Title: Office of Lawyer Regulation v. Bruce B. Jacobson

State: wisconsin

Issuer: Wisconsin Supreme Court

Document:

2005 WI 76 
 
SUPREME COURT OF WISCONSIN 
 
 
 
 
 
CASE NO.: 
2004AP753-D 
 
 
COMPLETE TITLE: 
 
 
In the Matter of Disciplinary Proceedings 
Against Bruce B. Jacobson, Attorney at Law: 
 
Office of Lawyer Regulation, 
          Complainant, 
     v. 
Bruce B. Jacobson, 
          Respondent. 
 
 
 
 
 
 
DISCIPLINARY PROCEEDINGS AGAINST JACOBSON 
 
 
OPINION FILED: 
June 14, 2005   
SUBMITTED ON BRIEFS: 
        
ORAL ARGUMENT: 
        
 
 
SOURCE OF APPEAL: 
 
 
COURT: 
        
 
COUNTY: 
        
 
JUDGE: 
        
 
 
 
JUSTICES: 
 
 
CONCURRED: 
        
 
DISSENTED: 
        
 
NOT PARTICIPATING:         
 
 
 
ATTORNEYS: 
 
      
 
 
2005 WI 76
NOTICE 
This opinion is subject to further 
editing and modification.  The final 
version will appear in the bound 
volume of the official reports.   
No.  2004AP753-D  
 
 
STATE OF WISCONSIN  
 
 
   : 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings 
Against Bruce B. Jacobson, Attorney at Law: 
 
Office of Lawyer Regulation, 
 
          Complainant, 
 
     v. 
 
Bruce B. Jacobson, 
 
          Respondent. 
 
FILED 
 
JUN 14, 2005 
 
Cornelia G. Clark 
Clerk of Supreme Court 
 
 
 
 
 
ATTORNEY 
disciplinary 
proceeding.  Attorney 
publicly 
reprimanded.   
 
¶1 
PER 
CURIAM.   We 
review 
the 
findings 
of 
fact, 
conclusions of law and recommendation of Referee Curry First 
recommending that Attorney Bruce B. Jacobson be publicly 
reprimanded for failing to provide one client with a full 
accounting of funds collected and in failing to act with 
reasonable diligence and promptness in representing clients in a 
second action. 
No. 
2004AP753-D   
 
2 
 
¶2 
We conclude that the referee's findings of fact are 
supported by satisfactory and convincing evidence.  We also 
agree with the referee's conclusions of law, and we agree that 
the appropriate discipline for the misconduct is a public 
reprimand.  In addition, we agree with the referee that the 
costs of the proceeding, which are $9355 as of March 28, 2005, 
should be assessed against Attorney Jacobson.   
¶3 
Attorney Jacobson was admitted to practice law in 
Wisconsin in 1971 and practices in Milwaukee.  His license to 
practice law in Wisconsin was suspended for a period of five 
months, effective January 27, 2005, for misconduct consisting of 
failing to provide his client with requested information about 
the status of his trust account and misrepresentation in 
communications regarding transfer of fees from the trust 
account.  In re Disciplinary Proceedings Against Jacobson, 2004 
WI 152, 277 Wis. 2d 120, 690 N.W.2d 264.  In addition to the 
five-month suspension, the following monitoring and reporting 
requirements were imposed:  (1) for a period of two years 
following 
the 
suspension, 
semi-annual 
reports 
are 
to 
be 
submitted 
by 
Attorney 
Jacobson's 
psychiatrist 
or 
other 
healthcare provider, as approved by the Office of Lawyer 
Regulation (OLR), concerning the state of his psychological 
condition insofar as it might impair his practice of law; 
(2) for a period of two years following the date of his 
reinstatement, Attorney Jacobson's practice of law shall be 
monitored by an OLR-approved attorney on a schedule set by the 
OLR; (3) for a period of two years after reinstatement Attorney 
No. 
2004AP753-D   
 
3 
 
Jacobson shall provide the OLR with quarterly reports, in a 
manner satisfactory to the OLR, concerning his trust account 
record keeping.  The referee in the instant case has recommended 
that these reporting and monitoring requirements be increased 
from 
two 
years 
to 
three 
years. 
 
