Opinion ID: 1532447
Heading Depth: 3
Heading Rank: 1

Heading: MRPC 1.1, 1.3, 1.4, 1.15(b)

Text: The hearing judge concluded that Mr. Zuckerman's mishandling of the funds in his trust account violated MRPC 1.1, 1.3, 1.4 and 1.15(b). With respect to Rule 1.1 requiring competent representation to a client, Mr. Zuckerman routinely failed to pay clients after settlement for periods of years due to a lack of established procedures to properly maintain his trust account. Once a case settled, Mr. Zuckerman held the client's settlement money to pay the medical providers, but would not pay them immediately because he wanted to resolve PIP issues before disbursing the funds. He directed his office employees to set aside the files with undisbursed funds and to review those files periodically. At the time that Mr. Zuckerman hired Ms. Becker some settlement monies owed to clients had accumulated in the trust account for longer than three years. In addition, he failed to advise his clients that he was holding their funds and had not paid their medical bills. We have previously held that a respondent's failure to promptly deliver money to a client and to pay third parties demonstrates incompetence in violation of the Rules. Attorney Grievance Comm'n v. Morehead, 306 Md. 808, 821, 511 A.2d 520, 527 (1986). Thus, we conclude that Mr. Zuckerman's conduct constitutes a violation of Rule 1.1. Mr. Zuckerman's failure to pay medical bills in a timely manner and to disburse client funds also demonstrates a lack of reasonable diligence in violation of Rule 1.3 and a failure to keep his clients reasonably informed about the status of their cases in violation of Rule 1.4. In essence, Mr. Zuckerman's inability to properly maintain adequate records of the deposits and disbursements of his trust account provides clear and convincing evidence that he violated Rules 1.3 and 1.4. See Attorney Grievance Comm'n v. Gallagher, 371 Md. 673, 710, 810 A.2d 996, 1018 (2002). Likewise, Mr. Zuckerman's failure to inform the medical providers and his clients of funds due to them constituted a violation of MRPC 1.15(b), which states: 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. 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 promptly render a full accounting regarding such property. We have previously held that an attorney who fails to notify the lender of his receipt of a settlement check and does not pay a client's debts from settlement funds violates Rule 1.15(b). See Attorney Grievance Comm'n v. Stolarz, 379 Md. 387, 399, 400, 842 A.2d 42, 49 (2004). The evidence adduced at the hearing revealed that Mr. Zuckerman had not properly disbursed funds to either clients or medical providers in fifteen cases. He routinely would not pay the medical providers and clients until several years after the cases were settled. Obviously, he did not deliver the settlement funds when they were due. Moreover, Mr. Zuckerman testified that he did not know whether he had paid all of the outstanding medical provider's bills or if he had sent out any letters notifying medical providers and clients that he was holding funds belonging to them. Although Mr. Zuckerman alleges that he did not purposefully act to violate this Rule, this argument is of no consequence because this Court has explained on several occasions that an unintentional violation of [Rule 1.15] ... is still a violation of the attorney's affirmative duties imposed by the rule. See Stolarz, 379 Md. at 399, 842 A.2d at 49; Attorney Grievance Comm'n v. Sheridan, 357 Md. 1, 20, 741 A.2d 1143, 1154 (1999) (quoting Glenn, 341 Md. at 472, 671 A.2d at 475); Attorney Grievance Comm'n v. Adams, 349 Md. 86, 96-97, 706 A.2d 1080, 1085 (1998).