In re Discipline of Knott, No. 44645 (NV 10/7/2005)
| Decision Date | 07 October 2005 |
| Docket Number | No. 44645.,44645. |
| Parties | IN RE: DISCIPLINE OF ROBERT T. KNOTT, ESQ. |
| Court | Nevada Supreme Court |
ORDER OF DISBARMENT
This is an automatic appeal from a Southern Nevada Disciplinary Board hearing panel's recommendation that attorney Robert T. Knott, Jr. be disbarred from the practice of law in Nevada.
Knott was licensed to practice law in Nevada in 1994. On March 26, 2004, we issued an order temporarily suspending Knott and restricting his handling of funds belonging to clients and third parties, because of concerns that he had misappropriated over $200,000, had closed his office without notifying clients, and had continued to practice law despite being transferred to inactive status at his own request.
A formal hearing was held on January 14, 2005, on two complaints containing a total of seven counts filed by the bar against Knott, to which he did not respond. Although Knott testified as to mitigating factors, the hearing proceeded on a default basis and all material allegations in the complaints were deemed admitted under SCR 105(2). At the hearing, Knott admitted that he was unable to account for over $406,000 in client funds, and that he still owes about $250,000 to former clients. He testified that he first began transferring money from his client trust account to his business account after his partner died in 1995, to meet his business overhead expenses and in anticipation of receiving a $150,000 fee for a double probate matter. When the court approved a far smaller fee than anticipated, he had an $85,000 shortfall in his clients' trust account.
Knott further testified that he borrowed approximately $350,000 from family and friends to keep his practice operating, and anticipated repaying them from his fees in two large cases. Although the cases involved a great deal of time and expense, he lost both. Additionally, Knott claims that the stress of his practice resulted in health problems, and that he filed for personal bankruptcy and lost his home.
On August 11, 2003, Knott sent a letter to the bar that he would be "retiring from the practice of law." He is currently employed as an attorney with the California state workers' compensation fund, and claims that he has repaid about $25,000 to former clients since February 2004, and is now trying to repay $1,000 per month to various people. Knott urged the hearing panel not to disbar him, because he feared that it would jeopardize his current position as an attorney in California. Knott claimed that with his current job and anticipated pay increases, he hoped to eventually make repayments of $3,000 to $4,000 dollars a month, and that he could not foresee making such repayments if he lost his attorney job in California.
The hearing panel, however, found by clear and convincing evidence that Knott had violated the following rules: SCR 153 (diligence); SCR 154 (communication); SCR 165 (safekeeping property); SCR 166 (terminating representation); SCR 173 (); SCR 189 (); SCR 200 (); SCR 200(2) (); SCR 203(3) (); and SCR 203(4) ().
The panel further considered as an aggravating factor Knott's prior discipline in the form of a private reprimand issued on June 6, 2002. The reprimand was based on three grievances, all involving checks from Knott that were not paid due to insufficient funds. Knott honored the checks, but was reprimanded for having violated SCR 165 (safekeeping property) by failing to wait for the checks deposited into his trust account to clear before he disbursed funds from the account, and for writing checks that he knew would be returned for insufficient funds because his trust account was overdrawn.
In addition...
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