Case Title: Board of Professional Responsibility v. Williams

Citation: 

Docket Number: D-91-2

State: wyoming

Court: Wyoming Supreme Court

Date: 1991-07-30T00:00:00Z

Document:
Board of Professional Responsibility v. Williams1991 WY 103816 P.2d 115Case Number: D-91-2Decided: 07/30/1991Supreme Court of Wyoming
BOARD OF 
PROFESSIONAL RESPONSIBILITY, PETITIONER,

 
 
v.

 
 
EARL L. 
WILLIAMS, RESPONDENT.

 
 
Randal R. 
Arp, Wyoming State Bar, Cheyenne, for petitioner.

 
 
Kennard F. 
Nelson, Laramie, 
for 
respondent.

 
 
ORDER OF 
SUSPENSION OF THE RIGHT TO PRACTICE LAW

 
 

[¶1.]     The Board of 
Professional Responsibility of the Wyoming State Bar on June 28, 1991 presented 
to this Court its Report of Findings of Fact, Conclusions of Law and 
Recommendations, charging the above-named respondent-attorney, regularly 
admitted to the practice of law in the state of Wyoming, with professional misconduct. 
Automatic review and final decision is required of this Court by Wyo. Const. 
art. 2, § 1 and art. 5, § 2; W.S. 5-2-118 and Rule VI(b)(4) and (h), 
Disciplinary Code for the Wyoming State Bar. After consideration 
thereof, the Court, by clear and convincing evidence, 
finds:

 
 

[¶2.]     The Board of 
Professional Responsibility of the Wyoming State Bar, upon receipt of a written 
complaint with respect to alleged professional misconduct, proceeded 
appropriately to investigate. Formal disciplinary proceedings were instituted 
and a complaint was filed by the Bar Counsel of the Wyoming State 
Bar.

 
 

[¶3.]     After a hearing and the 
receipt of evidence, the Board of Professional Responsibility made its Report of 
Findings of Fact, Conclusions of Law and Recommendations to this Court. The 
Report of Findings of Fact, Conclusions of Law and Recommendations is attached 
hereto and incorporated in haec verba as Appendix 
A.

 
 

[¶4.]     The respondent-attorney 
on July 18, 1991 filed exceptions to the findings of the Board of Professional 
Responsibility. This Court has reviewed the record, briefs and memorandum, 
together with the exceptions.

 
 
ORDERED:

 
 

[¶5.]     1. The Findings of 
Fact, Conclusions of Law and Recommendations contained in the Report of the 
Board of Professional Responsibility of the Wyoming State Bar be, and they 
hereby are, approved.

 
 

[¶6.]     2. Earl L. Williams, by 
reason of violation of DR5-104(A), be, and he hereby is, suspended from the 
practice of law in this state for a period of two (2) years or until such time 
as restitution with interest has been made to Lucy Simmons, whichever time 
period is longer.

 
 

[¶7.]     3. Respondent-attorney 
is assessed and shall pay to the Wyoming State Bar for the account of the 
Wyoming State Bar Board of Professional Responsibility the costs and expenses 
incurred in connection with the investigation and disciplinary proceeding in the 
amount of $977.54.

 
 

[¶8.]     4. Earl L. Williams 
shall comply with the duties of Rule XX of the Disciplinary 
Code.

 
 

[¶9.]     5. Earl L. Williams 
shall be permitted to make application to the Board of Professional 
Responsibility for reinstatement to the practice of law in this state after six 
(6) months of suspension upon a showing that restitution with interest to Lucy 
Simmons has been accomplished, that the assessed costs have been paid to the 
Wyoming State Bar for the account of the Wyoming State Bar Board of Professional 
Responsibility and that compliance with Rule XX has been 
made.

 
 

[¶10.]  6. The suspension shall remain in effect, 
notwithstanding the foregoing until such time as respondent-attorney has made 
application for reinstatement with the Board of Professional Responsibility in 
accordance with Rule XXII of the Disciplinary Code and is current on continuing 
legal education requirements and dues requirements of the Wyoming State 
Bar.

 
 

[¶11.]  7. This Order is entered on this date and 
effective thirty (30) days thereafter so as to permit compliance with Rule XX of 
the Disciplinary Code; and it further is

 
 

[¶12.]  8. The clerk of this Court docket the 
Report of Findings of Fact, Conclusions of Law and Recommendations, and all 
supporting papers of the Board of Professional Responsibility, as well as this 
Order as a matter coming regularly before this Court as a public 
record.

 
 

[¶13.]  CARDINE and GOLDEN, JJ., not 
participating.

