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In the Disciplinary Matter Involving Rice
260 P.3d 1020
| Alaska | 2011
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Background

  • 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)
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Case Details

Case Name: In the Disciplinary Matter Involving Rice
Court Name: Alaska Supreme Court
Date Published: Aug 26, 2011
Citation: 260 P.3d 1020
Docket Number: S-13856
Court Abbreviation: Alaska