Title: Cincinnati Bar Assn. v. Dearfield

State: ohio

Issuer: Ohio Supreme Court

Document:

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as 
Cincinnati Bar Assn. v. Dearfield, Slip Opinion No. 2011-Ohio-5295.] 
 
 
 
NOTICE 
This slip opinion is subject to formal revision before it is published in 
an advance sheet of the Ohio Official Reports.  Readers are requested 
to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 
65 South Front Street, Columbus, Ohio 43215, of any typographical or 
other formal errors in the opinion, in order that corrections may be 
made before the opinion is published. 
 
SLIP OPINION NO. 2011-OHIO-5295 
CINCINNATI BAR ASSOCIATION v. DEARFIELD. 
[Until this opinion appears in the Ohio Official Reports advance sheets, it 
may be cited as Cincinnati Bar Assn. v. Dearfield,  
Slip Opinion No. 2011-Ohio-5295.] 
(No. 2010-2254—Submitted May 25, 2011—Decided October 19, 2011.) 
Attorneys at law—Misconduct—Failure to deposit unearned fees in a trust 
account—Designating a fee as nonrefundable—Conditioning refund on 
client’s withdrawal of grievance—Failure to cooperate as aggravating 
factor—Stayed suspension. 
ON CERTIFIED REPORT of the Board of Commissioners on Grievances and 
Discipline of the Supreme Court, No. 10-036. 
__________________ 
Per Curiam. 
{¶ 1} Respondent, G. Timothy Dearfield of Loveland, Ohio, Attorney 
Registration No. 0039684, was admitted to the practice of law in Ohio in 1988.  
On April 12, 2010, relator, the Cincinnati Bar Association, filed a complaint 
charging Dearfield with violating the Rules of Professional Conduct with regard 
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his representation of Jeffery M. Hallet.  On May 11, 2010, Dearfield filed an 
answer denying the alleged violations.  The case was heard before a panel of the 
Board of Commissioners on Grievances and Discipline of the Supreme Court of 
Ohio.  After finding that Dearfield violated several Rules of Professional 
Conduct, the board recommends a one-year suspension with six months stayed.  
We hold that a one-year stayed suspension is the proper sanction. 
I.  Misconduct 
{¶ 2} Jeffery Hallet hired Dearfield to file bankruptcy on his behalf.  
Dearfield’s standard charges were $3,274 for a Chapter 13 bankruptcy, which 
included a $700 retainer and $274 in court costs, and $1,099 for a Chapter 7 
bankruptcy, which included an $800 retainer and $299 in court costs.  Hallet 
signed an agreement with Dearfield that stated: “All retainer payments are good 
for one year from the date made and will be credited to the attorney fees and court 
costs then applicable for the filing.  Any monies paid on retainer are non-
refundable except in unusual circumstances and only at the discretion of an 
attorney employed by the Law Firm.”  (Emphasis added.) 
{¶ 3} On June 30, 2009, Hallet wrote Dearfield a $700 check for 
“bankruptcy filing.”  Approximately two weeks later, Hallet wrote an additional 
$399 check to Dearfield for “court costs.”  Both checks were deposited in 
Dearfield’s usual business account. 
{¶ 4} Hallet and Dearfield had numerous conversations as to whether 
Hallet should file Chapter 7 or Chapter 13 bankruptcy.  Eventually, Hallet decided 
not to file bankruptcy, because he had negotiated a payment plan with his 
creditors.  Thus, Hallet sent a letter dated August 15, 2009, discharging Dearfield 
as his bankruptcy attorney and requesting an itemized bill, a refund of the $399 in 
courts costs, and his documents. 
{¶ 5} Dearfield believed that his firm had invested at least $1,099 worth 
of work in preparing Hallet’s bankruptcy case and that he could use Hallet’s $399 
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to offset that expense.  Thus, Dearfield considered Hallet’s $399 as earned fees 
and thus initially refused Hallet a refund. 
{¶ 6} Hallet filed a grievance against Dearfield with the relator, the 
Cincinnati Bar Association.  In late 2009 or early 2010, the relator notified 
Dearfield of Hallet’s grievance.  Dearfield sent a letter to relator explaining that 
although he believed that his firm had earned the $299 that would have been paid 
in costs, he would refund that amount to Hallet “as a full and complete 
satisfaction of any claim.” 
{¶ 7} Several weeks later, Dearfield refunded $299 to Hallet and in 
return Hallet signed a document that stated: 
{¶ 8} “You acknowledge that you have received $299.00 in cash from 
this office on this 26th day of February 2010 in full and complete satisfaction of 
any claims you may have against same and or any of its attorney[s], paralegals 
etc.  Said claims include any and all claims such as legal malpractice, ethical 
violations, or other complaints to overseeing bodies including the Ohio Supreme 
Court, the Ohio State Bar Association, the Cincinnati Bar Association or any 
other applicable entities.” 
