Bd. of Prof'l Responsibility v. Woodhouse

Decision Date29 June 2022
Docket NumberD-21-0005
Citation2022 WY 85
PartiesBOARD OF PROFESSIONAL RESPONSIBILITY, WYOMING STATE BAR, Petitioner, v. GAY VANDERPOEL WOODHOUSE, WSB #5-1580, Respondent.
CourtWyoming Supreme Court

ORDER OF PUBLIC CENSURE

KATE M. FOX Chief Justice

[¶1] This matter came before the Court upon a Report and Recommendation for Public Censure, filed herein May 23, 2022 by the Board of Professional Responsibility for the Wyoming State Bar, pursuant to Rule 15 of the Wyoming Rules of Disciplinary Procedure. The Court, after a careful review of the Board of Professional Responsibility's Report and Recommendation and the file, finds that the Report and Recommendation should be approved, confirmed and adopted by the Court, and that Respondent Gay Vanderpoel Woodhouse should be publicly censured for her conduct. It is therefore, [¶2] ADJUDGED AND ORDERED that the Board of Professional Responsibility's Report and Recommendation for Public Censure, which is attached hereto and incorporated herein, shall be, and the same hereby is, approved confirmed, and adopted by this Court; and it is further

[¶3] ADJUDGED AND ORDERED that Gay Vanderpoel Woodhouse is hereby publicly censured for her conduct, which is described in the Report and Recommendation for Public Censure; and it is further [¶4] ORDERED that, pursuant to Rule 25 of the Wyoming Rules of Disciplinary Procedure, Ms. Woodhouse shall reimburse the Wyoming State Bar the amount of $50.00, representing some of the costs incurred in handling this matter, as well as pay the administrative fee of $750.00. This Court finds that, given the circumstances, Ms. Woodhouse should not be liable for any other costs. See Rule 25(e). Ms. Woodhouse shall pay the total amount of $800.00 to the Wyoming State Bar on or before September 1, 2022. If Ms. Woodhouse fails to make payment in the time allotted, execution may issue on the award; and it is further

[¶5] ORDERED that the Clerk of this Court shall docket this Order of Public Censure, along with the incorporated Report and Recommendation for Public Censure, as a matter coming regularly before this Court as a public record; and it is further

[¶6] ORDERED that, pursuant to Rule 9(b) of the Wyoming Rules of Disciplinary Procedure, this Order of Public Censure, along with the incorporated Report and Recommendation for Public Censure, shall be published in the Wyoming Reporter and the Pacific Reporter; and it is further

[¶7] ORDERED that the Clerk of this Court cause a copy of this Order of Public Censure to be served upon Respondent Gay Vanderpoel Woodhouse.

[¶8] DATED this 29th day of June, 2022.

BY THE COURT:

In the Matter of GAY VANDERPOEL WOODHOUSE, WSB #5-1580, Respondent

WSB No. 2020-089

May 23, 2022

REPORT AND RECOMMENDATION FOR PUBLIC CENSURE

Debra J. Wendtland, Chair

THIS MATTER came before a Hearing Panel of the Board of Professional Responsibility ("Panel") for hearing on April 18 and 19, 2022, for hearing pursuant to Rule 15, W.R.Disc.P. Present at the hearing were Panel members Debra J. Wendtland (Chair), John A. Masterson and Janine Thompson. Mark W. Gilford, Bar Counsel, appeared on behalf of the Wyoming State Bar. Respondent Gay Vanderpoel Woodhouse appeared with her counsel, Stephen H. Kline. Numerous witnesses testified as summarized below. Bar Counsel's Exhibits BC-1 through BC-32 were received into evidence as were Respondent's Exhibits 2 through 6. The Hearing Panel having received testimony and reviewed the exhibits, having heard the arguments of counsel and being fully advised in the premises, finds, concludes and recommends as set forth below.

In submitting this report and recommendation, the Panel is mindful of this Court's holding in Bd. of Pro. Responsibility v. Hinckley, 2022 WY 18, ¶ 3, 503 P.3d 584,593 (Wyo. 2022):

"The purposes of the state bar disciplinary procedures are to maintain the integrity of the bar, to prevent the transgressions of an individual lawyer from bringing its image into disrepute and to protect the public and the administration of justice." Bd of Pro. Responsibility v. Richard, 2014 WY 98, ¶ 51, 335 P.3d 1036, 1051 (Wyo. 2014) (citations and quotation marks omitted). See also, ABA Standards for Imposing Lawyer Sanctions § 1.1 (ABA Standards). In disciplinary proceedings, the responsibility of this Court is not to punish, but to inquire into and gauge a lawyer's continued fitness to practice law. This inquiry is conducted with a view to safeguarding the interests of the public, the courts, and the legal profession. See ABA Standards, Methodology ("The purpose of the disciplinary proceeding is not punitive but to inquire into the fitness of the lawyer to continue in that capacity for the protection of the public, the courts, and the legal profession."); State ex rel. Okla Bar Ass'n v. Wintory, 2015 OK 25, ¶ 15, 350 P.3d 131, 135 (Okla. 2015) ("The purpose of lawyer discipline proceedings is to protect the public and the administration of justice from lawyers who have not discharged, will not discharge, or are unlikely to properly discharge their professional duties to clients, the public, the legal system, and the legal profession.").

