Title: Hubbard v. Kentucky Bar Ass'n

State: kentucky

Issuer: Kentucky Supreme Court

Document:

66 S.W.3d 684 (2001) Carroll HUBBARD, Jr., Petitioner, v. KENTUCKY BAR ASSOCIATION, Respondent. No. 2000-SC-0046-KB. Supreme Court of Kentucky. October 25, 2001. LAMBERT, Chief Justice. This matter comes to us on an application for reinstatement by Carroll Hubbard pursuant to SCR 3.510. Hubbard resigned under terms of disbarment on June 23, 1994, after having been convicted of three felonies: one count of conspiracy to impede and impair the Federal Election Commission, in violation of 18 U.S.C. § 371, one count of theft of government property, in violation of 18 U.S.C. § 641, and one count of obstruction of justice in violation of 18 U.S.C. § 1503, Hubbard v. Kentucky Bar Association, Ky., 878 S.W.2d 13 (1994). This criminal *685 conduct, as established by the convictions, violated SCR 3.130-8.3. Hubbard's convictions stem from a conspiracy between Hubbard and others to transfer funds from his 1992 Congressional campaign committee, which he established for his re-election race in Western Kentucky, to his then-wife's 1992 Congressional campaign committee, which was established for her Congressional race in Eastern Kentucky. Hubbard also used his Washington D.C. Congressional staff to work on his wife's campaign. The staff members used aliases and were being paid by the federal government for the time that they spent campaigning for her in Eastern Kentucky. Hubbard admitted that the purpose of this conspiracy was to solidify support for him across the state of Kentucky in his quest to run for governor. Hubbard was sentenced to a federal prison for 36 months on each conviction with the sentences to run concurrently. He was also ordered to pay restitution. He served two years and twenty days in prison, five months in a halfway house in Paducah, Kentucky, and one month of home incarceration in Mayfield, Kentucky. Hubbard applied for reinstatement on January 13, 2000. Pursuant to SCR 3.510(4), his application was referred to the Character & Fitness Committee ("Committee"), and a full investigation followed in accordance with SCR 2.040. On October 19, 2000, following conclusion of the investigation, the Committee held a formal hearing pursuant to SCR 2.050. The Committee focused on three issues during the hearing: On January 2, 2001, the Character and Fitness Committee issued its report, finding that Hubbard had proven in the affirmative all three issues, and recommending reinstatement. Among some of the evidence that the Committee based its finding was his brother's testimony that Hubbard will be a credit to the profession; his former law colleague's testimony that Hubbard was meticulous (as a lawyer) almost to a fault, and that he had great follow-up as far as clients were concerned; his long time friend, colleague, and former campaign manager's testimony that, "[h]e is very remorseful, regretted what has occurred and was contrite, and he's very sincere. Events that occurred were out of character for Carroll Hubbard." The Committee also considered the testimony of Hubbard, who testified as to his familiarities with domestic relations, title work, personal injury, and worker's compensation issues. Hubbard also acknowledged that his conduct was wrong, that he went through a lot because of his mistakes, and that what he did was devastating to his life and family. The Committee thereafter unanimously recommended that Hubbard be reinstated. Because of the thoroughness of the report of the Character and Fitness Committee, we set forth its Findings of Fact, Conclusions of Law and Recommendation as follows: IN RE: CARROLL HUBBARD, JR. MAY IT PLEASE THE COURT: Mr. Hubbard was admitted to the Kentucky bar on July 1, 1962. On April 5, 1994, Mr. Hubbard, who was a member of the United States House of Representatives representing the First Congressional District of Kentucky, was charged with and pled guilty to one count of conspiracy to impede and impair the Federal Election Commission, a felony offense in violation of 18 U.S.C. § 371, one count of theft of government property, a felony offense in violation of 18 U.S.C. § 641, and one count of obstruction of justice, a felony offense in violation of 18 U.S.C. § 1503. The charges arose from a scheme and conspiracy by Mr. Hubbard and others to transfer funds from the Carroll Hubbard for Congress Committee organized in support of Mr. Hubbard's candidacy for the United States House of Representatives from the First Congressional District to a committee