In this case, we determine, for the first time, that the presumptive rule of disbarment established in
In re Addams,
I. Facts
The Hearing Committee found the following facts, which the Board adopted. Respondent, Willie N. Hewett, has practiced law- in the District of Columbia for over 15 years without any prior ethical complaint against him. On March 6, 1992, respondent was appointed by the Probate Court to serve as successor conservator for Ralph H. Jewell, who had been a ward of the court since 1985. The Hearing Committee and the Board found that, as
The facts giving rise to the instant disciplinary matter occurred when' respondent was given notice in March of 2001 that Mr. Jewell would be undergoing a Medicaid eligibility review in the next few months and that his cash assets “could not exceed $2500 or he would be disqualified for Medicaid.” (internal alterations omitted). Mr. Jewell’s nursing home care was paid for by Medicaid; his only source of income was $90 per month from the Veterans Administration. After he was appointed as conservator, respondent had established a bank account in Mr. Jewell’s name, in which the monthly Veterans Administration checks were deposited and for which respondent filed an annual accounting. In March of 2001, there was a total of $7,820.79 in Mr. Jewell’s account, $5,320.79 over the maximum allowed to maintain Medicaid eligibility. “Respondent believed and the Hearing Committee found that a disqualification would have been devastating to the interests of the wax’d.”
In preparation for the Medicaid eligibility review, respondent began to spend down Mr. Jewell’s bank account. Among other items, respondent purchased a blue serge suit and gloves, which had been requested by Mr. Jewell, and paid a funeral home for “pre-need funeral expenses,” and for “Grave opening and closing; Marker and Vault Placement,” at a cemetery. In total, respondent spent $4,646.54 on behalf of Mr. Jewell, but after deducting back charges and adding the month’s $90 veteran’s check, on May 30, the account was still approximately $750 over the Medicaid limit. The report to Medicaid concerning Mr. Jewell’s assets was due May 31.
On May 31, 2001, respondent filed with the probate court the ninth annual accounting of Mr. Jewell’s finances, together with a separate petition seeking a fee of $2,006.25 for his “legal services.” The Board found that “but for the impending Medicaid review, Respondent would not have filed the petition for legal fees.” Respondent’s petition detailed the time he had spent on Mr. Jewell’s matters during the year, and “carefully documented” 16.05 hours, which included “filing appropriate documents on the ward’s behalf when necessary, and visiting the ward to assess his needs and provide for those needs.” The petition requested a “reasonable fee” of $125 an hour. Contrary to the applicable statute and court rule, respondent withdrew the requested funds from Mr. Jewell’s account the same day he filed the petition, before any approval had been granted by the probate court. Although the petition stated that “[t]he ward is currently in the process of spending down to maintain Medicaid eligibility,” it did not inform the court that the fees requested in the petition were being withdrawn as part of the spend-down. After the withdrawal, Mr. Jewell’s account carried a balance of $1,244.09, within the Medicaid limit.
Respondent’s ninth annual accounting was approved, but his fee petition was denied by the probate court on September 11, 2001, because the sexwices respondent had provided to Mr. Jewell were “not legal in nature nor compensable as attorney's fees pursuant to court rule.” (internal alterations omitted) Even though respondent had been appointed in 1992, because
Subsequently, the Probate Court scheduled a show-cause hearing for December 10, 2002, because respondent had not filed the next (tenth) annual accounting, due April 12, 2002. 2 The Hearing Committee found that it was not until December 8, 2002, in preparation for the hearing and for filing the tenth accounting, that respondent became aware that his fee petition filed the previous year had been denied. On December 9, 2002, respondent filed the overdue tenth accounting and, on December 12, 2002, respondent deposited the $2,006.25 he had withdrawn from Mr. Jewell’s account as payment for respondent’s services on May 31, 2001. Upon the filing of the accounting, the Probate Court vacated its show-cause order but scheduled a status hearing, after which the Honorable A. Franklin Burgess, Jr. referred respondent to Bar Counsel because he had “without court approval, paid himself a fee at a rate inconsistent with the applicable rule.”
II. The Disciplinary Proceedings
The Hearing Committee was “constrained to find a misappropriation” but thought that “the stigma attached to a finding of misappropriation” was not warranted in respondent’s case. Because there was no “evidence of fraud, self-dealing, misrepresentation, conflict of interest, or any pattern of inappropriate conduct,” and, to the contrary, respondent’s action “was, in intent and effect, in the best interest of his ward,” the Committee recommended that respondent be suspended for thirty days, stayed during a one-year probationary period during which respondent would be required to complete six hours of legal education “on the subject of representing wards before the probate court.” The Board issued a Report
3
recommending
III. Analysis
Upon review of a report and recommendation of the Board in an original disciplinary matter, “the Court shall accept the findings of fact made by the Board unless they are unsupported by substantial evidence of record.... ” D.C. Bar R. XI, § 9(g)(1). However, the court owes no deference to “ultimate facts” or questions of law determined by the Board.
