OPINION
Opinion by:
Gene Rosas appeals a judgment disbarring him from the practice of law. We affirm the trial court’s judgment.
Background
Rosas was licensed to practice law in Texas. As part of his legal practice, Rosas provided legal assistance to homeowners facing bank foreclosure. Mark Mallery is a real estate salesperson in California. Mallery’s real estate experience includes holding open houses, showing properties, and drafting letters of intent. Mallery testified, however, that he is unfamiliar with the legal aspects of real estate transactions.
Mallery purchased an investment property in San Antonio, Texas, but fell behind on his mortgage payments. Mallery’s lender chose to foreclose on the property and scheduled a foreclosure sale for August 7, 2007. Rosas learned about Mal-lery’s situation and sent Mallery a letter offering to help him avoid foreclosure. Rosas’s letter outlined several options for Mallery, which persuaded Mallery to contact Rosas’s office on the day of his foreclosure sale.
Mallery asked for Rosas’s assistance in saving his property from foreclosure. During the course of his conversation with Rosas’s legal assistant, Mallery offered to convey his property to Rosas. Rosas’s legal assistant relayed the information to Rosas, who immediately filed a petition for temporary restraining order and application for an injunction on Mallery’s behalf. 2 The trial court granted Mallery temporary relief and scheduled an injunction hearing for August 21, 2007. 3
Several days latеr, on or about August 9, 2007, Rosas spoke to Mallery about transferring his Texas investment property over to him. Mallery indicated to Rosas that Rosas needed to pay him $5,000 in order for the conveyance to occur. Rosas agreed to Mallery’s monetary request and, on September 22, 2007, forwarded to Mal-lery the transfer documents for his approval. Mallery executed a warranty deed supplied by Rosas on September 26, 2007 and returned all of the documents to him. Rosas neither discussed the details of the proрerty transfer with Mallery nor verified that Mallery understood the documents he
In the interim, Mallery’s investment property was once again scheduled for a foreclosure sale to occur on October 2, 2007. On October 1, 2007, Rosas filed a second petition for temporary restraining order and application for injunction in the district court. Like the prior temporary restraining order and application for injunction, Rosas identified Mallery as the plaintiff in the proceedings. The petition states “Defendant has рlaced Plaintiffs property for foreclosure” and notes “Plaintiff has obtained a buyer for the property and requires time to close the transaction.” The district court granted the relief requested by Rosas and set an injunction hearing for October 16, 2007. This injunction hearing did not occur, and Rosas recorded the warranty deed .signed by Mal-lery on November 26, 2007. 5
After Rosas did not pay Mallery in accordance with the terms of their agreement, Mallery filed a grievance against Rosas with the State Bar of Texas. Mal-lery сomplained he had hired Rosas to save him from foreclosure and that Rosas had “stoleii” his house. Rosas responded to the grievance on August 4, 2008. In his response, Rosas confirmed that he agreed to represent Mallery in the foreclosure proceedings on August 7, 2007 and that he and Mallery subsequently entered into a business transaction whereby Rosas’s company acquired title to Mallery’s property. Rosas confirmed he had failed to pay Mal-lery and noted that individuals were residing in the home.
On March 4, 2009, the Commission for Lawyer Discipline (the “Commission”) initiated a disciplinary action against Rosas for violation of the Texas Disciplinary Rules of Professional Conduct. The Commission alleged Rosas violated Disciplinary Rule 1.08(a) by entering into a business transaction with a client wherein: (1) the transaction and terms on which Rosas acquired the property were not fair and reasonable to the client and were not fully disclosed in a manner that could be reasonably understood by the client; (2) the client was not given a reasonable oppo'rtü-nity to seek the advice of independent counsel in the transaction; and (8) the client did not consent in writing. ■ The Commission also alleged Rosas violated Disciplinary Rule 8.04(a)(3) by engaging in conduct that involved dishonesty, deceit, or misrepresentation. Rosas elected to have the complaint proceed in district court and denied the allegations raised by the Commission. While the disciplinary proceeding was pending, Rosas and Mallery entered into a settlement agreement on June 27, 2009, resolving thеir dispute over the unpaid $5,000 promissory note.
After a bench trial, the trial court found Rosas committed misconduct in violation of Disciplinary Rules 1.08(a) and 8.04(a)(3).
See
Tex. DisciplinaRY Rules PROf’l Conduct R. 1.08(a), 8.04(a)(3)
reprinted in
Tex. Gov’t Code Ann., tit. 2, subtit. G, app. A (West 2005). The trial court did not file
DisciplinaRY Rule of Professional Conduct 1.08
A. Sufficiency of the Evidence
In his first issue, Rosas alleges he is not guilty of violating Texas Disciplinary Rule of Professiоnal Conduct 1.08(a) because there is no evidence demonstrating an attorney-client relationship existed between he and Mallery at the time of their business transaction.
See
Tex. Disciplinary Rules Prof’l Conduct R. 1.08(a) (prohibiting a lawyer from entering into a business transaction with a client). We review challenges to the legal sufficiency of the evidence in a bench trial under the same standard used in reviewing the sufficiency of the evidence in a jury trial.
