"Respondent is age 56 and in reasonably good health, except for an asymptomatic congenital pituitary gland condition and stress/depression as a result of the protracted proceedings herein, for which he has been prescribed Paxil. However, for the time period 1989-1999, he was in `good health' and was not hindered or impaired in his practice of law by medical or psychiatric/psychological difficulties.
"Respondent received his undergraduate degree from Frostburg State University and Juris Doctorate from the University of Baltimore, and admitted to practice in Maryland in 1977. During the period concerning the complaint, 1989-1999, Respondent was a sole general practitioner with offices in Grantsville, Frostburg and Cumberland with support staff. His primary practice involved residential/commercial real estate closings with approximately 15%-20% of his practice time representing plaintiffs in personal injury matters.
"On or about November 30, 1989 the Respondent was retained by John Dormio (Dormio) to represent him in a personal injury claim as a result of an automobile accident which occurred November 8, 1989, Dormio being a long time acquaintance of the Respondent. Respondent agreed to represent Dormio on a contingency legal fee basis, with the written Retainer Agreement providing for Respondent to be paid one-fourth (1/4) of any settlement and one-third (1/3) of the recovery if suit was filed, with Dormio responsible for all incurred costs. Dormio, being seriously injured, incurred over Thirty Thousand Dollars ($30,000.00) in medical bills which were covered through Medicare, administered by Blue Cross/Blue Shield (BC/BS), which timely notified Respondent of its subrogation lien on any proceeds recovered.
"Respondent negotiated an automobile liability insurance policy limits settlement in the amount of Twenty-five Thousand Dollars ($25,000.00), with the settlement check received on February 11, 1992, which was deposited to an account at First Union National Bank and Trust titled `Braskey Law Office, P.A., Attorney Trust Account, IOLTA Account' (IOLTA).
"On February 11, 1992 the Respondent disbursed Six Thousand Two Hundred Fifty Dollars ($6,250.00) to himself as a one-fourth (1/4) contingency legal fee, as well as Seven Hundred Fifty Dollars ($750.00) reimbursement for costs incurred during representation. The balance of the settlement proceeds, Eighteen Thousand Dollars ($18,000.00), remained in the IOLTA account, pending resolution of the BC/BS lien.
"On April 16, 1992 Respondent forwarded documentation to BC/BS on behalf of Dormio and made telephone calls to BC/BS on or about July 22, 1992 and November 18, 1994 in an effort to make known he was holding funds subject to their lien, attempting to negotiate a settlement. After November 18, 1994 Respondent made no further attempts to communicate with BC/BS. Respondent was not knowledgeable or experienced in the practice of negotiating and finalizing an agreement concerning BC/BS subrogation liens, which led to no further activity on this issue.
"Prior to February 1996 Respondent met with Dormio to discuss options concerning the BC/BS lien. Respondent proposed, and it was alleged to have been agreed, that Dormio and Respondent would equally divide $18,000.00 held in the trust account if there was no further contact by BC/BS. It was also allegedly agreed that Respondent would defend Dormio against any legal action taken by BC/BS and indemnify Dormio against any loss. Respondent also agreed to cease any negotiations with BC/BS, thereby giving up his claim to a 25% lien recovery fee he believed he was entitled to from BC/BS. This verbal agreement was never reduced to writing.
"In February or March 1996 Respondent learned Dormio had suffered a stroke, had become incapacitated, was residing in a nursing home and no longer competent to handle his affairs. His nieces, Joanna Rase (Rase) and Gail Richards (Richards) had received legal power of attorney to handle Dormio's affairs.
"On March 25, 1996 Respondent disbursed Five Thousand Dollars ($5,000.00) to himself from the $18,000.00 held in his trust account as partial legal fee for Dormio representation, and on April 8, 1996 disbursed an additional Four Thousand Dollars ($4,000.00) to himself as balance of legal fees owed, for a total of Nine Thousand Dollars ($9,000.00).
