Filed: Jan. 23, 1996
Latest Update: Mar. 02, 2020
Summary: IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT _ No. 95-30043 Summary Calendar _ In The Matter Of: SEALED APPELLANT, Appellant. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ No. 95-30166 Summary Calendar _ In The Matter Of: SEALED APPELLANT, Appellant. _ Appeals from the United States Disrict Court for the Eastern District of Louisiana (94-2935) _ January 17, 1996 Before GARWOOD, WIENER and PARKER, Circuit Judges.* GARWOOD, Circuit Judge: Appellant appeals his susp
Summary: IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT _ No. 95-30043 Summary Calendar _ In The Matter Of: SEALED APPELLANT, Appellant. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ No. 95-30166 Summary Calendar _ In The Matter Of: SEALED APPELLANT, Appellant. _ Appeals from the United States Disrict Court for the Eastern District of Louisiana (94-2935) _ January 17, 1996 Before GARWOOD, WIENER and PARKER, Circuit Judges.* GARWOOD, Circuit Judge: Appellant appeals his suspe..
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IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
_______________
No. 95-30043
Summary Calendar
_______________
In The Matter Of: SEALED APPELLANT,
Appellant.
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_______________
No. 95-30166
Summary Calendar
_______________
In The Matter Of: SEALED APPELLANT,
Appellant.
____________________________________________________
Appeals from the United States Disrict Court for the
Eastern District of Louisiana
(94-2935)
_____________________________________________________
January 17, 1996
Before GARWOOD, WIENER and PARKER, Circuit Judges.*
GARWOOD, Circuit Judge:
Appellant appeals his suspension from practice before the
United States District Court for the Eastern District of Louisiana
for a period of six months. Because we find that the district
court did not abuse its discretion in suspending appellant, we
affirm.
*
Pursuant to Local Rule 47.5, the court has determined that
this opinion should not be published and is not precedent except
under the limited circumstances set forth in Local Rule 47.5.4.
Facts and Proceedings Below
This appeal arises out of appellant’s suspension for a period
of six months from the practice of law before the United States
District Court for the Eastern District of Louisiana in accordance
with Rule III of the Eastern District Rules of Disciplinary
Enforcement. Rule III (C)(1) provides for reciprocal disciplinary
proceedings in the district court following the suspension or
disbarment of an attorney before another federal or state court.
Because the district court’s disciplinary action was predicated on
appellant’s suspension by a state court, an examination of the
rather convoluted facts of the underlying state proceedings is
necessary to an understanding of the issues on appeal.
Appellant was the subject of two state disciplinary
proceedings. The first proceeding led to a public reprimand being
issued to appellant. Appellant’s actions during the pendency of
the initial disciplinary proceedings gave rise to one count of a
two count formal disciplinary charge brought against appellant
which led to his suspension for six months from practice before the
Louisiana state courts, and subsequently led to his instant
suspension for a like period from practice before the district
court.
A. State Disciplinary Proceedings
In 1987, Henrietta Reed engaged Appellant to obtain past due
child support owed by her former husband. Appellant obtained a
judgment on behalf of Reed which ordered payment of past due child
support in the amount of $311 as well as awarding $1,000 in
2
attorney’s fees. Apparently pursuant to a memorandum from
appellant to Reed, appellant received child support payments on
Reed’s behalf which he was then to distribute to her. However,
appellant received payments totaling $2,879.25, but paid out only
$1,725.55 to Reed. Reed discharged appellant and initiated a
complaint with the Louisiana State Bar Association. Appellant
alleged in that proceeding that he was owed by Reed fees totaling
$6,513.
On October 12, 1989, a hearing was held before the Committee
on Professional Responsibility. It was alleged that appellant had
failed to promptly forward funds to a client, had improperly
commingled client funds, and had charged an unreasonable legal fee
for his services. At the hearing, appellant challenged allegations
that he had failed to promptly forward funds to a client and had
commingled client funds with his own by introducing the February 7,
1987 memorandum which he had sent to Reed which provided: “all
checks received pursuant to a judgment resulting from litigation
shall be sent to me for distribution.” Appellant also introduced
a copy of the petition signed by Reed which requested a percentage
of her former spouse’s retirement pay as community property in
addition to back child support as evidence that he had provided
services beyond those described by Reed. Appellant introduced
sixty-three exhibits in all at the hearing.
On November 22, 1989, appellant sent a letter to Mr. Fred G.