{¶ 9} The board concluded that relator proved by clear and convincing 
evidence that Dearfield had violated (1) Prof.Cond.R. 1.15(c) (a lawyer must 
deposit advance legal fees and expenses into a client trust account, to be 
withdrawn by the lawyer only as fees are earned or expenses incurred), (2) 
Prof.Cond.R. 1.5(d)(3) (a lawyer shall not charge “a fee denominated as ‘earned 
upon receipt,’ ‘nonrefundable,’ or in any similar terms, unless the client is 
simultaneously advised in writing that if the lawyer does not complete the 
representation for any reason, the client may be entitled to a refund of all or part 
of the fee based upon the value of the representation pursuant to division (a) of 
this rule”), and (3) Prof.Cond.R. 8.4(d) (a lawyer shall not engage in conduct that 
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is prejudicial to the administration of justice).  We agree that Dearfield violated 
these rules. 
II.  Sanction 
{¶ 10} When imposing sanctions for attorney misconduct, we consider 
relevant factors, including the ethical duties that the lawyer violated and the 
sanctions imposed in similar cases. Stark Cty. Bar Assn. v. Buttacavoli, 96 Ohio 
St.3d 424, 2002-Ohio-4743, 775 N.E.2d 818, ¶ 16. In making a final 
determination, we also weigh evidence of the aggravating and mitigating factors 
listed in BCGD Proc.Reg. 10(B). Disciplinary Counsel v. Broeren, 115 Ohio 
St.3d 473, 2007-Ohio-5251, 875 N.E.2d 935, ¶ 21;  Akron Bar Assn. v. 
Freedman, 128 Ohio St.3d 497, 2011-Ohio-1959, 946 N.E.2d 753, ¶ 7. 
{¶ 11} The board found that Dearfield’s lack of a disciplinary record was 
a mitigating factor.  However, the board found four aggravating factors: (1) 
Dearfield acted with a dishonest or selfish motive, (2) Dearfield did not cooperate 
with the disciplinary process, (3) Dearfield engaged in deceptive practices during 
the disciplinary process, and (4) Dearfield refused to acknowledge the wrongful 
nature of his conduct. 
{¶ 12} The board also cited Cuyahoga Cty. Bar Assn. v. Berger (1992), 64 
Ohio St.3d 454, 597 N.E.2d 81, in support of suspending Dearfield’s law license 
for one year. 
{¶ 13} Dearfield admits the alleged violations but argues that his conduct 
does not merit an actual suspension.  For the following reasons, we agree. 
A.  Mitigating and Aggravating Factors 
1.  Failure to Cooperate/Deceptive Practices 
{¶ 14} We find that Dearfield’s actions in securing a release of 
disciplinary action are an aggravating factor in this case. 
{¶ 15} The relator charged Dearfield with violating Gov.Bar R. V(4)(G) 
“for failing to cooperate with the disciplinary process by requiring Mr. Hallet to 
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sign a release before refunding the court costs,” citing Akron Bar Assn. v. Holder, 
102 Ohio St.3d 307, 2004-Ohio-2835, 810 N.E.2d 426, ¶ 31.  However, the board 
found that there was no clear and convincing evidence that Dearfield had failed to 
cooperate in this regard.  Nevertheless, the board still appears to have found 
Dearfield’s conduct to be an aggravating factor. 
{¶ 16} In Holder, at ¶ 31, the court stated: 
{¶ 17} “And because respondent had attempted to derail the investigation 
of his misconduct by negotiating the withdrawal of Wright’s grievance through 
settlement discussions, threatening legal action, and actually filing a grievance 
against the investigator, among other examples, the board found respondent in 
violation of Gov.Bar R. V(4)(G) (requiring an attorney to cooperate in the 
disciplinary proceedings).” 
{¶ 18} Apparently, the board found that Dearfield’s conduct in the instant 
case was distinguishable from the attorney’s conduct in Holder in determining 
that there was insufficient evidence to find that Dearfield violated Gov.Bar R. 
V(4)(G).  We agree.  However, we also agree that Dearfield’s act of having Hallet 
sign a document that purported to release any disciplinary action pending against 
Dearfield is an aggravating factor under BCGD Proc.Reg. 10(B)(1)(e) (lack of 
cooperation in the disciplinary process).  While Dearfield’s use of this release was 
not comparable to pervasive actions taken by the attorney in Holder to thwart the 
disciplinary process, Holder put Dearfield on notice that his use of such a release 
could at least be an aggravating factor under BCGD Proc.Reg. 10(B)(1)(e). 
{¶ 19} The board also found that Dearfield engaged in deceptive practices 
in dealing with the disciplinary process.  However, the board did not specify what 
actions taken by Dearfield were deceptive, and we cannot locate any such 
evidence in the record. 
{¶ 20} Accordingly, we find that the aggravating factor of failing to 
cooperate with the disciplinary process is present. 
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2.  Dishonest or Selfish Motive 
