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State ex rel. Counsel for Dis. v. Pearson
965 N.W.2d 28
| Neb. | 2021
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Background:

  • Gary R. Pearson, admitted 1976, practiced in Lincoln, Nebraska; formal disciplinary charges filed October 13, 2020; referee hearing April 1, 2021.
  • Amended charges alleged four counts: unreasonable fees in three estate matters (Wysong, Truax, Jaunzemis) and improper trust‑account handling (Trust Account Matter); referee found additional false statements and lack of candor.
  • Most material facts were stipulated or undisputed; respondent admitted many allegations but minimized conduct as oversight or error.
  • Referee found violations of Nebraska Rules of Professional Conduct: competence, unreasonable fees, safekeeping client funds, candor toward tribunal, false statements in disciplinary matters, and general misconduct; also found oath violation under § 7‑104.
  • Referee recommended suspension of 1–2 years; no exceptions to the report were filed and relator moved for judgment on the pleadings.
  • Supreme Court adopted the referee’s findings, granted judgment on the pleadings, and imposed an 18‑month suspension; respondent must comply with reporting rules and pay costs.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Charging and collecting unreasonable fees (estate matters) Relator: Pearson charged and collected excessive, unreasonable fees in multiple estate matters, violating fee rule Pearson: Conduct resulted from error, oversight, or carelessness; not intentional misconduct Court: Found clear and convincing evidence of unreasonable fees; violation of fee rule (sustained)
False statements / lack of candor (pleadings & to relator) Relator: Pearson made false statements in court pleadings and to disciplinary authorities regarding fees Pearson: Denied intent; minimized misstatements as inadvertent or mistaken Court: Found violations of candor and false‑statement rules; misconduct established
Safekeeping client funds / trust account management Relator: Pearson failed to properly maintain client trust account and mixed personal funds Pearson: Characterized issues as accounting errors and oversight Court: Found violation of safekeeping rule for client funds (sustained)
Appropriate discipline / sanction Relator: Suspension warranted given multiple violations, false statements, and risk to public Pearson: Mitigation — long career, no prior discipline, military service, character letters, cooperation Held: Court balanced factors, adopted referee range, imposed 18‑month suspension and costs

Key Cases Cited

  • State ex rel. Counsel for Discipline 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)
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Case Details

Case Name: State ex rel. Counsel for Dis. v. Pearson
Court Name: Nebraska Supreme Court
Date Published: Oct 1, 2021
Citation: 965 N.W.2d 28
Docket Number: S-20-741
Court Abbreviation: Neb.