Title: Office of Lawyer Regulation v. James T. Winch
Citation: 2007 WI 41
Docket Number: 2006AP003115-D
State: Wisconsin
Issuer: Wisconsin Supreme Court
Date: April 19, 2007

2007 WI 41 
 
SUPREME COURT OF WISCONSIN 
 
 
 
 
 
CASE NO.: 
2006AP3115-D 
COMPLETE TITLE: 
 
 
In the Matter of Disciplinary Proceedings 
Against James T. Winch, Attorney at Law: 
 
 
Office of Lawyer Regulation, 
          Complainant, 
     v. 
James T. Winch, 
          Respondent.   
  
 
 
 
DISCIPLINARY PROCEEDING AGAINST WINCH 
 
 
OPINION FILED: 
April 19, 2007   
SUBMITTED ON BRIEFS: 
        
ORAL ARGUMENT: 
        
 
 
SOURCE OF APPEAL: 
 
 
COURT: 
        
 
COUNTY: 
        
 
JUDGE: 
        
 
 
 
JUSTICES: 
 
 
CONCURRED: 
        
 
DISSENTED: 
        
 
NOT PARTICIPATING:         
 
 
 
ATTORNEYS: 
 
      
 
 
2007 WI 41
NOTICE 
This opinion is subject to further 
editing and modification.  The final 
version will appear in the bound 
volume of the official reports.   
No.  2006AP3115-D  
 
 
STATE OF WISCONSIN  
 
 
   : 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings 
Against James T. Winch, Attorney at Law: 
 
Office of Lawyer Regulation, 
 
          Complainant, 
 
     v. 
 
James T. Winch, 
 
          Respondent. 
 
FILED 
 
APR 19, 2007 
 
David R. Schanker 
Clerk of Supreme Court 
 
 
 
 
 
ATTORNEY 
disciplinary 
proceeding.   
Attorney's 
license 
suspended.   
 
¶1 
PER CURIAM.   We review the stipulation filed by 
Attorney James T. Winch and the Office of Lawyer Regulation 
(OLR) pursuant to SCR 22.121  concerning Attorney Winch's 
                                                 
1 SCR 22.12 states:  Stipulation. 
 
(1) The director may file with the complaint a 
stipulation of the director and the respondent to the 
facts, conclusions of law regarding misconduct, and 
discipline to be imposed.  The supreme court may 
consider the complaint and stipulation without the 
appointment of a referee. 
No. 
2006AP3115-D   
 
2 
 
professional misconduct relating to use of his trust account and 
his failure to cooperate in the OLR's investigation.  The 
parties stipulated that the appropriate discipline to impose is 
the suspension of Attorney Winch's license to practice law in 
Wisconsin for one year.   
¶2 
We approve the stipulation and adopt the stipulated 
facts and conclusions of law.  We agree that the seriousness of 
Attorney Winch's misconduct warrants the suspension of his 
license to practice law, and we accept the parties' stipulation 
that a one-year suspension is appropriate discipline.   
¶3 
Attorney Winch was admitted to practice law in 
Wisconsin in 1981 and practices in Mazomanie.   
¶4 
On December 18, 2006, the OLR filed a complaint 
against Attorney Winch.  The first five trust account violations 
alleged 
in 
the 
complaint 
involved 
Attorney 
Winch's 
representation of J.S. in a divorce, an eviction, and a sale of 
a farm.  Attorney Winch stipulated to the following counts of 
misconduct with respect to his representation of J.S.: 
                                                                                                                                                             
 
(2) If the supreme court approves a stipulation, 
it shall adopt the stipulated facts and conclusions of 
law and impose the stipulated discipline. 
(3) If the supreme court rejects the stipulation, 
a referee shall be appointed and the matter shall 
proceed as a complaint filed without a stipulation. 
 
(4) A stipulation rejected by the supreme court 
has no evidentiary value and is without prejudice to 
the respondent's defense of the proceeding or the 
prosecution of the complaint. 
No. 
2006AP3115-D   
 
3 
 
COUNT ONE: By converting at least $6,524.40 that he 
was holding in trust for [J.S.] to his own purposes, 
Winch engaged in conduct involving dishonesty, in 
violation of SCR 20:8.4(c).2 
COUNT TWO: By failing for years to hold funds 
belonging to [J.S.] in trust, at one point being at 
least $12,719.58 out of trust, Winch failed to hold in 
trust, separate from his own property, that property 
of 
clients 
and 
third 
persons 
that 
was 
in 
his 
possession in connection with a representation or when 
acting in a fiduciary capacity, in violation of former 
SCR 20:1.15(a) [effective through June 30, 2004] and 
current SCR 20:1.15(b)(1) [effective July 1, 2004].3 
COUNT THREE: By depositing a $20,000.00 check to his 
trust account in January 2005, which constituted the 
proceeds of a personal real estate transaction, and by 
depositing $6,000.18 in earned fees to the trust 
account in July of 2005, Winch deposited or retained 
funds belonging to the lawyer in his trust account, in 
violation of SCR 20:1.15(b)(3).4 
COUNT FOUR: By disbursing at least $6,195.18 to 
himself from his trust account between January of 1996 
                                                 
2 SCR 20:8.4(c) states that it is professional misconduct 
for a lawyer to "engage in conduct involving dishonesty, fraud, 
deceit or misrepresentation." 
3 SCR 20:1.15(b)(1) states: Segregation of trust property. 
(1) Separate account.  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 SCR 20:1.15(b)(3) states: Segregation of trust property. 
 
