870 N.W.2d 228
Wis.2015Background
- Attorney James T. Runyon (admitted 1978) admitted to multiple trust-account violations occurring mainly June–Dec 2013; OLR filed complaint March 23, 2015 and parties executed an SCR 22.12 stipulation.
- Runyon's IOLTA showed recurring overdrafts beginning September 16, 2013 (largest $24,151.33 on Sept. 19); OLR reconstruction revealed client funds short by at least $19,053.61 and as much as $86,850.68 between June 27–Oct 1, 2013.
- Recordkeeping defects: inadequate handwritten transaction register, missing client/matter identifiers on deposits and check memos, incomplete monthly reconciliations, and numerous overdrawn client ledgers (final negatives totaling $53,772.73 and temporary overdrafts $6,759.36).
- Other actions: Runyon deposited business-account checks into trust, deposited personal/earned funds (including $8,072.60) into trust to cover shortages, and paid bank fees from trust without maintaining firm funds for fees.
- Runyon has prior discipline: one-year suspension in 1984 for misconduct involving dishonesty and a 2006 private reprimand.
- Stipulation admitted violations of multiple SCR 20/22 provisions and jointly requested a 60-day suspension; the Wisconsin Supreme Court approved the stipulation, imposed a 60-day suspension effective Nov. 7, 2015, and waived costs and restitution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Runyon committed trust-account and related violations | OLR: recordkeeping failures, failure to hold client funds, converting client funds to cover other matters, depositing non-trust funds into trust, and failing to identify client/matter on deposits/checks | Runyon: admitted the misconduct and stipulated; explained personal deposits were intended to make account whole; no clients ultimately harmed | Court accepted stipulation; found violations of SCR 20:1.15 and 20:8.4(c) as charged and admitted |
| Appropriate discipline for the violations | OLR: suspension warranted (citing recklessness, repeated overdrafts, prior discipline; analogous cases supporting 60-day suspensions) | Runyon: agreed to the stipulated 60-day suspension (no contest) | Court approved stipulated 60-day suspension; no restitution or costs imposed |
| Effect of prior discipline on sanction | OLR: prior disciplinary history is an aggravating factor supporting suspension | Runyon: acknowledged prior discipline; nevertheless stipulated to 60-day suspension | Court considered prior history among aggravating factors and still accepted 60-day suspension |
| Whether additional remedies (costs/restitution) necessary | OLR: no restitution requested; because matter resolved by SCR 22.12 stipulation with no referee, OLR did not seek costs | Runyon: stipulated to discipline; no restitution requested | Court imposed no restitution and waived costs per SCR 22.12 resolution |
Key Cases Cited
- In re Disciplinary Proceedings Against Runyon, 121 Wis. 2d 37, 357 N.W.2d 545 (1984) (prior one-year suspension for misconduct involving dishonesty)
- In re Disciplinary Proceeding Against Grogan, 331 Wis. 2d 341, 795 N.W.2d 745 (2011) (affirming 60-day suspension for trust-account violations where attorney had prior reprimand)
- In re Disciplinary Proceedings Against Molinaro, 318 Wis. 2d 375, 769 N.W.2d 458 (2009) (60-day suspension for trust-account anomalies and inappropriate transfers)
- OLR v. Mulligan, 365 Wis. 2d 43, 870 N.W.2d 233 (2015) (9-month suspension in contested trust-account violation with more extensive record of prior discipline)