which was organized to support the candidacy of his wife, Carol Brown Hubbard for election to the United States House of Representatives from the Fifth Congressional District of Kentucky. The details of the charges are as follows: Mr. Hubbard was sentenced to 36 months on each offense, with the periods of incarceration to run concurrently. On May 11, 1994, Mr. Hubbard filed a motion to resign his membership to the Kentucky bar under terms of disbarment for a period of five years. The Supreme Court granted the motion on June 23, 1994. Carroll Hubbard, Jr. served two years and 20 days in three federal institutions, five months in a halfway house in Paducah, Ky., and one month home incarceration in Mayfield, Ky. His home incarceration ended July 20, 1997 and was followed by three years of probation. Having been allowed to resign his membership to the Kentucky bar under terms of disbarment for a period of five years, by Order dated June 23, 1994, the first possible date that Mr. Hubbard could be readmitted to the Kentucky Bar was June 24, 1999. Mr. Hubbard applied for reinstatement January 13, 2000. That application for reinstatement was filed well before the end of his period of probation, which ended on or about July 20, 2000. Mr. Hubbard's application was referred to the Character and Fitness Committee for processing, pursuant to SCR 2.040. The forms necessary for the Character and Fitness Committee to begin its investigation were returned by Mr. Hubbard February 4, 2000. The Character and Fitness Committee immediately initiated a full investigation. Upon conclusion of that investigation, copies of the final report were provided to Mr. Hubbard and Bar Counsel. A formal hearing was requested by Mr. Hubbard on July 11, 2000 and a hearing was initially scheduled within the sixty days required by SCR 3.505(3). Upon agreement of the parties that hearing was rescheduled for and held on October 19, 2000. As a result of the hearing Mr. Hubbard was requested to provide certain supplemental information. This Committee recommendation has been prepared in accordance with the time frames established by the parties to the hearing following receipt of the requested information. In attendance at the hearing were the following: The Applicant: Witnesses Called by Applicant: *688 Character and Fitness Committee Members Present: Others in attendance: (No witnesses were called by either the Kentucky Bar Association or the Character and Fitness Committee.) The Character and Fitness Committee investigation, hearing, and other reinstatement proceedings are conducted in accordance with SCR 3.500, SCR 3.505, SCR 3.510, SCR 2.040 and SCR 2.050. An applicant for reinstatement who applied for reinstatement on or after October 1, 1998 and who appears before the Committee has the burden of proving by "clear and convincing" evidence that he/she possesses the requisite character, fitness and moral qualifications for re-admission to the practice of law (SCR 3.330). Applicants are to be held to a substantially more rigorous standard than a first time applicant and the proof presented must be sufficient to overcome the prior adverse judgment. The judgment of disbarment continues to be evidence against the applicant and he may overcome it only by the most persuasive proof. In re Weaks, Ky., 407 S.W.2d 408, 409 (1966), In re Stump, Ky., 272 Ky. 593, 114 S.W.2d 1094 (1938) and Keenan, 313 Mass. 186, 47 N.E.2d 12, 32. The Committee notes for the record that Bar Counsel has a standing objection to the introduction of evidence by affidavit. The Committee admits affidavits pursuant to SCR 2.300(4)(c) and those affidavits are reviewed and considered in preparing recommendations. The Committee feels that affidavits can be used to expedite the hearing process and that affidavits are frequently simply cumulative in nature rather than critical to issues under consideration. Therefore, the Committee admits and weighs the evidentiary value of the affidavits, rather than excluding them. In this case, the Committee notes that its recommendation would be unchanged even if it had excluded all affidavits. In addressing the reinstatement application of Mr. Hubbard the Committee has focused on three primary issues. They are: Based on the evidence of record and the testimony heard, the Character and Fitness Committee makes the following findings of fact: ISSUE ONEHas Mr. Hubbard shown by clear and convincing evidence that he has complied with every term of the order of suspension or disbarment? The Order of Disbarment entered June 