Title: Office of Lawyer Regulation v. Perry P. Lieuallen

State: wisconsin

Issuer: Wisconsin Supreme Court

Document:

2001 WI 50 
 
SUPREME COURT OF WISCONSIN 
 
 
Case No.: 
00-3136-D 
 
 
Complete Title 
of Case: 
 
In the Matter of Disciplinary Proceedings 
Against Perry P. Lieuallen, Attorney at Law: 
 
Office of Lawyer Regulation, f/k/a Board of 
Attorneys Professional Responsibility,  
 
Complainant, 
 
v. 
Perry P. Lieuallen,  
 
Respondent.  
 
 
DISCIPLINARY PROCEEDINGS AGAINST LIEUALLEN 
 
 
Opinion Filed: 
June 1, 2001 
Submitted on Briefs: 
      
Oral Argument: 
      
 
 
Source of APPEAL 
 
COURT: 
      
 
COUNTY: 
      
 
JUDGE: 
      
 
 
JUSTICES: 
 
Concurred: 
      
 
Dissented: 
      
 
Not Participating:       
 
 
ATTORNEYS: 
      
 
2001 WI 50 
 
 
NOTICE 
This opinion is subject to further editing and 
modification.  The final version will appear in 
the bound volume of the official reports. 
 
No. 00-3136-D 
 
STATE OF WISCONSIN               :        
        
 
 
 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings 
Against Perry P. Lieuallen, Attorney at  
Law: 
 
Office of Lawyer Regulation, f/k/a Board  
of Attorneys Professional Responsibility,  
 
          Complainant, 
 
     v. 
 
Perry P. Lieuallen,  
 
          Respondent.  
 
FILED 
 
JUN 1, 2001  
 
Cornelia G. Clark 
Clerk of Supreme Court 
Madison, WI 
 
 
 
ATTORNEY 
disciplinary 
proceeding.  Attorney's 
license 
revoked.  
¶1 
PER CURIAM   We review the corrected findings of fact 
and recommendations of the referee, John A. Fiorenza, concerning 
Attorney Perry P. Lieuallen's professional misconduct in failing 
to keep clients reasonably informed of the status of a matter; 
engaging in conduct involving dishonesty, fraud, deceit or 
misrepresentation and converting clients' funds to his own use; 
failing to properly deliver funds to clients or third persons 
who were entitled to said funds; failing to act with reasonable 
diligence and promptness in representing clients; failing to 
No. 
00-3136-D 
 
2 
hold the property of his clients or third persons in trust; and 
falsely certifying to the State Bar of Wisconsin that he was in 
compliance with the record keeping requirements for attorneys 
holding Wisconsin trust accounts.  The referee recommended that 
Attorney Lieuallen's license to practice law be revoked as a 
discipline for that misconduct.  
¶2 
We adopt the referee's findings of fact and determine 
that the seriousness of Attorney Lieuallen's misconduct warrants 
revocation of his license to practice law in Wisconsin. 
¶3 
Attorney Lieuallen was admitted to practice law in 
Wisconsin in 1973 and practiced in Port Washington. 
¶4 
On November 17, 2000, the Office of Lawyer Regulation 
(OLR) filed a complaint setting forth allegations of misconduct 
with respect to more than twenty of Attorney Lieuallen's former 
clients.  The clients had retained Attorney Lieuallen to 
represent them in a variety of matters including divorce, 
personal injury, and criminal cases.  The complaint alleged that 
Attorney Lieuallen committed numerous improprieties with respect 
to his handling of client funds deposited in his trust account, 
including converting client funds to his own use, failing to 
honor clients' requests to return funds, disbursing funds 
belonging to certain clients to other clients, overdrawing the 
amounts on deposit for some clients, failing to maintain a cash 
receipts journal listing the source and dates of deposits put 
into 
the 
trust 
account, 
failing 
to 
maintain 
a 
separate 
disbursement journal listing the date and payee of each 
disbursement, failing to maintain a subsidiary ledger containing 
No. 
00-3136-D 
 
