Kentucky Bar Ass'n v. Helmers
2011 Ky. LEXIS 126
Ky.2011Background
- The Kentucky Board of Governors recommended permanent disbarment of Respondent David L. Helmers for six ethical violations arising from the Fen-Phen settlements in the Guard litigation.
- Respondent worked under Gallion, Cunningham, Mills, and Chesley, executing tasks including preparing settlement allocations and meeting with clients.
- Respondent helped prepare and present a settlement allocation schedule and assisted in decertifying and dismissing the class action against AHP.
- Respondent misrepresented to clients the source of settlement offers, failed to disclose total aggregate terms, and encouraged acceptance of below-market offers without informed consent.
- A donation of $20 million to a charity was made from undistributed settlement funds, and Respondent helped orchestrate second distributions after learning total damages differed from initial figures.
- The Trial Commissioner found counts 1, 2, 3, 4, 6, and 7 proven; the Board de novo found counts 1, 2, 3, 4, 6, and 7 and recommended permanent disbarment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Counts 1, 2, 3, 4, 6, 7 proven | KBA argues Respondent violated multiple SCR provisions. | Helmers contends he was subordinate and acted under employer direction. | Guilty on those counts. |
| Appropriateness of permanent disbarment | Board/Trial Commissioner recommended disbarment based on serious ethical breaches. | Helmers argues for lesser discipline given mitigating factors and lack of mastermind status. | Permanent disbarment warranted. |
| Whether Board’s de novo review was proper under SCR 3.370(10) | Board conducted de novo review as authorized. | Not specifically challenged; argues for correct application of disciplinary review standards. | Board’s de novo review adopted; discipline affirmed. |
| Costs and restitution | Respondent should bear disciplinary costs. | Not contested beyond merits; no further argument provided. | Respondent ordered to pay $39,673.53 in costs. |
Key Cases Cited
- Gallion v. Kentucky Bar Association, 266 S.W.3d 802 (Ky. 2008) (comparable sanctions in Fen-Phen steering cases; longstanding precedent for disbarment)
- Cunningham v. Kentucky Bar Association, 266 S.W.3d 808 (Ky. 2008) (discipline framework for coordinated wrongdoing in class action settlements)
- Kentucky Bar Association v. Mills, 318 S.W.3d 89 (Ky. 2010) (emphasizes seriousness of ethical violations and appropriate sanctions)