 
 
APPENDIX 
"A"

 
 
STATE OF 
WYOMING

 
 

COUNTY OF 
LARAMIE

 
 
BEFORE THE 
BOARD OF PROFESSIONAL RESPONSIBILITY

 
 
WYOMING 
STATE BAR

 
 
STATE OF 
WYOMING

 
 
IN THE 
MATTER OF EARL L. WILLIAMS, Respondent.

 
 
REPORT OF 
FINDINGS OF FACT, CONCLUSIONS OF LAW AND RECOMMENDATIONS

 
 

[¶14.]  COMES NOW the Board of Professional 
Responsibility of the Wyoming State Bar and hereby files its report in the 
above-captioned matter.

 
 

[¶15.]  On December 10, 1990, a hearing was held 
in a courtroom of the Supreme Court Building, Cheyenne, Wyoming. Committee members present at the 
hearing were Dean W. Borthwick, Chairman, Herb Carter, James L. Edwards, 
Kathleen A. Hunt and Joseph E. Vlastos. Appearing on behalf of the Wyoming State 
Bar was Mary Elizabeth Senkewicz. Appearing on behalf of the Respondent was 
Kennard F. Nelson. Testimony was received from the Respondent, Earl L. Williams 
and from Thomas J. Rardin, Wyoming State Bar investigator. The complainant, Lucy 
Simmons, did not appear.

 
 

[¶16.]  The Board of Professional Responsibility, 
after having reviewed the testimony of the witnesses, and the evidence presented 
at the hearing, and after having reviewed the proposed Findings Of Fact And 
Conclusions Of Law submitted by counsel in this matter, hereby makes the 
following findings of fact and conclusions of law:

 
 
FINDINGS OF 
FACT

 
 

[¶17.]  1. Respondent is a member of the Wyoming 
State Bar, licensed to practice law, who formerly maintained an office for the 
practice of law in Laramie, 
Wyoming. (Respondent's answer, 
para. 1).

 
 

[¶18.]  2. A COMPLAINT FOR FORMAL DISCIPLINARY 
PROCEEDINGS was filed by Bar Counsel on April 25, 1990. Respondent filed an 
answer on May 15, 1990. Trial was originally scheduled for August 22, 1990, but 
was continued until December 10, 1990, when trial was held in Cheyenne, Wyoming.

 
 

[¶19.]  3. Lucy M. Simmons, age 90, was admitted 
to IvinsonMemorialHospital on December 10, 1985. (Tr. p. 
9).

 
 

[¶20.]  4. Mrs. Simmons then entered the 
BethesdaCareCenter, where she remained until the 
latter part of December 1985. (Tr. p. 9).

 
 

[¶21.]  5. While Mrs. Simmons was in the 
hospital, Mrs. Simmons' step-daughter, Vivian Arterberry, contacted Respondent 
to assist Mrs. Simmons in her affairs. (Respondent's answer, para. 1; Tr. p. 
10).

 
 

[¶22.]  6. Respondent had previously performed 
legal work for Mrs. Simmons, over the prior ten year period. (Tr. pp. 10, 12, 
47).

 
 

[¶23.]  7. Respondent did assist Mrs. Simmons by 
inventorying her assets, paying her bills and handling other requests of Mrs. 
Simmons. (Respondent's answer para. 4; Tr. pp. 10, 18, 
19).

 
 

[¶24.]  8. Respondent, at Mrs. Simmons' request, 
went into her home to retrieve various items for her while she was in BethesdaCareCenter. (Tr. p. 17).

 
 

[¶25.]  9. Respondent went to Mrs. Simmons' home 
while she was in the hospital, retrieved her purse, which contained $1,300.00, 
approximately $20.00 in currency and coins, and approximately $76.95 in an 
envelope, and removed the items from her home. (Tr. pp. 15, 
16).

 
 

[¶26.]  10. Respondent checked on Mrs. Simmons' 
mail while she was confined. (Tr. p. 16).

 
 

[¶27.]  11. Mrs. Simmons furnished Respondent 
with a set of keys to her home. (Tr. p. 18).

 
 

[¶28.]  12. Respondent wrote checks for Mrs. 
Simmons' signature, and would make bank deposits for her. (Tr. p. 
18).

