Title: Office of Lawyer Regulation v. Sandra J. Zenor

State: wisconsin

Issuer: Wisconsin Supreme Court

Document:

2021 WI 77 
 
 
SUPREME COURT OF WISCONSIN 
 
 
 
 
 
CASE NO.: 
2021AP518-D 
 
 
 
COMPLETE TITLE: 
In the Matter of Disciplinary Proceedings  
Against Sandra J. Zenor, Attorney at Law: 
 
Office of Lawyer Regulation, 
          Complainant, 
     v. 
Sandra J. Zenor, 
          Respondent. 
 
 
 
 
 
DISCIPLINARY PROCEEDINGS AGAINST ZENOR 
 
 
OPINION FILED: 
September 28, 2021   
SUBMITTED ON BRIEFS: 
        
ORAL ARGUMENT: 
        
 
 
SOURCE OF APPEAL: 
 
 
COURT: 
        
 
COUNTY: 
        
 
JUDGE: 
        
 
 
 
JUSTICES: 
 
Per Curiam. 
NOT PARTICIPATING: 
        
 
 
 
ATTORNEYS: 
 
      
 
 
 
2021 WI 77 
NOTICE 
This opinion is subject to further 
editing and modification.  The final 
version will appear in the bound 
volume of the official reports.   
No.  2021AP518-D 
 
 
STATE OF WISCONSIN  
 
 
   : 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings  
Against Sandra J. Zenor, Attorney at Law: 
 
Office of Lawyer Regulation, 
 
          Complainant, 
 
     v. 
 
Sandra J. Zenor, 
 
          Respondent. 
FILED 
 
SEP 28, 2021 
 
Sheila T. Reiff 
Clerk of Supreme Court 
 
 
 
 
ATTORNEY 
disciplinary 
proceeding.   Attorney's 
license 
suspended.   
 
¶1 
PER CURIAM.   We review a report filed by Referee 
Robert E. Kinney, accepting a stipulation executed by Attorney 
Sandra J. Zenor and the Office of Lawyer Regulation (OLR), in 
which Attorney Zenor pled no contest to four counts of 
professional misconduct and agreed that the allegations of the 
OLR's complaint were established by clear, satisfactory, and 
convincing 
evidence. 
 
Consistent 
with 
the 
terms 
of 
the 
stipulation, the referee recommends that we suspend Attorney 
Zenor's law license for 60 days.  The referee also recommends we 
order Attorney Zenor to pay the full costs of this proceeding, 
No. 
2021AP518-D   
 
2 
 
which total $1,733.49 as of July 6, 2021.  The OLR did not 
request restitution, having advised this court that Attorney 
Zenor made full restitution in this disciplinary matter. 
¶2 
We 
adopt 
the 
referee's 
findings 
of 
fact 
and 
conclusions of law as derived from the parties' stipulation, 
which permits the referee to rely on the factual allegations in 
the OLR's complaint.  We agree that a 60-day suspension is 
appropriate, and we impose the full costs of this proceeding on 
Attorney Zenor.  The OLR indicates that restitution has been 
made so we do not impose a restitution order. 
¶3 
Attorney Zenor was admitted to the practice of law in 
1985 and she practices in Watertown, Wisconsin.  Until this 
matter she had no disciplinary history. 
¶4 
This 
matter 
arises 
from 
Attorney 
Zenor's 
representation of J.L.  Attorney Zenor commenced a negligence 
lawsuit on J.L.'s behalf in August 2013.  In the ensuing year, 
Attorney Zenor learned that her client owed money to two 
entities for services in connection with the dispute.  In May 
2014, Attorney Zenor settled the case on J.L.'s behalf and she 
deposited the settlement check into her trust account.  She 
timely disbursed the settlement funds to her client and paid her 
own attorney fees.  However, she failed to pay the two entities 
who were owed a total of $2,157.50, despite reminders from both 
the client and her own office manager.  Eventually, the debts 
were submitted to collection agencies, yet Attorney Zenor still 
failed to respond to her client's repeated requests that she 
resolve the debts.  During this time, the amounts in Attorney 
No. 
2021AP518-D   
 
