Opinion ID: 1232513
Heading Depth: 1
Heading Rank: 11

Heading: knickmeier's appellate arguments

Text: ¶ 83. On appeal, Knickmeier's primary focus is on the referee's recommendation for revocation of his license to practice law. Knickmeier does not identify and challenge specific findings by the referee as not being supported by credible evidence. Instead, Knickmeier mounts procedural attacks on the OLR's complaint and the referee's findings. He also vigorously contends that because of the temporary suspension he has endured since this court's June 14, 2001, order, which he insists amounted to a clear violation of his constitutional rights, that the only appropriate remedy for this deprivation of his rights would be the dismissal of this disciplinary proceeding. ¶ 84. More specifically, Knickmeier first contends that this disciplinary proceeding should be dismissed because the OLR failed to plead complianceand to actually complywith the requirements of SCR 22.03(3) [18] and SCR 22.06(1). [19] Knickmeier maintains that under SCR 22.03(3) the OLR staff is required to include in the investigative report submitted to the OLR director ... all relevant exculpatory and inculpatory information obtained .... (Emphasis added.) Likewise, he maintains that under SCR 22.06(1) the OLR director is then required to submit the investigative reports to the PRC and such reports must include . . . all relevant exculpatory and inculpatory information obtained .... (Emphasis added.) ¶ 85. According to Knickmeier, the material submitted by the OLR investigative staff to the director, and in turn, the material submitted by the director to the PRC, did not include exculpatory information because there was nothing about J.R.'s security interest in the airplane which secured the loan balance Knickmeier owed to J.R., nor did the reports note that the airplane was valued at $17,250 which was more than the loan balance. Knickmeier complains that the reports actually suggested that that loan was unsecured. ¶ 86. Knickmeier further complains that the reports failed to include additional exculpatory information concerning J.R.'s spendthrift habits and his drug and alcohol problems. Knickmeier believes that this information is exculpatory because it went to establish Knickmeier's altruism defensei.e., that he was acting in the best interest of J.R. and with intent to protect J.R. from financial ruin as well as his client's continuing drug and alcohol addictions. According to Knickmeier, because this information justified and explained his actions, it should have been presented as exculpatory material to both the OLR director and then to the PRC so that informed decisions about whether to proceed with this disciplinary matter could be made. ¶ 87. Furthermore, Knickmeier asserts that the OLR's investigator's admission that she did not sift or winnow any of the information but rather simply presented everything she had obtained, including what Knickmeier insists was exculpatory information, was insufficient. According to Knickmeier, simply turning over every piece of information to the director and then to the PRC, does not provide the decision makers with appropriate and complete staff analysis and recommendations, and does not highlight any exculpatory information. ¶ 88. Knickmeier's arguments are not persuasive. We agree with the referee that the OLR director, as well as the PRC, had all of the investigative information before it including Knickmeier's claimed exculpatory information. The investigator submitted every report and every piece of information she had obtained in her investigation. Included in that submission was all the information Knickmeier now insists was exculpatory. ¶ 89. Moreover, we find nothing in the rules to support Knickmeier's jurisdictional challenge. He maintains that compliance with the provision that exculpatory information must be submitted and that OLR must plead such compliance, is a jurisdictional requirement that has to be established before the disciplinary case can proceed. We believe, as the referee noted, that because the OLR investigator had turned over everything she had to the director and then to the PRC, all the alleged exculpatory information was in fact presented; therefore, the rules were complied with. And, as noted, we find nothing in the rules to suggest that these requirements are jurisdictional and compliance has to be specifically pled. ¶ 90. In addition, it is not clear that the information Knickmeier has identified as exculpatory is actually exculpatory in nature. This information does not go to prove Knickmeier's innocence on the misconduct counts nor does it tend to support any affirmative defense. At best, it simply provides his explanation for his actions. While this information might be relevant to the issue of the appropriate sanction to be imposed, we do not agree that submission of this exculpatory information was a jurisdictional prerequisite for the OLR's decision to file and pursue these misconduct charges against Knickmeier. ¶ 91. On this appeal, Knickmeier also contends that his motion to dismiss and/or motion for summary judgment with respect to Counts 2, 3, 7, 9, 12, and 17, should have been granted by the referee. The rule underlying all those counts is SCR 20:8.4(c) which, as noted, precludes a lawyer from engaging in conduct involving dishonesty, fraud, deceit or misrepresentation. Knickmeier argues that these six counts in