State ex rel. Counsel for Dis. v. Pearson
310 Neb. 256
| Neb. | 2021Background
- Formal charges were filed by the Counsel for Discipline against Gary R. Pearson alleging misconduct arising from estate matters; charges were amended to four counts and a referee held a hearing.
- Allegations included charging and collecting unreasonable/excessive fees in three estate matters (Wysong, Truax, Jaunzemis), making false statements in pleadings and to the relator, and improperly maintaining his client trust account.
- The referee found violations of multiple Nebraska Rules of Professional Conduct: competence, unreasonable fees, safekeeping client funds, candor toward the tribunal, false statements in disciplinary matters, and general misconduct; the referee also found a violation of the attorney oath (§ 7-104).
- The referee recommended suspension of Pearson’s law license for 1–2 years; Pearson had no prior discipline, offered mitigating evidence (age, military service, character letters), but the referee noted lack of candor.
- The Nebraska Supreme Court granted the relator’s motion for judgment on the pleadings, affirmed the rule violations by clear and convincing evidence, and imposed an 18-month suspension plus directives to comply with court disciplinary procedures and pay costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Charging unreasonable/excessive fees in estate matters | Relator: Pearson charged and collected unreasonable fees in Wysong, Truax, and Jaunzemis matters in violation of Rule 3-501.5(a) | Pearson: Fees were errors, oversight, or reasonable under circumstances | Court: Violations proven by clear and convincing evidence; rule breaches sustained |
| False statements / lack of candor to tribunal and relator | Relator: Pearson made false statements in court pleadings and to the relator, violating candor and disciplinary rules | Pearson: Denied intent; characterized statements as inadvertent or minimizations | Court: False statements and failure of candor established (Rule 3-503.3 and 3-508.1(a)) |
| Safekeeping client funds / trust account misconduct | Relator: Pearson improperly maintained client trust account, commingling or keeping personal funds in trust account (Rule 3-501.15) | Pearson: Account errors were unintentional bookkeeping mistakes | Court: Trust account violation established; misconduct under Rule 3-508.4(a) |
| Appropriate discipline | Relator: Suspension recommended consistent with misconduct; referee recommended 1–2 years | Pearson: Mitigation (long practice, no prior discipline, character evidence) argued for lesser sanction | Court: Considered factors and imposed an 18-month suspension, ordered compliance with disciplinary rules and payment of costs |
Key Cases Cited
- State ex rel. Counsel for Dis. v. Wolfe, 301 Neb. 117 (2018) (disciplinary proceedings are a trial de novo on the record and charges must be proved by clear and convincing evidence)