K.C. Roofing Co., Inc. v. Abundis,
Disciplinary Rule 1.08 provides:
(a) A lawyer shall not enter into a business transaction with a client unless:
(1) the transaction and terms on which the lawyer acquires the interest are fair and reasonable to the client and are fully disclosed in a manner which can be reasonably understood by the client;
(2) the client is given a reasonable opportunity to seek the advice of independent counsel in the transaction; and
(3) the client consents in writing thereto.
Tex. Disciplinary Rules Prof’l Conduct R. 1.08(a). In order to find a violation of Disciplinary Rule 1.08(a), the trial court first had to find an attorney-client relationship existed at the time of the business transaction. An attorney-client relationship is a contractual relationship whereby an attorney agrees to render professional services for a client.
Tanox, Inc. v. Akin, Gump, Strauss, Hauer & Feld, L.L.P.,
Rosas claims there is no evidence to support a finding of a prohibited business transaction because any attorney-client relationship that existed between he and Mallery ended well before their business transaction. According to Rosas, his attorney-client relationship with Mallery began and ended on August 7, 2007, the date when Mallery sought his assistance and Rosas secured a temporary restraining order to stop the foreclosure sаle. Because he and Mallery did not engage in their business transaction until September 2007, Rosas alleges the trial court had no basis to find he violated Disciplinary Rule 1.08(a). We disagree with Rosas’s contention.
The record in this case shows Rosas sent Mallery a letter offering legal assistance in connection with the August 7, 2007 foreclosure sale. Mallery responded to Rosas’s letter on August 7, 2007, and asked Rosas to stop the bank from foreclosing on his property to protect his credit. Rosas immediately filed a pеtition for temporary restraining order and application for an injunction on Mallery’s behalf. The trial court granted Mallery temporary relief and scheduled an injunction hearing for August 21, 2007. We note that the August 7 temporary restraining order secured by Rosas, by its very nature, implied that Rosas would perform additional acts to protect Mallery. In fact, he did. Subsequent to the business transaction in question by which Mallery transferred his Texas investment property to Rosas, Mal-lery’s property was again scheduled for a foreclosure sale. On October 1, 2007, less than a week after the business transaction, Rosas filed a second petition for temporary restraining order and application for injunction in the district court. Like the prior petition, Rosas identified Mallery as the plaintiff in the proceedings. The district court granted the requested relief and set an injunction hearing for October 16, 2007. In light of this evidence, we believe there is ample evidence in the record demonstrating that an attorney-client relationship existed between Rosas and Mallery at the time of their September 2007 business transaction.
See E.F. Hutton & Co.,
B. Failure to Properly Consider the Evidence
In his third issue, Rosas argues the trial court erred by not giving sufficient weight to the language contained within his and Mallery’s June 2009 settlement agreement when it assessed whether he had violated Disciplinary Rule 1.08(a). This complaint centers upon language from the settlement agreement stating: “Mallery and Rosas entered into a business deal whereby Rosas agreed to refinance and obtain a purchaser for a residence owned by Mallery on which he was in default in payment of the Note. Rosas did not act as an attorney.”
C. Affirmative Defense
In his fifth issue, Rosas contends the trial court erred in disregarding his defense to the Commission’s allegations. According to Rosas, his and Mallery’s transaction falls within one of the exceptions to the rule prohibiting business dealings between a lawyer and his client. As previously noted, Disciplinary Rule 1.08 provides:
(a) A lawyer shall not enter into a business transaction with a client unless:
(1)the transaction and terms on which the lawyer acquires the interest are fair and reasonable to the client and are fully disclosed in a manner which can be reasonably understood by the client;
(2) the client is given a reasonable opportunity to seek the advice of independent counsel in the transaction; and
(3) the client consents in writing thereto.
Tex. Disciplinary Rules Prof’l Conduct R. 1.08(a). “Paragraph (a) does not, however, apply to standard commercial transactions between the lawyer and the client for products or services that the client generally markets to others such as banking or brokerage services, medical services, products manufactured or distributed by the client, and utilities services.” Tex. Disciplinary Rules Prof’l Conduct R, 1.08 cmt. 2. A lawyer has no advantage in dealing with the client in such transactions, and the restrictions in paragraph (a) are unnecessary and impracticable. Id. Rosas argues he and Mallery engaged in a commercial transaction for products or services that Mallery generally markets to othеrs; therefore, Rosas contends the trial court should have found the underlying business transaction exempted from Disciplinary Rule 1.08(a).
Rosas’s assertion that his and Mal-lery’s transaction is exempted from Disciplinary Rule 1.08(a) is a matter constituting an avoidance or affirmative defense to the Commission’s claim of professional misconduct.
See Rodgers v. Comm’n for Lawyer Discipline,
Turning to the record, we do not believe Rosas satisfied his burden regarding his affirmative defense. Rosas points to no evidence demonstrating he and Mal-lery were on equal footing in connection with the underlying transaction. Mallery testified his real estate knowledge and experience is limited to showing properties to potential buyers, collecting checks, and preparing one-page letters of intent. He stated he has no knowledge or experiеnce relating to the legal aspects of real estate transactions, including matters pertaining to contracts and deeds. The trial court was free to judge Mallery’s credibility on this issue.
