Attorney Grievance v. Lawson

• Decision Date: 11 October 2007
• Docket Number: Misc. Docket AG No. 15 Sept. Term, 2006.
• Citation: 933 A.2d 842,401 Md. 536
• Parties: ATTORNEY GRIEVANCE COMMISSION OF MARYLAND v. Jeffrey LAWSON.
• Court: Court of Special Appeals of Maryland

933 A.2d 842

401 Md. 536

ATTORNEY GRIEVANCE COMMISSION OF MARYLAND v. Jeffrey LAWSON.

Misc. Docket AG No. 15 Sept. Term, 2006.

Court of Appeals of Maryland.

October 11, 2007.

Dolores O. Ridgell, Asst. Bar Counsel (Melvin Hirshman, Bar Counsel, Atty. Grievance Comm'n of Maryland), for Petitioner.

Edward Smith, Jr., Baltimore, for Respondent.

Argued before BELL, C.J., RAKER, HARRELL, BATTAGLIA, GREENE, ALAN M. WILNER, (retired, specially assigned), DALE R. CATHELL, (retired, specially assigned), JJ.

BATTAGLIA, Judge.

The Attorney Grievance Commission of Maryland ("Petitioner"), acting through Bar Counsel and pursuant to Maryland Rule 16-751(a),¹ filed a petition for disciplinary or remedial action against Respondent, Jeffrey Lawson on June 7, 2006. Bar Counsel alleged that Respondent violated Maryland Rules of Professional Conduct ("MRPC"), 1.3 (Diligence),² 1.4 (Communication),³ 1.5 (Fees),⁴ 1.15 (Safekeeping Property),⁵ 1.16 (Declining or Terminating Representation),⁶ and 8.4 (Misconduct),⁷ as well as Maryland Rule 16-603 (Duty to Maintain Account),⁸ Maryland Rule 16-604 (Trust Account—Required Deposits),⁹ and Maryland Rule 16-609 (Prohibited Transactions).¹⁰

In accordance with Maryland Rules 16-752(a) and 16-757(c),¹¹ we referred the petition to Judge Robert E. Cahill, Jr. of the Circuit Court for Baltimore County for an evidentiary hearing and to make findings of fact and conclusions of law. Judge Cahill held a hearing on January 31, 2007 and issued Findings of Fact and Conclusions of Law on April 19, 2007, in which he found by clear and convincing evidence that Respondent had violated MRPC 1.4(a), 1.5, 1.15, and 8.4 and Maryland Rules 16-604 and 16-609:

FINDINGS OF FACT AND CONCLUSIONS OF LAW

BACKGROUND

"On February 8, 2006, the Court of Appeals of Maryland transmitted this matter to the Circuit Court for Baltimore County for the purpose of conducting a hearing pursuant to Maryland Rule 16-757. Edward Smith, Jr., Esquire, entered his appearance for the Respondent on November 21, 2006. Before commencement of the hearing, the Court granted in part the Petitioner's Motion for Sanctions, precluding Respondent from testifying that he had used an attorney trust account to escrow the legal fee that forms part of the subject matter of this action, based on his refusal to disclose information about that account properly sought in discovery. The hearing was held on January 31, 2007.

CHARGES

"All of the charges lodged against the Respondent arise from an attorney-client relationship which commenced on April 24, 2005 when Timothy Dean ("Dean") retained the Respondent to represent him in litigation filed in the Circuit Court for Baltimore City. Dean and two (2) related corporate entities had been sued by Dean's business associate, Shedric Wallace ("Wallace"), over disagreements concerning their ownership of a restaurant. The Respondent, who had been admitted to practice law in Maryland for some thirteen (13) months before being retained by Dean, accepted a legal fee of $5,000.00 from Dean, and prepared and had Dean sign a written fee agreement on April 24, 2005. Respondent entered his appearance on behalf of Dean and the two related entities on April 28, 2005. He confirmed in an e-mail to Dean on May 23, 2005 that he would "vigorously represent all Defendants" in the litigation. He filed a Motion to Dismiss/for Summary Judgment and sent discovery pleadings to Wallace on behalf of Dean and the related entities on May 26, 2005. In late May, he began insisting that he be paid an additional $5,000.00 to represent the two (2) related corporate entities. Dean, on behalf of the other entities, refused. Respondent immediately began threatening to withdraw. Respondent prepared and sent to Dean, on June 21, 2005, a Motion for Leave to Withdraw as Counsel for the Defendants. Dean filed a pro se opposition to this, based on the fact that he had made a flat fee payment to Respondent for representation through trial. On August 11, 2005, the Circuit Court ordered that Respondent's appearance be withdrawn. Previous to this Order allowing Respondent to withdraw his appearance on behalf of the Defendants, specifically on July 19, 2005, another attorney, Edward A. Malone, Esquire, had entered his appearance on behalf of these Defendants. Also on July 19, Mr. Malone filed a Counter Complaint on behalf of all Defendants and a Third-Party Complaint. On December 1, 2006 a Settlement Order was filed and the case was dismissed on December 22, 2006, with Dean paying Wallace in excess of $65,000.00 to resolve all disputes.

