Committee on Professional Conduct v. Revels

Citations: 360 Ark. 69; 199 S.W.3d 630Docket: 04-808

Court: Supreme Court of Arkansas; December 9, 2004; Arkansas; State Supreme Court

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Stark Ligón, Executive Director of the Office of Professional Conduct, appeals a reprimand imposed on attorney Paul E. Revels by Panel A of the Arkansas Committee on Professional Conduct for violations related to his trust account. Ligón contends that the panel abused its discretion by not imposing a suspension instead. The court agrees, determining that the reprimand is contrary to the preponderance of the evidence, and modifies the sanction to a three-month suspension.

The case originated from a formal complaint served to Revels on June 30, 2002, alleging violations of Model Rules of Professional Conduct, specifically Rule 1.15(a) for mishandling client and third-party funds, Rule 1.15(b) for failing to pay medical providers timely, and Rule 8.4(c) for converting client property. After a hearing on March 19, 2004, Panel A confirmed violations of Rule 1.15(a) and Rule 8.4(c) but found no violation of Rule 1.15(b). The majority of Panel A imposed a reprimand, a $2,500 fine, and $50 in costs, while three members favored a suspension.

The court conducts a de novo review, meaning it examines the record without deference to the Committee’s findings unless clearly erroneous. It emphasizes that while the Committee has the authority to assess witness credibility, legal conclusions are reviewed without deference. The case centers on proper trust account usage, which must not include the attorney's or firm’s funds, and requires complete record-keeping for five years post-representation, alongside timely notifications to clients regarding their funds.

Funds must be promptly delivered to clients and third parties when due, and property with joint interest between an attorney and client must be kept separate until interests are accounted and severed. Under Rule 1.15(a), lawyers are required to maintain client or third-party property separate from their own. Revels violated this rule by depositing cash into his trust account without proper documentation, mixing personal checks with client funds, failing to disburse settlement checks properly, and making personal withdrawals from the trust account. His record-keeping was inadequate, obscuring the activities in his trust account. Although Panel A found no violation of Rule 1.15(b), which mandates prompt notification and delivery of client or third-party funds, there was evidence suggesting potential non-compliance. Nevertheless, the decision not to find a violation was not clearly erroneous. Revels’ actions also violated Rule 8.4(c), as his failure to maintain proper balances in his trust account and instances of writing checks for personal expenses indicated dishonesty and conversion of funds. The trust account frequently dropped below required levels, with evidence of checks written for personal use, which confirmed a failure to protect client and third-party funds. The Panel's conclusion regarding conversion was upheld as not clearly erroneous.

The Arkansas Supreme Court Committee on Professional Conduct reprimanded attorney Arkansas Bar ID 91110, imposing a $2,500 fine and $50 in costs for misconduct involving misappropriation and conversion of client and third-party funds from a trust account. According to Section 17 of the Arkansas Procedures Regulating Professional Conduct, serious misconduct includes violations of the Model Rules that could lead to sanctions affecting a lawyer's license. Although the Committee found Revels' actions constituted serious misconduct deserving of harsher penalties, it imposed only a reprimand for what it classified as lesser misconduct. This decision was deemed inconsistent with the evidence presented, prompting a modification of the reprimand to a three-month suspension. Judge Thornton did not participate in this decision.