Disciplinary Counsel v. Terbeek, 2013 Ohio 1912

Terbeek, an Ohio attorney since 1973, held $15,000 in escrow for a business sale.
From 1994 to 2001 he maintained escrow funds in his trust account, noting liens against the business.
In 2001–2002 he secretly withdrew most escrow funds for personal use and admitted remaining $500 later.
Pearson sued for breach; Terbeek failed to respond or appear, leading to default judgment against him for $15,000 plus fees and sanctions.
Terbeek’s misconduct spanned pre- and post-2007 ethical rules; he did not cooperate in discovery and did not respond to disciplinary proceedings.
Board recommended permanent disbarment; Terbeek attempted resignation late in the process, which the court rejected.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Terbeek misappropriated client funds.	Terbeek retained funds for himself and concealed the misappropriation.	Terbeek argued funds were held in escrow pending satisfaction of liens; any release condition was not met, not a misappropriation.	Yes, misappropriation found; funds used personally.
Whether Terbeek violated professional conduct rules pre- and post-2007.	Violations of former and current rules based on misappropriation and related conduct.	Disputed the scope or applicability of the rules to specific acts.	Violations established under both former and current rules; continuing ethical violation.
Whether permanent disbarment is the appropriate sanction.	Misappropriation carries presumptive sanction of disbarment; aggravating factors present.	No objections filed, but resignation sought; argues potential alternative sanctions.	Permanent disbarment warranted.
Whether Terbeek’s late resignation affected the outcome.	Resignation anticipated to moot ongoing proceedings.	Resignation should be accepted to retire with pending disciplinary action.	Resignation rejected; sanction remains permanent disbarment.

Stark Cty. Bar Assn. v. Buttacavoli, 96 Ohio St.3d 424 (2002-Ohio-4743) (relevance of aggravating/mitigating factors in sanctions)
Disciplinary Counsel v. Broeren, 115 Ohio St.3d 473 (2007-Ohio-5251) (evaluation of aggravating/mitigating factors and continuing violations)
Greene Cty. Bar Assn. v. Saunders, 132 Ohio St.3d 29 (2012-Ohio-1651) (presumption of disbarment for misappropriation cases)
Cleveland Metro. Bar Assn. v. Freeman, 128 Ohio St.3d 421 (2011-Ohio-1483) (permanent disbarment for repeated misconduct and lack of cooperation)
Disciplinary Counsel v. Zumstein, 93 Ohio St.3d 544 (2001-Ohio-757) (permanent disbarment for misappropriation from escrow)
In re Retirement or Resignation of Terbeek, 2013-0069 (Not published in official reporter here) (discusses limits and timing of resignations in disciplinary proceedings)
Disciplinary Counsel v. Lentes, 120 Ohio St.3d 431 (2008-Ohio-6355) (resignation timing and public protection considerations)
Akron Bar Assn. v. Holder, 112 Ohio St.3d 90 (2006-Ohio-6506) (procedural guidance on discipline proceedings and resignations)