226 A.3d 41
Md.2020Background:
- Respondent Samuel E. Hensley (admitted Md. 2014) represented two clients in separate matters: Yemane Behere (Oklahoma MVA claim) and John Mbawe (criminal charge and District Court peace-order hearing).
- In the Behere matter Hensley negotiated a $200,000 settlement, gave Behere $70,000, but failed to notify or pay medical provider Omni and other healthcare providers per a signed lien; the providers were never paid and Hensley misappropriated their portion.
- In the Mbawe matter Mbawe paid a $1,000 retainer (partial of $2,500), which Hensley did not deposit into a trust account; Hensley failed to appear for a preparation meeting and the March 13, 2017 hearing, leaving Mbawe unrepresented and resulting in a final peace order; Hensley did not refund unearned fees.
- Bar Counsel opened investigations after complaints; Hensley failed to respond to multiple requests, was served and defaulted, did not appear at the evidentiary hearing, and did not participate in the Court of Appeals oral argument.
- The hearing judge found violations of multiple Maryland Attorneys’ Rules of Professional Conduct (including competence, diligence, communication, fees, safekeeping, termination, bar-cooperation, and misconduct rules) and Md. Bus. Occ. & Prof. §10-306; the Court of Appeals adopted the findings and ordered disbarment and costs.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Misappropriation / safekeeping of client/third-party funds (Rule 1.15; §10-306) | Hensley received settlement funds but did not notify or pay Omni and other providers and used trust funds for other purposes. | No defense; respondent did not participate. | Violated Rule 1.15(a),(d) and §10-306; misappropriation found. |
| Competence, diligence, and communication (Rules 1.1, 1.3, 1.4) | Hensley failed to appear for a client meeting and a court hearing and failed to inform or communicate with clients. | No response. | Violated Rules 1.1, 1.3, and 1.4. |
| Fees, retainer handling, and termination (Rules 1.5, 1.16) | Hensley collected a $1,000 retainer, failed to deposit it into trust, performed little/no legal work, abandoned the client, and did not refund unearned fees. | No response. | Fee became unreasonable; violated Rules 1.5(a) and 1.16(d). |
| Misrepresentation and general dishonesty (Rule 8.4) | Hensley misrepresented he was licensed in Oklahoma and engaged in deceit by misappropriating funds. | No response. | Violated Rule 8.4(c) and (d); dishonest conduct established. |
| Failure to cooperate with disciplinary authority (Rule 8.1 / 19-308.1(b)) | Hensley ignored Bar Counsel’s lawful requests and discovery; obstructed the proceeding. | No response. | Violated Rule 8.1(b) / 19-308.1(b); default and aggravating factor. |
Key Cases Cited
- Att’y Griev. Comm’n v. Sperling, 76 A.3d 1172 (lists common aggravating factors for sanctions)
- Att’y Griev. Comm’n v. Monfried, 794 A.2d 92 (fee becomes unreasonable where attorney performs almost no services)
- Att’y Griev. Comm’n v. Guida, 891 A.2d 1085 (same: inadequate work after fee renders fee unreasonable)
- Att’y Griev. Comm’n v. Somerville, 842 A.2d 811 (misappropriation of entrusted funds is dishonest/deceptive conduct)
- Att’y Griev. Comm’n v. Stillwell, 74 A.3d 728 (requirements to maintain client funds in trust accounts)
- Att’y Griev. Comm’n v. Foltz, 983 A.2d 434 (violation of other professional rules establishes Rule 8.4(a) violation)
- Att’y Griev. Comm’n v. Landeo, 132 A.3d 196 (failure to represent client and failure to communicate prejudicial to administration of justice)
- Att’y Griev. Comm’n v. Vanderlinde, 773 A.2d 463 (intentional dishonest conduct can warrant disbarment)