In re Stamps
| Decision Date | 14 April 2004 |
| Docket Number | No. 2003-B-2985.,2003-B-2985. |
| Parties | In re Jerry Jackson STAMPS. and In re Teresa Lynn Witt-Stamps. |
| Court | Louisiana Supreme Court |
ATTORNEY DISCIPLINARY PROCEEDINGS.
This attorney disciplinary proceeding arises from formal charges instituted by the Office of Disciplinary Counsel ("ODC") against respondents, Jerry Jackson Stamps and Teresa Lynn Witt-Stamps. Respondents are married and currently practice law together in the State of Louisiana.
Respondents graduated from law school in May 1998 and applied to take the Louisiana bar examination in the summer of 1998. Respondents failed to pass the bar examination at that time and began preparing to re-take the examination in February 1999.
In October 1998, while studying for the February 1999 examination, respondents learned that Gabrielee Locklear, an attorney licensed to practice in North Carolina, was advertising for law school graduates or associates to work for him in connection with his personal injury law practice. After several telephone conversations, respondents traveled to North Carolina to meet with Mr. Locklear. Thereafter, Mr. Locklear, who knew respondents were not licensed to practice law in North Carolina, contacted respondents to invite them to join his practice.
Following this offer, respondents made additional trips to North Carolina to meet with Mr. Locklear. On December 20, 1998, they signed an employment contract with Mr. Locklear, which was to be effective on January 2, 1999. That contract provided:
Employee is hereby hired to perform services for Employer in the capacity of an Associate. In such practice, Employees' duties shall consist of the general practice of law consistent with the rules of law of the Supreme Court of North Carolina ... [and] while employed by Employer, Employees shall use their best efforts to provide legal counsel and service to customers in the following counties ... Employees fully and completely understand and accept their obligations under this Agreement... During the employment term, the parties will enter into partnership negotiations.... For all services rendered by Employees hereunder, Employees shall receive compensation in the amount of $36,000.00 per year per Employee plus ten percent of revenue generated by Employees.... [Emphasis added.]
On the same day they executed their employment contract with Mr. Locklear, Mr. Locklear notarized their applications to sit for the February 1999 Louisiana bar examination. The application to take the bar examination requested information concerning their employment history over the last ten years. Both respondents replied that they had been full time students during this period and did not mention their employment with Mr. Locklear.
Beginning in January 1999, respondents returned to North Carolina on numerous occasions and would stay for periods ranging from a few days to weeks. While it is unclear exactly what functions they performed for Mr. Locklear during this time, the record contains several pieces of evidence concerning their activities. In a letter written on Mr. Locklear's letterhead and dated March 12, 1999, Mrs. Stamps wrote to John Robinson, an insurance adjuster, indicating that "we have been retained by Mr. James D. Williams...." Mrs. Stamps signed the letter, which contained the signature line, In another letter, dated April 27, 1999, Mrs. Stamps wrote to the Sabella Chiropractic Clinic, a medical provider, again stating the firm had been retained by Mr. Williams. She signed the letter above the signature line, "Lynn Stamps, Esq." Upon negotiation of the settlement of Mr. Williams' personal injury claim, the insurer adjuster issued a check on May 13, 1999 in the amount of $7,000 made payable to Lynn Stamps as "attorney" for Mr. Williams.
The record also contains checks issued to Mr. or Mrs. Stamps during their employment with Mr. Locklear. Each of the checks was endorsed by Mr. or Mrs. Stamps. In all but one instance, the checks contain notations in the "memo" section indicating the funds were proceeds and/or fees from a client matter.1 Respondents remained with Mr. Locklear's firm until April 1999, at which time Mrs. Stamps passed the Louisiana bar examination. Mrs. Stamps then opened her own law practice.
Mr. Stamps, who did not pass the February 1999 bar examination, applied to sit for the July 1999 examination. In his application to take that examination, he made no mention of his employment with Mr. Locklear. Eventually, Mr. Stamps was admitted to the bar in October 1999, and joined his wife's law practice.
