People v. Scruggs

52 P.3d 237, 2002 Colo. Discipl. LEXIS 59, 2002 WL 1902609
CourtSupreme Court of Colorado
DecidedJuly 30, 2002
DocketNo. 01PDJ052
StatusPublished
Cited by2 cases

This text of 52 P.3d 237 (People v. Scruggs) 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. Scruggs, 52 P.3d 237, 2002 Colo. Discipl. LEXIS 59, 2002 WL 1902609 (Colo. 2002).

Opinion

Opinion by

Presiding Disciplinary JUDGE ROGER L. KEITHLEY and Hearing Board members, SHERRY A. CALOIA and E. STEVEN EZELL, both members of the bar.

REPORT, DECISION AND IMPOSITION OF SANCTION

SANCTION IMPOSED: ATTORNEY DISBARRED

A sanctions hearing pursuant to C.R.C.P. 251.15 was held on June 27, 2002, before the Hearing Board consisting of the Presiding Disciplinary Judge ("PDJ") and two hearing board members, Sherry A. Caloia and E. Steven Ezell, both members of the bar. Naney L. Coben, Deputy Attorney Regulation Counsel, represented the People of the State of Colorado (the "People"). John A. Seruggs ("Seruggs"), the respondent, did not appear either in person or by counsel.

The People filed a Complaint in this matter on October 83, 2001. The Citation and Complaint were sent via regular and certified mail to the respondent on the same date. The People filed a proof of service on October 80, 2001 and an amended proof of service on November 23, 2001. The Amended Proof of Service shows that the Citation and Complaint were received at Scruggs's registered business address. Respondent failed to file an Answer or otherwise respond to the Complaint.

On January 8, 2002, the People moved for default on the claims set forth in the Complaint, and on March 5, 2002, the PDJ granted the motion as to the facts set forth in the Complaint, which were deemed admitted, and as to the claims set forth in the Complaint with the exception of the alleged violations of Colo. RPC 1.16(d) in claims four and eight. On April 12, 2002, the PDJ issued an order dismissing those claims.

At the sanctions hearing, exhibits 1 through 3 were offered by the People and admitted into evidence. The Hearing Board considered the People's argument, the facts established by the entry of default, the exhibits admitted, and made the following findings of fact which were established by clear and convincing evidence.

I. FINDINGS OF FACT

John A. Seruggs has taken and subscribed to the oath of admission, was admitted to the bar of the Supreme Court on October 25, 1989 and is registered upon the official ree-ords of this court, attorney registration number 18977. Scruggs is subject to the jurisdiction of this court pursuant to C.R.C.P. 251.1(b).

All factual allegations set forth in the Complaint were deemed admitted by the entry of default, and are therefore established by clear and convincing evidence. See Complaint attached hereto as exhibit 1. The entry of default also deemed established the alleged violations of The Rules of Professional Conduct set forth therein, with the exeeption of the two allegations of Colo. RPC 1.16(d) which were dismissed.

II. CONCLUSIONS OF LAW AND IMPOSITION OF SANCTION

In two separate matters (Pierce and Schmitz) Seruggs accepted clients' funds, failed to perform the services for which he was hired, and failed to refund Pierce's funds in the amount of $350.00 and Schmitz's funds in the amount of $500.00 despite their demands that he do so. By accepting the clients' funds, failing to perform the services he was hired to perform, failing to refund the unearned portion of the $850.00 to his clients, knowing that he had not performed the services for which the funds were paid is sufficient evidence to conclude that Scruggs knowingly converted his clients' funds in violation of Colo, RPC 8. 4(c)(engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation). See People v. Elliott, 39 P.3d 551, at 555 (Colo. PDJ 2000), 2000 Colo. Discipl.LEXIS 40 (disbarring attorney for his accepting advance fees from two clients, performing some but not all of the services for which he was paid, retaining the fees for one year in one matter and two years in another matter, and abandoning the clients, [239]*239citing People v. Singer, 897 P.2d 798, 801 (Colo.1995)(holding that extensive and prolonged neglect is considered willful misconduct)); People v. Silvola, 915 P.2d 1281, 1284 (Colo.1996)(finding that misconduct that occurred over an extended period of time must be deemed to be willful); People v. Varallo, 913 P.2d 1, 11 (Colo.1996)(holding that knowing misappropriation [for which the lawyer is almost invariably disbarred] consists simply of a lawyer taking a client's money entrusted to him, knowing that it is the client's money and knowing that the client has not authorized the taking, citing In re Noonan, 102 N.J. 157, 160, 506 A.2d 722 (1986).)

These two incidents of knowing conversion, standing alone, are sufficient to warrant disbarment. See Varallo, 918 P.2d at 11. Additionally, in the Pierce and Schmitz matters, Seruggs failed to communicate with the clients in violation of Colo. RPC 1.4(a)(an attorney shall keep a client reasonably informed about the status of a matter and promptly comply with reasonable requests for information). In the Pierce matter, Seruggs failed to take steps to resolve the client's dispute with her health insurer, and in the Schmitz matter, Scruggs failed to commence a non-contested divorcee proceeding. Such conduct constitutes neglect in violation of Colo. RPC 1.8(an attorney shall act with reasonable diligence and promptness in representing a client). In both matters, the Complaint alleges that the extent of Seruggs' neglect rose to the level of abandonment.

To find abandonment rather than merely neglect, there must be proof that the attorney-during a given time period-was required to accomplish specific professional tasks for the client, failed to accomplish those tasks, and failed to communicate with the client. People v. Carvell, No. 99PDJ096, slip op. at p. 9 (Colo. PDJ September 11, 2000), 2000 Colo. Discipl. LEXIS 26. The proof must objectively indicate that the attorney has deserted, rejected and/or relinquished the professional responsibilities owed to the client. Id. The totality of facts establish that Seruggs deserted, rejected and/or relinquished the professional responsibilities owed to his clients and thereby abandoned them. The presumed sanction for knowing conversion coupled with abandonment of an attorney's clients also results in disbarment. See People v. Ain, 35 P.3d 734, 789 (Colo. PDJ 2001)(attorney disbarred for abandonment of a client matter, knowingly converting funds, for making misrepresentations and for violation of court order); People v. Wallace, 986 P.2d 1282, 1284 (Colo.1997) (disbarring lawyer who abandoned clients, causing them serious harm, and knowingly misappropriated client funds); People v. Townshend, 933 P.2d 1327, 1329 (Colo.1997) (lawyer disbarred who effectively abandoned two clients after accepting retainers and failing to account for or return the unearned retainers); People v. Gilbert, 921 P.2d 48, 50 (Colo.1996) (attorney disbarred for converting client funds in conjunction with abandonment of practice); People v. Steinman, 930 P.2d 596, 599-600 (Colo.1997) (lawyer disbarred who accepted fees from clients and then abandoned them while keeping their money and causing serious harm).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

People v. Varallo
61 P.3d 38 (Supreme Court of Colorado, 2002)
People v. Weisbard
59 P.3d 858 (Supreme Court of Colorado, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
52 P.3d 237, 2002 Colo. Discipl. LEXIS 59, 2002 WL 1902609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-scruggs-colo-2002.