See Santos,
Disciplinary Rule 8.04(a)(3)
In his second and sixth issues, Rosas challenges the legal sufficiency of the evidence to support the trial court’s finding that he violated Rule 8.04(a)(3) of the Texas Disciplinаry Rules of Professional Conduct. Disciplinary Rule 8.04(a)(3) provides: “A lawyer shall not ... engage in conduct involving dishonesty, fraud, deceit or misrepresentation.”
See
Tex. Disciplinary Rules Prof’l Conduct R. 8.04(a)(3). This court has held “ ‘dishonesty’ is defined as ‘lack of honesty, probity, or integrity in principle’ and ‘lack of ... straightforwardness.’ ”
Brown v. Comm’n for Lawyer Discipline,
We believe the record supports the trial court’s finding that Rosas engaged in conduct involving dishonesty because his actions lacked probity, integrity, and straightforwardness. The record shows Mallery hired Rosas in response to а solicitation letter he received from Rosas. Mallery testified he hired Rosas because he wanted to “get rid of [his] house,” avoid having his property sold at foreclosure, and protect his credit. Although Rosas was aware of Mallery’s stated objectives, Rosas took actions inconsistent with them to further his own interests. The trial court heard that after Rosas delayed Mallery’s foreclosure, he and Mal-lery reached an agreement wherein Mal-lery would transfer ownership of his investment property to Rоsas’s company (ASGR) in exchange for $5,000. Rosas prepared various legal documents to effectuate the transfer, but failed to explain them to Mallery. Notably, Rosas failed to inform Mallery that Mallery would remain
Disbarment
In his fourth issue, Rosas contends the trial court abused its discretion when it ordered the sanction of disbarment. A trial court has broad discretion to determine the consequences of professional misconduct.
State Bar of Tex. v. Kilpatrick,
The judgment of a trial court in a disciplinary proceeding may be so light or heavy as to amount to an abuse of discretion.
Kilpatrick,
The record shows the trial court considered the relevant factors outlined in Disciplinary Rule 3.10 in assessing Rosas’s
Rosas argues the sanction of disbarment is an abuse of discretion because there is no evidence showing the following: (1) how the public’s respect for the legal profession was harmed by his misconduct; (2) the seriousness of his actions; and (3) any damage to his former client. Rosas, however, ignores Mallery’s testimony, which goes to each of the factors disputed by Rosas. Mallery testified about how he called Rosas for advice оn saving him from foreclosure and that he trusted Rosas because he was an attorney. He stated Ro-sas’s conduct in connection with the house has made him feel like he “h[as] been held hostage by a terrorist for two years now. He moved people into the house and not paid a dime ... and will not give the house back.” Mallery commented to the court that “you’re supposed to be able to trust attorneys to do what they say.” He further testified his “credit is destroyed” and that he is “still on the hook for the note” as a result of his dealings with Rosas.
Rosas also claims that disbarment is too harsh a sanction because he did not profit from his actions. Even if this factor weighs in favor of Rosas, the record shows the primary concern of the court when assessing the sanction of disbarment was the effect of Rosas’s actions on the public’s perception of the legal profession. The trial court had broad discretion to balance the evidence and apply it to the factors set forth in Rule 3.10. In light of the evidence presented, we cannot say the record demonstrates the trial court acted in an unreasonable and arbitrary manner or without reference to any guiding principles in imposing the sanction of disbarment. Ro-sas’s fourth issue is overruled.
See Rangel v. State Bar of Tex.,
Conclusion
Based on the foregoing, the trial court’s judgment is affirmed.
Notes
. The petition Rosas filed in district court was styled Mark A. Mallery v. Litton Loan Servicing L.P., Its Assigns, Successors, and Predecessors in Interest.
.The injunction hearing scheduled for August 21, 2007 did not occur.
. Mallery was conveying his property to Ro-sas’s property holding company, ASGR Property Holdings. The transfer documents provided that ASGR would take ownership of Malleiy’s property, while Mallery would remain financially responsible for the property’s mortgage payments. Mallery purportedly did not understand the effect of the documents he signed and did not realize he would remain financially responsible for the property’s mortgage payments. According to Mallery, he executed the documents because he trusted Rosas and believed that Rosas was acting to further his interests. The record shows Mal-lery made no changes to the documents provided by Rosas except for altering the due date on the promissory note.
. The Texas investment property was scheduled for foreclosure three additional times, but was never foreclosed upon by the bank.
. According to Mallery, he did not realize the effect of the legal documents prepared by Rosas and would not have signed the docu-merits had Rosas disclosed the fact that he was still "on the hook for the loan and sign[ing] away [his] rights to the property.”
. Rosas was publically reprimanded for misconduct and also received a twelve-month partially probated suspension in 2000. He was then found guilty of professional misconduct and sanctioned with a partially probated suspension in 2007. The Board of Disciplinary Appeals later revoked the probated portion of Rosas’s 2007 suspension and imposed a five-year active suspension in 2008.