{¶ 21} Contrary to the board’s findings, we find that Dearfield did not act 
with a dishonest or selfish motive with regard to the violation of Prof.Cond.R. 
1.15(c) and 8.4(d). 
{¶ 22} Dearfield’s failure to deposit the $399 into a trust account was 
based on his mistaken belief that costs paid by a client to a lawyer do not need to 
be deposited into a trust account pursuant to Columbus Bar Assn. v. Flanagan 
(1997), 77 Ohio St.3d 381, 674 N.E.2d 681.  While Flanagan did hold that former 
DR 9-102(A) did not require that costs paid by a client to a lawyer had to be 
deposited into a trust account, the rules have recently been amended to require 
such costs to be deposited into a trust account.  Prof.Cond.R. 1.15(c). 
{¶ 23} Similarly, we find that Dearfield did not act in a dishonest or 
selfish manner by initially failing to refund Hallet’s fees.  Hallet believed that the 
$399 he paid to Dearfield was for a filing fee and, because no court fees had been 
incurred, that Dearfield should have refunded the money.  Dearfield, on the other 
hand, believed that his firm had earned at least $1,099 in preparing Hallet’s 
bankruptcy case before Hallet decided that he would not file bankruptcy.  
Consequently, Dearfield initially believed that he was entitled to use the $399 to 
offset the fees that Hallet had incurred.  Dearfield was wrong, and ultimately he 
agreed to refund $299 to Hallet, but under these circumstances, we do not find 
that he acted with a dishonest motive by initially refusing to issue a refund. 
{¶ 24} Accordingly, we find that Dearfield did not commit the 
aggravating factor of acting with a selfish or dishonest motive. 
3.  Wrongful Nature of Conduct 
{¶ 25} Contrary to the board’s findings, we find that Dearfield 
acknowledged the wrongful nature of his conduct and has taken steps to prevent 
further misconduct. 
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{¶ 26} Dearfield admitted that under the current rule, clients’ fees must be 
deposited into an attorney’s trust account.  Dearfield also testified at the 
disciplinary hearing that he has changed his fee agreements by removing the 
statement that the fee is nonrefundable.  Finally, Dearfield stated that he has 
learned not to condition the settlement of a fee dispute upon the dismissal of any 
ethical complaint. 
B.  Berger is Distinguishable 
{¶ 27} We also find that Berger is distinguishable from the instant case.  
In Berger, the court found that two attorneys charged an excessive fee, denied a 
client access to settlement proceeds, failed to accept any ethical responsibility for 
their conduct, and attempted to suppress the bar association’s investigation.  
Berger, 64 Ohio St.3d 454, 597 N.E.2d 81. The court suspended the attorneys’ 
licenses for one year. 
{¶ 28} Dearfield’s conduct to some degree could be compared to Berger 
in that he attempted to secure the release of disciplinary charges filed against him.  
However, unlike the attorney in Berger, Dearfield did not charge an excessive fee 
or refuse to return any fees, and perhaps most important, he has acknowledged the 
wrongful nature of his conduct and has taken steps to prevent future misconduct.  
Accordingly, we find that Berger is not persuasive in determining the appropriate 
sanction to impose on Dearfield. 
III.  Conclusion 
{¶ 29} We hold that Dearfield violated three rules of professional conduct 
and that the aggravating factor of failing to cooperate with the disciplinary 
process by having his client sign a settlement that purported to release him from 
any disciplinary action is present.  However, he has no prior disciplinary record, 
ultimately returned his client’s fees, admitted his misconduct, and has altered his 
practice to avoid future misconduct. 
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{¶ 30} While we cannot locate any cases on point that suggest an 
appropriate sanction, the primary goal of the attorney disciplinary system is to 
protect the public.  In re Disbarment of Lieberman (1955), 163 Ohio St. 35, 41, 56 
O.O.2d, 125 N.E.2d 328; Warren Cty. Bar Assn. v. Marshall, 121 Ohio St.3d 197, 
2009-Ohio-501, 903 N.E.2d 280, ¶ 19.  Dearfield has admitted his wrongdoing 
and has taken the appropriate steps to avoid violating the same disciplinary rules 
again.  Therefore, we do not believe that an actual suspension is in order.  Instead, 
we suspend Dearfield’s license to practice law for one year with the entire 
suspension stayed on the condition that Dearfield not commit any further 
misconduct. 
{¶ 31} Costs taxed to Dearfield. 
Judgment accordingly. 
O’CONNOR, C.J., and PFEIFER, LUNDBERG STRATTON, O’DONNELL, 
LANZINGER, CUPP, and MCGEE BROWN, JJ., concur. 
__________________ 
 
G. Mitchell Lippert and Arthur E. Phelps Jr., for relator. 
Maguire & Schneider, L.L.P., and Karl H. Schneider and Blake C. Jones, 
for respondent. 
______________________