Opinion ID: 2324821
Heading Depth: 1
Heading Rank: 3

Heading: Attorney Thomas' Exceptions

Text: We initially turn to the exceptions noted by Attorney Thomas. Thomas first contends that INA failed to perfect its lien against Holmes' settlement with Hilton and that Thomas had no duty to notify INA of his receipt of the settlement draft from Hilton. The Board concluded, however, that the evidence was clear and convincing that INA had a statutory lien of some amount. Further, an attorney may not withdraw funds deposited in a client escrow account where the attorney's right to receive the funds is in dispute. See In re Haar, 667 A.2d 1350, 1353 (D.C.1995) (holding attorney may not withdraw legal fees from client account when client disputes attorney's right to receive the fees). Indeed, an attorney has a duty to protect the property of third parties in the attorney's custody. See D.C. Rules of Professional Conduct 1.15, cmt. [4]. In this instance, INA asserted its right to a statutory lien against Holmes' settlement with Hilton. Attorney Thomas, however, contended that INA had waived its lien. Accordingly, Attorney Thomas' right to receive the funds was in dispute. Thomas should not have withdrawn funds from the account while INA's right to those funds was in dispute. Attorney Thomas next contends that there was no evidence of scienter to sustain a finding that he acted dishonestly in representing to Holmes that he had satisfied INA's lien. Knowledge, however, may be inferred from the attorney's conduct. See In re James, 452 A.2d 163, 166 (D.C.1982). Here, Attorney Thomas sent Holmes a letter dated December 9, 1993 that included a revised settlement sheet, and a photocopy of a check from the escrow account made payable to INA. Attorney Thomas never sent this check to INA, the payee. While he contends that his delivery of the copy of the check to Holmes was unintentional, the Board is not required to accept his version of events. Id. Because both the Committee and the Board discredited Attorney Thomas' testimony, we accept the Board's conclusion that Thomas committed an act of dishonesty. We now turn to Attorney Thomas' contention that Holmes was well informed as to the status of her case. Attorney Thomas claims that between February 14, 1991 and July 31, 1992, he had four meetings with Holmes in person, and at least two telephone conversations. He claims that he kept Holmes informed through these contacts. The quantity of contacts between the attorney and the client, however, is of little importance when the attorney provides sparse or misleading information to the client. Specifically, the Board found Respondent misled Holmes into thinking that her money was in his escrow account and then stopped providing her with information altogether. In giving such misleading information, then, he failed to keep Holmes correctly informed. Attorney Thomas next contends that the Board independently determined that he had intentionally misappropriated settlement proceeds as opposed to simple misappropriation as so found by Committee Five. A violation of Rule 1.15(b) occurs whenever the balance in the client escrow account falls below the amount due to the client. In re Micheel, 610 A.2d 231, 233 (D.C.1992). Here, the evidence clearly showed that the balance of the client escrow account fell below the amount due to Holmes. [I]n virtually all cases of misappropriation, disbarment will be the only appropriate sanction unless it appears that the misconduct resulted from nothing more than simple negligence. In re Addams, 579 A.2d 190, 191 (D.C.1990) (en banc). In his brief, Attorney Thomas quotes the recommendation of the Committee, which states, This is misappropriation, plain and simple. By selecting this one quote completely out of context, Attorney Thomas would have this court agree that the Committee did not find intentional misappropriation. However, the Committee clearly found that Attorney Thomas' actions were intentional and fraudulent: The misappropriation shown here was not the product of simple negligence, and no such claim is made by respondent. . . . Thomas used his client's funds without her knowledge or permission, lied to her and Bar Counsel about it and tried to cover it up with fraud, including fraudulently fabricated documents. . . . The cross-examination of Respondent reveals that, on occasions too numerous to specify, Respondent's testimony was largely fabricated. The evidence is clear, then, that Attorney