The Florida Bar v. Phillip J. Brutus

216 So. 3d 1286, 42 Fla. L. Weekly Supp. 534, 2017 WL 1739231, 2017 Fla. LEXIS 979
CourtSupreme Court of Florida
DecidedMay 4, 2017
DocketSC14-2499
StatusPublished

This text of 216 So. 3d 1286 (The Florida Bar v. Phillip J. Brutus) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Florida Bar v. Phillip J. Brutus, 216 So. 3d 1286, 42 Fla. L. Weekly Supp. 534, 2017 WL 1739231, 2017 Fla. LEXIS 979 (Fla. 2017).

Opinion

PER CURIAM.

We have for review a referee’s report recommending that Respondent, Phillip J. Brutus, be found guilty of professional misconduct in violation of the Rules Regulating the Florida Bar (Bar Rules) and suspended from the practice of law for ninety days, followed by one year on probation. We have jurisdiction. See art. V, § 15, Fla. Const. We approve the referee’s findings of fact and recommendations as to guilt. As discussed in this opinion, we disapprove the referee’s finding, as an aggravating factor, that Brutus’s misconduct in this ease was the result of a dishonest or selfish motive. Nonetheless, we conclude that his failure to maintain funds entrusted to him, together with other acts demonstrating negligence in managing his trust account, constitutes serious misconduct warranting a suspension longer than ninety days. We disapprove the referee’s recommended sanction, and instead suspend Brutus from the practice of law for one year followed by two years on probation.

FACTS

In December 2014, The Florida Bar filed a complaint against Brutus, alleging that he engaged in misconduct in violation of the Bar Rules. A referee was appointed to consider the matter. In the proceedings before the referee, Brutus and the Bar jointly submitted a stipulation as to the facts. The referee then held a final hearing to address the alleged rule violations, and a separate hearing to address sanctions. Following these hearings, the referee submitted her report for the Court’s review, in which she made the following findings and recommendations.

As stipulated by the parties, Brutus represented a client, the wife, in a dissolution of marriage proceeding. The couple’s marital residence was the only asset at issue in the ease. Brutus learned that the former husband had taken out a $100,000 home equity loan against the property, and spent $40,000 of the funds. Brutus filed a motion in the trial court to preserve marital assets. As a result, the presiding judge issued an order directing that the remaining funds, approximately $60,000, be deposited into Brutus’s trust account.

The former husband provided the $60,000 for deposit on March 3, 2008. At that time, there was no court order or settlement agreement indicating how the money would be distributed. Nonetheless, beginning on March 13, 2008, Brutus began disbursing the funds—he disbursed $46,128.55 to the client, $12,475 to himself in attorney fees, and the remainder to pay costs. Brutus asserts that he made these dispersals based on his genuine understanding of Florida’s equitable distribution principles, believing that his client held a

*1288 fifty percent equitable interest in the marital home or any proceeds derived from the home, including prior refinances and equity loans.

On September 15, 2009, the parties entered into a marital settlement agreement. Pursuant to this agreement, the client agreed to return $12,000 of the money disbursed to her; the refund would be applied as a credit toward the former husband’s child support obligations. The trial court did not require Brutus to re-deposit any funds into the trust account because the court concluded that the dispute had been resolved in the marital settlement agreement. However, the court did refer the matter to the Bar for investigation.

Additionally, during the course of the Bar’s investigation, the Bar’s staff auditor found several examples indicating that Brutus did not properly maintain his trust account in accordance with the trust accounting rules. In one instance, records indicated that as of June 2010, Brutus was holding $32,583.62 in the trust account on behalf of a client, and that he should have maintained this amount through April 2011. However, the Bar’s investigation revealed eight different occasions during this period when the balance in the trust account was less than the amount that should have been held just, for this client. In a second example, in September 2008, Brutus deposited earned fees in the trust account, commingling his own funds with those of his clients. And finally, the Bar discovered at least three overdrafts from the trust account during the period from July 30, 2010, through September 14, 2010. 1 However, no bank reported to the Bar any check returned for insufficient funds, and no client or other person has filed any complaint against Brutus. Brutus has acknowledged the shortages in the trust account, and he concedes that he did not properly maintain the account.

Based on these facts, the referee recommends that Brutus be found guilty of violating the following Bar Rules: 4-3.4(c) (a lawyer must not knowingly disobey an obligation under the rules of a tribunal except for an open refusal based on an assertion that no valid obligation exists); 5-1.1(a) (a lawyer must hold in trust, separate from the lawyer’s own property, funds and property of clients or third persons that are in a lawyer’s possession in connection with a representation); and 5-1,1(b) (money or other property entrusted to an attorney for a specific purpose is held in trust and must be applied only to that purpose).

The referee found six aggravating factors in this case: (1) dishonest or selfish motive; (2) pattern of misconduct; (3) multiple offenses; (4) refusal to acknowledge the wrongful nature of the misconduct; (5) vulnerable victim; and (6) substantial experience in the practice of law. The referee also found three mitigating factors: (1) no prior disciplinary record; (2) good character and reputation in the community; and (3) interim rehabilitation.

Ultimately, based on her findings of fact, recommendations as to guilt, the aggravating and mitigating factors found, and the Florida Standards for Imposing Lawyer Sanctions and case law, the referee recommends that Brutus be suspended from the practice of law for ninety days, followed by one year on probation. During his probation, the referee recommends that Brutus be required to: (1) retain the services of a certified public accountant to review his trust account records on a monthly basis; *1289 (2) submit quarterly statements to the Bar, prepared by the certified public accountant, specifying whether Brutus is in compliance with the trust accounting rules, with attached monthly reconciliations, copies of the bank statements, and a list of clients with their individual trust account balances; (3) pay a $100 quarterly monitoring fee to the Bar; and (4) attend and successfully complete the Florida Bar’s Ethics School and Trust Accounting Workshop.

The Bar has filed a Notice of Intent to Seek Review of Report of Referee, challenging the referee’s recommended sanction; it argues a one-year suspension ⅛ the appropriate discipline. Brutus has filed a cross-notice of review, challenging the referee’s findings in aggravation and mitigation, as well as the recommended sanction. Brutus urges the Court to order a public reprimand.

ANALYSIS

Because the parties stipulated as to the facts, we' approve the referee’s findings of fact without further discussion. We also approve the referee’s recommendations as to guilt. On cross-review, Brutus asks the Court to disapprove several of the referee’s findings as to aggravating factors and to find additional mitigating- factors.

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Bluebook (online)
216 So. 3d 1286, 42 Fla. L. Weekly Supp. 534, 2017 WL 1739231, 2017 Fla. LEXIS 979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-florida-bar-v-phillip-j-brutus-fla-2017.