the OLR complaint alleging violations of this rule were based on alleged omissions by himi.e., his failure to advise his client about various matters. Knickmeier maintains that none of those six counts alleged any actual intent to deceive or misrepresent by him. According to Knickmeier, all prior disciplinary cases involving this rule have included an allegation that the lawyer had the intent to deceive and/or misrepresent. Because the OLR complaint in this case did not allege that he had acted with intent to deceive or misrepresent, Knickmeier insists that these six counts should have been dismissed. ¶ 92. Furthermore, Knickmeier complains that the referee improperly found that Knickmeier had engaged in fraud or intentional misrepresentation. Again, Knickmeier insists that the referee could not make such findings because this case was brought solely on the theory of Knickmeier's omissions, not on any theory that he acted with fraudulent intent or intent to misrepresent. Thus, Knickmeier argues that no matter what the referee might have thought the evidence established, the referee should have been constrained by the omission theory as pled by the OLR in its complaint. Therefore, it follows, according to Knickmeier, that Counts 2, 3, 7, 9, 12, and 17 should have been dismissed. ¶ 93. We reject this argument because as the OLR notes, SCR 20:8.4(c) does not simply prohibit intentional, fraudulent conduct; rather, that rule is stated in the disjunctive and prohibits conduct which involves any one of the four acts describedi.e., dishonesty, deceit, fraud or misrepresentation. Furthermore, we agree with the OLR that deceitful omissions of relevant information constitute dishonest conduct within the scope of SCR 20:8.4(c). See In re Disciplinary Proceedings Against Urban, 2002 WI 63, 253 Wis. 2d 194, 645 N.W.2d 612. ¶ 94. We also reject Knickmeier's underlying argumentwhich he never fully articulatesthat the referee was constrained to find the facts only as pled in the OLR complaint. This suggested limitation ignores the wide latitude and authority given to the referee under SCR 22.16. [20] Among other things, that rule provides that the referee has powers of a judge trying a civil action; also the referee's request to conduct the disciplinary hearing as a bench trial in a civil action at which the rules of civil procedure shall be followed. One pertinent rule of civil procedure to be followed at a disciplinary hearing before a referee would be Wis. Stat. § 802.09(2). This statute permits the amendment of pleadings to conform to the proof. This statute also directs the judge (or referee) to freely allow the pleadings to be amended where the presentation of the merits would be subserved and where there would be no prejudice to the objecting party. In this case, the referee's ruling rejecting Knickmeier's motion to dismiss these six counts, can be viewed as the referee's decision to freely allow an amendment of these pleadings and the referee's recognition that permitting proof and making findings on any of the four actions dishonesty, deceit, fraud or misrepresentationwould not and could not, prejudice Knickmeier because the rule is stated in the disjunctive. ¶ 95. Knickmeier also challenges, as excessive, the discipline recommended by the refereerevocation of Knickmeier's license. According to Knickmeier, the referee ignored at least 15 specific positive and mitigating points Knickmeier had identified in order to demonstrate that at most, a six-month to one-year suspension of his license would be appropriate as a sanction for his misconduct. Those specific points included: (1) Knickmeier's claimed cooperation with the OLR investigation; (2) his cooperative attitude and demeanor; (3) his expressed concern for his clients' welfare; (4) the fact that his client actually profited from the transactions; (5) the fact that Knickmeier saved his client's life; (6) the fact that Knickmeier charged reasonable fees for his services; and (7) the fact that Knickmeier has suffered enough because his license has already been suspended and he has done no legal work since June of 2001. ¶ 96. According to Knickmeier, in other disciplinary cases involving much more egregious behavior by the lawyer, this court has not revoked the lawyer's license. See, e.g., In re Disciplinary Proceedings Against Gilbert, 227 Wis. 2d 444, 595 N.W.2d 715 (1999). Furthermore, Knickmeier complains that here the referee wrongly criticized him for not being repentant and for showing no remorse. He should not be so faulted, Knickmeier believes, because he has simply exercised his right to have a hearing in this matter and to put OLR to its proof regarding the claims against him. Knickmeier insists that this should not be viewed as a demonstration of no remorse or an unrepentant attitude on his part. ¶ 97. Again, we are not persuaded by Knickmeier's arguments. Under the circumstances of this case, we do not think the referee's recommendation for revocation of Knickmeier's license to practice law is excessive. We believe, as did the referee, that Knickmeier's actions (even if we were only to consider the eight counts of misconduct which Knickmeier admitted) fully warrant the revocation of his license to practice law in this state. Although this court is guided by prior cases when determining the appropriate level of discipline to be imposed for a lawyer's misconduct, prior cases are neither controlling nor