Opinion ID: 2335436
Heading Depth: 1
Heading Rank: 9

Heading: The Extent of the Actual or Potential Injury to the Clients Caused by the Lawyer's Misconduct

Text: The ODC contends that Kingsley's actions caused actual injury and serious potential injury to the clients for which he drafted estate planning documents. Its first contention is that for at least 50 of the clients, Kingsley inserted Estep or entities he controlled as executors of his client's estates or as trustee of trusts. At the sanctions hearing, the testimony was that a convicted felon cannot serve as a personal representative and that Kingsley did not name him as a personal representative after learning about the felony conviction. Tr. at 52-56. Nonetheless, Kingsley acknowledged that he took no steps upon learning of Kingsley's status to bring that problem to the attention of the clients. Id. at 55. He testified that at that point he did not have access to the whole database. Id. at 55-56. The Panel finds that minimally Respondent should have advised Estep to notify all clients for whom he was acting as personal representative that they would need to have a new person appointed and that his failure to do so delayed the time that remedial steps could be taken. The ODC also contends that Estep's clients were harmed because several of their documents were improperly executed under Delaware law. ODC-1 at Paragraph 11. While true, the Panel finds that that harm is not fairly attributable to Kingsley who gave no advice regarding the proper procedures in Delaware for execution of a will. The more serious harm is that by engaging in the unauthorized practice of law Kingsely named Estep and his firm as the trustee of trusts to which the clients transferred property, including their homes. The record reflects that the clients did not understand or necessarily seek this work. Due to the lack of a Delaware lawyer's meeting with the clients to understand their wishes and confirm that the documents drafted were appropriate to implement their intent, this occurred at least in the case of William and Yolanda Welsh, necessitating the hiring of a Delaware attorney to re-draft their estate planning documents. 4. Sanction The ODC seeks a sanction of disbarment. The Panel inquired as to how an attorney who is not a member of the Delaware bar can be disbarred. The ODC advised that a Delaware lawyer not barred in Delaware can be disbarred so as to preclude their taking the Delaware bar for five years and also from appearing pro hac vice or under Rule 5.5 which allows an attorney not admitted in Delaware to practice on a temporary basis. Tr. at 14-15. The most analogous case is In re Tomve, 929 A.2d 774 (Del. 2007). There a non-Delaware attorney consented to the entry of a cease and desist order approved in 1991 by the Delaware Supreme Court. That Order directed that Tonwe shall immediately cease and desist from the performance of any and all legal services in Delaware for a fee, or for no fee, including, without limitation, the offering and providing of assistance in legal matters, until such time as she is properly admitted to practice as a member of the bar of the State of Delaware ..... Id. at 3. Ms. Glover was also convicted in 1991 of bribing a federal immigration official and served 37 months in prison. She was disbarred in Ohio and Pennsylvania. In 2002, she was reinstated in Pennsylvania. From 2003-2005, she had a substantial practice in Delaware of over 100 clients, advising them on matters of personal injury that occurred in Delaware. The Board's findings of misconduct are set forth below: In light of the factual record, the Board finds Respondent engaged in the practice of law within the State of Delaware. Between July 1, 2003 and June, 2005, Respondent established a continuing lawyer-client relationship with approximately 100 Delaware citizens. Respondent provided legal services through the negotiation and settlement of her clients' insurance claims, all of which involved Delaware motor vehicle accidents and Delaware auto insurance policies, which more likely than not mandated the application of Delaware insurance law to claims arising under the policy.    In representing dozens of Delaware clients, on a continuing basis since July 1, 2003, the Respondent established a systematic and continuous presence in Delaware for the practice of law in violation of [Delaware Lawyers' Rule of Professional Conduct] Rule 5.5 (b)(1). She regularly counseled clients on matters of Delaware law and negotiated settlements with insurance companies regarding Delaware auto insurance policies. Furthermore, the representation of Delaware clients comprised a substantial portion of her caseload and generated consequential attorney's fees.    ... Respondent agreed in a 1991 Statement and Order of Voluntary Compliance to cease and desist from the performance of any and all legal services, including the offering or providing of assistance in legal matters, in Delaware until she is properly admitted to practice as a member of the Delaware bar .... It is undisputed that since that time Respondent has provided legal services to multiple Delaware citizens on a recurring basis, including conducting a deposition for a matter pending before the Delaware Superior Court, and representing a client at an arbitration hearing within the State of Delaware.    ... The Board specifically concludes that the Respondent's violation of Rules 5.5(b)(1) and 3.4(c) have been proved by clear and convincing evidence. Id at 9-10. The Panel finds that the misconduct sanctioned in Tonwe is similar to the misconduct here, Most significantly, she knowingly violated a prior order to cease and desist entered against her. Here the allegation that Kingsley did the same here or at least knowingly assisting Estep in violating a Cease and Desist Order directed to him has been deemed admitted. The ABA Standards for Imposing Lawyer Sanctions recommend that, absent aggravating or mitigating circumstances, the appropriate sanction for the unauthorized practice of law where a lawyer negligently engages in conduct that is a violation of a duty owed as a professional which causes injury to a client, the public or the legal system is a reprimand. ABA Standards for Imposing Lawyer Discipline 7,3 at 388 (2006 Ed.). These same standards provide that Suspension is generally appropriate when a lawyer knowingly engages in conduct that is a violation of a duty owed as a professional and causes injury or potential injury to a client, the public or the legal system. Id. at 7.2. Finally, disbarment is generally appropriate when a lawyer knowingly engages in conduct that is a violation of a duty owed as a professional with the intent to obtain a benefit for the lawyer or another, and causes serious or potentially serious injury to a client, the public, or the legal system. Id. at 7.1 The ABA Standards also permit the disciplinary board to impose other sanctions as may be appropriate. Here we find that Kingsley acted negligently regarding Counts I-VII. Further, we find that the claims in Counts VIII and IX that Kingsley knowingly assisted another in violation of a Court order are deemed admitted. Taking in to account the professional misconduct here, the Board recommends that the appropriate sanction is that: 1) Respondent be disbarred and prohibited from providing advice to any Delaware clients on matters of Delaware law, including without limitation drafting wills, powers of attorney, deeds of trust and other estate planning documents for Delaware clients under Delaware law, until such time as the Respondent shall have passed the Delaware bar exam and been admitted to practice in Delaware; 2) Respondent be prohibited from acting pro hac vice on any matter in Delaware for a period of five years; 3) Respondent shall be prohibited for five years from engaging in the temporary practice of law pursuant Delaware Supreme Court Rules 55 or 55.1; 4) After five years from the date of disbarment, Kingsley may apply for admission to the Delaware Bar but shall bear the burden of proving by clear and convincing evidence that he has successfully completed the bar exam and that he is fit to practice law; 5) Within five business days of receipt of this order request in writing that the Philadelphia Estate Planning Council no longer list his law firm address in Delaware and refrain in all respects from identifying his law firm address as being in Delaware; 6) The contents of this report be made public; and 7) Respondent shall pay the costs of these proceedings. 5. Aggravating or Mitigating Factors Once a preliminary sanction is recommended, the ABA Standards and the Delaware Supreme Court require the panel to examine whether any aggravating or mitigating factors counsel a greater or lesser sentence. In Re Steiner, 817 A.2d 793, 796 (Del. 2003) Here, the Panel finds the following aggravating factors: dishonest or selfish motive, and a pattern of misconduct with multiple offenses. In mitigation, the Board notes the Respondent's inexperience in the practice of law and the absence of a prior disciplinary record. The Panel does not believe that these factors require a modification of the recommended sanction.