STATE EX REL. BAR ASS'N v. Phillips

2002 OK 86, 60 P.3d 1030
CourtSupreme Court of Oklahoma
DecidedOctober 29, 2002
DocketSCBD 4650
StatusPublished

This text of 2002 OK 86 (STATE EX REL. BAR ASS'N v. Phillips) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STATE EX REL. BAR ASS'N v. Phillips, 2002 OK 86, 60 P.3d 1030 (Okla. 2002).

Opinion

60 P.3d 1030 (2002)
2002 OK 86

STATE of Oklahoma ex rel. OKLAHOMA BAR ASSOCIATION, Complainant,
v.
David C. PHILLIPS III, Respondent.

No. SCBD 4650.

Supreme Court of Oklahoma.

October 29, 2002.

Allen J. Welch, Assistant General Counsel, Oklahoma Bar Association, Oklahoma City, for Complainant.

Allen M. Smallwood, Tulsa, for Respondent.

*1031 KAUGER, J.

¶ 1 The complainant, Oklahoma Bar Association (Bar Association), charged the respondent, David C. Phillips III, with four *1032 counts of professional misconduct: misappropriation of funds;[1] mismanagement of a trust account;[2] misrepresentation in the investigative proceedings;[3] and an unwillingness to cooperative in the grievance process.[4] The trial panel found, and the Bar concedes, that there is insufficient evidence to support the charges of misappropriation and misrepresentation.[5]

¶ 2 Upon a de novo review,[6] we agree and determine that: 1) clear and convincing evidence[7] supports the charges of mismanagement of a trust account and uncooperativeness in the investigative process by being untimely in responding and neglecting to make a full and fair disclosure; and 2) in consideration of the respondent's misconduct, his lack of a prior disciplinary history, and discipline administered in similar cases, we determine that the respondent should be suspended for thirty days and pay costs of $1,758.91.[8]

FACTS

¶ 3 All counts arise from a relationship with a single client, Dan Cates (Cates), and his medical provider, Kenneth R. Trinidad, D.O. (Trinadad), who filed the grievance. After being injured in an automobile accident on April 23, 1996, Cates retained the respondent who referred him to Trinidad for treatment. Cates incurred approximately $1,500 in medical bills associated with the accident — $440.00 of which were for Trinidad's services.

¶ 4 The respondent settled Cates' personal injury case on November 14, 1996, for $3,500.00[9] and he deposited the settlement *1033 check in his trust account. According to the respondent's settlement sheet, disbursals were to be made as follows: $1,038.50 to Cates; $1,166.65 retained for fees; and $1,294.85 withheld as the "total due providers."

¶ 5 Nevertheless, it is unclear how the settlement funds were actually distributed. Cates' testimony at the hearing was so confused and contradictory about the settlement transactions that the trial panel and the Bar Association agreed that it was not credible.[10] Although Cates indicated that he only received $436.00 from the respondent, a check was produced which had been drawn on the respondent's trust account for $1,038.50 and which Cates had endorsed over to a used car dealer. When questioned about the events relating to his relationship with the respondent and the disbursal of funds, Cates admitted that his memory regarding the transaction was faulty.[11] However, he did not allege that the respondent had retained any funds to which he was not entitled.[12]

*1034 ¶ 6 The respondent testified that although the computations on the settlement sheet reflected the manner in which he intended to disburse the settlement funds, Cates insisted that he be given all funds not earmarked as attorney fees. The respondent agreed and extracted a promise from Cates that he would pay the medical providers. Although the respondent could not produce any documentation to support his testimony either in the form of a check drawn on his trust account or an updated settlement sheet, his version of the facts was bolstered by affidavits and testimony from two of his employees — each of them indicated that the money originally earmarked for disbursal to the medical providers was given to Cates at his insistence and upon his promise that he would take responsibility for making the appropriate payments.[13]

¶ 7 The respondent became aware that Cates had not paid the doctors and hospitals when he began receiving solicitations for payment at his office. Originally, the bills were forwarded to Cates. However, Dr. Trinidad contacted the respondent in 1999 concerning his outstanding bill for $440.00. Although the respondent believed it was Cates' responsibility to pay the sum, he felt obligated to Dr. Trinidad because he had referred his client to the doctor. Therefore, he tendered a check for $440.00 on his trust account to the doctor on August 17, 1999. The check was returned stamped "unavailable funds."

¶ 8 Trinidad filed a grievance with the Bar Association on November 23, 1999, based on the returned check. The Bar Association forwarded the complaint to the Tulsa County Bar Association (County Bar) for investigation.[14] The County Bar sent the respondent a copy of the complaint on November 24, 1999, requesting a written response within twenty days and explaining that failure to respond timely would result in a referral to the Bar Association for further consideration.[15] On December 20, 1999, the respondent called the County Bar and told the investigator that Trinidad had been paid.[16] The investigator again asked for a written response. When none was forthcoming, the investigator wrote the respondent with a third plea on January 11, 2000. A fourth request was forwarded on March 21, 2000. The respondent finally wrote the County Bar on April 25, 2000. However, the letter contains *1035 no information regarding the facts surrounding the grievance. Rather, it simply provides that "appropriate measures have been made and the problem has been corrected."

¶ 9 With little cooperation from the respondent, the County Bar returned the respondent's file to the Bar Association which contacted him on January 17, 2001, advising him of Trinidad's complaint and again asking for a full and fair response within 20 days. The respondent answered the following day — again with a letter simply stating that he thought the matter had been resolved, and that Trinidad had been paid. This letter was followed by two letters from the Bar Association dated February 13th and 15th, 2001. The February 15th letter specifically advised the respondent that his response did not satisfy the requirement for a full and fair disclosure and listed the specific items which the respondent should include in reply.[17] The respondent answered this request by faxing the Bar Association a copy of his settlement computation sheet and a letter to Cates forwarding him one of Trinidad's bills. The only explanation accompanying the response was a handwritten note on the front of the transmittal sheet indicating that the respondent was "in the process" of ordering the original check made out to Cates and that he was "still looking" for the physical file.

¶ 10 Because of his lack of diligence in responding, the Bar Association took the respondent's deposition on April 17, 2001. At that time, the Bar Association again requested trust account records and the respondent indicated that he would provide them. On June 5, 2001, the respondent wrote the Bar Association indicating that he had attempted to obtain the trust account records, but that he had been advised by a bank employee that the records were "illegible." Nevertheless, the Bar Association subpoenaed trust account records from the respondent's bank for the months of October through December of 1996.

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Bluebook (online)
2002 OK 86, 60 P.3d 1030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-bar-assn-v-phillips-okla-2002.