Following respondents' departure from Mr. Locklear's firm, Mr. Stamps wrote letters to Mr. Locklear on behalf of himself and his wife seeking fees purportedly owed to respondents and Mr. Locklear by clients. The letters implied respondents worked on client matters and were still willing to handle the North Carolina cases.2
The North Carolina State Bar subsequently conducted a disciplinary investigation into Mr. Locklear's activities in that state. In connection with that investigation, Mr. Locklear stipulated that he split legal fees with Mr. and Mrs. Stamps.3 The North Carolina State Bar then advised the ODC that Mr. and Mrs. Stamps may have engaged in the unauthorized practice of law in the State of North Carolina.4
The ODC took sworn statements from Mr. and Mrs. Stamps. Mrs. Stamps testified that although she signed an employment contract with Mr. Locklear in late 1998, the contract never went into effect because Mr. Locklear advised her he could not pay her. Mrs. Stamps testified she performed some "paralegal/law clerk work" for Mr. Locklear on occasion, but denied ever discussing cases with clients or accepting money from them. Mr. Stamps likewise testified that he did not work on any legal matters from Mr. Locklear and simply assisted him in gathering information for a loan application.
After investigation, the ODC filed one count of formal charges against respondents. The charges alleged violations of Rules 5.5(a) (), 5.5(b) (), 8.1(a) (), 8.1(b) (), 8.4(a) (), 8.4(c) (), and 8.4(d) () of the Rules of Professional Conduct.
Respondents answered, denying any misconduct. They also filed an exception, asserting Louisiana had no jurisdiction over their actions, which occurred in another state prior to their admission to the bar in Louisiana, and a motion to sever their cases. The committee chair referred the exception to the merits and denied the motion to sever. The case then proceeded to a formal hearing.
Respondents presented no witnesses at the hearing, nor did they testify on their own behalf, relying instead on their earlier sworn statements. The ODC likewise presented no live testimony, but submitted testimony of its witnesses, all of whom resided outside of the state, by deposition or videotape.
Carolin Bakewell, counsel for the North Carolina State Bar, testified it was her opinion that respondents had split fees with Mr. Locklear. In support, Ms. Bakewell noted that the checks issued by Mr. Locklear to respondents represented exactly 50% of the attorney's fees in the respective cases. She pointed out the North Carolina Disciplinary Hearing Commission specifically rejected Mr. Locklear's argument that the checks simply represented salary payments.
Mr. Blackwell testified that he retained respondents to handle six cases on his behalf. Mr. Blackwell stated they quoted a fee of $1,500 to him to handle his legal matters and that he paid Mrs. Stamps $700, and later paid an additional $400. He claimed he consulted with both Mrs. Stamps and Mr. Stamps on numerous occasions. Mr. Blackwell pointed out that Mr. Stamps had "a plaque on the desk saying `fifty dollar ($50) consultation fee.'" He further testified: "I think I paid'em fifty dollars ($50) a couple of times, because they wouldn't even talk to you unless you paid a consultation fee...." He noted that he never received receipts for the payments. Mr. Blackwell testified that he filed a complaint with the North Carolina State Bar when he concluded that work was never done on his cases. Further, he maintained he was never advised by respondents that they were not licensed to practice law in North Carolina.
James Williams testified that in March 1999, he hired Mrs. Stamps in connection with an "accident case" against Wallace Trucking. He claimed he was referred to her by Mr. Locklear. Mr. Williams testified that he met with Mrs. Stamps directly, outside of the presence of Mr. Locklear. According to Mr. Williams, Mrs. Stamps never advised him that she did not have a license to practice law in North Carolina. Mr. Williams further denied that Mrs. Stamps ever told him she would be assisting Mr. Locklear; rather, she told him "she was gonna be the lawyer." He testified that she never indicated she would have to consult with Mr. Locklear before she did anything on the case and advised him her fee would be one-third of any recovery. Mr. Williams stated that he was unclear about the actual settlement amount because he never saw the check from the insurance company. He...
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