Opinion ID: 1872312
Heading Depth: 1
Heading Rank: 12

Heading: Appropriateness of Sanctions

Text: Threadgill argues that, even if this Court affirms the conclusions of professional misconduct, we should order a private admonition or reprimand, rather than a suspension from the practice of law. Threadgill also challenges the length of his suspension as inconsistent with this Court's precedents. To determine the appropriate level of attorney discipline, we are guided by the ABA Standards for Imposing Lawyer Sanctions (ABA Standards). Tenn. Sup.Ct. R. 9, § 8.4; Allison, 284 S.W.3d at 327. ABA Standards section 3.0 enumerates four factors to consider when imposing a sanction: (a) the duty violated; (b) the lawyer's mental state; (c) the potential or actual injury caused by the lawyer's misconduct; and (d) the existence of aggravating or mitigating factors. Sections 4 through 8 explain the generally appropriate sanction for violations of various professional duties with particular states of mind. Section 9 lists the relevant aggravating and mitigating circumstances. In deciding an appropriate sanction when an attorney is found to have breached the rules governing his or her profession, we are required to review all of the circumstances of the particular case and also, for the sake of uniformity, [the] sanctions imposed in other cases presenting similar circumstances. Allison, 284 S.W.3d at 327 (citing Bd. of Prof'l Responsibility v. Maddux, 148 S.W.3d 37, 40 (Tenn.2004)). We conclude that the Panel properly determined that Threadgill's conduct warranted suspension from the practice of law. Where the attorney has failed to preserve client property, ABA Standards section 4.12 explains that [s]uspension is generally appropriate when a lawyer knows or should know that he is dealing improperly with client property and causes injury or potential injury to a client. As explained above, we have determined that Threadgill acted knowingly. Threadgill's pattern of misconduct within a short period of time and his failure to honor his professional obligations despite affirmative client requests support the determination of knowing misconduct. He injured his clients by depriving them of the funds they were entitled to receive. Because of Threadgill's knowing misconduct, suspension is the appropriate baseline sanction. The balance of aggravating and mitigating circumstances supports the decision to suspend Threadgill. Threadgill's experience in the practice of lawnearly four decades prior to the misconduct at issue herewarrants a meaningful suspension. [40] Threadgill also engaged in a pattern of misconduct, violating the same rules in the representation of multiple clients. Threadgill further demonstrated an indifference to making restitution by reimbursing Courtney only after his hearing began and, as far as the record reflects, by withholding the unearned fee from Samedi Rosenzweig and the collection judgment from the Nesbits. In addition to these aggravating circumstances identified by the Panel, the trial court cited Threadgill's two prior disciplinary offenses. We particularly note that the Board previously admonished Threadgill in May 1994 for misconduct similar to the events in this case, that is, the improper allocation of monies following a settlement. In considering the mitigating circumstances, the Panel cited Threadgill's contribution to the Knoxville Bar Association and Tennessee Bar Association. The ABA Standards do not cite involvement in professional associations among the relevant mitigating factors. Similarly, the ABA Standards provide no mechanism for us to consider the hardship of Threadgill's suspension on the clients whom he is currently representing or the family members whom he financially supports. In summary, after balancing the relevant aggravating and mitigating circumstances, we find no basis to reduce Threadgill's punishment or the length of his suspension. Our decision to affirm Threadgill's yearlong suspension is not excessive and, indeed, may be viewed as lenient in light of this Court's precedents involving the misappropriation of client funds. For example, we have imposed a two-year suspension where an attorney used client funds prior to the deposit of settlement proceeds, deposited settlement proceeds directly into his personal account, repeatedly overdrew his client trust account, and wrote checks from the trust account that were returned for insufficient funds. [41] Milligan v. Bd. of Prof'l Responsibility, 166 S.W.3d 665, 672, 674 (Tenn.2005). We described that attorney's behavior as conduct [that] seriously and adversely reflected on the lawyer's fitness to practice law. Id. at 674. Threadgill's misappropriation here is arguably more egregious because, whereas the clients in Milligan did not lose any money, Threadgill actively withheld funds that his clients were entitled to receive. Threadgill made restitution to Courtney only after his hearing began, and may make restitution to Samedi Rosenzweig and the Nesbits only under compulsion of these proceedings as a condition of reinstatement. We reached our decision in Milligan after considering several precedents involving attorney discipline for mishandling client funds where we imposed suspensions of a year or more. See id. at 673-74 (discussing Bd. of Prof'l Responsibility v. Bonnington, 762 S.W.2d 568, 571 (Tenn.1988) (affirming four-year suspension of attorney who self-reported withdrawal of funds for personal use from estate administered by the attorney), Disciplinary Bd. of the Supreme Court v. Banks, 641 S.W.2d 501, 502, 504 (Tenn. 1982) (imposing one-year suspension of attorney who agreed to invest client's money but inadvertently embezzled that money by lending it to corporations in which attorney held controlling interest without prior notification to the client), and Dockery v. Bd. of Prof'l Responsibility, 937 S.W.2d 863, 865, 867 (Tenn.1996) (affirming two-year suspension of attorney who engaged in pattern of misappropriating and commingling funds and kept records in such disarray that the attorney could not account for disbursement of settlement proceeds)). In relying on these precedents, we also reject Threadgill's contention that his suspension is excessive because we imposed a shorter suspension in a distinguishable case. Threadgill argues that affirming his yearlong suspension would be inconsistent with our decision in Maddux , where we upheld a thirty-day suspension of an attorney who, over a three-year period, converted $92,500 for personal use. 148 S.W.3d at 41-42. The attorney in Maddux converted funds from his law firm partnership, rather than from clients. Id. at 41. While the misappropriation of funds, whether from clients or a partnership, always involves serious breaches of trust and violations of ethical duties, the misappropriation of client funds implicates the protection of the public and preservation of the public's confidence in the legal profession [that] are the primary purposes of attorney discipline. In re Rice, 99 Wash.2d 275, 661 P.2d 591, 593 (1983); see also Iowa Sup. Ct. Bd. of Prof'l Ethics & Conduct v. Huisinga, 642 N.W.2d 283, 287 (Iowa 2002) (publicly reprimanding attorney who misappropriated funds from law firm because cases warranting revocation reveal much more egregious surrounding circumstances such as criminal conduct... or conversion of client funds). Accordingly, we discern no inconsistency in the mere fact that an attorney would receive a longer suspension for misappropriating funds from clients rather than from law firm partners. Furthermore, comparing the specific facts of each case, we note that the attorney in Maddux benefited from certain mitigating factors: the absence of a prior disciplinary record, testimony from local attorneys concerning the disciplined lawyer's good reputation, and more than four years of delay by disciplinary counsel in filing a petition. Maddux, 148 S.W.3d at 42. These factors do not apply to Threadgill, who previously received two informal admonitions, offered no third-party character or reputation testimony at his Panel hearing, and was not the subject of significant delay in the filing of a petition for discipline. In summary, Maddux presents different facts and does not warrant a reduction of Threadgill's suspension.