(3) Lawyer funds.  No funds belonging to the 
lawyer or law firm, except funds reasonably sufficient 
to pay monthly account service charges, may be 
deposited or retained in a trust account. 
No. 
2006AP3115-D   
 
4 
 
and February of 2005 to pay [J.S.]'s legal fees, 
without 
[J.S.]'s 
authorization, 
Winch 
violated 
a 
standard for withdrawing fees from a trust account, 
which had been established by the Wisconsin Supreme 
Court in Matter of Disciplinary Proceeding against 
Marine, 82 Wis. 2d 602, 264 N.W.2d 285 (1978), in 
violation of SCR 20:8.4(f).5 
COUNT FIVE: By disbursing $1,550 to himself from his 
trust account between July 1, 2004 and February of 
2005 to pay [J.S.]'s legal fees, without providing 
written notice to [J.S.], Winch withdrew fees from a 
trust account without providing written notice to the 
client at least five business days prior to the 
withdrawal, 
in 
violation 
of 
SCR 
20:1.15(g)(1) 
[effective July 1, 2004].6 
¶5 
The other four counts of trust account violations 
alleged 
in 
the 
OLR's 
complaint 
involved 
Attorney 
Winch 
depositing a $375 check from a client named J.P. into his trust 
account on August 3, 2005.  On August 19, 2005, Attorney Winch 
                                                 
5 SCR 20:8.4(f) provides that it is professional misconduct 
for a lawyer to "violate a statute, supreme court rule, supreme 
court order or supreme court decision regulating the conduct of 
lawyers." 
6 SCR 20:1.15(g)(1) states: Withdrawal of fees from trust 
account. 
 
(1) Notice to client.  At least 5 business days 
before the date on which a disbursement is made from a 
trust account for the purpose of paying fees, with the 
exception of contingent fees, the lawyer shall deliver 
to the client in writing all of the following: 
 
a. an itemized bill or other accounting showing 
the services rendered; 
 
b. notice 
of 
the 
amount 
owed 
and 
the 
anticipated date of the withdrawal; and 
 
c. a statement of the balance of the client's 
funds 
in 
the 
lawyer 
trust 
account 
after 
the 
withdrawal. 
No. 
2006AP3115-D   
 
5 
 
issued 
a 
trust 
account 
check 
in 
connection 
with 
his 
representation of J.P. payable to a title company in the amount 
of $290.  The OLR received notice that this check resulted in a 
$263.78 overdraft in Attorney Winch's trust account.   
¶6 
The OLR audited Attorney Winch's trust account records 
and found that the overdraft was attributable to multiple 
disbursements Attorney Winch made between January 31, 2005, and 
August 18, 2005, that exceeded the balance Attorney Winch 
actually held in trust in connection with 13 client matters.  
Personal funds that Attorney Winch commingled in his trust 
account after he sold his office building in January 2005 masked 
these over-disbursements.   
¶7 
By mid-August 2005, Attorney Winch had disbursed to 
himself the remaining funds from the sale of his office 
building. 
 
The 
shortfall 
caused 
by 
the 
multiple 
over-
disbursements resulted in his conversion of at least $1985.58 
belonging to 15 clients.  Attorney Winch told the OLR that the 
August 19, 2005 overdraft resulted from his disbursement of 
trust account funds prior to making a trust account deposit.  He 
later advised the OLR that the overdraft was also due to his 
disbursing checks without noting them in the ledger sheets for 
his clients; his failure to maintain a running balance in his 
transaction register; and his failure to reconcile the account. 
¶8 
The 
OLR's 
complaint alleged, and Attorney Winch 
stipulated, to the following counts of misconduct: 
COUNT SIX: By failing to hold in trust at least 
$1,985.58 belonging to thirteen clients other than 
No. 
2006AP3115-D   
 
6 
 
[J.S.], Winch failed to hold in trust, separate from 
his own property, that property of clients and third 
persons that was in his possession in connection with 
a representation or when acting in a fiduciary 
capacity, 
in 
violation of former SCR 20:1.15(a) 
[effective through June 30, 2004] and current SCR 
20:1.15(b)(1) [effective July 1, 2004]. 
COUNT SEVEN: By failing to maintain a running balance 
in his trust account's transaction register, Winch 
failed 
to 
maintain 
a 
transaction 
register 
that 
included the balance in the account after each 
transaction, in violation of SCR 20:1.15(f)(1)a.7 
COUNT EIGHT: By failing to record disbursements in the 
appropriate client ledgers, Winch failed to record 
each disbursement of client funds in a subsidiary 
ledger 
for 
that 
client, 
in 
violation 
of 
SCR 
20:1.15(f)(1)b.8 
                                                 
7 SCR 20:1.15(f)(1) provides the record-keeping requirements 
for trust accounts.  In relevant part: 
 
a. 
Transaction 
register. 
 