limiting on this court's discretion. In any event, we note that the Gilbert case which Knickmeier has cited, is distinguishable from this situation because the respondent in Gilbert had no prior disciplinary contacts. Here, Knickmeier has twice been privately reprimanded for professional misconduct. ¶ 98. Moreover, we note there are several prior cases where this court has revoked the license of the lawyer to practice law based on acts similar to Knickmeier's misconduct. In several instances, revocation has resulted where the lawyer committed many fewer acts of misconduct than Knickmeier has committed here. See, e.g., In re Disciplinary Proceedings Against Martinez, 225 Wis. 2d 433, 591 N.W.2d 866 (1999); In re Disciplinary Proceedings Against Sheehan, 224 Wis. 2d 44, 588 N.W.2d 624 (1999); In re Disciplinary Proceedings Against Warmington, 212 Wis. 2d 657, 568 N.W.2d 641 (1997); and In re Disciplinary Proceedings Against Cassidy, 172 Wis. 2d 600, 493 N.W.2d 362 (1992). ¶ 99. Although we agree with the referee that given the seriousness and widespread pattern of misconduct committed by Knickmeier, revocation of his license to practice law in this state is fully justified, we note that Knickmeier has not, by his own assertion, practiced law since June 14, 2001, the date of this court's order temporarily suspending his license under SCR 22.21. Under these circumstances, we believe it is appropriate, as we have done in the past, to order this revocation to be retroactive to the June 14, 2001, date when this court temporarily suspended Knickmeier's license. We have imposed such retroactive discipline in prior cases. See In re Disciplinary Proceedings Against Meagher, 2003 WI 132, 266 Wis. 2d 18, 669 N.W.2d 733; In re Disciplinary Proceedings Against Calhoun, 196 Wis. 2d 665, 538 N.W.2d 797 (1995); In re Disciplinary Proceedings Against Mittelsteadt, 113 Wis. 2d 718, 335 N.W.2d 880 (1983); and In re Disciplinary Proceedings Against Glasschroeder, 113 Wis. 2d 672, 335 N.W.2d 621 (1983). This retroactive revocation of Knickmeier's license as of June 14, 2001, means that he will be able to petition for reinstatement of his license, should he seek to do so, at any time commencing five years after that date. See SCR 22.29(2). [21] ¶ 100. On this appeal, Knickmeier also challenges the referee's recommendation that the costs of these proceedings be assessed against him. First, because he believes the entire proceeding should be dismissed for various reasons, he asserts that no costs at all should be assessed against him. We have already rejected Knickmeier's claim that the matter should be dismissed in its entirety, thus, this argument needs no discussion. ¶ 101. Knickmeier also asserts that because 2 of the 23 counts alleged in the OLR's complaint were dismissed by the referee, the total costs should be reduced to reflect those dismissals. And he maintains that in light of the OLR's intransigence throughout this proceeding and its refusal to negotiate with him concerning an appropriate sanction for his misconduct, this court should deny the OLR's request for costs in its entirety. ¶ 102. We reject Knickmeier's arguments in all respects. First, we note that in many prior cases, full costs have been imposed against the lawyer-respondent in a disciplinary proceeding even though several of the misconduct claims were dismissed by the referee or by this court. For example, in Gilbert, this court awarded full costs to the OLR even though only 8 of the 12 claims of misconduct brought in that case were sustained. ¶ 103. Moreover, this court has repeatedly declined to apportion costs based on the number of misconduct counts sustained. See In re Disciplinary Proceedings Against Pangman, 216 Wis. 2d 440, 460-61, 574 N.W.2d 232 (1998) and In re Disciplinary Proceedings Against Eisenberg, 144 Wis. 2d 284, 423 N.W.2d 867 (1988). ¶ 104. We find, in light of Knickmeier's egregious pattern of misconduct, that it is entirely appropriate for this court to require him to pay the full costs of this disciplinary proceeding now totaling $27,085.04. Pursuant to SCR 22.24 this court may assess all of the costs against a respondent in a disciplinary proceeding in which misconduct has been found. The fees and expenses incurred by the OLR as itemized in its statement of costs submitted to this court are reasonable and fully documented. Knickmeier, as a repeat violator of this court's rules, should pay all of these costs. ¶ 105. IT IS ORDERED that the license of Jeffrey D. Knickmeier to practice law in this state is revoked effective as of this court's order temporarily suspending his license to practice law in this state dated June 14, 2001. ¶ 106. IT IS FURTHER ORDERED that within 60 days of the date of this order, Jeffrey D. Knickmeier shall pay to the Office of Lawyer Regulation the costs of this disciplinary proceeding provided that if the costs are not paid within the time specified, and absent a showing to this court of his inability to pay the costs within that time, the license of Jeffrey D. Knickmeier to practice law in Wisconsin shall remain revoked until further order of this court. ¶ 107. IT IS FURTHER ORDERED that Jeffrey D. Knickmeier comply with the provisions of SCR 22.26 concerning the duties of a person whose license to practice law in Wisconsin has been revoked. ¶ 108. DIANE S. SYKES, J., did not participate. ¶ 109. DAVID T. PROSSER, J., concurs. ¶ 110. ANN WALSH BRADLEY, J., dissents.