Opinion ID: 1212150
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: Respondent is licensed to practice law in South Carolina, the United States District Court for the District of South Carolina (USDC), and the United States Bankruptcy Court for the District of South Carolina (Bankruptcy Court). On August 16, 2006, the Court placed respondent on interim suspension. In the Matter of Edwards, 370 S.C. 74, 634 S.E.2d 645 (2006). As a result of his interim suspension, the USDC automatically suspended respondent on August 29, 2006. See Local Rule 83.I.08 (D.S.C. (RDE Rule II(G)) (If an attorney admitted to practice before [the USDC] is disbarred or suspended by the Supreme Court of South Carolina, [the USDC] shall immediately order the identical disciplinary actions....). On September 20, 2006, the Bankruptcy Court suspended respondent as a consequence of his suspension before the USDC. See Local Rule 83.IX.02 (Pursuant to Bankruptcy Rule 9029m the Bankruptcy Judges of this District are hereby authorized to make such rules of practice and procedure as they may deem appropriate; provided, however, that in promulgating the rules governing the admission or eligibility to practice in the Bankruptcy Court, the Bankruptcy Judges shall require District Court admission....). In the meantime, in connection with actions filed by Gary and Dana Henderson and James and Kathryn Henson, the Bankruptcy Court had issued an order requiring respondent to appear to explain his failure to provide competent and diligent representation to the Hendersons and the Hensons, to show cause why his fees should not be disgorged, and to show cause why further sanctions should not be imposed including, but not limited to, suspension from practice before the Bankruptcy Court and/or disgorgement of fees in other cases. See Bankruptcy Court order dated August 25, 2006. Respondent appeared before the Bankruptcy Court on August 31, 2006 hearing. By order dated September 5, 2006, the Bankruptcy Court found respondent had failed to file documents by the required deadlines which resulted in the dismissal of the Hendersons' and Hensons' bankruptcy petitions and ordered respondent to disgorge his attorney's fees within five (5) days. The judge continued the Rule to Show Cause hearing to consider other sanctions until September 21, 2006. Respondent did not appear at the Rule to Show Cause hearing. On October 4, 2006, the Bankruptcy Court issued an order again requiring respondent to disgorge the balance of fees received from the Hendersons and Hensons within ten (10) days. [1] In particular, the court noted: [i]nasmuch as [respondent] is presently suspended from practice before this [Bankruptcy] Court, as a consequence of the [August 29, 2006 USDC] suspension, the [Bankruptcy] Court need not take further immediate action regarding his ability to currently practice in this [Bankruptcy] Court, except that [respondent's] suspension from practice before this [Bankruptcy] Court shall continue, regardless of reinstatement by the [USDC], until further order of this [Bankruptcy] Court ... Reinstatement to practice before this [Bankruptcy] Court may be conditioned upon his compliance with orders of this [Bankruptcy] Court and such other conditions as this [Bankruptcy] Court may impose. (Underline added). The Bankruptcy Court continued the first Rule to Show Cause hearing and issued a second Rule to Show Cause order directing respondent to appear on October 19, 2006 to show cause why further sanctions should not be imposed or limits placed on his ability to gain reinstatement to practice before this [Bankruptcy] Court based upon his representation of [the Hendersons and Hensons] in these cases and in all other cases filed in this [Bankruptcy] Court in which he failed to file documents on behalf of his clients. (Underline added). Respondent appeared for the show cause hearings on October 19, 2006. The Bankruptcy Court's October 24, 2006 order provides: [t]he [Bankruptcy] Court orders that [respondent] shall be suspended from practice before this [Bankruptcy] Court, notwithstanding any intervening reinstatement by other courts within this District, until such time as [respondent] brings a motion for reinstatement to practice.... The motion for reinstatement shall be heard by the undersigned as Chief Bankruptcy Judge for this District who may place conditions and limitations on [respondent's] ability to be reinstated to practice before this [Bankruptcy] Court, including, but not limited to [respondent] complying with the orders of this [Bankruptcy] Court disgorging his attorney's fees to his clients, [respondent] demonstrating that he is able to provide competent and diligent representation to clients, and [respondent] attending continuing legal education classes in the area of ethics and bankruptcy. [2] (Underline added). The Bankruptcy Court amended its October 4, 2006 order to reflect the additional conditions regarding respondent's suspension before the court. It dissolved the two Rules to Show Cause, but stated the orders concerning disgorgement of fees remained in effect. On June 9, 2008, ODC filed a certified copy of the Bankruptcy Court's January 4, 2007 Supplemental Order in In re Storay. In that order, the Bankruptcy Court discussed respondent's failure to pursue thirty (30) bankruptcy petitions, the resulting dismissal of twenty-four (24) of the cases, respondent's concession that he had no funds to repay the twenty-four (24) clients' retainers, and his agreement that he should be required to repay the twenty-four (24) clients, with interest, before reinstatement by the Bankruptcy Court. The Bankruptcy Court's order provides: It is therefore ordered that [respondent] shall repay to the debtors in the 24 cases which were dismissed as a result of his failure to file schedules and statements all of the fees, including filing fees, paid to him by the debtors in those cases. [Respondent] shall also pay interest on those fees from October 16, 2005, until the date of repayment at the rate of eight and one-half percent per annum. In the event that [respondent] seeks reinstatement to practice before this [Bankruptcy] Court, he shall first be required to produce satisfactory proof of payment of the fees ordered to be repaid herein. [Respondent] shall also provide twenty-day (20) written, advance notice to the debtors in the 24 dismissed cases of any application seeking reinstatement to practice before this [Bankruptcy] Court so that the debtors may have the opportunity to be heard on the merits of the application. This Order supplements the terms in conditions regarding [respondent's] ability to gain reinstatement to practice before this [Bankruptcy] Court as set forth in In re Henderson, 360 B.R. 477 (Bankr.D.S.C. 2006). [3] Bankruptcy Court Supplemental Order dated January 4, 2007. Pursuant to Rule 29(b), RLDE, the Clerk provided the Office of Disciplinary Counsel (ODC) and respondent with thirty (30) days in which to inform the Court of any reason why the imposition of identical discipline was not warranted. ODC filed a response stating the Bankruptcy Court's suspension was equivalent to a definite suspension of up to two years under Rule 7(b), RLDE, and, further, that it had no information to indicate that the issuance of the same discipline by the Court would not be warranted. Respondent filed a response stating that Rule 29 is inapplicable because reciprocal discipline only applies when discipline has been issued by a court physically located outside of South Carolina.