2014 Ohio 2482
Ohio2014Background
- Harold Lee Thompson, admitted 1975, previously publicly reprimanded in 1982 for withdrawing unearned client trust funds.
- From Dec 2010–Apr 2012, Thompson used his client trust account for personal and office expenses, issued 77 checks to himself, and deposited personal funds into the trust account.
- Between Dec 2010–Sep 2011, Thompson delayed withdrawing earned contingency fees from eight settlements, issuing numerous checks to himself over weeks/months and causing commingling and accounting failures that led to overdrafts.
- A $100,000 settlement for client A.G. was deposited Jan 26, 2011; Thompson failed to timely remit $29,000 to A.G., and the trust account fell below that amount, resulting in at least $22,443.53 misappropriated.
- Parties stipulated misconduct and proposed a sanction: two-year suspension with 18 months stayed conditioned on 18 months monitored probation and compliance with other requirements; the board and Supreme Court adopted that sanction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Use of client trust account for personal/office expenses | Thompson used trust account as personal/operating account, paying rent, bills, issuing checks to himself, violating trust-account rules | Thompson did not provide a contrary legal defense to the factual use; stipulated facts | Violated Prof.Cond.R. 1.15(a) and 8.4(h); misconduct established |
| Failure to timely withdraw earned fees / accounting failures | Thompson delayed withdrawing earned contingency fees, causing commingling, poor records, and overdrafts in violation of recordkeeping rules | Thompson acknowledged delays and recordkeeping problems; mitigation evidence offered | Violated Prof.Cond.R. 1.15(a), 1.15(a)(2), 1.15(a)(3), and 8.4(h); misconduct established |
| Misappropriation of client funds (A.G.) | Thompson allowed trust balance to fall below client entitlement, misappropriating at least $22,443.53 | Thompson later deposited $29,000 from his operating account and paid A.G.; stipulated restitution and remediation | Violated Prof.Cond.R. 8.4(b),(c),(d), and 8.4(h); misappropriation found |
| Appropriate sanction (suspension length and conditions) | Disciplinary counsel recommended 24-month suspension with 18 months stayed conditioned on 18 months monitored probation given prior discipline, pattern, and dishonesty | Thompson offered mitigating factors: restitution, cooperation, upgraded accounting systems, OLAP participation | Court imposed two-year suspension with last 18 months stayed on condition of 18-month monitored probation and no further misconduct; costs taxed to Thompson |
Key Cases Cited
- Columbus Bar Assn. v. Thompson, 69 Ohio St.2d 667 (1982) (prior public reprimand for withdrawing unearned trust funds)
- Disciplinary Counsel v. Riek, 125 Ohio St.3d 46 (2010) (18-month suspension with portion stayed for commingling, overdrafts, misappropriation)
- Stark Cty. Bar Assn. v. Buttacavoli, 96 Ohio St.3d 424 (2002) (factors to consider when imposing sanctions)
- Disciplinary Counsel v. Broeren, 115 Ohio St.3d 473 (2007) (weighing aggravating and mitigating factors under disciplinary procedure)