94 So. 3d 566
Fla.2012Background
- Draughon admitted to The Florida Bar in 1987 and engaged in a transaction in 1993 involving NLMC to purchase Heather Lane property for a client.
- Draughon formed NLMC as sole shareholder, transferred Heather Lane deed to NLMC, then later transferred it to himself without consideration.
- He mortgaged the property for $274,975 and used proceeds to pay his personal taxes rather than satisfy the third promissory note to Ms. Onusic.
- Bankruptcy proceedings found Draughon’s transfer fraudulent and intended to hinder Ms. Onusic, a creditor of NLMC.
- Referee found Draughon violated Rule Regulating the Florida Bar 3-4.3 and advised a public reprimand; Bar petitioned for review and Draughon cross-petitioned.
- Florida Supreme Court approved the referee’s findings of fact and guilt, but imposed a one-year suspension instead of a public reprimand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 3-4.3 supports discipline independently | Bar argues 3-4.3 applies due to unlawful/ dishonest act. | Draughon contends 3-4.3 is not an independent basis or not supported by findings. | Guilt under 3-4.3 affirmed. |
| whether the referee's guilt finding is supported by the record | Record supports fraudulent transfer with actual intent to defraud creditor. | Credibility disputes exist over assets and credibility of witnesses. | Guilt supported by credible findings; referee credibility upheld. |
| the appropriate discipline for 3-4.3 violation | Bar seeks suspension; argues misconduct warrants more than reprimand. | Draughon challenges sanction; cross-petition questions mitigation/aggravation. | One-year suspension imposed; greater sanction than referee recommended. |
Key Cases Cited
- Fla. Bar v. Frederick, 756 So.2d 79 (Fla. 2000) (standard of review for referee's factual findings)
- Fla. Bar v. Jordan, 705 So.2d 1387 (Fla. 1998) (referee findings must support guilt recommendation)
- Fla. Bar v. Tobkin, 944 So.2d 219 (Fla. 2006) (referee credibility assessments are given deference)
- Fla. Bar v. Thomas, 582 So.2d 1177 (Fla. 1991) (credibility determinations safeguarded on appeal)
- Fla. Bar v. Cocalis, 959 So.2d 163 (Fla. 2007) (3-4.3 can support discipline even without other rules)
- Fla. Bar v. Hall, 49 So.3d 1254 (Fla. 2010) ( Bar expectations of honesty in personal dealings)
- Fla. Bar v. Rotstein, 835 So.2d 241 (Fla. 2002) (fundamental dishonesty as a serious flaw)
- Fla. Bar v. Korones, 752 So.2d 586 (Fla. 2000) (honesty and justice as core duties)
- Fla. Bar v. Temmer, 753 So.2d 555 (Fla. 1999) (sanctions standards framework)
- In re Draughon, 2007 WL 7645346 (Bankr.W.D.Pa. 2007) (bankruptcy court found fraudulent transfer by Draughon)