Ours, Assistant Counsel for the Louisiana State Bar Association,
withdrawing all demand letters to Reed. Appellant was
3
subsequently notified on March 30, 1990 that the Disciplinary Board
was planning to issue a Letter of Public Reprimand in the matter.
Appellant appealed this decision to the Louisiana Supreme Court on
April 12, 1990. Meanwhile, appellant sent a letter to Reed dated
April 17, 1990 demanding payment of $3,185 of the $6,513 appellant
claimed he was originally owed, and subsequently filed suit to
collect the reduced amount on May 10, 1990. The Supreme Court
affirmed the Committee’s decision to issue a public reprimand on
May 25, 1990, and denied appellant’s petition to stay the issuance
of the reprimand on June 11, 1990. The Letter of Public Reprimand
issued the following day. Appellant then petitioned the Louisiana
Supreme Court for rehearing which was ultimately denied on
September 14, 1990. Appellant voluntarily dismissed his suit
against Reed on October 17, 1990.
A second disciplinary proceeding was initiated by the
Disciplinary Counsel for the Louisiana State Bar Association
through a two count formal charge filed on March 15, 1991. Count
I alleged that appellant had violated the Rules of Professional
Conduct by bringing a claim in bad faith against Reed to collect a
portion of the fee that the Disciplinary Board had determined was
unreasonable.1 Specifically, appellant had informed the Bar that
the demand was withdrawn at the time that the Board was considering
disciplinary action against him only to assert a demand and bring
1
The Committee on Professional Responsibility was renamed
the Disciplinary Board as the result of changes in Rule 19 of the
Rules of the Louisiana Supreme Court effective April 1, 1990.
4
suit for a portion of the disputed fee once he was informed that a
public reprimand would issue.
Count II involved an unrelated complaint against appellant
arising out of his representation of Mrs. Luitgardis Marie Tell
Wright in an estate matter. Appellant handled the succession of
Wright’s late husband’s, and took possession of certain stock
certificates and title documents in order to prepare the succession
documents. Appellant took possession of these documents in early
1987 and a Judgment of Possession placing these items in the
possession of Wright was signed on November 6, 1987. However, a
fee dispute arose between appellant and Wright, and Wright sent a
letter on January 5, 1988 demanding the return of the documents.
Appellant responded by letter that “[i]t is customary to return
such property in person,” and that Wright should have her attorney
or representative contact appellant. Appellant also informed
Wright that suit would be brought against her for the fees. A
Notice of Privilege and Lien was filed with the Clerk of Court for
Jefferson Parish by Robert C. Evans in whose office appellant
worked. A suit was also brought against Wright for the fees by the
Law Office of Robert C. Evans. The formal charge alleged that
appellant had failed to promptly surrender property to a client at
the termination of representation as required by the Rules of
Professional Conduct.
On July 24, 1991, a hearing was held before Hearing Committee
No. 11 of the Disciplinary Board for purposes of considering the
charges alleged against appellant. The Hearing Committee issued
5
findings of fact and conclusions which found that: (1) appellant
had not violated the Rules of Professional Conduct by bringing a
suit against Reed in bad faith; and (2) that appellant had failed
to promptly return property to a client as required by the Rules of
Professional Conduct. Therefore, the Hearing Committee recommended
that a public reprimand be issued on Count II.
The Disciplinary Board issued its Report and Recommendation on
August 31, 1993. The Board rejected the Hearing Committee’s
conclusion that appellant had not acted in bad faith in bringing
suit against Reed to collect the disputed fees. The Hearing
Committee had concluded that appellant was entitled to pursue his
action for fees until the disciplinary proceedings against him were
resolved. However, the Board noted that appellant had written a
letter withdrawing his demand, and concluded that “[i]t was wrong
to threaten and file suit after purportedly withdrawing the demand
in order to influence the disposition of the disciplinary
proceeding.” The Board concurred in the Hearing Committee’s
conclusion regarding Count II that appellant had violated the Rules
of Professional Conduct by failing to promptly return the disputed
documents to Wright. Therefore, the Board determined that
appellant should be suspended from the practice of law for a period
of three months.