We 
agree 
with 
that 
recommendation. 
¶4 
In March 2004, the OLR filed a complaint alleging that 
Attorney 
Jacobson 
engaged 
in professional 
misconduct 
with 
respect to his handling of two client matters.  The first matter 
involved Robert M. and his wife, Roxane.  In or about 1989, the 
couple retained the Milwaukee law firm of Hiller & Frank, where 
Attorney 
Jacobson 
then 
practiced 
law, 
to 
represent 
them 
regarding civil claims against Dennis H.  In October 1991, 
Robert M. stipulated to accept an $18,000 settlement in the 
case, which was to be paid in installments of at least $300 per 
month for a period of 60 months. 
¶5 
The Hiller & Frank law firm dissolved in 1994, and 
Attorney Jacobson established a private solo practice.  He 
continued to handle the collection of the stipulated settlement 
from Dennis H.  Attorney Jacobson collected various amounts from 
Dennis H. and disbursed some amounts to Robert M. and some 
amounts to himself.  The OLR's complaint alleged that Attorney 
Jacobson and Robert M. disagreed on the fee arrangements 
concerning the collection proceeds.  There was no written fee 
agreement.  The complaint also alleged that Robert M. never 
received a billing statement from Attorney Jacobson and had no 
idea what the fees were.  In addition, Attorney Jacobson has no 
No. 
2004AP753-D   
 
4 
 
billing statements or other documentation to establish that he 
notified Robert M. prior to making any withdrawals from the 
settlement proceeds.  
¶6 
Robert M. filed a grievance against Attorney Jacobson 
in October 2001.  The OLR's complaint alleged that Attorney 
Jacobson said "the fee arrangement was changed four times, from 
an hourly fee, to a 1/3 fee, then to a 2/3 fee, and finally to a 
3/3 fee, and that Robert M. agreed to those changes."  However, 
Attorney Jacobson has no documentation of Robert M.'s purported 
assent to these changes in the fee arrangement. 
¶7 
Although the OLR's complaint had alleged five counts 
of misconduct with respect to Attorney Jacobson's handling of 
the Robert M. matter, the referee found that only one of those 
counts had been proven, that is by failing to provide Robert M. 
with a full accounting of the funds that he collected in the 
matter, despite Robert M.'s repeated requests between 1998 and 
2003, Attorney Jacobson violated SCR 20:1.15(b).1   
¶8 
The other misconduct alleged in the OLR's complaint 
involved Attorney Jacobson's handling of a medical malpractice 
                                                 
1 SCR 20:1.15(b) provides:  
(b) Upon receiving funds or other property in 
which a client or third person has an interest, a 
lawyer shall promptly notify the client or third 
person in writing.  Except as stated in this rule or 
otherwise permitted by law or by agreement with the 
client, a lawyer shall promptly deliver to the client 
or third person any funds or other property that the 
client or third person is entitled to receive and, 
upon request by the client or third person, shall 
render a full accounting regarding such property. 
No. 
2004AP753-D   
 
5 
 
claim for Robin E. and John E.  The couple retained Attorney 
Jacobson to represent them and their son after their son was 
born with severe brain damage.  The couple alleged that the 
doctor and the hospital were negligent in treating the wife and 
son during the birth. 
¶9 
In October 1998, Attorney Jacobson filed a lawsuit 
against two doctors, a hospital, the couple's health insurance 
carrier, and the Wisconsin Patients Compensation Fund.  Attorney 
Jacobson failed to respond to interrogatories in the case and 
failed to provide opposing counsel with a written list of 
witnesses as required by the circuit court's scheduling order.  
Attorney Jacobson neither sought an extension of time nor sought 
to amend the scheduling order.   
¶10 The hospital filed a motion for summary judgment based 
on Attorney Jacobson's failure to name expert witnesses and his 
failure to comply with the scheduling order.  One of the doctors 
also filed a motion for summary judgment based on Attorney 
Jacobson's failure to prosecute the case.  The Wisconsin 
Patients Compensation Fund filed a motion to dismiss based on 
Attorney Jacobson's failure to prosecute and his failure to 
comply with the court's scheduling order.   
¶11 The trial court scheduled the motions for a hearing on 
April 17, 2000.  The hearing date was subsequently rescheduled 
to June 5, 2000.  On May 25, 2000, Attorney Jacobson informed 
defense counsel that he had suffered a heart attack earlier that 
month and he asked that the hearing be rescheduled again.  The 
hearing was then set for July 7, 2000.  The scheduling order had 
No. 
2004AP753-D   
 