"As a result of a complaint letter purportedly authored by Dean on August 8, 2005, dealing primarily with the unreasonableness of the Respondent's fee, and his failure to refund it or any part of it after withdrawing his appearance, the Attorney Grievance Commission of Maryland has charged Lawson with violating certain of Maryland's Rules of Professional Conduct, as well as procedural Rules governing attorney trust accounts. Specifically, it is alleged that the Respondent has violated the following provisions:

"Rule 1.3 Diligence A lawyer shall act with reasonable diligence and promptness in representing a client.

"Rule 1.4 Communication

(a) A lawyer shall keep a client reasonably informed about the status of a matter and promptly comply with reasonable requests for information.

(b) A lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation.

"Rule 1.5 Fees

(a) A lawyer's fees shall be reasonable. The factors to be considered in determining the reasonableness of the fee include the following:

(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;

(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

(3) the fee customarily charged in the locality for similar legal services;

(4) the amount involved and the result obtained;

(5) the time limitations imposed by the client or by the circumstances;

(6) the nature and length of the professional relationship with the client;

(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and

(8) whether the fee is fixed or contingent.

(b) When the lawyer has not regularly represented the client, the basis or rate of the fee shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation.

"Rule 1.15 Safekeeping Property

(a) A lawyer shall hold property of clients or third persons that is in a lawyer's possession in connection with a representation separate from the lawyer's own property. Funds shall be kept in a separate account maintained pursuant to Title 16, Chapter 600 of the Maryland Rules. Other property shall be identified as such and appropriately safeguarded. Complete records of such account funds and of other property shall be kept by the lawyer and shall be preserved for a period of five years after termination of the representation.

(b) Upon receiving funds or other property in which a client or third person has an interest, a lawyer shall promptly notify the client or third person. Except as stated in this Rule or otherwise permitted by law or by agreement with the client, a lawyer shall promptly deliver to the client or third person any funds or other property that the client or third person is entitled to receive and, upon request by the client or third person, shall promptly render a full accounting regarding such property.

(c) When in the course of representation a lawyer is in possession of property in which both the lawyer and another person claim interests, the property shall be kept separate by the lawyer until there is an accounting and severance of their interests. If a dispute arises concerning their respective interests, the portion in dispute shall be kept separate by the lawyer until the dispute is resolved.

"Rule 1.16 Declining or Terminating Representation

(d) Upon termination of representation, a lawyer shall take steps to the extent reasonably practicable to protect a client's interests, such as giving reasonable notice to the client, allowing time for employment of other counsel, surrendering papers and property to which the client is entitled and refunding any advance payment of fee that has not been earned. The lawyer may retain papers relating to the client to the extent permitted by other law.

"Rule 8.4 Misconduct

It is professional misconduct for a lawyer to:

(a) violate or attempt to violate the Rules of Professional Conduct, knowingly assist or induce another to do so, or do so through the acts of another;

* * *

(c) engage in conduct involving dishonesty, fraud, deceit or misrepresentation;

(d) engage in conduct that is prejudicial to the administration of justice.

"Maryland Rule 16-603 Duty to Maintain Account

An attorney or the attorney's law firm shall maintain one or more attorney trust accounts for the deposit of funds received from any source for the intended benefit of clients or third persons. The account or accounts shall be maintained in this State, in the District of Columbia, or in any state contiguous to this State, and shall be with an approved financial institution. Unless an attorney maintains such an account, or is a member of or employed by a law firm that maintains such an account, an attorney may not receive and accept funds as an attorney from any source in whole or in part for the benefit of a client or third person.

"Maryland Rule 16-604 Trust Account-Required Deposit

Except as otherwise permitted by rule or other law, all funds, including cash, received and accepted by an attorney or law firm in this State from a client or third person to be delivered in whole or in part to a client or third person, unless received as...