3 
 
Zenor's trust account also varied, such that Attorney Zenor 
technically used funds in the trust account for her own personal 
use.  Attorney Zenor finally satisfied the two outstanding 
financial obligations in October 2019.  
¶5 
On March 25, 2021, the OLR filed a disciplinary 
complaint against Attorney Zenor alleging four counts of 
professional misconduct in connection with the J.L. matter.  
Referee Kinney was appointed on April 15, 2021.  On April 20, 
2021, Attorney Zenor filed an answer stating she pled no contest 
to all the charges and, on June 8, 2021, the parties entered 
into and filed a stipulation in which Attorney Zenor pled no 
contest to all the allegations of misconduct and the parties 
agreed that a 60-day suspension would be an appropriate sanction 
for Attorney Zenor's admitted misconduct.  
¶6 
The referee considered the pleadings, the parties' 
stipulation, and the OLR's sanctions brief which cites caselaw 
supporting the recommended 60-day license suspension.  The 
referee issued a report on June 16, 2021, recommending we accept 
the stipulation and impose the recommended discipline.  No 
appeal from that report was filed so we consider this matter 
pursuant to Supreme Court Rule (SCR) 22.17(2).1 
                     
1 SCR 22.17(2) provides: 
If no appeal is filed timely, the supreme court 
shall review the referee's report; adopt, reject or 
modify the referee's findings and conclusions or 
remand the matter to the referee for additional 
findings; 
and 
determine 
and 
impose 
appropriate 
(continued) 
No. 
2021AP518-D   
 
4 
 
¶7 
The facts found by the referee derive from the 
parties' stipulation and the OLR's complaint.  Attorney Zenor 
was charged with depositing settlement funds that were owed to 
third parties into her corporate checking account and failing to 
hold those funds in trust, in violation of SCR 20:1.15(b)(1); 
failing to promptly deliver the funds to the entities which were 
entitled 
to 
receive 
them, 
in 
violation 
of 
former 
SCR 20:1.15(d)(1) and SCR 20:1.15(e)(1); failing to respond to 
inquiries from her client requesting information, in violation 
of SCR 20:1.4(a)(4); and converting settlement funds owed to 
others to her own personal use, in violation of SCR 20:8.4(c).2  
¶8 
The referee noted that the stipulation confirms that 
it was not the result of plea bargaining but reflects Attorney 
Zenor's voluntary decision not to contest this matter.  Attorney 
Zenor represented and verified that she fully understands the 
allegations to which she stipulated in this disciplinary matter; 
she fully understands her right to contest this matter; she 
fully understands the ramifications of her entry into the 
stipulation; she fully understands that she has the right to 
consult 
counsel; 
and 
confirms 
that 
her 
entry 
into 
the 
stipulation was made knowingly and voluntarily. 
¶9 
Based on Attorney Zenor's no contest plea and the 
terms of the stipulation, the referee found that all of the 
                                                                  
discipline.  The court, on its own motion, may order 
the parties to file briefs in the matter. 
2 See infra at notes 3-6. 
No. 
2021AP518-D   
 
5 
 
factual contents of the disciplinary complaint were true and 
accurate and they establish an adequate factual basis for each 
of the four counts of alleged misconduct.  The referee then 
determined, pursuant to SCR 22.14(2), that Attorney Zenor 
committed each of the counts of misconduct set forth in the 
complaint: 
COUNT 1:  By depositing the settlement funds that were 
owed to two entities into her corporate checking 
account and failing to hold those funds in trust, 
Attorney Zenor violated SCR 20:1.15(b)(1).3 
COUNT 2:  By failing to promptly deliver to two 
entities the funds they were entitled to receive, 
Attorney Zenor violated former SCR 20:1.15(d)(l) and 
SCR 20:1.15(e)(1).4 
                     
3 SCR 20:1.15(b)(1) provides: 
A lawyer shall hold in trust, separate from the 
lawyer's own property, that property of clients and 
3rd parties that is in the lawyer's possession in 
connection with a representation.  All funds of 
clients and 3rd parties paid to a lawyer or law firm 
in connection with a representation shall be deposited 
in one or more identifiable trust accounts.  
4 Effective July 1, 2016, substantial changes were made to 
SCR 20:1.15, the "trust account rule."  See S. Ct. Order 14-07, 
2016 WI 21 (issued Apr. 4, 2016, eff. July 1, 2016).  Former 
SCR 20:1.15(d)(1) was renumbered as SCR 20:1.15(e)(1).  The text 
of the rule was not changed and provides:   
Upon receiving funds or other property in which a 
client has an interest, or in which the lawyer has 
received notice that a 3rd party has an interest 
identified by a lien, court order, judgment, or 
contract, the lawyer shall promptly notify the client 
or 3rd party in writing.  Except as stated in this 
rule or otherwise permitted by law or by agreement 
with the client, the lawyer shall promptly deliver to 
(continued) 
No. 
2021AP518-D   
 
6 
 
COUNT 3:  By failing to respond to her client's 
telephone calls and letter requesting information, 
Attorney Zenor violated SCR 20:1.4(a)(4).5 
COUNT 4:  By converting the settlement funds owed to 
two entities for her own personal use, Attorney Zenor 
violated SCR 20:8.4(c).6  
¶10 The referee next considered the appropriate sanction.  
In determining the appropriate sanction to be recommended the 
referee must weigh the following factors: the seriousness, 
nature and extent of the misconduct; the level of discipline 
needed to protect the public; the need to impress upon the 
attorney the seriousness of the misconduct; and the need to 
deter 
other 
attorneys 
from 
similar 
misconduct. 
 