On March 18, 1994, the Louisiana Supreme Court issued a per
curiam opinion accepting the findings of the Disciplinary Board,
but ordering a suspension of six months rather than the three
6
months recommended by the Board. See In re Forman, 634 So. 2d 330
(La. 1994), cert. denied,
115 S. Ct. 207 (1994).
B. District Court Proceedings
Appellant’s suspension by the Louisiana Supreme Court led to
reciprocal disciplinary proceedings being instituted in the
district court below. The Rules of Disciplinary Enforcement for
the Eastern District of Louisiana provide for reciprocal
disciplinary proceedings against attorneys admitted to practice
before the court who have been subjected to public discipline
before any other federal or state court. Rule III (C)(1). The
district court will impose “such discipline as the circumstances
warrant” unless the district court finds “upon the face of the
record upon which the discipline in another jurisdiction is
predicated it clearly appears” that either the procedures in the
disciplining court were so lacking as to violate due process or
that the proof of misconduct was so weak that the district court
cannot accept it. Rule III (C)(4)(a)-(b). Otherwise, the other
court’s determination that misconduct occurred shall be conclusive
in the district court. Rule III (C)(5).
Upon the filing of a petition and copy of the disciplinary
order in the district court, the attorney is ordered to show cause
within 30 days after service why discipline should not be imposed.
Rule III (D)(3). The attorney is then required to respond in
writing either admitting or denying the alleged misconduct, and
raising any matters in defense. Rule III (D)(4). The judge shall
then set a hearing if the attorney raises any issue of fact or
7
wishes to be heard in mitigation. Rule III (D)(5). The judge then
makes written conclusions of law and findings of fact which are
submitted to the court en banc for determination of final
discipline, if any, which is to be imposed. Rule III (D)(6).
In the present case, the filing of the Louisiana Supreme
Court’s suspension order in the district court caused the court to
issue an order to appellant to show cause within 30 days why he
should not be suspended from practice before the Eastern District.
Appellant timely filed a response. The district court held no
hearing on the matter prior to issuing its Report and
Recommendation because the court determined that appellant’s
response had raised no issue of fact nor indicated any wish to be
heard in mitigation so as to trigger a hearing under Rule III
(D)(5). The Report lays out the underlying facts and the
substance of appellant’s complaint in some detail before concluding
in rather summary fashion (one paragraph) that appellant raised no
fact issues, nor any procedural defect or infirmity of proof that
would prevent the court from relying on the state proceedings in
imposing its own discipline under Rule III (C)(4). Therefore the
district court recommended that Appellant be suspended for six
months. By minute entry signed December 9, 1994, the court sitting
en banc ordered appellant suspended for six months. This appeal
followed.
Discussion
Appellant’s claim on appeal is somewhat difficult to divine as
he has filed as his brief on appeal almost precisely the same
8
document which he filed in response to the order to show cause in
the district court. Appellant’s brief raises several alleged
constitutional defects in the state proceedings. Because the state
court judgment is not subject to collateral attack before this
Court,2 appellant’s complaint on appeal must be that the district
court erred in its determination that no constitutional defect
existed in the state proceedings which would prevent the district
court from relying on those proceedings in imposing its own
suspension order under Rule III. We review disciplinary orders of
the district court for abuse of discretion. American Airlines,
Inc. v. Allied Pilots Ass’n, 968 F.2d 523, 533 (5th Cir. 1992).
In Selling v. Radford, 37 S. Ct. 377 (1917), the Supreme Court
announced the standard which a federal court must apply in
reviewing a state attorney disciplinary proceeding before relying
on the state proceeding to impose reciprocal discipline on the
attorney in federal court:
“[W]e should recognize the condition created by the
judgment of the state court unless, from an intrinsic
consideration of the state record, one or all of the
following conditions should appear: 1. That the state
procedure, from want of notice or opportunity to be
heard, was wanting in due process; 2, that there was such
an infirmity of proof as to facts found to have
established the want of fair private and professional
character as to give rise to a clear conviction on our
part that we could not, consistently with our duty,
accept as final the conclusion on that subject; or 3,
that some other grave reason existed which should
convince us that to allow the natural consequences of the
2
Court of Appeals lacks authority to review state court
judgment ordering suspension of attorney. The only available
avenue of appeal to attack such judgments is by certiorari to the
Supreme Court of the United States. Sawyer v. Overton, 595 F.2d
252 (5th Cir. 1979).
9
judgment to have their effect would conflict with the
duty which rests upon us not to disbar except upon the
conviction that, under the principles of right and
justice, we were constrained so to do.” Id. at 379
Theard v. United States,
77 S. Ct. 1274 (1957). This Court adopted
the Selling standard in In re Wilkes,
494 F.2d 472, 476-77 (5th
Cir. 1974), and also applied it in In re Dawson,
609 F.2d 1139,
1142-43 (5th Cir. 1980). The first two prongs of the
Selling standard are incorporated into Eastern District
Disciplinary Rule III (C)(4)(a)-(b) at issue in the present case.
