Formal charges were filed against Dazmi H. Castrejon by the Counsel for Discipline of the Nebraska Supreme Court on November 23, 2020, consisting of two counts. Castrejon responded on January 6, 2021, and a referee was appointed to oversee a hearing where both parties submitted a joint statement of facts, agreeing that the violations were undisputed, with the only contention being the appropriate disciplinary action.
The referee's report, dated January 31, 2022, concluded that Castrejon violated several provisions of the Nebraska Rules of Professional Conduct, specifically regarding fees and accounting, safekeeping of funds, unresponsiveness in disciplinary matters, and general misconduct. Additionally, it was found that she breached her oath as a licensed attorney in Nebraska. The referee recommended a two-year suspension of her law license, followed by a probationary period.
In terms of background, Castrejon was admitted to practice law in Nebraska on January 24, 2011, initially working under another attorney before establishing her own practice, 'Castrejon Law Office,' and later partnering with Erika Buenrostro in 'Castrejon, Buenrostro, LLC.' The violations stemmed from her mismanagement of her Interest on Lawyers Trust Account (IOLTA), inadequate fee accounting to a former client, and delays in responding to disciplinary inquiries. Between January 2017 and September 2019, the relator received multiple overdraft notifications related to Castrejon's IOLTA, leading to a formal grievance after insufficient explanations were provided regarding financial transactions. Castrejon defended her actions by stating that her IOLTA was only meant for holding client funds for specific purposes and asserted that flat fees could be transferred to her business operating account. A motion for judgment on the pleadings was granted, resulting in the imposition of the recommended disciplinary measures.
Falling behind on filing federal tax returns led to the respondent receiving notices from the IRS, including potential levy warnings. Instead of seeking assistance, the respondent panicked and attempted to avoid the situation while trying to maintain cash flow for her business. To protect her funds from possible levies, she began transferring money from her business checking account into her IOLTA account, misusing it to safeguard business income rather than solely for client-related transactions. The IOLTA account, which had been intended for client funds, was improperly used for personal business purposes.
In 2008, the respondent and her partner formed Castrejon, Buenrostro, LLC to transition from Castrejon Law Office, with each managing separate accounts without joint access. By March 2020, the respondent's law license was temporarily suspended, and her IOLTA account was closed. Following a grievance from a former client regarding a $3,500 charge for immigration services and the subsequent inadequate refund process, the respondent failed to respond to the grievance or provide updated contact information.
Formal charges were filed on November 23, 2020, to which the respondent admitted using her IOLTA to shield funds from IRS levies, commingling personal and client funds, and failing to provide a full accounting of services to the former client. During a hearing, the respondent testified and acknowledged the misconduct, with the only disputed matter being the appropriate disciplinary action to be taken.
On January 31, 2022, a referee determined that the respondent violated several provisions of the Nebraska Rules of Professional Conduct, specifically related to fees and accounting, safekeeping funds, unresponsiveness in disciplinary matters, and general misconduct. These violations also constituted a breach of the respondent's oath as a licensed attorney in Nebraska. The findings were supported by extensive exhibits and testimony, including expert input from Morgan Keen Hecht, a licensed mental health practitioner. Hecht provided insights into the respondent's experiences with domestic abuse and coercive control in her relationship with her ex-husband, detailing specific abusive behaviors such as intimidation, emotional abuse, and economic control.
Hecht noted that the respondent had suffered significant trauma throughout her life, including early sexual assault and ongoing abuse from her husband, which worsened over time. The respondent's ex-husband's escalating violence culminated in a crisis involving threats against their children, leading to a police intervention that ultimately resulted in no charges. Following a series of traumatic events, including her husband’s abandonment in 2019, the respondent faced severe emotional distress, leading to the loss of her law license and significant financial issues. Hecht diagnosed the respondent with post-traumatic stress disorder and a major depressive episode characterized by severe anxiety.
Hecht's testimony indicated that the respondent, affected by severe mental and emotional distress, was unable to function as a lawyer. Hecht recommended an additional year of therapy for the respondent, who acknowledged her misconduct as an ethical violation. The referee deemed both Hecht's and the respondent's testimonies truthful, recognizing the respondent's intelligence and ethical disposition. The referee noted the extreme distress and disability the respondent experienced throughout her misconduct, emphasizing the extraordinary circumstances of the case.