In 
re 
Disciplinary Proceedings Against Eisenberg, 2004 WI 14, 269 
Wis. 2d 43, 675 N.W.2d 747.  Sources of guidance in determining 
appropriate sanctions include prior case law, aggravating and 
mitigating factors, and the American Bar Association (ABA) 
Standards for Imposing Lawyer Sanctions.  In re Disciplinary 
Proceedings Against Arthur, 2005 WI 40, 279 Wis. 2d 583, 694 
N.W.2d 910. 
¶11 Referee Kinney considered the cases cited by the OLR 
in support of the parties' joint stipulation for a 60-day 
                                                                  
the client or 3rd party any funds or other property 
that the client or 3rd party is entitled to receive.   
5 SCR 20:1.4(a)(4) provides:  "A lawyer shall promptly 
comply with reasonable requests by the client for information." 
6 SCR 20:8.4(c) provides:  "It is professional misconduct 
for a lawyer to engage in conduct involving dishonesty, fraud, 
deceit or misrepresentation." 
No. 
2021AP518-D   
 
7 
 
suspension.  In particular, the referee considered instructive 
In re Disciplinary Proceedings Against Kitto, 2018 WI 71, 382 
Wis. 2d 368, 913 N.W.2d 874.  Like Attorney Zenor, Attorney 
Kitto was an experienced attorney with no prior disciplinary 
record when her law license was suspended for 60 days for 
converting approximately $10,000 of trust account money for her 
own personal use.  See also In re Disciplinary Proceedings 
Against Sarbacker, 2017 WI 86, 377 Wis. 2d 484, 901 N.W.2d 373 
(imposing 
60-day 
suspension 
for 
converting 
approximately 
$2,000); In re Disciplinary Proceedings Against Lunde, 2016 WI 
84, 372 Wis. 2d 1, 866 N.W.2d 87 (imposing 60-day suspension for 
conversion of life insurance proceeds); and In re Disciplinary 
Proceedings Against Bartz, 2015 WI 61, 362 Wis. 2d 752, 864 
N.W.2d 881 
(imposing 
60-day 
suspension 
for 
conversion 
of 
personal injury settlement proceeds). 
¶12 The referee observed that while Attorney Zenor's 
misconduct was perhaps less serious than that in the cited 
cases, she nonetheless allowed more than five years to elapse 
before she finally released funds to pay off the two claims, 
causing non-payment penalties to accrue, subjecting her client 
to collection calls, then failing to respond to her client's 
repeated efforts to contact her.  On balance, informed by 
Wisconsin caselaw and the ABA Standards for Imposing Lawyer 
Sanctions, the referee accepted the proposed sanction and 
recommends this court suspend Attorney Zenor's law license for a 
period of 60 days.  The referee also recommends we impose the 
full costs of this proceeding on Attorney Zenor.  As noted, the 
No. 
2021AP518-D   
 
8 
 
OLR has stated that Attorney Zenor made full restitution, so no 
restitution order is sought. 
¶13 Considering all of the above, we accept the referee's 
findings of fact and conclusions of law as derived from the 
stipulation and the OLR complaint, and we agree with the 
recommended sanction and the imposition of costs.  Therefore, 
¶14 IT IS ORDERED that the license of Sandra J. Zenor to 
practice law in Wisconsin is suspended for a period of 60 days, 
effective November 9, 2021. 
¶15 IT IS FURTHER ORDERED that within 60 days of the date 
of this order, Sandra J. Zenor shall pay to the Office of Lawyer 
Regulation the costs of this proceeding, which are $1,733.49 as 
of July 6, 2021. 
¶16 IT IS FURTHER ORDERED that, to the extent that she has 
not already done so, Sandra J. Zenor shall comply with the 
provisions of SCR 22.26 concerning the duties of a person whose 
license to practice law in Wisconsin has been suspended. 
¶17 IT IS FURTHER ORDERED that compliance with all 
conditions of this order is required for reinstatement.  See 
SCR 22.28(2). 
 
No. 
2021AP518-D   
 
 
 
1