"In May 1996 Respondent contacted Rase and Richards, consulted with them, and offered to split the $18,000.00 that remained from the personal injury settlement. Rase and Richards refused the offer and demanded the entire $18,000.00 be placed in interest-bearing account. Over a year transpired with no further activity, and a second office consultation occurred on June 26, 1997, whereby Respondent advised of the Nine Thousand Dollar ($9,000.00) fee disbursement, and Rase/Richards again requested the funds be placed in an interest-bearing account with the Nine Thousand Dollar ($9,000.00) legal fee disbursed replaced.
"On July 10, 1997 the Respondent wrote to Rase and Richards and represented the entire $18,000.00 received from the Dormio settlement was presently in his trust account, but on July 14, 1997 Respondent deposited Nine Thousand Dollars ($9,000.00) from his personal assets to the trust account to make up the deficit. Rase and Richards being dissatisfied, on July 31, 1997, consulted with attorney Howard J. Price, who advised them that he would not have handled the Dormio case in the same manner as Respondent, and further instructed Rase/Richards of their right to file a complaint with the AGC.
"On August 15, 1997 Respondent disbursed Eighteen Thousand Dollars ($18,000.00) from his trust account and opened an interest-bearing account titled in Respondent's name alone; however, on June 11, 1999 Respondent withdrew Nine Thousand Dollars ($9,000.00) from the account for himself. In correspondence with Rase and Richards the Respondent made false and misleading statements concerning status of the disputed funds as evidenced by attachments to the Complaint, Petitioner's Exhibit 1. This matter remained unsolved, and on July 28, 1999 Rase and Richards filed a formal complaint with AGC against Respondent.
"On September 23, 1999 Respondent opened a new Trust Account whereby he transferred the remaining Nine Thousand Six Hundred Twenty-four Dollars and Twenty-four Cents ($9,624.24) from his personal interest-bearing account, as well as the Nine Thousand Dollars ($9,000.00) of his personal funds, total Eighteen Thousand Six Hundred Twenty-four Dollars and Twenty-four Cents ($18,624.24).
"On April 27, 2000, Rase and Richards advised Respondent by letter that Dormio was deceased and an estate had been opened, whereby they were appointed personal representatives. On May 22, 2000 Respondent disbursed the entire account funds and made payable to the Estate of John Dormio in the amount of Fourteen Thousand Three Hundred Twenty-two Dollars and Eighteen Cents ($14,322.18) sent to attorney Howard J. Price, and paid to himself attorney fees in the amount of Four Thousand Five Hundred Dollars ($4,500.00). Respondent contends that this was an agreement reached with Price, attorney for Rase and Richards. Subsequently, Rase and Richards on behalf of the Dormio estate accepted and negotiated the check.
Time Line of Significant Events as to Proceeds in Dispute
11/10/89 Automobile accident wherein Dormio was injured.
11/30/89 Respondent retained by Dormio for representation
02/11/92 $25,000.00 settlement received.
02/13/92 Deposit of gross settlement proceeds: $25,000.00
IOLTA Account No.64-01040
02/13/92 Respondent disburses: -$ 7,000.00
____________
From IOLTA Account
(1) Fee: $6,250.00
(2) Costs: 750.00
_________
$7,000.00
Net proceeds remain in IOLTA Account
pending resolution of BC/BS lien $18,000.00
03/25/96 Respondent issues check to himself from
IOLTA Account. -$ 5,000.00
___________
Remaining net proceeds $13,000.00
04/08/96 Respondent issues fee check to himself from
IOLTA Account. -$ 4,000.00
____________
Remaining net proceeds $ 9,000.00
07/14/97 Respondent deposits to IOLTA Account. +$ 9,000.00
___________
Total in IOLTA Account $18,000.00
08/27/97 Respondent withdraws from IOLTA Account
and deposits in savings account No
XXX-XXXXXX in his name alone $18,000.00
04/18/99 Accrued interest +$ 519.76
___________
Total in savings account $18,519.76
06/11/99 Respo...
