Office of Lawyer Regulation v. Pleas (In re Pleas)

• Decision Date: 29 September 2020
• Docket Number: No. 2020AP724-D,2020AP724-D
• Citation: 2020 WI 77,394 Wis.2d 6,948 N.W.2d 901
• Parties: In the MATTER OF DISCIPLINARY PROCEEDINGS AGAINST Coral Dawn PLEAS, Attorney at Law: Office of Lawyer Regulation, Complainant, v. Coral Dawn Pleas, Respondent.
• Court: Wisconsin Supreme Court

394 Wis.2d 6

948 N.W.2d 901

2020 WI 77

In the MATTER OF DISCIPLINARY PROCEEDINGS AGAINST Coral Dawn PLEAS, Attorney at Law:Office of Lawyer Regulation, Complainant,

v.Coral Dawn Pleas, Respondent.

No. 2020AP724-D

Supreme Court of Wisconsin.

Opinion Filed: September 29, 2020

ATTORNEY disciplinary proceeding. Attorney's license suspended.

PER CURIAM.

¶1 We review the stipulation filed by the Office of Lawyer Regulation (OLR) and Attorney Coral Dawn Pleas pursuant to Supreme Court Rule (SCR) 22.12. On April 10, 2020, the OLR filed a complaint in this court alleging eight counts of misconduct against Attorney Pleas. Attorney Pleas did not file an answer. Instead, she and the OLR filed a stipulation in which Attorney Pleas admitted the facts and the misconduct alleged in the OLR's complaint and agreed to the level of discipline sought by the OLR: a six-month suspension of Attorney Pleas' license to practice law in Wisconsin.

¶2 We approve the stipulation and adopt the stipulated facts and conclusions regarding Attorney Pleas' eight counts of misconduct as alleged in the OLR's complaint. We determine that the seriousness of Attorney Pleas' misconduct warrants the suspension of her license to practice law in the state for a period of six months. In addition, we agree that Attorney Pleas should be required to pay $8,333.33 in restitution. Because Attorney Pleas entered into a comprehensive stipulation under SCR 22.12, thereby obviating the need for the appointment of a referee and a full disciplinary proceeding, we impose no costs in this matter.

¶3 Attorney Pleas was admitted to practice law in Wisconsin in 1993 and practices in Milwaukee. She has no prior disciplinary history.

¶4 The misconduct alleged in the OLR's complaint arose out of Attorney Pleas' representation of V.B. On September 25, 2014, V.B. was involved in a motor vehicle accident and sustained serious injuries. The other driver involved in the accident was insured through Progressive Insurance Company.

¶5 On September 27, 2014, V.B. signed a contingent fee agreement with Pleas Williams, LLC, the law firm at which Attorney Pleas worked. The fee agreement provided for a one-third contingent fee for all money recovered as part of the case.

¶6 From September 2014 through January 2015, V.B. received medical treatment for her injuries. However, in January of 2015, she was involved in a second automobile accident and suffered additional injuries.

¶7 On March 27, 2015, V.B. signed a second contingent fee agreement with Attorney Pleas to represent her with regard to the 2015 accident.

¶8 In March 2015, Attorney Pleas settled V.B.'s property damage claim for the 2014 accident for $7,396.29. In June 2015, Attorney Pleas settled V.B.'s personal injury claim for the 2014 accident with Progressive Insurance for $25,000, which was the policy limit for Progressive's insured.

¶9 On June 15, 2015, Attorney Pleas deposited the $25,000 settlement check from Progressive into her client trust account. Attorney Pleas did not notify V.B. or any of V.B.'s medical providers that she had received the $25,000 insurance settlement. Pursuant to the first fee agreement, Attorney Pleas would have been entitled to no more than $8,333 out of the $25,000 settlement. In addition, V.B. and third-party medical providers had an ownership interest in a portion of the $25,000.

¶10 Between June 17 and 26, 2015, Attorney Pleas transferred a total of $23,000 from her client trust account to her business checking account. She accomplished these transfers via internet transfers.

¶11 On June 26, 2015, Attorney Pleas withdrew $20,710.54 from her business account. In July and August of 2015, Attorney Pleas made additional internet transfers totaling $6,865 from her client trust account. By the end of August 2015, Attorney Pleas' client trust account had a balance of $.35.

¶12 On September 15, 2015, a service charge to Attorney Pleas' client trust account resulted in an overdraft on the account. At the time, Attorney Pleas did not have an overdraft agreement on file with the OLR.

