People v. Shields

905 P.2d 608, 19 Brief Times Rptr. 1561, 1995 Colo. LEXIS 671, 1995 WL 646626
CourtSupreme Court of Colorado
DecidedNovember 6, 1995
Docket95SA38
StatusPublished
Cited by5 cases

This text of 905 P.2d 608 (People v. Shields) 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. Shields, 905 P.2d 608, 19 Brief Times Rptr. 1561, 1995 Colo. LEXIS 671, 1995 WL 646626 (Colo. 1995).

Opinion

PER CURIAM.

A hearing panel of the supreme court grievance committee approved the factual findings of a hearing board, but modified the board’s recommendation of a three-month suspension to suspension for one year and one day. The respondent has excepted to the findings and the recommendation. We accept the panel’s recommendation and order that the respondent be suspended for one year and one day.

I

The respondent was admitted to practice law in Colorado in 1973. The hearing board heard testimony from the complainant’s and the respondent’s witnesses, including the respondent himself. After considering the testimony and the exhibits introduced into evidence, the board made the following findings by clear and convincing evidence.

From 1986 through June 1991, the respondent’s law firm had a series of legal services contracts with the Jefferson County Department of Social Services (“Social Services”) to assist Social Services as necessary in establishing paternity and support obligations, and to assist in child support enforcement matters. The written form of the agreements in 1990 and 1991 provided that the respondent’s charges were to be based solely upon “the number of hours of work by the Attorney, multiplied by [his] hourly rate.” No provision allowed for any type of billing not specifically based on the actual amount of time, expended by the lawyer. Social Services also made it clear that the respondent was not to bill, and would not be paid for, duplicative *610 work, such as one lawyer reviewing the work of another lawyer.

In February 1990, the respondent hired another lawyer, Jeffrey S. English, on a subcontract basis. English did much of the work for the Social Services contract. The hearing board found that English performed the work in a capable manner and to the client’s satisfaction. English submitted his itemized time records for the Social Services work to the respondent on the respondent’s forms on a monthly basis. The respondent then paid English for English’s itemized time at the rate of $40.00 per hour beginning February 1990, and $47.50 per hour from March 1991 to June 1991. Social Services paid the respondent $90.00 per hour for the corresponding time in 1990, and $100.00 per hour in 1991.

Beginning in April 1990, and continuing through May 1991, the respondent consistently increased the amount of English’s billing time in statements submitted to Social Services, although the respondent knew that English had not worked the increased time on the itemized tasks. The amounts paid to the respondent by Social Services were therefore increased. English discovered in May 1991 that the respondent had been marking up the time English spent on Social Services matters. After first confronting the respondent, English advised Social Services of the respondent’s practices.

The hearing board determined that the total amount received by the respondent from Social Services was $7,000 in excess of what the respondent would have received if English’s time had been correctly stated in the bills submitted by the respondent. The respondent also billed time spent by a law clerk or by a newly admitted lawyer as his own, including about 5.5 hours in May 1991.

The respondent testified that he was only incorporating into English’s charges the time the respondent spent reviewing English’s work. To support this, the respondent submitted a copy of his day-timer into evidence which purportedly showed that he did on occasion review English’s work. The respondent’s records indicate that on 150 occasions he increased English’s time from 0.25 to 0.75 hours for matters related to preparing responses to motions or objections, to reflect the time the respondent supposedly spent reviewing the work.

English testified that these were routine matters which did not justify more than the minimum 0.25 hours. The respondent testified on the other hand that many of the matters were unique and complicated, that he did not have confidence in English’s work, and that the additional 0.5 hours was necessary for him to review the file and the proposed response.

The hearing board concluded, however, that the “Respondent’s position is not credible under the circumstances.” First, if respondent really thought that English’s work was unsatisfactory, he would have performed the work himself. Moreover, the respondent was already receiving a $50.00 to $52.50 mark-up on English’s actual time (representing the difference between the hourly rate Social Services paid and English’s hourly rate). He was therefore being compensated for his “review” time before he marked up English’s time. Further, respondent knew that he was not to bill for duplicative work, including the time of one attorney reviewing the work of another attorney because the contract did not permit such charges or payment.

The hearing board also found that the respondent’s timekeeping and billing records contained inconsistencies. For example, the respondent increased English’s time on bills sent to Social Services on many occasions where there are no corresponding notations in the respondent’s day-timer, which was supposed to reflect time spent by the respondent on the relevant files. Second, review entries that were contained in the day-timer were frequently made at the end of the section for a particular day. The originals of the day-timers reveal that the review entries were often made with a different style of pen than the other entries for that day.

Moreover, none of these entries appeared in one draft of a bill to be sent (a “pre-bill”) dated May 31, 1991. Although the respondent tried to explain otherwise, the board determined, based on the testimony of the respondent’s secretary, that had these en *611 tries in fact been made before the pre-bill was prepared, they would have appeared on the pre-bill. The secretary stated that her policy was to include on the pre-bill everything that appeared on the respondent’s day-timer, and that it was the respondent’s responsibility, not hers, to eliminate unwanted charges.

The hearing board found “that the disputed'time was, in fact, value billing, that it was not based on the time it would take one attorney to do the work, that it was not authorized by Social Services, and that it was in violation of the contract between the parties.” Therefore, the board concluded that the respondent “misrepresented facts in his invoices to Social Services to procure a higher fee than he would have been entitled to had Social Services been advised of the true facts.” Significantly, the board further found “that such was done by Respondent intentionally and not negligently.”

The respondent’s conduct thereby violated DR 1-102(A)(4) (a lawyer shall not engage in conduct involving dishonesty, fraud, deceit, or misrepresentation); as well as DR 2-106(A) (a lawyer shall not collect an illegal or clearly excessive fee).

II

The hearing board recommended that the respondent be suspended for three months. When it approved the factual findings and conclusions, however, the hearing panel modified the recommended discipline to suspension for one year and one day. 1 The respondent excepted to the findings and recommendation.

A

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Bluebook (online)
905 P.2d 608, 19 Brief Times Rptr. 1561, 1995 Colo. LEXIS 671, 1995 WL 646626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-shields-colo-1995.