Another example of inadequate sanctions

Here is a summary of a new case out of California, taken from the Legal Profession Blog, that in my opinion illustrates my point regarding inconsistency and inadequacy of sanctions.

In this case, the attorney stipulated that he was incompetent, that he kept money that belonged to the client and that he entered into a business transaction with a client without fully disclosing the terms of the transaction. In other words, he stole money from the client and abused his position to take advantage of the client. The client had to go through the trouble of hiring another attorney to sue this attorney to recover the money the attorney had stolen. And the only mitigating circumstances apparently were that he had no prior disciplinary record and that he "cooperated with the bar’s investigation." In other words, that he confessed.

And for all this all he got was a 60-day actual suspension (plus probation for one year -- during which he can continue to practice, of course) and was ordered to take the MPRE within one year. What a joke!

The facts of the business transaction part of the misconduct are interesting: In lieu of attorney fees, the attorney accepted two Japanese military pieces, a helmet and a hand sword guard. Without obtaining an expert appraisal, the attorney and his client agreed the sword was valued at $1,500 and the helmet at $2,500 to $3,500.

Accepting things other than money as payment for services is not inherently wrong, but any such transaction is very well regulated by the rules of professional conduct. The transaction has to be clear and fair. In this case, in violation of the rules of professional conduct, the attorney did not advise the client to seek independent legal advice or put the terms of the arrangement in writing.

For the full story and links, go here.