Columbus Bar Association v. McCord
150 Ohio St. 3d 81
| Ohio | 2016Background
- Lumumba Touré McCord, admitted 1996, faced a three-count disciplinary complaint: failure to maintain a client trust account, failure to inform clients he lacked professional liability insurance, and willful failure to file/pay federal income taxes (2006–2010).
- Relator (Columbus Bar Assn.) obtained an interim default suspension; McCord later answered, the default suspension was lifted, and the matter was remanded to the Board of Professional Conduct for hearing.
- At hearing McCord admitted closing his client trust account in 2010 and depositing unearned flat fees into his business account until May 2013; he now acknowledges the practice violated current rules and has reopened a trust account.
- McCord did not maintain or disclose lack of professional liability insurance before May 2, 2013; no client complaints or provable client harm resulted from these practices.
- McCord pleaded guilty to one misdemeanor for willfully failing to file tax returns (26 U.S.C. §7203), was sentenced and ordered to pay restitution of $98,908.85; the board found this conviction reflected adversely on his honesty/trustworthiness.
- The board found aggravating and mitigating factors, recommended a one-year suspension all stayed on conditions (including IRS compliance, timely taxes, two-year probation, and CLE in law-office management); the Supreme Court adopted the board's findings and sanction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether depositing unearned flat fees into a business account violated trust-account rules | McCord’s practice violated Prof.Cond.R. 1.15(a); advance fees must be in client trust account unless conditions met | McCord relied on prior advisory opinion allowing flat fees as earned-on-receipt in criminal cases; claimed refunds from business account when necessary | Violated Prof.Cond.R. 1.15(a); rule change (Prof.Cond.R. 1.5(d)(3)) requires written disclosures and conditions before treating fee as earned-on-receipt; reopened trust account required |
| Whether failure to inform clients about lack of professional liability insurance violated duties | Relator: failing to inform clients violated Prof.Cond.R. 1.4(c) and undermined client decision-making | McCord: no client harm; testified he lacked insurance but argued minimal effect | Violated Prof.Cond.R. 1.4(c); no client complaints but nondisclosure constituted a rule violation |
| Whether misdemeanor conviction for tax offenses requires professional discipline | Relator: conviction for willful failure to file/pay taxes reflects adversely on honesty/trustworthiness, violating Prof.Cond.R. 8.4(b) | McCord: criminal sanctions already imposed; argued mitigation and lack of client harm | Conviction violated Prof.Cond.R. 8.4(b); disciplined but sanction stayed given mitigating factors |
| Appropriate sanction for combined misconduct (trust-account breach, nondisclosure, tax conviction) | Relator sought a one-year suspension with six months stayed plus probation | McCord sought a fully stayed six-month suspension and probation | Court imposed one-year suspension fully stayed on conditions: IRS compliance, timely taxes, two-year probation including 6 CLE hours in law-office management, and no further misconduct |
Key Cases Cited
- Cuyahoga Cty. Bar Assn. v. Veneziano, 120 Ohio St.3d 451 (2008) (Ohio Supreme Court imposed one-year suspension stayed on conditions for attorney convicted of tax-related offenses and payroll-tax failures)
- Lake Cty. Bar Assn. v. Ezzone, 102 Ohio St.3d 79 (2004) (one-year stayed suspension for attorney guilty of failing to file federal income tax return)
- In re Attorney Registration Suspension of McCord, 107 Ohio St.3d 1431 (2005) (prior registration-suspension procedural history relevant to respondent)