823 N.W.2d 798
Wis.2012Background
- Weigel appealed a referee's report recommending 30 months' suspension for professional misconduct; OLR cross-appealed for license revocation.
- The court found referee's findings of fact supported and resolved that revocation of Weigel's license was warranted, with full costs ($24,309.84) assessed against him and responsibility for any trust-deficit shortfall.
- Weigel's practice dissolved with Alvin Eisenberg; after a 1999 buyout, the firm continued to suffer substantial trust account deficits and recordkeeping failures.
- Historical trust-account problems began in the 1990s under Eisenberg, including forgery losses; after 1999, the firm repeatedly failed to maintain proper ledgers, deposits, disbursements, and reconciliations.
- The complaint charged ten counts, including willful failure to deliver funds to third parties and improper trust-account handling under SCR 20:1.15 and SCR 20:8.4.
- Final orders revoke Weigel's Wisconsin license effective February 1, 2013, and require freezing/opening of a new trust account, restitution of shortfalls, and costs within set timeframes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the referee's fact findings are clearly supported | OLR argues findings are supported; misconduct established | Weigel contends some facts are explained by corrective efforts | Yes; findings are supported and upheld |
| Whether revocation is the proper sanction | OLR seeks revocation to protect public | Weigel argues 30-month suspension suffices | Revocation is appropriate and proportionate |
| Whether costs and restitution should be awarded | OLR seeks full costs, possible restitution for deficits | Weigel objects to cost amount as excessive | Costs ordered; deficits to be reimbursed as directed |
| Whether post-hearing orders regarding trust accounts are proper | OLR supports freezing/opening new trust account and remedying deficits | Weigel challenges scope of post-hearing remedies | Post-hearing financial remedies imposed to address remaining deficits |
Key Cases Cited
- In re Disciplinary Proceedings Against Eisenberg, 2004 WI 71 (Wis. 2004) (trust-account rule context and supervisory standards)
- In re Disciplinary Proceedings Against Widule, 2003 WI 34 (Wis. 2003) (scope of review in attorney discipline; de novo on law)
- In re Trust Estate of Martin, 159 N.W.2d 660 (Wis. 1968) (trustee accounting principles applied to attorneys; detailed records required)
- Matter of Miles, 516 S.E.2d 661 (S.C. 1999) (discipline: detailed records required to overcome allegations)