3 
a separate page for each client for whom funds were received and 
failing to perform a monthly reconciliation of his trust 
account.   
¶5 
Attorney Lieuallen did not file an answer to OLR's 
complaint.  On February 22, 2001, this court issued an order 
temporarily suspending Attorney Lieuallen's license in response 
to a motion filed by OLR which asserted that the investigation 
it had conducted in connection with grievances filed by former 
clients 
revealed 
conversion 
of 
funds 
and 
trust 
fund 
improprieties such that Attorney Lieuallen's continued practice 
of law would pose a threat to the interest of the public and the 
administration of justice. 
¶6 
The OLR moved for default judgment.  That motion was 
heard on March 13, 2001.  Attorney Lieuallen failed to appear at 
the hearing.  The referee granted OLR's motion for default 
judgment and deemed all allegations contained in OLR's complaint 
to be true.  
¶7 
The referee found that by failing to keep clients 
reasonably informed of the status of a matter, Attorney 
Lieuallen violated SCR 20:1.4(a).1  The referee also concluded 
Attorney Lieuallen engaged in conduct involving dishonesty, 
fraud, deceit or misrepresentation and that he converted 
                     
1  SCR 20:1.4(a) provides: 
(a)  A lawyer shall keep a client reasonably informed about 
the status of a matter and promptly comply with reasonable 
requests for information.  
No. 
00-3136-D 
 
4 
clients' funds, in violation of SCR 20:1.15(a)2 and SCR 
20:8.4(c).3  The referee further found that by misappropriating 
clients' funds being held in his trust account Attorney 
                     
2  SCR 20:1.15(a) provides: 
(a)  A lawyer shall hold in trust, separate from the 
lawyer's own property, that property of clients and third 
persons that is in the lawyer's possession in connection with a 
representation or when acting in a fiduciary capacity. Funds 
held in connection with a representation or in a fiduciary 
capacity include funds held as trustee, agent, guardian, 
personal representative of an estate, or otherwise. All funds of 
clients and third persons paid to a lawyer or law firm shall be 
deposited in one or more identifiable trust accounts as provided 
in paragraph (c). The trust account shall be maintained in a 
bank, savings bank, trust company, credit union, savings and 
loan association or other investment institution authorized to 
do business and located in Wisconsin. The trust account shall be 
clearly designated as "Client's Account" or "Trust Account" or 
words of similar import. No funds belonging to the lawyer or law 
firm, except funds reasonably sufficient to pay or avoid 
imposition of account service charges, may be deposited in such 
an account. Unless the client otherwise directs in writing, 
securities in bearer form shall be kept by the attorney in a 
safe deposit box in a bank, savings bank, trust company, credit 
union, 
savings 
and 
loan 
association 
or 
other 
investment 
institution authorized to do business and located in Wisconsin. 
The safe deposit box shall be clearly designated as "Client's 
Account" or "Trust Account" or words of similar import. Other 
property of a client or third person shall be identified as such 
and appropriately safeguarded. If a lawyer also licensed in 
another state is entrusted with funds or property in connection 
with an out-of-state representation, this provision shall not 
supersede the trust account rules of the other state. 
3  SCR 20:8.4(c) provides: 
It is professional misconduct for a lawyer to:  
(c)  engage in conduct involving dishonesty, fraud, deceit 
or misrepresentation.  
 
No. 
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5 
Lieuallen violated the standard of conduct set forth by this 
court in Disciplinary Proceedings Against Marine, 82 Wis. 2d 
602, 609-10, 264 N.W.2d 285 (1978) and, therefore, violated SCR 
20:8.4(f).4 
¶8 
The referee also found that Attorney Lieuallen had 
failed to notify clients or third parties in writing that he had 
received funds and that he failed to properly deliver funds to 
clients or third persons who were entitled to said funds, 
thereby violating SCR 20:1.15(b).5  The referee also found that 
Attorney Lieuallen failed to act with reasonable diligence and 
promptness in representing clients, in violation of SCR 20:1.3.6 
  
                     
4  SCR 20:8.4(f) provides: 
 
It is professional misconduct for a lawyer to:  
 
(f)  violate a statute, supreme court rule, supreme court 
order or supreme court decision regulating the conduct of 
lawyers.  
  
5  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. 
6  SCR 20:1.3 provides:  Diligence  
 
A lawyer shall act with reasonable diligence and promptness 
in representing a client.  
  
