In the Disciplinary Matter Involving Stepovich
386 P.3d 1205
| Alaska | 2016Background
- Attorney Michael A. Stepovich, reinstated after a prior suspension (2006 decision), drafted a dying friend’s will in May 2009 and was named as the sole contingent beneficiary; the friend died ~6 weeks later but Stepovich received nothing because the primary beneficiary survived.
- Bar charged Stepovich with violating Alaska Rule of Professional Conduct 1.8(c) (lawyer must not prepare an instrument giving the lawyer a substantial gift from a client).
- Stepovich and Bar Counsel originally stipulated the violation was negligent and recommended public censure; the Area Hearing Committee found gross negligence and recommended public censure.
- The Disciplinary Board rejected censure as too lenient given Stepovich’s prior discipline and recommended a six-month suspension, noting the conduct occurred during a stayed one-year suspension from the earlier matter.
- The Alaska Supreme Court reviewed de novo the sanction, concluded Stepovich acted knowingly (not merely negligently), weighed aggravating and mitigating factors, imposed a 12‑month suspension (effective 30 days after opinion), and required passing the MPRE as a condition of reinstatement; the Court declined to impose the stayed one‑year suspension because the new misconduct was not the same or similar to the prior trust‑account violations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Mental state for Rule 1.8(c) violation | Bar: conduct warrants greater than negligence; Board viewed as at least gross negligence | Stepovich: he should have known but did not know; stipulated negligence | Court: Stepovich acted knowingly (knew he named himself and the conflict was obvious) |
| Appropriate sanction | Bar/Board: six‑month suspension justified given prior discipline; Bar counsel argued any suspension should not be long | Stepovich: public censure (as stipulated) / Committee recommended censure | Court: 12‑month suspension (six‑month baseline for knowing conflict plus aggravators) |
| Effect of prior stayed suspension (same or similar misconduct) | Board: prior violation is significant aggravator and occurred while stayed suspension in effect; oral view suggested similar conduct | Stepovich: 2006 suspended conduct (trust‑account misappropriation) is different and limited to trust violations | Court: violation is not the same or similar to prior trust‑account misconduct; do not impose the stayed year, but treat prior discipline as a significant aggravator |
| Reinstatement condition | Bar: require appropriate remediation | Stepovich: argued lack of awareness of rule; no separate position on MPRE recorded | Court: require Stepovich to take and pass the MPRE before reinstatement |
Key Cases Cited
- In re Stepovich, 143 P.3d 963 (Alaska 2006) (prior suspension and stayed year condition)
- In re Cyrus, 241 P.3d 890 (Alaska 2010) (three‑step sanction analysis and ABA Standards guidance)
- In re Rice, 260 P.3d 1020 (Alaska 2011) (deference to Board findings; independent sanctioning review)
- Attorney Grievance Comm’n of Md. v. Stein, 819 A.2d 372 (Md. 2003) (indefinite suspension for preparing a self‑benefitting will; discussion of harms when lawyer drafts will naming self)
- In re Polevoy, 980 P.2d 985 (Colo. 1999) (one‑year+ suspension for drafting a self‑benefitting will for a vulnerable client)
- In re Boulger, 637 N.W.2d 710 (N.D. 2001) (private reprimand where attorney drafted a will naming himself as contingent devisee and court found negligence without aggravators)
