Office of Lawyer Regulation v. Charles J. Labanowsky, III

Citations: 353 Wis. 2d 138; 2014 WI 18; 844 N.W.2d 367; 2014 WL 1226245; 2014 Wisc. LEXIS 162Docket: 2013AP002836-D

Court: Wisconsin Supreme Court; March 26, 2014; Wisconsin; State Supreme Court

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Charles J. Labanowsky, III, an attorney licensed in Wisconsin since 1975, has petitioned for the consensual revocation of his law license due to ongoing investigations by the Office of Lawyer Regulation (OLR) into multiple allegations of professional misconduct. Labanowsky's history includes two public reprimands for prior alcohol-related offenses: in 2009 for multiple misdemeanors associated with operating while intoxicated and in 2011 for a misdemeanor theft conviction. His recent misconduct includes five alcohol-related incidents between April 2012 and May 2013 and reported anomalies in his trust account. Notably, Labanowsky was arrested for a fifth offense of driving under the influence in April 2012 and subsequently faced multiple charges related to violating bail conditions, including driving with a suspended license and being intoxicated at the courthouse. He voluntarily retired from practicing law in April 2013, but the OLR's investigations have continued, prompting his request for license revocation. The court filed the opinion on March 26, 2014, and noted that the final version would be published in official reports.

Attorney Charles J. Labanowsky was charged with two counts of felony bail jumping in Kenosha County (Case No. 2013-CF-461) after police, acting on an anonymous tip, found him consuming alcohol at home in violation of his bond conditions. He admitted to drinking, with a blood alcohol concentration of .203, and did not post bond, leading to four additional counts of bail jumping (Case No. 2013-CF-536). Labanowsky later entered a plea agreement for multiple cases, resulting in a conviction for one count of driving under the influence (5th offense), one count of felony bail jumping, and two counts of bail jumping, while other charges were dismissed but read in. He was sentenced to 36 months in prison followed by 36 months of extended supervision for the OWI conviction, with additional sentences imposed and stayed in related cases.

The Office of Lawyer Regulation (OLR) is investigating potential violations of SCR 20:8.4(b) concerning Labanowsky's alcohol-related misconduct, as well as trust account violations. The OLR uncovered issues with overdrafts in his client trust account, including disbursing funds to clients without sufficient balances and discrepancies related to the Estate of M.W. Specifically, he disbursed $10,000 more than entitled in a real estate transaction and failed to maintain the proper balance in the trust account for the estate. Labanowsky also left earned fees in the trust account for extended periods and covered shortfalls with personal funds, potentially violating multiple provisions of the SCR. 

In response to the allegations, Labanowsky filed a petition for consensual revocation, acknowledging he cannot successfully defend against the OLR's claims and asserting that his decision is made freely and knowingly, thereby waiving his right to contest the allegations.

Attorney Labanowsky is aware of his right to counsel and has submitted a petition for consensual revocation of his law license, which is supported by the Office of Lawyer Regulation (OLR). The OLR is not seeking restitution. After reviewing Labanowsky's petition and the OLR's investigative summary and recommendation, the decision is made to accept the petition due to the seriousness of his misconduct, which necessitates revocation to protect the public and deter similar actions by other attorneys. The OLR's choice not to pursue restitution is acknowledged. As Labanowsky petitioned for revocation before a referee was appointed and no costs were requested by the OLR, no costs will be imposed on him. The petition for consensual license revocation is granted, and Labanowsky's license to practice law in Wisconsin is revoked effective immediately. Additionally, he must comply with SCR 22.26 regarding the responsibilities of individuals whose licenses have been revoked.