The Panel was impressed with the honesty and sincerity that was apparent in the testimony of all witnesses. The Panel did not have to resolve matters of witness credibility for purposes of its findings and recommendation set forth below.

Findings of Fact and Conclusions of Law

1. Gay Vanderpoel Woodhouse has been licensed to practice in Wyoming since 1978 and is engaged in the active practice of law in Cheyenne, Wyoming. At all times relevant to this matter, she was an attorney with the firm of Woodhouse Roden Nethercott, LLC.

2. The complaint against Ms. Woodhouse in the above-captioned matter was submitted in October 2020 by Ken and Erin Waszkiewicz of Cheyenne. At all times relevant to the complaint, Mr. and Ms. Waszkiewicz owned 100% of WyO Ninja, LLC ("WyO Ninja"), and 360 Degree Properties, LLC ("360 Degrees"). Cannon Meyer owned 100% of Ninja Playground, LLC ("Ninja Playground"). WyO Ninja and Ninja Playground both owned an equal-share (50%) interest in Ninja Playground Athletics, LLC ("Ninja Playground Athletics"). See Exhibit BC-1.

3. All of the LLCs were formed in Wyoming. Prior to the formation of Ninja Playground Athletics, Ninja Playground operated a gym where people could train and work out based on the Ninja Warrior television show. In late 2019, 360 Degree Properties purchase an 8,000 square foot building located at 1505 Pioneer Avenue, which it then lease to Ninja Playground. This building housed the gym. The gym was then operated under Ninja Playground Athletics. See Exhibit BC-2.

(Image Omitted)

4. Ninja Playground Athletics began its operation in January 2020. The gym was forced to shut down in March of that year due to COVID-19. An ongoing business dispute between the partners of Ninja Playground Athletics became worse because the gym was shut down and Mr. Meyer brought people into the gym to work out when it was shut down.

5. As a result, and in an attempt to bring an end to their disputes, Mr. and Ms. Waszkiewicz offered to purchase Ninja Playground's interest in Ninja Playground Athletics or have Ninja Playground purchase WyO Ninja's interest in Ninja Playground Athletics. Mr. Meyer (sole member of Ninja Playground) was unwilling or unable to do either.

6. In April 2020, Mr. and Ms. Waszkiewicz retained Cheyenne attorney Ryan Wright to try and resolve the business dispute, Mr. Wright sent a request to mediate (pursuant to Ninja Playground Athletics' operating agreement, see Exhibit BC-2, p. 38 § 9.16.2) to Mr. Meyer. Exhibit BC-4. In response, Mr. Meyer hired Ms. Woodhouse, who then brought suit on behalf of Ninja Playground and Ninja Playground Athletics against WyO Ninja and 360 Degrees for access to the Ninja Playground Athletics facility, access to the books, records, and accounts of Ninja Playground Athletics and the password(s) to the Ninja Playground Athletics' website and bank accounts. Mr. Meyer's Complaint further sought damages for tortious interference with the business. Exhibit BC-6.

Respondent's Violation of Rule 1.7

7. W.R.Prof.Conduct 1.7 provides:

(a) Except as provided in paragraph (b), a lawyer shall not represent a client if the representation involves a concurrent conflict of interest. A concurrent conflict of interest exists if:
(1) the representation of one client will be directly adverse to another client; or
(2) there is a significant risk that the representation of one or more clients will be materially limited by the lawyer's responsibilities to another client, a former client or a third person or by a personal interest of the lawyer.
(b) Notwithstanding the existence of a concurrent conflict of interest under paragraph (a), a lawyer may represent a client if:
(1) the lawyer reasonably believes that the lawyer will be able to provide competent and diligent representation to each affected client;
(2) the representation is not prohibited by law;
(3) the representation does not involve the assertion of a claim by one client against another client represented by the lawyer in the same litigation or other proceeding before a tribunal; and
(4) each affected client gives informed consent, confirmed in a writing, signed by the client.

8. Ms Woodhouse admitted, under oath, that she undertook the representation of Ninja Playground and Ninja Playground Athletics without obtaining written, informed consent to represent Ninja Playground Athletics, and that she did so even though the Waszkiewicz' limited liability company (WyO Ninja) owned 50% of Ninja Playground Athletics. Further, Ms. Wood-house admitted that the operating agreement for Ninja Playground Athletics LLC provided that...

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