Opinion ID: 1497626
Heading Depth: 2
Heading Rank: 3

Heading: Mr. Belz's Case Presents Compelling Mitigating Factors

Text: Here, Mr. Belz claims that a key mitigating factor is his bipolar disorder. This Court has previously recognized that mental illness such as this can be a mitigating factor. See In re Tessler, 783 S.W.2d 906, 910 (Mo. banc 1990) (respondent's emotional and mental state [are] mitigating factors); In re Kopf, 767 S.W.2d 20, 23 (Mo. banc 1989) (mental state is properly to be considered a mitigating factor); In re Mentrup, 665 S.W.2d at 325 (mental illness can and should be a factor in determining the extent of the discipline imposed). ABA Standard 9.32(i) provides that mental disability is a mitigating factor when the following conditions are met: (1) there is medical evidence that the respondent is affected by a ... mental disability; (2) the ... mental disability caused the misconduct; (3) the respondent's recovery from the... mental disability is demonstrated by a meaningful and sustained period of successful rehabilitation; and (4) the recovery arrested the misconduct and recurrence of that misconduct is unlikely. The disciplinary hearing panel found that the first three of these conditions were met. This Court concurs and finds that the fourth condition is met as well. While OCDC implies by negative implication that it does not believe that Mr. Belz has a mental disability or that it affected his ability to control his conduct, it offered no evidence to contradict the substantial factual and expert evidence presented by Mr. Belz that he suffers from bipolar disorder, for which he has been treated by Dr. Holemon since he first experienced episodes of manic behavior in 1975. As the panel noted (citations and paragraph numbers are excluded at the points indicated by ellipses): Bi-Polar [sic] disorder is a disease of the brain where the brain cannot regulate the person's mood from going way up or down, and it is understood by physicians treating Bi-Polar disorder that the cause of the disease stems from a chemical imbalance in the brain ... Bi-Polar disorder is not curable, but it is treatable. Respondent suffered a recurrence of a manic state from 1998 into 2002.... The beginning of the manic state was at or near the time in 1998 when Respondent began drinking alcohol.... During the manic state, Respondent exhibited symptoms of unusual spending, grandiosity, lack of judgment, and inability to appreciate the consequences of his actions.... At the time of the hearing, Dr. Holemon had successfully treated Respondent for his Bi-polar disorder since May, 2003.... Respondent has recovered from the manic state he suffered and his recovery has been demonstrated by a meaningful and sustained period of successful rehabilitation and treatment. The only factor that the panel did not find present was the fourth factor, which asks if the recovery arrested the misconduct and recurrence of that misconduct is unlikely. For this reason, it found that the mental illness could not be considered a mitigating factor and recommended disbarment. As there is nothing in the record to suggest that the misconduct has recurred since Mr. Belz's recovery, this Court must presume the panel was unsure whether a recurrence of the misconduct was unlikely at some future point. In this regard, the panel made no reference to Mr. Belz's continued care by Dr. Holemon or to the fact that the only evidence is that his condition is controlled by his medication so long as he takes it. Here, Dr. Holemon stated that Mr. Belz is compliant with his medication, that if he continues taking it a recurrence is unlikely, and that he will continue to monitor Mr. Belz. Mr. Belz agreed in his brief to continued monitoring of his condition for a five-year probationary period. In these circumstances, this Court cannot agree with the disciplinary hearing panel that Mr. Belz has failed to show that recovery arrested the misconduct and that a recurrence of that misconduct is unlikely. So long as Mr. Belz is under a doctor's monitoring and is taking his medication, the Court concludes that this condition is met. This determination is consistent with that reached in other jurisdictions considering the mitigating effect of mental illness, even in misappropriation cases. See, e.g., Iowa Supreme Court Disciplinary Bd. v. Kress, 747 N.W.2d 530, 541 (Iowa 2008) (In considering sanctions, we agree... that mental and physical conditions may be mitigating factors.); In re Crescenzi, 51 A.D.3d 230, 853 N.Y.S.2d 322, 325 (2008) (it is well settled that an attorney who intentionally converts client funds is presumptively unfit to practice law, however, that presumption can be rebutted by a showing that the misappropriation was caused by drug addiction or mental illness). The reason for this approach in cases of mental illness is well illustrated by In re Zakroff, 934 A.2d 409, 421 (D.C.Ct.App. 2007). The District of Columbia generally takes a strict approach in misappropriation cases, finding that such conduct warrants disbarment in virtually all cases, because: While we recognize that the sanction for intentional misappropriation of client funds will be harsh in comparison to sanctions for other disciplinary violations involving conduct some may view as roughly equivalent misconduct, ... our concern is that there not be an erosion of public confidence in the integrity of the bar. Simply put, where client funds are involved, a more stringent rule is appropriate. Id. at 421, n. 14. Nonetheless, the District of Columbia has concluded that sanctions less than disbarment are appropriate where attorneys have misappropriated client funds, but have some mental disability as a mitigating factor. See, e.g., In re Verra, 932 A.2d 503, 503-04, 2007 D.C.App. Lexis 484, -2, 5 (D.C.2007) (lawyer misappropriated client funds and wrote a check to client with insufficient funds, but court stayed disbarment and placed lawyer on conditional probation because of a causal relationship between her depression and her misconduct); In re Mooers, 910 A.2d 1046 (D.C.2006) (lawyer acknowledged having used funds in the account for personal and business expenses, but stayed disbarment and placed lawyer on three-year conditional probation because lawyer suffered from major depression and his misconduct would not have occurred but for his depression). [3] This Court agrees with these other jurisdictions that in a rare but appropriate case a sanction other than disbarment may be appropriate for intentional misappropriation where mental illness is shown to have played a role in the misconduct and other substantial mitigating factors are also present. This is such a case. As the panel found, Mr. Belz self-reported his misconduct. As OCDC recognized at argument, Mr. Belz's misconduct probably never would have come to light absent that self-reporting. This is an extremely significant mitigating factor. See ABA Standards 9.32(e) (noting that full and free disclosure to disciplinary board or cooperative attitude during proceedings is a mitigating factor). As this Court imposes discipline, it seeks to protect the public and the legal profession from these types of misconduct. The public and the legal profession will both be better served if lawyers who find themselves in Mr. Belz's situation recognize their misdeeds and report them to the disciplinary authorities. The ABA Standards also recognize timely good faith effort to make restitution or to rectify consequences of misconduct as a mitigating factor. ABA Standards 9.32(d). Mr. Belz restored all misappropriated funds to the trust account and did so voluntarily before he reported his misconduct, rather than being forced or compelled to do so by OCDC. [4] Indeed, prior to 2000 he had restored funds promptly within a short time after borrowing them. Even when he did not promptly pay back the account, he always kept an accurate record of his borrowings in the trust fund records, which showed that the monies he borrowed were owed to the fund. This case is very different from those cited by OCDC in which the attorney simply stole funds, tried to hide it, and failed to make restitution until compelled to do so. In addition to his mental illness, self-reporting, and timely and voluntary restitution, Mr. Belz has no prior disciplinary history and has shown remorse for his conduct, which are also mitigating factors. ABA Standards 9.32(a), ( l ). Moreover, Mr. Belz's clients were not actually harmed by his misconduct. Although the failure of an injured client to complain is considered neither aggravating nor mitigating, ABA Standards 9.4(f), the Court notes that the client from whose account the funds were taken not only did not complain, but has chosen to remain Mr. Belz's client even after learning of the misconduct. All of these factors distinguish this case from the cases relied on by OCDC in which disbarment was the appropriate sanction. [5]