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