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910 N.W.2d 436
Minn.
2018
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Background

  • George E. Hulstrand, Jr., a Minnesota lawyer licensed in 1976, faced a disciplinary petition and two supplements alleging misconduct in 13 client matters over 4 years; the referee found violations of 18 ethics rules.
  • Misappropriation: Hulstrand deposited two clients’ bankruptcy filing fees ($335 and $350) into his business account and used them for personal/other expenses; he never refunded one client.
  • Trust-account and fee issues: He deposited $4,070 of client funds into his business account instead of a trust account and failed to refund unearned fees in multiple matters.
  • Client neglect and communication failures: He neglected work on seven matters, failed to communicate in eight, missed hearings, and caused adverse outcomes (including a $44,274.53 default judgment reversed on appeal as "egregiously inadequate" representation).
  • Other misconduct: He made a false statement to a court about informing opposing counsel of a client’s absence, disobeyed court orders, filed frivolous motions, and failed to cooperate with disciplinary investigations.
  • Procedural posture: The referee found multiple aggravating factors, no mitigating factors, recommended disbarment; Hulstrand did not file a brief or appear for oral argument. The Supreme Court adopted the recommendation and ordered disbarment, effective on filing, and costs.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Hulstrand’s conduct (misappropriation + other violations) warrants disbarment Director: misappropriation of client funds plus extensive, repeated rule violations and noncooperation require disbarment to protect public and deter Hulstrand: no persuasive mitigation presented at hearing; suggested medical condition without supporting proof; no brief/argument to court Court: Disbarment is appropriate and ordered
Whether misappropriation alone requires disbarment Director: misappropriation—even of modest sums—ordinarily warrants disbarment absent substantial mitigation Hulstrand: no credible mitigation or restitution shown Court: Misappropriation of $685 supports disbarment absent mitigating factors
Whether cumulative misconduct and repeated violations affect sanction Director: multiple rule breaches across 13 clients over 4 years aggravate sanction Hulstrand: no meaningful rebuttal; prior discipline acknowledged but no evidence of reform Court: Cumulative weight of 18 rule violations over time supports disbarment
Whether failure to cooperate and prior discipline are aggravating Director: past admonitions/reprimand and noncooperation show recidivism and absence of remorse Hulstrand: did not substantively contest; limited expressions of remorse were not corroborated Court: Prior discipline and failure to cooperate are aggravating; no mitigating factors found

Key Cases Cited

  • In re Capistrant, 905 N.W.2d 617 (Minn. 2018) (disbarment for misappropriation, neglect, and noncooperation where no mitigation)
  • In re Taplin, 837 N.W.2d 306 (Minn. 2013) (definition of misappropriation and significance of failing to return unearned funds)
  • In re Garcia, 792 N.W.2d 434 (Minn. 2010) (misappropriation usually warrants disbarment absent substantial mitigation)
  • In re Grzybek, 567 N.W.2d 259 (Minn. 1997) (repeated failure to comply with court orders and misappropriation can warrant disbarment)
  • In re Matson, 889 N.W.2d 17 (Minn. 2017) (disbarment for multi-matter misconduct including misappropriation and misrepresentations)
  • In re Nwaneri, 896 N.W.2d 518 (Minn. 2017) (false statements to a tribunal are significant misconduct)
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Case Details

Case Name: In re Petition for Disciplinary Action Against George E. Hulstrand
Court Name: Supreme Court of Minnesota
Date Published: Apr 18, 2018
Citations: 910 N.W.2d 436; A16-1589
Docket Number: A16-1589
Court Abbreviation: Minn.
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    In re Petition for Disciplinary Action Against George E. Hulstrand, 910 N.W.2d 436