Opinion ID: 2096988
Heading Depth: 1
Heading Rank: 6

Heading: Count 6: Former SCR 20:1.8(e); [7] Prohibited transactions.

Text: ¶ 16 The referee found that when representing Mr. and Mrs. D. on their personal injury claims, Attorney Nunnery advanced them $2,000 on July 21, 2004; $1,125 on March 3, 2005; and $1,000 in December 2005. The referee concluded these transactions were prohibited under former SCR 20:1.8(e). ¶ 17 Each payment was made in advance of a settlement check. The referee found that the $2,000 advance on July 21, 2004, was made before the first settlement check was received on or about August 12, 2004. The referee determined this advance was not within the exceptions found in former SCR 20:1.8(e) but rather for living expenses. [8] The referee concluded the evidence did not support Attorney Nunnery's contention that the matter had been settled before the advance to his clients. ¶ 18 The referee found that the March 3, 2005, payment of $1,125 was also an advance against future settlement proceeds. The insurer offered to settle for policy limits of $25,000 on May 4, 2005. Complications relating to a Medicare lien delayed the settlement until September 2005. On October 11, 2005, Attorney Nunnery forwarded to his clients a check in the amount of $11,221.93 and a copy of the insurance company check to Medicare dated October 10, 2005. The referee found it was clear that the advance was made well before the second settlement check had been received. ¶ 19 The referee found Attorney Nunnery's payment of $1,000 in December 2005 was an advance against the third settlement check. In October 2005 Attorney Nunnery wrote to Mrs. D. indicating he was close to finalizing her settlement with the insurer and asked to meet with her so she could sign additional documents. However, Mrs. D. did not receive her final settlement check until early in 2006. The referee found the $1,000 advance occurred before Mrs. D.'s settlement with the insurer was finalized. The referee noted Attorney Nunnery admitted this ethical violation during his testimony.
¶ 20 L.G. retained Attorney Nunnery to represent him on a number of claims arising from his employment. The first lawsuit, in which L.G. alleged race discrimination, was voluntarily dismissed and does not provide any basis for discipline. The second and third lawsuits alleged disability discrimination. The second lawsuit was voluntarily dismissed, and the third was administratively closed. Attorney Nunnery's representation of L.G. in the second and third lawsuits gives rise to counts 9 through 15.