The 
transaction 
register shall contain a chronological record of all 
account transactions, and shall include all of the 
following: 
 
1. the 
date, 
source, 
and 
amount 
of 
all 
deposits; 
 
2. the date, check or transaction number, payee 
and amount of all disbursements, whether by check, 
wire transfer, or other means; 
 
3. the date and amount of every other deposit 
or deduction of whatever nature; 
 
4. the identity of the client for whom funds 
were deposited or disbursed; and 
 
5. the balance in the account after each 
transaction. 
8 SCR 20:1.15(f)(1) provides the record-keeping requirements 
for trust accounts.  In relevant part: 
No. 
2006AP3115-D   
 
7 
 
COUNT NINE: By failing to reconcile his trust account, 
Winch failed to prepare reconciliation reports "not 
less frequently than every 30 days," in violation of 
SCR 20:1.15(f)(1)g.9 
¶9 
The final misconduct alleged in the OLR's complaint 
arose out of Attorney Winch's failure to respond for over seven 
months to the OLR's repeated requests for information relating 
to the conversions from his trust account.  The complaint 
alleged, and Attorney Winch stipulated, that he willfully failed 
                                                                                                                                                             
 
b. Individual client ledgers.  A subsidiary 
ledger shall be maintained for each client or matter 
for which the lawyer receives trust funds, and the 
lawyer shall record each receipt and disbursement of 
that client's funds and the balance following each 
transaction.  A lawyer shall not disburse funds from 
the trust account that would create a negative balance 
with respect to any individual client or matter. 
9 SCR 20:1.15(f)(1) provides the record-keeping requirements 
for trust accounts.  In relevant part: 
 
g. Reconciliation reports.  For each trust 
account, the lawyer shall prepare and retain a printed 
reconciliation report on a regular and periodic basis 
not less frequently than every 30 days.  Each 
reconciliation report shall show all of the following 
balances and verify that they are identical: 
 
(1) the balance that appears in the transaction 
register as of the reporting date; 
 
(2) the total of all subsidiary ledger balances 
for 
IOLTA 
accounts 
and 
other 
pooled 
accounts, 
determined by listing and totaling the balances in the 
individual client ledgers and the ledger for account 
fees and charges, as of the reporting date; and 
 
(3) the adjusted balance, determined by adding 
outstanding deposits and other credits to the balance 
in the financial institution's monthly statement and 
subtracting outstanding checks and other deductions 
from the balance in the monthly statement. 
No. 
2006AP3115-D   
 
8 
 
to provide relevant information, fully answer questions, and 
furnish documents requested by the OLR, in violation of SCR 
20:8.4(f) as it related to the requirements of SCR 22.03(6).10 
¶10 The 
stipulation 
notes 
that 
Attorney 
Winch 
was 
privately 
reprimanded 
in 
1992 
for 
threatening 
criminal 
prosecution.  Attorney Winch states that he fully understands 
the misconduct allegations, the ramifications if this court 
should impose the stipulated level of discipline, his right to 
contest the matter and his right to consult with counsel.  He 
further avers that his entry into the stipulation was made 
knowingly and voluntarily and represents his admission of all 
misconduct and his assent to the level and type of discipline 
sought by the OLR director.  The stipulation also notes that 
Attorney Winch has suffered from a number of serious personal 
problems; that he withdrew from the representation of a number 
of clients and shifted his practice to routine traffic cases, 
wills, deeds, and similar legal matters to enable him to deal 
better with the problems in his personal life.  The stipulation 
states that Attorney Winch agrees to the one-year suspension of 
his license sought by the OLR director.   
¶11 We adopt the findings of fact and conclusions of law 
to which the parties have stipulated concerning Attorney Winch's 
                                                 
10 SCR 22.03(6) provides that "[i]n the course of the 
investigation, 
the 
respondent's wilful failure to provide 
relevant information, to answer questions fully, or to furnish 
documents and the respondent's misrepresentation in a disclosure 
are misconduct, regardless of the merits of the matters asserted 
in the grievance." 
No. 
2006AP3115-D   
 
9 
 
professional misconduct.  We determine that the seriousness of 
the misconduct warrants the suspension of Attorney Winch's 
license to practice law for one year.  We note that the OLR is 
not seeking an assessment of costs given that Attorney Winch 
fully cooperated with the OLR's litigation process and entered 
into a comprehensive stipulation before a referee was appointed. 
¶12 IT IS ORDERED that the license of James T. Winch to 
practice law in Wisconsin is suspended for a period of one year, 
effective May 31, 2007. 
¶13 IT IS FURTHER ORDERED that Attorney James T. Winch 
comply with the provisions of SCR 22.26 concerning the duties of 
a person whose license to practice law in Wisconsin has been 
suspended. 
 
No. 
2006AP3115-D   
 
 
 
1