Dayton Bar Ass'n v. Washington
143 Ohio St. 3d 248
| Ohio | 2015Background
- Cheryl R. Washington, admitted 1987, was charged by the Dayton Bar Association with multiple professional-conduct violations arising from her handling of two clients’ matters (Parker and Boone).
- In Parker (personal-injury settlement), Washington deposited a $12,335.72 settlement into her firm operating account, failed to keep client funds in a client trust account, and issued a check that was later dishonored; she later tendered a certified check to resolve the dispute.
- In Boone (guardian/special-needs trust for a class-action settlement beneficiary), Washington deposited roughly $170,982.76 of settlement proceeds into her IOLTA account (which pays interest to Legal Aid), at times commingled or with insufficient trust-account balances, failed to maintain required trust-account records and reconciliations, and did not obtain timely probate-court approval for disbursements.
- The parties stipulated to facts and misconduct and recommended dismissal of some allegations; a board panel found violations of Prof.Cond.R. 1.3, 1.15, 1.15(a)(3), and 1.15(a)(5), dismissed other charges, and recommended discipline.
- The Board adopted the panel report; the Ohio Supreme Court adopted the board’s findings, imposed a six-month suspension stayed on condition of no further misconduct, and ordered a one-year period of monitored probation; costs taxed to Washington.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Washington mishandled client funds by failing to keep client monies separate from operating funds | Relator: Washington deposited client settlement proceeds into operating/IOLTA accounts, issued dishonored checks, and failed to properly safeguard/disburse funds | Washington: Disputes minimized; attempted restitution and replacement checks; no prior discipline; cooperative | Held: Violations proved — breached Prof.Cond.R. 1.15 and related recordkeeping rules |
| Whether Washington failed to maintain required trust-account records and reconciliations | Relator: She did not keep account records showing client balances nor monthly reconciliations | Washington: Acknowledged recordkeeping lapses and rectified some disbursements | Held: Violations proved — breached Prof.Cond.R. 1.15(a)(3) and 1.15(a)(5) |
| Whether Washington neglected client matters (lack of diligence) | Relator: Failure to obtain probate approval and mishandling delayed proper administration | Washington: Took steps to settle liens and later accounted for funds; cooperated | Held: Violation of Prof.Cond.R. 1.3 (lack of diligence) found as to Boone and related matters |
| Appropriate sanction for misconduct | Relator: Recommend suspension stayed with monitored probation given misconduct, restitution, and cooperation | Washington: Mitigating evidence—no prior record, restitution efforts, good character—supports stayed sanction and probation | Held: Court imposed six-month suspension, all stayed, and one-year monitored probation (stay forfeited on further misconduct) |
Key Cases Cited
- Toledo Bar Assn. v. Hetzer, 137 Ohio St.3d 572 (public reprimand for failure to timely deposit client funds, poor trust-account records, and improper escrow handling)
- Cincinnati Bar Assn. v. Helbling, 124 Ohio St.3d 510 (public reprimand for mishandling client funds leading to trust-account overdraft)
- Toledo Bar Assn. v. Royer, 133 Ohio St.3d 545 (one-year stayed suspension with monitored probation for neglect, failure to hold unearned fees in trust, and failure to deliver client funds)
- Akron Bar Assn. v. Tomer, 138 Ohio St.3d 302 (two-year stayed suspension with monitored probation for neglect, mismanagement and unauthorized withdrawals from client trust account, and false evidence to investigators)