84 A.3d 960
Del.2014Background
- Pelletier is a New Jersey attorney admitted in 1998, not admitted to Delaware Bar, and has never been a Delaware lawyer.
- In February 2007, Pelletier formed Riddlefield LLC to provide a Delaware legal-referral service with Delaware-focused representation in letters and advertising.
- Pelletier's engagement letters and advertising stated he would provide legal services in Delaware and he performed work for four Delaware injury clients.
- All client contact, operative facts, and settlement payments occurred in Delaware, with actions including negotiations with insurers and a $50,000 settlement.
- ODC filed a Petition for Discipline on June 17, 2013 alleging Rule 5.5 violations; the Board found Counts I–III proven and recommended a public reprimand.
- The Board and ODC disagreed on sanction; the court reviews de novo and imposed a one-year suspension with related restrictions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Pelletier violated Rule 5.5 by practicing in Delaware without admission | ODC argues he violated Rule 5.5 by establishing an office and representing Delaware clients. | Pelletier argues he relied on advice from Delaware attorneys and believed conduct was permissible. | Pelletier violated Rule 5.5; sanction appropriate. |
| Whether Pelletier held himself out as admitted to Delaware practice | ODC asserts he advertisedデルaware practice and engaged clients under Delaware authority. | Pelletier contends no intent to misrepresent as admitted and relied on guidance. | Hold out as Delaware attorney violated Rule 5.5; sanction appropriate. |
| What mental-state standard applies to sanctions (negligence vs knowing) | ODC contends Pelletier acted knowingly, warranting harsher sanction. | Pelletier contends his conduct was negligent rather than knowing. | Court determines Pelletier acted knowingly; standard supports suspension. |
| Appropriate sanction under ABA Standards for Unauthorized Practice | ABA Standard 7.2 supports suspension for knowing UPL with potential injury. | Board found negligence; mitigating factors argued for lesser sanction. | One-year suspension with specified prohibitions; mitigations insufficient to reduce to reprimand. |
Key Cases Cited
- In re Nadel, 82 A.3d 716 (Del.2013) (suspension appropriate for unlicensed practice; Delaware-public-deterrence rationale)
- In re Kingsley, 950 A.2d 659 (Del.2008) (Table; standard for UPL sanctions under Delaware rules)
- In re Tonwe, 929 A.2d 774 (Del.2007) (noticeable cease-and-desist context; clarity of rules affecting conduct)
- In re Abbott, 925 A.2d 482 (Del.2007) (court framework for disciplinary decisions; cites related authorities)
- In re Froelich, 838 A.2d 1117 (Del.2003) (early Delaware authority on disciplinary standards)