Thomas committed an intentional misappropriation of client funds. Next, Attorney Thomas challenges the Board's conclusion that he engaged in commingling of funds. Specifically, Attorney Thomas argues that because some unspecified parties other than Thomas had an interest in his own personal injury settlement, he was bound to deposit the settlement in his clients' escrow account. The check from State Farm that Attorney Thomas deposited into the client escrow account, however, identified solely Thomas as the payee. It represented Attorney Thomas' personal funds. When Attorney Thomas deposited it into his client escrow account, his personal funds and those of his clients became intermingled so that their separate identity was lost. See In re Hessler, 549 A.2d 700, 707 (D.C. 1988). We, therefore, accept the Board's conclusion that commingling occurred. Attorney Thomas further contends that there was a complete lack of evidence to establish that he had failed to keep complete records of his clients' accounts. This finding of fact, however, was made by the Committee, Attorney Thomas failed to file an exception to this finding with the Board. Therefore, he has waived his right to pursue it before this court. See In re Ray, 675 A.2d 1381, 1386 n. 5 (D.C.1996); In re Williams, 464 A.2d 115, 118 (D.C.1983). Finally, Attorney Thomas challenges the issuance of subpoenas duces tecum upon Industrial Bank within an eighteen month period. Attorney Thomas contends: (1) Bar Counsel failed to follow Super Ct. Civ. R. 5 & 6; (2) Bar Counsel required Industrial Bank to produce documentation about his account which violated the Fifth Amendment; and (3) Bar Counsel was motivated out of vindictiveness. First, we note that Bar Counsel's subpoena power is subject to the civil rules, see D.C. Bar R. XI, sec. 18, which provide that a party to civil litigation is to be given notice of any commanded production of documents, see Super. Ct. Civ. R. 45(b)(1) [3] . Thomas, however, did not raise before the Board the question of how the civil rules are to apply to Bar Counsel proceedings. We, therefore, consider the issue waived, and decline to address it. See In re Huber, 708 A.2d 259, 261 (D.C. 1998); In re Clarke, 684 A.2d 1276, 1280 (D.C.1996); In re James, 452 A.2d 163, 168-69 (D.C.1982). Next, we address whether the issuance of the subpoenas duces tecum violated the Fifth Amendment. The Supreme Court has held a party incriminated by evidence produced by a third party sustains no violation of his own Fifth Amendment rights. California Bankers Ass'n v. Shultz, 416 U.S. 21, 55, 94 S.Ct. 1494, 39 L.Ed.2d 812 (1974) (citing Couch v. United States, 409 U.S. 322, 328, 93 S.Ct. 611, 34 L.Ed.2d 548 (1973); Johnson v. United States, 228 U.S. 457, 458, 33 S.Ct. 572, 57 L.Ed. 919 (1913)). The records in question were produced by the bank, and not by Attorney Thomas. Therefore, we perceive no Fifth Amendment violation. Finally, we address the issue of whether Bar Counsel was motivated out of vindictiveness. Attorney Thomas claims that because he represented Ronald Ray in an unrelated disciplinary case, see In re Ray, 675 A.2d 1381 (D.C.1996), Bar Counsel harbored an improper animus requiring dismissal of the charges against him. See United States v. Mangieri, 224 U.S.App. D.C. 295, 298, 694 F.2d 1270, 1273 (1982) (discussing the standards for a defense of selective prosecution). The Board addressed this argument, and found no merit to it: There is absolutely no credible evidence to support Respondent's theory that this investigation was launched because the Assistant Bar Counsel was biased against him. . . . The only basis for Respondent's claim of Assistant Bar Counsel's vindictiveness is his own characterization that his defense of Mr. Ray was successful. This characterization, however, is greatly overstated as Mr. Ray was suspended from the practice of law for six months and ordered to make restitution . . . . Moreover, it is implausible that such an event would trigger any animosity in an Assistant Bar Counsel. These attorneys handle scores of cases each year, and not infrequently the result obtained is not the same as the result sought. Indeed, the most that Respondent has shown is that his defense of Mr. Ray and the investigation of himself stemming from Ms. Holmes' complaint occurred over the same general time frame and involved the same Assistant Bar Counsel. We agree with this finding of the Board, and conclude that the contention is frivolous.