As a victim of domestic violence, the respondent's trauma and proactive engagement in mental health treatment were considered substantial mitigating factors. The referee highlighted her resilience, having endured significant abuse while completing her education and raising two children. A two-year suspension of the respondent’s law license was recommended, with credit for the time already served since surrendering her license, followed by probation or supervision. The referee ordered her to continue therapy with Hecht and to maintain treatment with a licensed professional during her supervision.
In the context of the disciplinary proceedings, a de novo review of the referee's recommendations was conducted, confirming that the charges against the respondent were established by clear and convincing evidence. The respondent was found to have violated multiple disciplinary rules and her oath of office as an attorney. Consequently, the court granted the joint motion for judgment on the pleadings and reaffirmed the necessity of imposing discipline.
Neb. Ct. R. 3-304 outlines disciplinary actions for attorney misconduct, which include disbarment, suspension, probation, censure, temporary suspension, and private reprimand. The court evaluates each case based on its specific facts, considering both the attorney's actions and any aggravating or mitigating factors. Key considerations for determining appropriate discipline include the nature of the offense, deterrence, reputation of the bar, public protection, the offender's attitude, and their fitness to practice law.
In the present case, the respondent exhibited multiple misconducts, including improper use of IOLTA funds to evade IRS levies, lack of cooperation with investigations, and failure to account to a former client. Such trust account violations are serious and typically warrant disbarment unless extraordinary mitigating circumstances exist. While the respondent claimed domestic violence as a mitigating factor, the burden of proof lies with her, and the relator is tasked with investigating these claims.
The referee noted the respondent's medical improvements and the unlikelihood of repeat misconduct. Testimony highlighted her success in therapy and commitment to ongoing mental health support, indicating potential for ethical conduct if allowed to practice law again. The respondent admitted to her mistakes and cooperated with the investigation. Additionally, there were no prior disciplinary issues against her, and she received letters of support praising her character and advocacy work. The role of domestic violence in ethical breaches has not been previously addressed in this context.
The role of being a victim of domestic violence is highlighted as a potential mitigating factor in attorney discipline, paralleling considerations for mental health issues in State ex rel. Counsel for Dis. v. Thompson. The Nebraska Lawyers Assistance Program’s efforts to support legal professionals facing intimate partner violence are noted, emphasizing an alarming trend of domestic violence in the legal field. The creation of Lancaster County’s Safe and Healthy Families Court is mentioned as a program addressing domestic violence issues in family adjudications. Nationally, courts have recognized intimate partner violence as a mitigating factor in attorney discipline, with cases from Washington and Oklahoma illustrating how such circumstances correlate with an attorney's misconduct and emotional distress. A Georgia case is cited where an attorney's financial misconduct was linked to her abusive past and associated emotional distress. The evidence in the current case concerning Castrejon indicates that her mental health struggles due to domestic violence contributed to her misconduct. Testimonies confirm her successful treatment and commitment to ongoing recovery, leading to a recommendation for a two-year suspension of her law license, ultimately modified to a 30-month suspension retroactive to March 18, 2020. She is required to comply with specific court rules and must cover costs as determined by the court within 60 days of the expense order.
The respondent is suspended from practicing law for 30 months, beginning March 18, 2020, for violations of specific professional conduct rules and her oath as an attorney. After this suspension period, she may apply for reinstatement if she has complied with rule 3-316 and has not committed any additional disciplinary violations. Upon reinstatement, the respondent must complete a 2-year monitored probation under an approved Nebraska attorney. The conditions of probation include:
1. Continuation of therapy with her current therapist, or another licensed professional, until deemed unnecessary by her therapist and supervising attorney.
2. Supervision by a licensed Nebraska attorney for the entire 2-year period.
3. Prohibition from solo law practice, requiring her to work in a collaborative environment with other attorneys.
4. Restrictions on managing law firm operating or trust accounts, which must be reviewed and approved by her supervising attorney.
5. Completion of additional accounting coursework as directed by her supervising attorney to ensure compliance with IOLTA requirements.
The court has determined that the respondent's violations warrant this course of action.