6 
 
provided that the parties were to complete all discovery by June 
23, 2000.  Attorney Jacobson failed to conduct any discovery 
between April 28, 1999 and June 23, 2000.  Attorney Jacobson 
appeared at the July 7, 2000 motion hearing and requested an 
adjournment so the plaintiffs could retain new counsel.   
¶12 In September 2000, the plaintiffs' new attorney filed 
a memorandum in opposition to the motions for dismissal and an 
affidavit 
from 
Attorney 
Jacobson 
saying 
he 
had 
verbally 
disclosed to defense counsel that the plaintiffs would rely on 
testimony from a specific OB/GYN and that he also advised 
defense counsel of that doctor's opinions and anticipated 
testimony.   
¶13 After a hearing on October 23, 2000, the trial court 
denied the defendants' motions to dismiss, but it noted Attorney 
Jacobson's failure to prosecute the case and said Attorney 
Jacobson's failure to name witnesses, itemize damages, provide a 
special permanency report, and conduct discovery "does strike me 
as egregious.  It is thirteen months of contempt as far as I can 
see."  While the trial court denied the motions to dismiss, it 
sanctioned the plaintiffs and limited them to one expert witness 
on the issue of causation.  The court also ordered the 
plaintiffs to pay the costs of the defendants' motions, 
including reasonable attorney's fees.  It further ordered 
Attorney Jacobson to pay various costs.  The plaintiffs 
subsequently filed a malpractice suit against Attorney Jacobson, 
and his insurance carrier settled the claim for $990,000. 
No. 
2004AP753-D   
 
7 
 
¶14 The OLR's complaint alleged, and the referee agreed, 
that by failing to name witnesses, failing to itemize damages, 
failing to provide a special permanency report, failing to 
respond to interrogatories, and failing to conduct discovery, 
Attorney Jacobson failed to act with reasonable diligence and 
promptness in representing a client in violation of SCR 20:1.3.2 
¶15 A hearing was held before the referee on November 12, 
2004.  The referee issued his report on March 7, 2005.  While 
the OLR's post-hearing brief had argued for a 90-day suspension 
of Attorney Jacobson's license, consecutive to the five-month 
suspension 
that 
commenced 
January 
27, 
2005, 
the 
referee 
concluded that a public reprimand, coupled with increasing the 
two-year reporting and monitoring requirements ordered in the 
earlier disciplinary action to three years would appropriately 
serve the public protection interest.   
¶16 A referee's findings of fact are to be affirmed unless 
they are clearly erroneous.  In re Disciplinary Proceedings 
Against Sosnay, 209 Wis. 2d 241, 243, 562 N.W.2d 137 (1997).  
Conclusions of law are reviewed de novo.  In re Disciplinary 
Proceedings Against Carroll, 2001 WI 130, ¶29, 248 Wis. 2d 662, 
636 N.W.2d 718.  The record supports the referee's findings of 
fact and conclusions of law and we adopt them. 
¶17 We also agree with the referee's recommendation that a 
public reprimand, along with increasing the reporting and 
                                                 
2 SCR 20:1.3 provides:  Diligence.  "A lawyer shall act with 
reasonable diligence and promptness in representing a client." 
No. 
2004AP753-D   
 
8 
 
monitoring requirements from two years to three years and 
requiring Attorney Jacobson to pay the full costs of the 
proceeding, is an appropriate level of discipline to impose for 
the misconduct at issue in this case.   
¶18 IT IS ORDERED that Attorney Bruce B. Jacobson is 
publicly 
reprimanded 
for 
his 
professional 
misconduct 
as 
determined in this matter. 
¶19 IT IS FURTHER ORDERED that within 60 days of the date 
of this order, Attorney Bruce B. Jacobson pay to the Office of 
Lawyer Regulation the costs of this proceeding, provided that if 
the costs are not paid within the time specified and absent a 
showing to this court of an inability to pay those costs within 
that time, the license of Attorney Bruce B. Jacobson to practice 
law in Wisconsin shall be suspended until further order of the 
court. 
¶20 IT IS FURTHER ORDERED that for a period of three years 
from January 27, 2005, semi-annual reports shall be submitted by 
Attorney Jacobson's psychiatrist or other healthcare provider, 
as 
approved 
by 
the 
OLR, 
concerning 
the 
state 
of 
his 
psychological condition insofar as it might impair his practice 
of law.  The first such report shall be filed six months after 
the date of his suspension. 
¶21 IT IS FURTHER ORDERED that for a period of three years 
following the date of his reinstatement to practice law, 
Attorney Jacobson's practice of law shall be monitored by an 
OLR-approved attorney on a schedule set by the OLR. 
No. 
2004AP753-D   
 
9 
 
¶22 IT IS FURTHER ORDERED that for a period of three years 
after his reinstatement Attorney Jacobson shall provide the OLR 
with quarterly reports, in a manner satisfactory to the OLR, 
concerning his trust account record keeping.  These reports 
shall commence three months after the date of reinstatement. 
No. 
2004AP753-D   
 
 
 
1