STATE ex rel. OKLAHOMA BAR ASSOCIATION v. KLEINSMITH

2018 OK 5, 411 P.3d 365
Supreme Court of Oklahoma·Decided January 17, 2018·No. Case Number: SCBD-6585·Published·Cited by 14 cases

Opinion

COMBS, C.J.:

¶1 Respondent Philip M. Kleinsmith (Respondent), OBA No. 13857, is an attorney licensed to practice law in the State of Oklahoma and was admitted to the Oklahoma Bar Association on October 12, 1989. This disciplinary matter comes before the Court pursuant to Rule 7.7 of the Rules Governing Disciplinary Proceedings (RGDP), 5 O.S. Supp. 2015, ch. 1, app. 1-A 1 , based upon an opinion of the Supreme Court of the State of Colorado affirming Respondent's disbarment from the practice of law.

¶2 The Supreme Court of Colorado determined that Respondent violated Colorado Rules of Professional Conduct (Colo. RPC) 8.4(c) and 1.15A (as well as the former Colo. RPC 1.15(b) ), by committing knowing conversion/misappropriation. 2 The court determined Respondent knowingly misappropriated roughly $57,338. The amount in question was billed to Respondent's firm Kleinsmith & Associates, PC (in which he was a solo practitioner) by First American Title Company, LLC and First American Title of Montana, Inc. (collectively, First American) for title services in connection with Respondent's representation of a client, U.S. Bank. Respondent obtained the $57,338 from his client U.S. Bank by billing for "title commitment" but proceeded to use the funds U.S. Bank gave him for his firm's unrelated operating expenses rather than paying First American the amount it was owed. First American subsequently filed a lawsuit and obtained a judgment for $55,782 against Respondent's firm, which it has been largely unable to collect. 3

*367 ¶3 After the instigation of disciplinary proceedings, respondent was disbarred by the Hearing Board and ordered to pay restitution to First American. Respondent subsequently appealed. The Supreme Court of Colorado rejected Respondent's arguments that he did not knowingly convert funds from U.S. Bank because under the Colo. RPC those funds were the property of his firm, not First American. The court also rejected Respondent's constitutional claims concerning his rights to due process and equal protection under the law.

¶4 The opinion of the Supreme Court of the State of Colorado, submitted to this Court by the Complainant pursuant to Rule 7.7(b), RGDP, constitutes the charge and is prima facie evidence that Respondent committed the acts described therein. Rule 7.7(b), RGDP, 5 O.S. Supp. 2015, ch. 1, app. 1-A; State ex rel. Okla. Bar Assoc. v. Wintory, 2015 OK 25 , ¶ 16, 350 P.3d 131 ; State ex rel. Okla. Bar Ass'n v. Rymer, 2008 OK 50 , ¶ 4, 187 P.3d 725 ; State ex rel. Okla. Bar Ass'n v. Henderson, 1999 OK 29 , ¶ 4, 977 P.2d 1096 . The burden is placed on Respondent to show that the findings forming the basis of the Colorado disbarment were not supported by the evidence or that the findings are not sufficient grounds for discipline in Oklahoma. Rymer, 2008 OK 50 at ¶ 4, 187 P.3d 725 ; Henderson, 1999 OK 29 at ¶ 4, 977 P.2d 1096 . In an order filed on November 14, 2017, this Court directed Respondent to show cause in writing by December 5, 2017, why a final order of discipline should not be imposed. The November 14, 2017, order also gave Respondent the opportunity to submit a brief or evidence in mitigation as well as a transcript to challenge the Colorado findings. Respondent has failed to respond in any capacity. 4

¶5 This cause is not the first time Respondent has found himself subject to reciprocal disciplinary proceedings before this Court pursuant to Rule 7.7, RGDP. In State ex rel. Okla. Bar Ass'n v. Kleinsmith, this Court publicly censured Respondent based upon discipline in Arizona for negligently filing improper arbitration certificates and for failing to notify the General Counsel of his discipline in Arizona as required by Rule 7.7, RGDP. 2013 OK 16 , ¶ 6, 297 P.3d 1248 .

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STATE ex rel. OKLAHOMA BAR ASSOCIATION v. KLEINSMITH, 2018 OK 5, 411 P.3d 365 (Okla. 2018).

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