162 A.3d 901
Md.2017Background
- Mark Kotlarsky, admitted 1992, maintained a solo practice in Montgomery County and filed a Chapter 7 personal bankruptcy petition on February 6, 2013.
- Bar Counsel learned in 2015 that Kotlarsky had an overdraft on his operating account and large disbursements from his attorney trust account to an LLC he owned; he claimed the transfers related to his law firm’s pension plan.
- Investigation revealed Kotlarsky failed to disclose assets associated with his law firm’s pension plan (including a potential claim in a separate SSFMC bankruptcy) on his personal bankruptcy schedules; funds later were distributed to his bankruptcy trustee.
- Kotlarsky had outstanding federal and state tax liens and repeatedly failed to respond to multiple written, lawful demands for information from Bar Counsel (letters dated June 22, 2015; July 13, 2015; August 4, 2015; and January 26, 2016).
- The hearing judge found, by clear and convincing evidence, violations of MARPC §19-308.1(b) (failure to respond) and §19-308.4(a), (c), and (d) (misconduct, dishonesty, prejudicial conduct).
- The Court of Appeals accepted the findings, concluded disbarment was the appropriate sanction, and entered a per curiam disbarment order effective April 4, 2017.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kotlarsky failed to respond to lawful disciplinary demands (MARPC §19-308.1(b)) | Bar Counsel: Kotlarsky ignored multiple written requests for information about his trust account and tax liens | Kotlarsky did not contest; no responsive evidence presented | Court: Violation established; repeated nonresponses breached §19-308.1(b) |
| Whether Kotlarsky knowingly failed to disclose assets in bankruptcy (MARPC §19-308.4(c)) | Bar Counsel: Kotlarsky omitted a potential claim of his firm’s pension plan in his Chapter 7 schedules, constituting dishonesty | Kotlarsky did not appear or file exceptions to contest findings | Court: Clear and convincing evidence of intentional nondisclosure; rule 8.4(c) violated |
| Whether combined misconduct was prejudicial to administration of justice (MARPC §19-308.4(d)) | Bar Counsel: Dishonesty in bankruptcy and noncooperation with Bar Counsel undermines justice administration | Kotlarsky offered no defense or mitigating evidence | Court: Conduct, taken as whole, prejudicial to administration of justice; §19-308.4(d) violated |
| Appropriate sanction for these violations | Bar Counsel: Disbarment given intentional dishonesty and failure to cooperate | Kotlarsky offered no mitigating circumstances or rebuttal | Court: Disbarment is appropriate absent compelling extenuating circumstances; per curiam disbarment entered |
Key Cases Cited
- Gallagher v. Attorney Grievance Comm’n, 371 Md. 673, 810 A.2d 996 (rule 8.4(a) implicated when other rules violated)
- Foltz v. Attorney Grievance Comm’n, 411 Md. 359, 983 A.2d 434 (same principle on rule 8.4(a))
- Hodes v. Attorney Grievance Comm’n, 441 Md. 136, 105 A.3d 533 (standards of review in attorney discipline)
- Siskind v. Attorney Grievance Comm’n, 401 Md. 41, 930 A.2d 328 (dishonesty may warrant disbarment)
- Vanderlinde v. Attorney Grievance Comm’n, 364 Md. 376, 773 A.2d 463 (compelling extenuating circumstances standard)
- Byrd v. Attorney Grievance Comm’n, 408 Md. 449, 970 A.2d 870 (disbarment for false bankruptcy filings and perjury)
- Zodrow v. Attorney Grievance Comm’n, 419 Md. 286, 19 A.3d 381 (disbarment for failure to disclose assets in bankruptcy)
- Gray v. Attorney Grievance Comm’n, 436 Md. 513, 83 A.3d 786 (failure to respond to Bar Counsel violates rule 8.1(b))
- Harmon v. Attorney Grievance Comm’n, 435 Md. 306, 77 A.3d 1107 (same)
- Bleecker v. Attorney Grievance Comm’n, 414 Md. 147, 994 A.2d 928 (same)
- McClain v. Attorney Grievance Comm’n, 406 Md. 1, 956 A.2d 135 (disbarment in absence of compelling extenuation)
