Opinion ID: 1408147
Heading Depth: 4
Heading Rank: 1

Heading: Triem failed to promptly return funds which Lubin was entitled to receive, failed to appropriately account for these funds, and improperly withdrew attorney's fees from Lubin's funds.

Text: Triem and Bar Counsel stipulated to the facts in the Lubin matter. Therefore, if Triem cannot provide a justifiable excuse for his failure to return or account for the funds, Triem committed the ethical violations charged. At the committee hearing, Triem testified about an exculpatory conversation with Lubin. This conversation was not included in the statement of stipulated facts. After hearing additional testimony on the issue, the committee found that Triem's testimony was not credible and concluded that Lubin's account of the events was credible. As a general rule, ... we ordinarily will not disturb findings of fact made upon conflicting evidence. In re West, 805 P.2d at 353 n. 3 (quoting In re Simpson, 645 P.2d at 1227). The record evinces no reason to depart from this general rule. Triem has not carried his burden of showing that the committee's factual findings are erroneous. Therefore, we accept the committee's findings and hold that Triem violated DR 9-102(B)(3) and DR 9-102(B)(4). Disciplinary Rule 9-102(A)(2) dictates that disputed fees may not be withdrawn from a trust account until the dispute is finally resolved. [20] Our independent review of the record reveals that the committee accurately summarized the controlling facts when it stated: Under Triem's agreement and practice with Lubin, attorney fees and costs were not due until 10 days after Triem issued Lubin a statement itemizing the charges. Triem did not issue Lubin a statement itemizing the charges before withdrawing the fees from his trust account. Accordingly, the money should not have been withdrawn from the trust account because the fees were not yet due. Moreover, because Triem believed Lubin would dispute the fees, he should not have withdrawn the money from the trust account until the dispute was resolved. Therefore, we hold that Triem improperly deducted attorney's fees from Lubin's earnest money payment in violation of DR 9-102(A)(2). After an independent review of the appropriate sanction, we conclude that these violations warrant a public censure. The ABA Standards state 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. ABA Standards § 4.12. The commentary to this rule reveals that commingling of client and personal funds and the failure to remit client funds promptly are the most common circumstances for which suspension is imposed. ABA Standards § 4.12 commentary. The commentary to ABA Standards § 4.13, however, recognizes that courts typically impose the lesser sanction of reprimands when lawyers fail to maintain adequate trust accounting procedures or do not return clients' property promptly. ABA Standards § 4.13 commentary. Triem failed to promptly return or provide an accounting of Lubin's money, but he did not convert client funds to his own use or commingle personal and client funds. When Lubin objected to the deduction of fees, Triem redeposited the money and maintained it in his trust account during the pendency of these proceedings. Therefore, we hold that public censure is the appropriate sanction. In addition, we note that Lubin was denied the opportunity to earn interest on his money during the period it was improperly withheld by Triem. Therefore, pursuant to Bar Rule 16(c)(1), we order that Triem pay restitution for lost interest from November 3, 1989, when Triem received official notice of Lubin's inability to secure financing, to January 12, 1990. Although we hold that Triem's deduction of attorney's fees from the trust account was an ethical violation warranting public censure, neither Lubin nor Bar Counsel have argued that the fees were neither justified nor appropriate. Consequently, we decline to order reimbursement of the deducted fees.