 
 

[¶29.]  13. Respondent removed the following 
items from Mrs. Simmons' home while she was confined and returned them to her on 
January 1, 1986:

 
 
Certificates 
of Deposit

 
 


Rocky 
      Mountain Federal Savings & Loan

No.32602034

No. 
      36300121

No. 
      36100162

No. 
      003-6300004

No. 
      36000003

$9,000.00

2,004.35

8,240.40

8,539.61

3,899.52

 
 
First 
      Interstate Bank of Laramie

No. 
      1100017663

No. 
      1100018657

No. 
      1100018461

No. 
      1100019029

$10,318.48

7,626.76

20,333.70

9,000.00

 
 
First 
      Wyoming Bank of Laramie

No. 
      58099

No. 
      56469

$22,001.37

9,500.00

 
 
United 
      Savings & Loan

No. 
      3004817

No. 
      3004504

No. 
      0020897985

$ 
      3,000.00

5,559.66

9,634.82

                        

First 
Interstate Bank of Laramie Savings Acct. book No. 50373677

Envelope 
containing $76.00 currency and $0.95 coins.

$1,300.00 
currency:  4-$100 
bills

12-$50 
bills

15-$20 
bills

2-diamond 
rings, one with attached wedding band

Rocky 
Mountain Federal check to Catherine Freeman

1-red 
ledger book

Brown purse 
and wallet containing $19.00 currency and $1.44 coins.

 
 
(Tr. p. 19; 
Exhibit B).

 
 

[¶30.]  14. Respondent was paid for his services 
by Mrs. Simmons (Respondent's answer para. 1; Tr. p. 10).

 
 

[¶31.]  15. Beginning in December of 1985, 
Respondent had an attorney-client relationship with Mrs. Simmons. (Respondent's 
answer para. 1; Tr. pp. 10, 13).

 
 

[¶32.]  16. In December, 1985 or January, 1986, 
Respondent requested a loan in the amount of $7,500 from Mrs. Simmons. 
(Respondent's answer para. 1; Tr. pp. 20, 21).

 
 

[¶33.]  17. Respondent told Mrs. Simmons that he 
was in a pinch, (Tr. p. 67) and that he needed the money for working capital. 
(Tr. p. 49).

 
 

[¶34.]  18. Respondent did not advise Mrs. 
Simmons to seek the advice of outside counsel with regard to making the loan. 
(Respondent's answer, para. 1; Tr. p. 24).

 
 

[¶35.]  19. Respondent did not provide Mrs. 
Simmons with a personal financial statement. (Tr. p. 22).

 
 

[¶36.]  20. Respondent did not explain to Mrs. 
Simmons the disadvantages to her in making an unsecured loan. (Tr. pp. 22, 
23).

 
 

[¶37.]  21. Respondent did not explain to Mrs. 
Simmons that they had conflicting interests in the loan transaction. (Tr. p. 
23).

 
 

[¶38.]  22. Respondent did not explain to Mrs. 
Simmons the difference in the conflicting interests inherent in a loan 
relationship, specifically that the obligor and obligee have various rights and 
responsibilities that go along with that relationship. (Tr. p. 
23).

 
 

[¶39.]  23. Respondent did not explain to Mrs. 
Simmons that he might not be acting in her best interest in obtaining an 
unsecured loan. (Tr. p. 23).

 
 

[¶40.]  24. Mrs. Simmons did not request that 
Respondent not exercise his professional judgment on her behalf and not act in 
her best interest in the course of their attorney-client relationship. (Tr. p. 
24).

 
 

[¶41.]  25. Mrs. Simmons loaned Respondent $7,500 
and received a promissory note dated January 9, 1986 signed by Respondent and 
his wife. (Respondent's answer para. 1; tr. p. 20).

 
 

[¶42.]  26. The note was due on January 10, 1987. 
(Respondent's answer para. 1; Tr. p. 20).

 
 

[¶43.]  27. Respondent did not pay the note when 
due on January 10, 1987. (Respondent's answer para. 1).

 
 

[¶44.]  28. The note is presently in default. 
(Respondent's answer para. 1).

 
 

[¶45.]  29. A loan is a business 
transaction.

 
 

[¶46.]  30. Informing the client that he was in a 
pinch and that he needed the money for working capital does not constitute full 
disclosure by the Respondent.

 
 

[¶47.]  31. The fact that the client expected the 
Respondent to exercise his professional judgment on her behalf, which we 
expressly find, can be inferred from all the circumstances of this case, 
including that Respondent had known Mrs. Simmons for ten years prior to this 
representation; that Respondent during this ten year period had previously had 
an attorney/client relationship with Mrs. Simmons; that Mrs. Simmons had seen 
other attorneys prior to allowing Respondent to represent her again in December 
1985; that she trusted the Respondent, evidenced by her allowing him access to 
her home and giving him keys for that purpose; that within this present 
attorney/client relationship Respondent had exercised his professional judgment 
on her behalf by removing certain items from her home for safekeeping, and later 
returning them to her intact; that Mrs. Simmons exposed the extent of her assets 
to Respondent; and that ordinarily a client would rely on a lawyer's advice in a 
similar transaction with a third party.