¶13 From June 2015 through April 2018, Attorney Pleas did not inform V.B. of the $25,000 settlement of her personal injury claim for the 2014 accident.

¶14 Attorney Pleas took no action on V.B.'s personal injury claim for the 2015 accident, and the three-year statute of limitations expired. Attorney Pleas did not inform V.B. that she had failed to file the civil action for the 2015 accident and that the statute of limitations had expired.

¶15 By January 2018, V.B.'s health insurer, UnitedHealthcare, had paid over $38,000 for medical expenses related to the two accidents. Attorney Pleas worked to negotiate a reduction of the entire medical lien with the third-party administrator hired by UnitedHealthcare. In a letter to V.B. dated April 28, 2018, Attorney Pleas advised that she was trying to negotiate a reduction of the entire medical lien. By August 2018, Attorney Pleas negotiated a reduction of the entire medical lien to $8,333.33.

¶16 On August 7, 2018, Attorney Pleas sent a letter to V.B. enclosing the release of claims, a settlement statement, and a settlement check in the amount of $8,333.33. The settlement statement reflected that Attorney Pleas received attorney's fees in the amount of $8,333.33 and noted the medical lien in that same amount. On August 21, 2018, V.B.'s new attorney sent a letter to Attorney Pleas advising that he had been retained by V.B. with regard to her handling of the two accident claims. The new attorney requested the name of Attorney Pleas' errors and omissions carrier.

¶17 On August 21, 2018, Attorney Pleas sent a letter to V.B. apologizing for her delay in handling the 2014 accident case and saying she would be refunding the full attorney's fee of $8,333.33 from that case. Attorney Pleas has since refunded the full attorney's fee to V.B. Attorney Pleas has also agreed to pay off the medical lien of $8,333.33 but has not yet done so. ¶18 The OLR's complaint alleged the following counts of misconduct with respect to Attorney Pleas' representation of V.B. in the two accident claims:

Count 1 : By failing to promptly notify V.B. and UnitedHealthcare of the receipt of the $25,000 settlement proceeds, as well as failing to promptly deliver to V.B. and UnitedHealthcare those funds to which they were entitled, Attorney Pleas violated former SCR 20:1.15(d)(1).¹

Count 2 : By failing to hold in trust $25,000 from V.B.'s personal injury settlement for the 2014 accident, Attorney Pleas violated SCR 20:1.15(b)(1).²

Count 3 : By making multiple internet transfers out of her client trust account from June to August 2015, Attorney Pleas violated former SCR 20:1.15(e)(4)(c).³

Count 4 : By failing to provide V.B. and UnitedHealthcare an accounting following final distribution of trust property in June 2015, Attorney Pleas violated former SCR 20:1.15(d)(2).⁴

Count 5 : By converting $25,000 in settlement funds to her own use, Attorney Pleas violated SCR 20:8.4(c).⁵

Count 6 : By failing to file a civil action on a personal injury claim arising out of the 2015 accident prior to the expiration of the statute of limitations, Attorney Pleas violated SCR 20:1.3.⁶

Count 7 : By failing to communicate sufficiently with V.B. regarding her 2014 accident and 2015 accident claims, including the fact that the statute of limitations had expired on the 2015 accident claim, Attorney Pleas violated SCR 20:1.4(a)(3).⁷

Count 8 : By failing to file an overdraft notification agreement with the OLR, Attorney Pleas violated former SCR 20:1.15(h)(8).⁸

¶19 As noted, Attorney Pleas has now stipulated to the eight counts of misconduct as alleged in the OLR's complaint. She further stipulates that a six-month suspension of her license to practice law in Wisconsin is an appropriate sanction for the misconduct.

¶20 The stipulation states that Attorney Pleas fully understands the allegations of misconduct; fully understands the ramifications should this court impose the stipulated level of discipline; and fully understands her right to contest the matter and her right to consult with counsel. The stipulation further states that Attorney Pleas entered into it knowingly and voluntarily; that she has read the complaint and the stipulation; and that her entry into the stipulation represents her decision not to contest the allegations in the complaint or the level and type of discipline sought by the OLR's director.

¶21 The OLR filed a memorandum in support of the stipulation in which it cited a number of cases that it believes support its request for a six-month suspension. The OLR notes that In re Disciplinary Proceedings Against Mulligan, 2015 WI 96, 365 Wis. 2d 43, 870 N.W.2d 233, this court imposed a nine-month suspension for eight counts of misconduct involving multiple trust account violations in two client matters. The violations included commingling trust funds, dishonest conduct, and making cash withdrawals from the trust account. This court noted that Attorney Mulligan had previously...