23, 1994 stated that the terms of disbarment were that Mr. Hubbard: The Committee finds that Mr. Hubbard has not sought reinstatement for more than five years after the order of disbarment. The Committee also finds that by document dated January 28, 2000 Mr. Hubbard states that he is in full compliance with the Order of Disbarment (Committee Exhibit 6Page 10). This fact was reaffirmed by testimony. The Committee will assume, based on Mr. Hubbard's statements and in the absence of objection by Bar Counsel, that all terms have been complied with. Therefore, based on the evidence of record the Committee finds that Mr. Hubbard has complied with the Supreme Court's Order of Disbarment. The Committee notes that near the end of Committee Exhibit 7 there is a certification by the Director for CLE which seems to show that Mr. Hubbard is currently CLE compliant. However, this is an issue for final confirmation by the Board of Governors. COMMITTEE FINDING RELATING TO ISSUE ONE Based on the findings of fact outlined above the Committee finds that Mr. Hubbard meets this threshold requirement for reinstatement, subject to Bar Counsel's verification of compliance with the continuing legal education requirements (SCR 3.500(1)) and subject to meeting the testing requirements set forth in SCR 3.510(4). ISSUE TWOHas Mr. Hubbard presented clear and convincing evidence that he possesses sufficient professional capabilities to serve the public as a lawyer? In support of his application, Mr. Hubbard presented the following evidence: STATEMENTS BY CARROLL HUBBARD STATEMENTS BY KYLE HUBBARD STATEMENTS BY DENNIS NULL STATEMENTS BY JAMES W. OWENS *690 The Committee has some concern about Mr. Hubbard's inattention to detail in completing his Application for Reinstatement or Restoration, his Application for Admission to the Kentucky Bar, and his tax returns. The Committee has weighed those concerns against the statements by Mr. Null about how meticulous Mr. Hubbard was as a practicing attorney, against Mr. Hubbard's apparent recognition of the areas of the law where he is more knowledgeable, and against Mr. Owens' offer to permit Mr. Hubbard to re-enter the profession by working for his firm where there would be the support necessary for him to safely bring his skills up to speed. On balance the Committee finds the evidence to be clear and convincing that if Mr. Hubbard were readmitted to the Bar he would be capable of serving the public as a lawyer. COMMITTEE FINDING RELATING TO ISSUE TWO The Character and Fitness Committee finds that based on evidence before the Committee and the oral testimony Mr. Hubbard has presented clear and convincing evidence that he has the professional capabilities to serve the public as a lawyer and has overcome the negative presumption created by the prior determination that he engaged in professional misconduct. In re Weaks, supra, and In re Stump, supra. ISSUE THREEHas Mr. Hubbard shown by clear and convincing evidence that he is of good and moral character? In determining whether Mr. Hubbard has met his burden of proof on this issue the Committee has considered a number of factors. Those include the following: a. Has Mr. Hubbard's conduct since his suspension been exemplary? b. Has there been a sufficient testing period? c. Has Mr. Hubbard been completely candid with the Committee? d. Has Mr. Hubbard followed rules and regulations since his suspension? e. Has Mr. Hubbard evidenced fiscal responsibility since his disbarment? f. The final question addressed by the Committee is whether Mr. Hubbard's readmission would have an adverse impact on the honor and integrity of the legal profession and whether he would be a credit and not a detriment to the profession of law. COMMITTEE FINDING RELATING TO ISSUE THREE The Committee finds that Mr. Hubbard has shown by clear and convincing evidence that he is currently of good and moral character and that his readmission would not be a detriment to the legal profession. For the reasons set forth above the Character and Fitness Committee recommends that Carroll Hubbard, Jr.'s application for reinstatement to the practice of law be approved. (Ms. CALDWELL, Judge PAYNE, and Mr. WOOD all concur.) Signed this the second day of January 2001. The matter was then referred to the Board of Governors of the Kentucky Bar Association ("Board"). The Board accepted briefs from the parties, heard arguments on the case and reviewed the record before taking a vote on Hubbard's application for reinstatement. Bar counsel presented no proof at the hearing