See In re Micheel,
Respondent “concedes [the Board’s] findings of facts and the violations supported by them.” Because respondent withdrew funds from Mr. Jewell’s account “without authorization,” the Board concluded, and it is not now contested, that respondent misappropriated funds. The question for the court is whether respondent’s misappropriation was intentional, reckless, or negligent. Except where the misappropriation was the result of simple negligence, we are bound by our holding in
Addams,
that “in virtually all cases of misappropriation, disbarment will be the only appropriate sanction.”
A. Intentional Misappropriation
This is not a case where the misappropriation of funds resulted from “simple negligence.”
Id.
Even though the Hearing Committee found that the misappropriation resulted from respondent’s “failure to anticipate the May 31, 2001 [Medicaid] deadline, craft a game plan, and implement the plan with the necessary dispatch”— classic negligence language — respondent knowingly withdrew funds from his ward’s account before the court had authorized his fee petition. While it is true that respondent withdrew the fee “not for [his] own use in the sense of stealing or for a temporary ‘loan’ but rather as a satisfaction for accruing fees ... against funds which would ultimately be expected to be utilized for that purpose,”
In re Fair,
Respondent’s actions, therefore, are distinguishable from those in cases in which we concluded that the respondents’ “honest, but erroneous belief’ that they were entitled to withdraw the misappropriated funds constituted “simple negligence.” In
Fair,
for example, the personal representative of an estate withdrew requested fees without prior court approval.
B. Exceptional Circumstances
We have said that even where a lawyer has engaged in intentional misappropriation of funds, a sanction less than disbarment may be appropriate “in extraordinary circumstances,”
Addams,
In
Addams,
we noted that mitigating factors “of the usual sort” “will suffice to overcome the presumption of disbarment only if they are especially strong
In addition to these “usual sort” of mitigating factors, several other factors distinguish respondent’s conduct from
Addams
and other cases of intentional misappropriation we have considered. First, as the Hearing Committee concluded, “[tjhere is no question that Respondent’s actions were in the best interest of his ward.” Second, the posture of this case is truly unique. As the Board noted, “[w]e are aware of no prior cases in which the intentional misappropriation was intended for and, in fact, benefitted the client.” Thus, this case goes beyond lack of concealment and corruption.
Cf. Bach,
Bar Counsel argues that there are aggravating factors that preclude our finding “extraordinary circumstances” warranting a lesser sanction than disbarment: (1) that respondent ought to have withdrawn only the amount necessary ($750) to bring his ward’s account below the Medicaid minimum; (2) that respondent ought to have sought the advice of more experienced attorneys or court personnel in order to determine a more appropriate way to spend down his ward’s account; (3) that respondent should have disclosed the impending Medicaid review to the probate court when requesting fees and requested expedited approval by the court; and (4) that respondent’s 18-month delay in checking the court docket to see if his fee request had been approved was inexplicable. 10
We disagree with Bar Counsel that respondent’s withdrawal of $2,000 rather than the $750 that was strictly necessary to bring Mr. Jewell’s account below the Medicaid minimum is an aggravating factor.
11
As the Board found, the fee respondent withdrew was based upon a “reasonable” hourly rate, on time charges the Hearing Committee found to be accurate, and to which respondent believed he was entitled.
Cf. In re Cleaver-Bascombe,
Bar Counsel compares this case to
Ber-ryman,
where we said that it was not sufficient, to avoid disbarment, that the lawyer who misappropriated client funds had “rendered extraordinary service” to his client before her death.
This is the first case in which the Board has asked the court to conclude that the “extraordinary circumstances” exception noted in Addams has been satisfied. Notwithstanding differing opinions by a minority of the Board members as to whether respondent’s misappropriation should be characterized as intentional, reckless or negligent, all nine members of the Board believe that respondent should not be disbarred. See note 3, supra. The Board’s majority report summarizes its recommendation, as follows:
This is surely a case involving “extraordinary circumstances” analogous to those cases involving substance abuse cited in Addams and likewise, one in which disbarment is not the appropriate discipline. Respondent’s misappropriation was carried out for the laudable purpose of benefiting his ward by insuring his ward’s funds were reduced to a level below the Medicaid eligibility threshold. We are aware of no prior cases in which the intentional misappropriation was intended for and, in fact, benefited the client. Surely, a respondent, who was acting in the interests of this client, albeit in a misguided fashion, deserves the same consideration the court would give to those respondents suffering from substance abuse that contributed to their acts and who show positive signs of rehabilitation but whose clients were actually disadvantaged by the misappropriation. The situation involved in this case is unlikely to occuragain for the Respondent or for any others. This exception is unlikely to open the flood gates to more such cases.
Finally, in Addams, the Court stated that, “[i]n all events, it must be clear that giving effect to mitigating circumstances is consistent with protection of the public and preservation of public confidence in the legal profession.” Addams,579 A.2d at 195 . Giving effect to the extraordinary mitigating circumstances in the present case is clearly in keeping with this precept, as Respondent’s misguided actions in this one unusual situation were carried out in the interest of his client and are unlikely to recur. In our judgment, these facts make out the “extraordinary circumstances” exception permitted under Addams and justify a sanction other than disbarment.
