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311 P.3d 517
Or.
2013
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Background

  • Admitted to practice in 1982; served as treasurer for Yale Alumni Association of Oregon.
  • Between Sept 2008 and Jan 2010, withdrew $32,600 from the association’s accounts, depositing to his personal account to pay personal/family expenses.
  • Made 21 separate withdrawals over 17 months; each withdrawal appropriated funds for his own use.
  • Knew he had no right to withdraw and use funds; after discovery, accounting showed $14,530 still owed.
  • Bar filed formal complaint Aug 2010 alleging RPC 8.4(a)(2) and (a)(3); trial panel imposed disbarment; de novo review upheld disbarment.
  • The court held that the theft by appropriation and related dishonesty violated RPC 8.4(a)(2) and (a)(3), and disbarment was the appropriate sanction.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the conduct violated RPC 8.4(a)(2) and (a)(3) Bar: intentional misappropriation violated both rules Phinney: intended repayment negated theft and dishonesty Yes; violations proven; disbarment authorized
Whether the conduct constituted theft by appropriation under ORS 164.015 Bar: funds were stolen by appropriation Phinney: funds were borrowed with intent to repay Yes; theft by appropriation established by clear and convincing evidence
Whether disbarment is the appropriate sanction given the misconduct Bar: disbarment warranted by serious misconduct Phinney: lesser sanction appropriate due to mitigating factors Yes; disbarment appropriate under ABA Standards and case law

Key Cases Cited

  • In re Cohen, 316 Or 657 (Or. 1993) (clear and convincing standard; de novo review of sanctions)
  • In re Kluge, 332 Or 251 (Or. 2001) (duty to the public; framework for sanctions)
  • In re Renshaw, 353 Or 411 (Or. 2013) (disbarment appropriate for substantial theft over time)
  • In re Pennington, 220 Or 343 (Or. 1960) (fiduciary breach; severity of sanction for misappropriation)
  • In re Pierson, 280 Or 513 (Or. 1977) (disbarment for client fund misappropriation with personal use)
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Case Details

Case Name: In Re Complaint as to the Conduct of Phinney
Court Name: Oregon Supreme Court
Date Published: Oct 3, 2013
Citations: 311 P.3d 517; 2013 WL 5497234; 354 Or. 329; 2013 Ore. LEXIS 788; OSB 10-68; SC S060529
Docket Number: OSB 10-68; SC S060529
Court Abbreviation: Or.
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    In Re Complaint as to the Conduct of Phinney, 311 P.3d 517