In the Disciplinary Matter Involving Rice
260 P.3d 1020
| Alaska | 2011Background
- Wells Fargo notified Bar Association in 2006 that Rice’s client trust account overdrew; subsequent NSF notices triggered multiple investigations.
- Rice produced 2006 statements but not all 2006–2007 records; Bar sought source/purpose of deposits and ledgers, including two bounced $10,000 checks.
- Bar subpoenaed Rice in 2008 for 2006–2007 trust records; Rice sent a broken, unreadable CD; dispute over production and confidentiality.
- Area Hearing Committee granted summary judgment on Bar Rule 15(a)(4) (failure to respond) but not on ARPC 1.15 (trust accounting) due to insufficient information; evidentiary hearing continued in abeyance.
- Rice produced extensive but late records just before/at the August 2009 hearing; Committee found multiple trust-account mismanagement issues and recommended a four-year suspension.
- Disciplinary Board adopted the sanctions recommendation; Alaska Supreme Court independently reviewed and affirmed, imposing a four-year suspension with one year stayed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether due process was denied at the hearing level | Rice argues truncation of the hearing violated due process | Bar asserts due process was not denied; Board allowed additional evidence | No due process violation; any issue waived or cured by Board |
| Whether summary judgment on Bar Rule 15(a)(4) was proper | Rice contends disputed facts about the CD and timing | Bar showed Rice delayed providing subpoenaed materials | Proper; delay and failure to produce information violated Bar Rule 15(a)(4) |
| Whether a four-year suspension is an appropriate sanction | Rice argues lesser sanction warranted given cooperation | Bar and Board support disbarment or longer suspension due to deliberate noncooperation | Four-year suspension with one year stayed supported by ABA standards and Alaska precedent |
| Whether the Bar’s late-produced records and handling affected due process | Rice claims late records prevented full defense | Bar allowed status reports and post-hearing supplementation | No reversible due process violation; Board’s supplementation remedy was effective |
Key Cases Cited
- In re Mann, 853 P.2d 1115 (Alaska 1993) (mitigating factors reduced disbarment to suspension)
- In re Friedman, 23 P.3d 620 (Alaska 2001) (discussed trust fund misappropriation with mitigated suspension)
- In re Buckalew, 731 P.2d 48 (Alaska 1986) (disbarment generally for major trust fund misconduct; factors for staying)
- In re Brion, 212 P.3d 748 (Alaska 2009) (trust fund misconduct with lack of diligence; three-year suspension with two stayed)
- In re Stepovich, 143 P.3d 963 (Alaska 2006) (three-year suspension with one year stayed for trust accounting failures)
- In re West, 805 P.2d 351 (Alaska 1991) (standard for independent appellate review of disciplinary findings)
- In re Frost, 863 P.2d 843 (Alaska 1993) (ABA standards framework and sanctions guidance)
