Opinion ID: 1497626
Heading Depth: 2
Heading Rank: 2

Heading: Mitigating and Aggravating Factors are Considered in Every Disciplinary Case, Including Intentional Misappropriation Cases

Text: Despite acknowledging that this Court's precedents and the ABA Standards recognize that mental illness and other matters are appropriately considered in determining whether the sanction of disbarment should be mitigated and that Missouri normally is guided by the ABA Standards in matters of discipline, see, e.g., Crews, 159 S.W.3d at 360-61, OCDC argues that, in cases where attorneys have misappropriated client funds, Missouri has rejected the ABA Standards in favor of an unwritten, hard and fast rule that attorneys who misappropriate client funds will be disbarred in all cases without regard to any of the mitigating circumstances relevant under Standard 4.11, citing In re Mendell, 693 S.W.2d 76 (Mo. banc 1985). While misappropriation of client funds is one of the most serious types of attorney misconduct, OCDC is incorrect that Missouri adheres to an automatic disbarment rule in these cases. Disbarment is most often appropriate in misappropriation cases, but this Court will nonetheless consider the presence of aggravating and mitigating factors in each case when assessing the appropriate punishment. Mendell certainly did not hold otherwise. Mendell involved a young lawyer who received an $8,000 settlement check for his client (a widow), but then lied to her that the settlement amount was only $7,500 so that he could keep the entire $500 difference rather than the $133 share of that $500 that should have been his under his fee agreement. As his client and her son became suspicious about the settlement amount, he continued to mislead and deceive them willfully. His later attempts to explain his misconduct, offered only after his deception had been revealed, were not accepted. Moreover, he only offered restitution to his client after he had been caught. In such circumstances, although the amount involved was small, this Court held: The violation was willful, deliberate and inexcusable. We follow our recent cases holding that an appropriate remedy for willful conversion or misappropriation of client's funds is disbarment. In re Witte, 615 S.W.2d 421 (Mo. banc 1981); In re Mentrup, 665 S.W.2d 324 (Mo. banc 1984). See also In re Maier, 664 S.W.2d 1 (Mo. banc 1984). Our conclusion is consistent with the great weight of authority. ( footnote omitted ) Any earlier decisions indicating that a lesser sanction might be considered in cases such as this are no longer authoritative. Mendell, 693 S.W.2d at 78. OCDC interprets this passage of Mendell as establishing a rule that no circumstances can justify a lesser punishment than disbarment in misappropriation cases. This is not a correct interpretation of Mendell . Nothing in Mendell suggests that this Court intended to reject those prior cases that had clearly and repeatedly held that mitigating factors always must be considered in deciding discipline. Indeed, the very cases Mendell cited with approval clearly state that mitigating factors are relevant even where misappropriation occurred. In Witte, after finding that counsel had commingled client monies with his own and that this was grounds for disbarment, the Court said, all that remains to be done is to examine the evidence to determine whether there are mitigating circumstances either justifying or explaining the conduct of respondent and warranting lesser punishment. 615 S.W.2d at 422. It found there were not. Similarly, In re Mentrup concerned an attorney who converted money from an estate in his care. This Court held that misappropriation is always a ground for disbarment, but then went on to consider whether the attorney's structural brain defect constituted a circumstance in mitigation that would make a lesser sanction more appropriate, stating: Mental illness can and should be considered a mitigating factor in determining the extent of discipline imposed. In some instances psychological disorders that affect an attorney's ability to practice law responsibly may properly suggest leniency. 665 S.W.2d at 325. The Court determined that leniency was not appropriate in Mentrup because the brain defect rendered the attorney unable to practice law and protection of the public required disbarment. Id. Further, in stating that its holding was consistent with the great weight of authority, Mendell cited In re Haggerty, 661 S.W.2d 8 (Mo. banc 1983), which had stated it has been uniformly held that in the absence of mitigating circumstances misconduct of attorneys in appropriating funds held by them in a fiduciary capacity justifies disbarment. Id. at 10 (emphasis added). Mendell can best be understood as holding that in cases of intentional stealing and fraud, such as were present in Mendell , a lack of prior misconduct, and a history of good works and legal accomplishments cannot prevent disbarment. It does not suggest that mental illness affecting one's ability to control one's conduct, or such factors as making full voluntary restitution and voluntary self-reporting of the misconduct, may not be sufficient to preclude disbarment in a particular case. Rather, in misappropriation cases, as in other cases, in accordance with the ABA Standards and with this Court's relevant case law, this Court will consider the misconduct in light of mitigating and aggravating factors in deciding what discipline to impose. See In re Charron, 918 S.W.2d 257, 262 (Mo. banc 1996) (imposing one-year suspension rather than disbarment on attorney who had misappropriated client funds because of mitigating factors not found in previous misappropriation cases).