26 A.3d 967
Md.2011Background
- Tauber was retained by Jill Lee on November 12, 2007, with a $3,500 retainer and hourly billing rate.
- Tauber did not have a trust account at that time and deposited the retainer into his operating account.
- He later deposited a second retainer of $2,500 on June 20, 2008 into his operating account and drew on it.
- A June 2008 bill showed 19.4 hours, totaling $4,753, with a $115 filing fee, which Tauber billed to Lee.
- Lee dismissed Tauber in July 2009 and requested the return of the unused retainer; Tauber refunded $1,247 on September 11, 2009.
- The Hearing Judge found violations of MRPC 1.15(a) and 8.4(d); concluded no intent to be dishonest under 8.4(c); and found no clear violation of Md. Rule 16-609.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Tauber violated MRPC 8.4(c) as claimed by AGC | Tauber mishandled funds; intentionally dishonest conduct. | No intentional dishonesty; misstep due to lack of trust account knowledge; acted without deceit. | Petitioner's 8.4(c) exception overruled; court upheld no finding of intentional dishonesty. |
| Whether Tauber violated Md. Rule 16-609 | Tauber used client funds for unauthorized purpose via operating account. | No proof funds drawn from Tauber’s account included Lee’s funds; no unauthorized use shown. | Rule 16-609 exception overruled; court found no clear unauthorized use evidence. |
| What sanction fits Tauber's misconduct | Disciplinary response should reflect seriousness of mismanagement and intent. | Indefinite suspension or harsher sanction warranted given conduct and lack of prior discipline. | Thirty-day suspension commencing 30 days after mandate, with costs. |
Key Cases Cited
- Attorney Grievance Comm'n v. Calhoun, 391 Md. 532 (2006) (emphasizes importance of escrow and Rule 1.15 guarding funds)
- Attorney Grievance Comm'n v. Awuah, 346 Md. 420 (1997) (distinguishes intentional dishonesty; emphasis on public protection)
- Attorney Grievance Comm'n v. Sperling, 380 Md. 180 (2004) (indefinite suspension with right to reapply in certain cases)
- Attorney Grievance Comm'n v. Culver, 371 Md. 265 (2002) (misuse of client funds; co-mingling risks; not always intentional)
- Attorney Grievance Comm'n v. Jeter, 365 Md. 279 (2001) (indefinite suspension for trust account violations with reapply period)
- Attorney Grievance Comm'n v. Walter, 407 Md. 670 (2009) (trust-account credibility and deference to hearing judge on findings)
- Attorney Grievance Comm'n v. Ugwuonye, 405 Md. 351 (2008) (discusses agency authority and deference in evaluating findings)
- Attorney Grievance Comm'n v. Zuckerman, 386 Md. 341 (2005) (unintentional misappropriation and sanctions considerations)