In conclusion, although we agree with Bar Counsel that Willie Hewett intentionally misappropriated funds,
12
we conclude that the facts of this case — in particular that the motivation for the misappropriation was protection of the client’s interest — present the type of “extraordinary circumstances” in which disbarment is not the appropriate sanction. We adopt the Board’s recommended sanction and order that respondent be suspended from the practice of law in the District of Columbia for six months, the usual sanction for negligent handling of entrusted funds.
See, e.g., Fair,
So ordered.
Notes
.The rule also permits additional fees for "extraordinary services,” Super. Ct. Prob. R. 225(c), including reasonable attorney’s fees for "legal services rendered to the fiduciary in the administration of the estate.” Id. R. 225(e). The statute governing fees to conservators was modified in 1989, and currently provides for "compensation” for conservator services rather than a commission based on a percentage of disbursements from the estate. D.C.Code § 21-2060 (2001); see Super. Ct. Prob. R. 308 (2010) (referring to "reasonable compensation"). Respondent acknowledges that his fee petition mistakenly made reference to Probate Rule 308, which applies to conservatorships since the statute was amended, and has not challenged the trial court’s denial of his petition under Probate Rule 225.
. Although respondent had always filed the required annual accountings during his appointment as Mr. Jewell's conservator, he had often filed late, after receiving a notice from the clerk’s office. The Board found that "it was not uncommon for conservators to be late” in filing their annual accounts.
. The Board’s majority report, authored by Irvin B. Nathan, was joined by five other Board members. Three members of the Board wrote separate opinions; Martin Baach (the Chair), Deborah J. Jeffrey and James P. Mercurio. All three agreed that respondent's misappropriation was intentional or reckless and not negligent. Ms. Jeffrey and Mr. Mercurio both were of the opinion that respondent’s case presented "exceptional
.D.C. Professional Conduct R. 1.1(a) provides, "A lawyer shall provide competent representation to a client. Competent representation requires the legal knowledge, skill, thoroughness, and preparation reasonably necessary for the representation.”
. D.C. Professional Conduct R. 1.1(b) provides, "A lawyer shall serve a client with skill and care commensurate with that generally afforded to clients by other lawyers in similar matters.”
. D.C. Professional Conduct R. 1.15(a) provides, "A lawyer shall hold property of clients or third persons that is in the lawyer’s possession in connection with a representation separate from the lawyer’s own property.”
. D.C. Professional Conduct R. 8.4(d) provides, "It is professional misconduct for a lawyer to: ... (d) Engage in conduct that seriously interferes with the administration of justice.”
. Respondent's repayment did not, as required, include any interest which had accrued while he was in possession of the misappropriated funds.
See In re Huber,
.
Pleshaw
was also found by the Board to have committed “many other disciplinary violations” involving three clients, but the court did not find it necessary to address them because his reckless misappropriation warranted disbarment.
. As mentioned earlier, these are the factors that led the Board to conclude that respondent violated Rules 1.1(a) & (b) and 8.4(d). These factors also led Mr. Baach to conclude that respondent’s case did not present "exceptional circumstances.”
. There has been no suggestion that respondent’s efforts to "spend down” the ward's account with legitimate expenditures in order to maintain critical Medicaid eligibility constituted a fraud on the government or was otherwise improper. To the contrary, the Board found that ”[t]here is no question that the[] spend-down actions were for Mr. Jewell's benefit and were proper.” Bar Counsel’s suggestion that respondent should have withdrawn only what was required to bring the account below the eligibility limit would suggest that the expenditure was not independently justified and that respondent was manipulating his fee request to meet the Medicaid asset eligibility requirement.
. We adopt the Board's finding that respondent's intentional misappropriation violated District of Columbia Rules of Professional Conduct 1.1(a), (b), 1.15(a), and 8.4(d). Bar Counsel urges this court to conclude that respondent also violated Rules 1.3(a) and (c).
See
D.C. Bar R. 1.3(a) ("A lawyer shall represent a client zealously and diligently within the bounds of the law.”); D.C. Bar R. 1.3(c) ("A lawyer shall act with reasonable promptness in representing a client.”). Bar Counsel argues that respondent violated Rules 1.3(a) and (c) by intentionally or recklessly misappropriating client funds, and that these additional rule violations warrant a suspension longer than six months. As we have concluded that respondent intentionally misappropriated funds, but that a stay of respondent's six-month suspension is appropriate, we agree with the Board that a determination that respondent violated Rules 1.3(a) and (c) would have no bearing on the sanction and is unnecessary.
See In re Gansler,
. Respondent's only objection to the Board's recommendation is that rather than the six-month suspension recommended by the Board, he should be suspended for thirty days as recommended by the Hearing Committee. Because we conclude that respondent engaged in intentional misappropriation, we think that a six-month suspension is the appropriate sanction in light of the type of discipline we have found appropriate in cases of negligent misappropriation.