before the Character and Fitness Committee. Bar counsel did cross-examine Hubbard for 44 pages. At the proceedings and arguments before the Board of Governors, bar counsel presented no proof. However, respective counsel, as well as the Character and Fitness Committee and the Board of Governors have drawn diametrically opposite conclusions from the same testimony. The Board of Governors rejected the Committee's recommendation and voted sixteen (16) to zero (0) to deny Hubbard reinstatement. The Board concluded, "Contrary to the conclusions of the Character and Fitness Committee, there is not requisite `clear and convincing evidence' that Hubbard has shown the requisite character, fitness and moral qualifications for readmission pursuant to SCR 3.330." Therefore, the Board recommends to this Court that the application for Hubbard's reinstatement be denied. The Board failed to give a reasoned and rational explanation for its rejection of the recommendation of the Character and Fitness Committee. *696 The Kentucky Board of Bar Examiners is charged by this Court to regulate Kentucky bar admissions, including a determination of the "character and fitness" of each applicant. Supreme Court Rule 2.040 created the Committee on Character and Fitness. The committee is composed of attorneys and/or judges appointed by this Court. Court rules require the Kentucky Board of Bar Examiners and its committees to act on our behalf in administering procedures for admission to the Kentucky bar and in determining the character and fitness of applicants as a condition precedent to admissions. In delegating constitutional authority to regulate the "character and fitness" of the bar applicants and applicants for readmission, this Court has provided broad parameters as to how the committee was to establish such fitness. Supreme Court Rule 2.012 defines "fitness" as "assessment of mental and emotional health as it effects the competence of a prospective lawyer." The rules clarify that this Court is interested in "present fitness." The Kentucky Bar Association "does not exist for the private benefit of the legal community." Ex Parte Auditor of Public Accounts, Ky., 609 S.W.2d 682, 684 (1980). In order to carry out its mission, the bar association must "maintain a proper discipline of the bar, ... initiate and supervise appropriate means to ensure a high standard of professional competence, and ... bears substantial responsibility of promoting the efficiency and improvement of the judicial system itself." Id. Since the power of this Court to regulate admissions to the Kentucky bar stems directly from the Kentucky Constitution, and exists to benefit the public interest, the Board of Bar Examiners and the Committee on Character and Fitness constitute an arm of this Court. Ky. Const. § 116. The burden of establishing good moral character rests upon the applicant for readmission to the bar. Hubbard made a prima facie showing of good moral character by affidavits and testimony from attorneys, judges, and former employers. This is the only proof in the record and it attests to his rehabilitation and moral fitness to practice law. Once Hubbard presented sufficient proof to establish a prima facie case of good moral character, bar counsel had an implicit duty to rebut that showing with evidence of a lack of good moral character if any such evidence could be found. Bar counsel did not present any such evidence. This Court has delegated to the Committee on Character and Fitness the responsibility of determining good moral character. The Committee received an extensive background investigation of Hubbard's activities since his disbarment, conducted a hearing, received evidence, and made findings, conclusions, and a recommendation. Because of our charge to the Committee and because of the absence of the Board of Governor's presenting any proof to rebut the recommendation of the Committee, we accept the conclusion of the Committee on Character and Fitness that Hubbard is entitled to reinstatement at this time. Accordingly, the application of Carroll Hubbard to be reinstated to the practice of law is granted. Movant shall pay the costs incurred by the Kentucky Bar Association in the amount of $1,071.10. LAMBERT, C.J., COOPER, GRAVES, JOHNSTONE, KELLER and STUMBO, J.J., concur. WINTERSHEIMER, J., concurs in result only because despite the weakness of some parts of the Character and Fitness report contained herein, the vote of the *697 Board of Governors does not provide any reason for their unanimous vote to the contrary.