipulation of Facts. Neither party offered exhibits.

Respondent’s counsel argues that a three-year suspension is sufficient to protect the public. The People seek disbarment. Upon consideration of all of the evidence and after weighing the relevant factors, the Hearing Board finds that disbarment is the appropriate sanction, despite Respondent’s evidence in mitigation.

III. FINDINGS OF FACT

The Hearing Board finds that the People proved the following facts by clear and convincing evidence.

Stipulated facts

Respondent has taken and subscribed the Oath of Admission, was admitted to the bar of this Court on October 30, 1998, and is registered as an attorney upon the official records of this Court, registration number 29960. Hence, the Respondent is subject to the jurisdiction of this Court.

Beginning in January 2004 and ending around March 2004, Respondent knowingly converted funds belonging to three clients. He then used the money to pay overhead for his law firm, the Rhodes Law Firm, LLC (“the Rhodes firm” or “the firm”).

Almost all of the funds that he converted were settlement proceeds held in the firm’s trust account for three separate personal injury clients: Jennifer Lang, Robert Coleman, and Mindy Talpalar. Respondent converted between $40,000 and $50,000 from these clients. Sometime in March of 2004, Mr. Japha and Mr. Ed Holub, lawyers associated with Respondent’s firm, confronted Respondent about the shortfall they had discovered in the firm’s trust account.

The first client, Jennifer Lang, was also Respondent’s paralegal. Respondent represented her in a personal injury case involving an automobile accident and received a settlement check on her behalf. He first placed the settlement funds in the firm’s trust account and then wrote Ms. Lang a check from the account in the amount of $9,693.92, representing her share of the settlement proceeds. On or about March 16, 2004, she deposited the check into her personal account, but the check bounced due to insufficient funds in the firm’s trust account. Within a month and after borrowing money from his grandfather, Respondent made full restitution to Ms. Lang.

Robert Coleman, the second client, hired Respondent to represent him in a personal injury case. Respondent received about $55,000 in settlement of Mr. Coleman’s case and placed these funds in the firm’s trust account. Of the total settlement amount, Respondent and Mr. Coleman’s shares were $22,000 and $33,000, respectively. Respondent then took at least $20,000 of Mr. Coleman’s share from the trust account and deposited it into the firm’s operating account. Shortly thereafter, Respondent entered into an agreement with Mr. Coleman to pay resti[1181]*1181tution for the converted funds. As of the date of the hearing, however, Respondent still owed Mr. Coleman approximately half of the total amount, or $10,000.

Mr. Holub represented the third client, Mandy Talpalar, on a personal injury claim. Mr. Holub received a net settlement of almost $30,000 on Ms. Talpalar’s behalf and placed these funds in the firm’s trust account. However, Respondent converted part of these settlement funds from the firm’s trust account. As a result, Ms. Talpalar did not receive her last settlement payment of $9,604.86. As in the case of Ms. Lang, Respondent promptly paid restitution to Ms. Talpalar shortly after his meeting with Mr. Japha and Mr. Holub.

Respondent converted these funds by writing checks on the firm’s trust account payable to cash, cashing the checks at his bank, and depositing the cash into his firm’s operating account. With the converted funds, Respondent paid office rent, payroll and insurance for the firm. At the time of this misconduct, Respondent also defaulted on a personal debt of $100,000 and a law firm debt in a like amount.

Evidence presented in aggravation

The People called Mr. David Japha, Esq., a witness who offered evidence in aggravation. Mr. Japha met Respondent in 1998. At that time, Mr. Japha rented space from Zaplier and Associates, where Respondent worked as a law clerk. In July of 2003, Respondent took over and renamed the Za-plier law firm, thereby establishing Rhodes Law Firm, LLC. Mr. Japha then joined Respondent’s firm as an associate, receiving a percentage of any earned profits from the clients he brought in to the firm and also drawing a salary of $2,500 per month.

On or about March of 2004, Mr. Japha and his legal assistant noticed some discrepancies in one of his client’s accounts. Mr. Japha and Mr. Holub, the other lawyer working in Respondent’s law firm, discovered that the firm’s trust account had been overdrawn. They discussed this matter with Respondent. When Mr.

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Related

People v. D'Acquisto
146 P.3d 1041 (Supreme Court of Colorado, 2006)
People v. Rhodes
107 P.3d 1177 (Supreme Court of Colorado, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
107 P.3d 1177, 2005 Colo. Discipl. LEXIS 19, 2005 WL 638129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-rhodes-colo-2005.