AKRON BAR ASSOCIATION v. MCNERNEY.
No. 2008-2470
Supreme Court of Ohio
Submitted February 18, 2009—Decided May 28, 2009.
122 Ohio St.3d 40, 2009-Ohio-2374
Per Curiam.
{¶ 2} The Board of Commissioners on Grievances and Discipline recommends that we suspend respondent‘s license to practice for two years, staying the second year on conditions. The board‘s recommendation is based on its findings that respondent failed to preserve the identity of his clients’ funds, failed to keep complete records of his client trust account, failed to give notice to his clients that his malpractice insurance had lapsed, and failed to update his attorney-registration record. We agree that respondent violated ethical standards as found by the board and that a two-year suspension with one year conditionally stayed is appropriate.
{¶ 3} Relator, Akron Bar Association, charged respondent in a five-count complaint with violations of the Disciplinary Rules of the former Code of Professional Responsibility and the current Rules of Professional Conduct.1 A panel of board members heard the case and, after dismissing Counts One and Five for lack of the requisite clear and convincing evidence, made findings of fact and conclusions of law and recommended the two-year suspension and one-year conditional stay. The board adopted the panel‘s findings of misconduct and recommendation.
{¶ 4} The parties have not objected to the board report.
Misconduct
Respondent‘s Client-Trust-Account Improprieties
{¶ 5} Respondent entered the practice of law as a second career after working initially in banking: first for a regulatory agency, then for an accounting firm, and later for a bank. Notwithstanding this experience, respondent maintained only a single bank account for his law practice from at least January 2006 until at least September 13, 2007, and during that time, he deposited into the account both his personal funds and funds entrusted to him by clients. Respondent never reconciled the account, and merely kept the bank statements, a checkbook, canceled checks, and copies of clients’ checks to distinguish his personal funds from those of his clients.
{¶ 6} Relator deposed respondent in May 2007. He claimed that before the deposition, he had no idea that ethical standards prohibited him from using the
{¶ 7} Despite ethical requirements for safekeeping client funds, respondent simply deposited all his receipts into one account and then withdrew what he believed he had earned in fees. Having no records to show otherwise, respondent conceded that he may have withdrawn money still belonging to clients from the funds commingled in this solitary bank account. He explained, however, that his practice involved mostly small flat fees from criminal-defense cases, and he had only two or three clients whose money he had deposited in that account.
{¶ 8} The board found that respondent had thereby violated (1)
Respondent‘s Improprieties Relating to Malpractice Insurance
{¶ 9} In January 2007, respondent‘s malpractice insurance lapsed, and he did not reinstate his coverage until May of that year. Respondent did not notify clients of the lapse in malpractice insurance or obtain the clients’ signed acknowledgement that he lacked this coverage. The board found that respondent had thereby violated
Respondent‘s Failure to Register
{¶ 10} Respondent appeared for a second deposition by relator in mid-September 2007. He had not at that time updated his attorney-registration record in accordance with
{¶ 11} The board found that respondent‘s failure to properly register as an attorney, together with the misuse of his client trust account and failure to disclose the lapse of his malpractice insurance, violated
Sanction
{¶ 12} Relator proposed that the board recommend either a two-year or an indefinite suspension of respondent‘s license, citing in addition to the gravity of his misconduct, evidence of his untreated alcoholism. Relator noted that a partial stay of the suspension on conditions would be warranted if respondent pursued treatment. Respondent submitted that he was addressing his alcohol use, that his continued practice did not pose a risk to the public, and therefore, that any recommendation of suspension should be stayed entirely in favor of probation.
{¶ 13} Having found the cited misconduct, the board considered sanctions imposed in similar cases and weighed the aggravating and mitigating factors of respondent‘s case. See
{¶ 14} “The underlying rule violations for mismanagement of a [client trust] account typically result in a term suspension of 6 to 24 months, totally or partially stayed depending on the length and severity of the financial mismanagement. In this case while the Relator proved that Respondent improperly maintained his [client trust] account for almost two years, there was no specific charge that any client funds were improperly taken. The challenge in this case is that evidence at hearing clearly and convincingly showed the Panel that Respondent has untreated and unresolved substance abuse and medical issues that threaten his ability to practice law.”
{¶ 15} Respondent‘s problems with alcohol are long-standing. As a condition for his admission to the Ohio bar, he was required to participate in alcohol-abuse treatment under the auspices of the Ohio Lawyers Assistance Program (“OLAP“) and did so from approximately 2001 through 2004. Though he completed that program successfully, his problems with alcohol have persisted. An admitted alcoholic, respondent conceded that at the time of his 2007 depositions, he had returned to drinking alcohol. He has been cited three times for driving while under the influence of alcohol, most recently in 2005.
{¶ 16} At the October 8, 2008 panel hearing, respondent produced a new OLAP contract. An OLAP representative had signed the four-year contract in mid-July 2008; however, respondent did not sign and return the contract to OLAP until the week before the hearing. He testified that he had not spoken to OLAP representatives since that July, that he had consumed alcohol, but only “rarely,” since that time, and that he had attended two Alcoholics Anonymous meetings in the week before the hearing. Of his continued use of alcohol, respondent said, “If
{¶ 17} Respondent further testified that he has begun treatment with a psychologist, who diagnosed him with depression, and with two physicians, both of whom had prescribed medications for his condition. The panel chairperson granted respondent leave to file medical records specifically documenting his mental-health treatment. He did not do so.
{¶ 18} Regarding mitigating evidence, the board noted that respondent had no prior disciplinary record. See
{¶ 19} The board recommended a two-year suspension, but with the second year stayed on conditions. The conditions are as follows:
{¶ 20} 1. Upon respondent‘s completion of the one-year suspension, his reinstatement shall be subject to the stringent standards and hearing requirement of
{¶ 21} 2. With any petition for reinstatement filed, respondent shall provide proof from his treating medical professionals and OLAP that his alcohol and mental-health problems have been resolved, that he has followed all treatment recommendations, including compliance with his 2008 OLAP contract, and that he is competent to return to the competent, ethical, and professional practice of law; and
{¶ 22} 3. Upon any reinstatement, respondent shall complete one year of monitored probation pursuant to
{¶ 23} We accept the board‘s recommendation. Respondent is hereby suspended from the practice of law in Ohio for two years. The second year of suspension is stayed on the recommended conditions. If respondent fails to comply with the terms of the stay and probation, the stay will be lifted, and respondent will serve the entire two-year suspension from the practice of law.
{¶ 24} Costs are taxed to respondent.
Judgment accordingly.
Moyer, C.J., and Pfeifer, Lundberg Stratton, O‘Connor, O‘Donnell, Lanzinger, and Cupp, JJ., concur.
Parker, Leiby, Hanna & Rasnick, L.L.C., and Thomas M. Parker; and Maria R. Schimer, for relator.
Thomas M. McNerney, pro se.