 
 

[¶48.]  32. Respondent entered into a business 
transaction with a client.

 
 

[¶49.]  33. Respondent and his client had 
differing interests with regard to the loan transaction.

 
 

[¶50.]  34. The client expected Respondent to 
exercise his professional judgment therein for her 
protection.

 
 

[¶51.]  35. The client did not consent to the 
transaction after full disclosure.

 
 

[¶52.]  36. A violation of DR 5-104(A) has been 
proven by clear and convincing evidence.

 
 

[¶53.]  37. The Board finds the following 
aggravating factors present in this case: substantial experience in the practice 
of law; selfish motive; and lack of a timely good faith effort to make 
restitution.

 
 

[¶54.]  38. The Board finds the following 
mitigating factors present in this case: absence of a prior disciplinary record; 
full disclosure to the Board; and delay in disciplinary 
proceedings.

 
 

[¶55.]  39. As of January 9, 1991 the amount due 
on the defaulted note is $10,500.00, which note continues to accrue interest 
from and after January 9, 1991 at the rate of ten percent (10%) interest. Both 
counsel stipulated that this is correct (Tr. P. 10, 11).

 
 

[¶56.]  40. The costs and expenses incurred in 
this grievance proceeding total $977.54. Respondent and his attorney were 
notified of the costs and expenses of the proceeding, and no objection thereto 
was received from Respondent or his counsel (Affidavit of Costs and Expenses; 
official Board file).

 
 
CONCLUSIONS 
OF LAW

 
 

[¶57.]  1. The Board has jurisdiction of this 
matter pursuant to Rule I of the Disciplinary Code for the Wyoming State 
Bar.

 
 

[¶58.]  2. By entering into a business 
transaction with a client when they had differing interests therein, and when 
the client expected the lawyer to exercise his professional judgment therein for 
the protection of the client, without the client's consent after full 
disclosure, Respondent has violated DR 5-104(A) of the Code of Professional 
Responsibility which was in effect at the time of the conduct in 
question.

 
 

[¶59.]  3. DR 5-104(A) provides as 
follows:

 
 
DR 5-104 
Limiting Business Relations with a Client.

(A) A 
lawyer shall not enter into a business transaction with a client if they have 
differing interests therein and if the client expects the lawyer to exercise his 
professional judgment therein for the protection of the client, unless the 
client has consented after full disclosure.

 
 
RECOMMENDATIONS

 
 

[¶60.]  The Board of Professional Responsibility, 
based upon the foregoing findings of fact and conclusions of law, and further 
based upon a review of the ABA Standards For Imposing Lawyer Sanctions, 
particularly 4.32, makes the following recommendations to the Wyoming Supreme 
Court with respect to Earl L. Williams, Respondent. The Respondent should be 
suspended from the practice of law for two (2) years. The Respondent should be 
required to make restitution to Lucy Simmons. The Board has attached hereto its 
certification of the costs and expenses incurred in connection with the 
investigation and disciplinary proceeding, and recommends to the Court the 
assessment of the costs so certified in the amount of $977.54 against the 
Respondent. Respondent should be permitted to make application to the Board of 
Professional Responsibility for reinstatement to the practice of law in this 
state after six months of suspension upon a showing that: 1) restitution to Lucy 
Simmons has been accomplished, which should include any interest due and owing, 
and 2) the assessed costs have been paid to the Wyoming State Bar for the 
account of the Wyoming State Bar Board of Professional Responsibility. In any 
event, the suspension should remain in effect, notwithstanding expiration of the 
two year suspension period, until such time as the Respondent: 1) has made 
restitution to Lucy Simmons and payment of costs and expenses assessed to the 
Bar, and 2) has made application for reinstatement with the Board of 
Professional Responsibility in accordance with Rule XXII of the Disciplinary 
Code. The Board further recommends that any such order imposed by the Court 
specify an entry date and an effective date and remind Respondent of his 
obligations pursuant to Rule XX of the Disciplinary Code.

 
 

[¶61.]  The foregoing Report Of Findings Of Fact 
And Conclusions Of Law And Recommendations (with exception of costs and 
expenses) were adopted by the Board unanimously in conference on May 7, 1991. 
Costs and expenses were certified following notice, opportunity to contest and 
lack of objection thereto. There were no dissenting or minority 
views.

 
 

[¶62.]  DATED this 5 day of June, 
1991.