No. 
00-3136-D 
 
6 
¶9 
The referee found that for the years 1995 through 
1999, Attorney Lieuallen signed his State Bar of Wisconsin 
Fiscal Year Dues Statement certifying that he had a Wisconsin 
trust account and had complied with each of the record keeping 
requirements set forth in SCR 20:1.15(e).7  The referee concluded 
that by failing to keep complete trust account records and by 
falsely certifying to the State Bar of Wisconsin that he was in 
compliance with each of the record keeping requirements set 
                     
7  SCR 20:1.15(e) provides: 
(e)  Complete records of trust account funds and other 
trust property shall be kept by the lawyer and shall be 
preserved for a period of at least six years after termination 
of the representation. Complete records shall include: (i) a 
cash receipts journal, listing the sources and date of each 
receipt, (ii) a disbursements journal, listing the date and 
payee of each disbursement, with all disbursements being paid by 
check, (iii) a subsidiary ledger containing a separate page for 
each person or company for whom funds have been received in 
trust, showing the date and amount of each receipt, the date and 
amount of each disbursement, and any unexpended balance, (iv) a 
monthly schedule of the subsidiary ledger, indicating the 
balance of each client's account at the end of each month, (v) a 
determination of the cash balance (checkbook balance) at the end 
of 
each 
month, 
taken 
from 
the 
cash 
receipts 
and 
cash 
disbursement journals and a reconciliation of the cash balance 
(checkbook balance) with the balance indicated in the bank 
statement, and (vi) monthly statements, including canceled 
checks, vouchers or share drafts, and duplicate deposit slips. A 
record of all property other than cash which is held in trust 
for clients or third persons, as required by paragraph (a) 
hereof, shall also be maintained. All trust account records 
shall be deemed to have public aspects as related to the 
lawyer's fitness to practice.  
  
No. 
00-3136-D 
 
7 
forth in SCR 20:1.15(e), Attorney Lieuallen violated SCR 
20:1.15(g).8   
¶10 The 
referee 
also 
found 
that 
Attorney 
Lieuallen 
converted a total of $60,843.29 of clients' funds to his own 
use.   
¶11 The referee recommended that Attorney Lieuallen's 
license to practice law in the State of Wisconsin be revoked as 
discipline for his professional misconduct; that he be ordered 
to make restitution to the parties whose funds he converted; and 
that he be required to pay the costs of the disciplinary 
proceeding.  
                     
8  SCR 20:1.15(g) provides: 
(g)  A member of the State Bar of Wisconsin shall file with 
the State Bar annually, with payment of the member's State Bar 
dues or upon such other date as approved by the Supreme Court, a 
certificate stating whether the member is engaged in the private 
practice of law in Wisconsin and, if so, the name of each bank, 
trust company, credit union or savings and loan association in 
which the member maintains a trust account, safe deposit box, or 
both, as required by this section. Each member shall explicitly 
certify therein that he or she has complied with each of the 
record-keeping requirements set forth in paragraph (e) hereof. A 
partnership or professional legal corporation may file one 
certificate on behalf of its partners, associates, or officers 
who are required to file under this section. The failure of a 
member to file the certificate required by this section is 
grounds for automatic suspension of the member's membership in 
the State Bar in the same manner as provided in SCR 10.03(6) for 
nonpayment of dues. The filing of a false certificate is 
unprofessional conduct and is grounds for disciplinary action. 
The State Bar shall supply to each member, with the annual dues 
statement or at such other time as directed by the Supreme 
Court, a form on which the certification must be made and a copy 
of this rule.  
 
No. 
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8 
¶12 We 
adopt 
the 
referee's 
findings 
of 
fact 
and 
conclusions of law.  Attorney Lieuallen's gross pattern of 
misconduct in the handling of his clients' matters and his 
conversion of client funds warrants the revocation of his 
license to practice law in Wisconsin. 
¶13 IT IS ORDERED that the license of Perry P. Lieuallen 
to practice law in Wisconsin is revoked effective the date of 
this order.  
¶14 IT IS FURTHER ORDERED that Perry P. Lieuallen comply 
with the provisions of SCR 22.26 concerning the duties of a 
person whose license to practice law in Wisconsin has been 
revoked. 
¶15 IT IS FURTHER ORDERED that Perry P. Lieuallen make 
restitution to the parties listed on Exhibit A of the referee's 
report, in the amounts stated on Exhibit A.  
¶16 IT IS FURTHER ORDERED that within 60 days of the date 
of this order Perry P. Lieuallen pay the Office of Lawyer 
Regulation the costs of this proceeding.  
 
 
1