Appellant first argues that the letter of public reprimand
issued on June 12, 1990, particularly the finding that Appellant
had charged an excessive fee, operated to deprive him of due
process in various ways. Specifically, appellant contends that the
letter of public reprimand: (1) failed to discuss any of the
factors listed in Rule 1.5 of the Louisiana State Bar
Associations’s Rules of Professional Conduct regarding the
reasonableness of attorney’s fees; (2) did not specify the amount
by which the fee was excessive; (3) failed to show any relationship
between the amount of the fee and the value of Reed’s community
property right in her former husband’s retirement pay; and (4)
formed the basis of the second disciplinary action for bringing
suit in bad faith against Reed despite the absence of any
indication as to the amount by which the fee was excessive.
These claims are without merit. The first three of these
claims are undercut by the fact that correspondence between the
Disciplinary Board and appellant expressly stated that appellant’s
fee was excessive because it exceeded the amount awarded by the
10
court in violation of La. R.S. 9:305.3 In particular, the letter
from the Assistant Counsel to appellant stated:
“That La. R.S. 9:305 provides that when a court renders
a judgment to make past due child support executory, the
court shall award attorney’s fees. The reason for the
awarding of attorney’s fees in such matters is so that
the full amount of the past due child support is used for
the benefit of the child. The court in Ms. Reed’s case
awarded an attorney’s fee of $1,000.00. That you have
claimed attorney’s fees in the amount of $6,513.00 in
this matter.”
Therefore, Appellant was clearly apprised of the fact that the
Disciplinary Board considered any amount over $1,000 to be
excessive. Appellant’s fourth argument fails because it is clear
from the record that he was sanctioned for bringing suit in bad
faith at least partly because he had brought suit after informing
the Disciplinary Board that he had withdrawn his demand to Reed in
an apparent effort to influence the outcome of pending disciplinary
proceedings, and not simply because he sought to obtain some
portion of the disputed fee.
Appellant then raises various claimed procedural defects in
the disciplinary hearing held October 12, 1989.4 Under the
circumstances, these allegations make out no constitutional
3
This section has since been repealed by the Louisiana state
legislature effective January 1, 1991. However, the statute was in
effect at the time that appellant handled the matter for Reed and
at the time that the letter of public reprimand was issued.
4
Specifically, appellant claims: (1) he did not have the
right to take Mrs. Reed’s deposition before the hearing; (2) he did
not have the right to a pre-hearing conference to clarify the
issues;(3) the hearing lasted only two hours; (4) he was not
permitted to individually introduce and explain all of his
exhibits.
11
deprivation. Procedural due process requires that an attorney be
given fair notice of the charges against him and an opportunity to
be heard in an attorney disciplinary proceeding. In re Ruffalo, 88
S. Ct. 1222, 1226 (1968). The record reflects that appellant was
afforded such an opportunity in the case at bar. Appellant
participated in a hearing before the state disciplinary body and
was allowed to introduce evidence in his defense. Under these
facts, that he was not allowed to introduce and explain each of his
63 exhibits individually is not violative of procedural due
process. United States v. Engstrom,
16 F.3d 1006, 1012 (9th Cir.
1994) (procedural due process does not require that attorney be
allowed to present all evidence at evidentiary hearing in attorney
disciplinary proceeding, but only notice and opportunity to be
heard).
Appellant next asserts that the Louisiana Supreme Court’s
order disciplining appellant for bringing suit against Reed in bad
faith denied appellant the exercise of his right of access to the
courts in violation of Article I, Section 22 of the Louisiana
Constitution of 1974 and of Article IV, and the First and
Fourteenth Amendments of the United States Constitution. The power
of both state and federal courts to discipline members of their
respective bars is so well-established as to be beyond dispute. In
an analogous context, the Louisiana Supreme Court has suggested
that the law protects a person’s right of access to the courts
under the Louisiana Constitution “when they act in good faith upon
reasonable grounds in commencing either a civil or a criminal
12
proceeding.” Robinson v. Goudchaux’s, 307 So. 2d 287, 289 (La.
1975) (emphasis added) (malicious prosecution). Implicit in this
statement is the notion that the right of access to the courts is
subject to abuse, and the law affords no protection to persons
bringing suit in bad faith. Appellant cites no authority to
suggest that a different result obtains under the United States
Constitution.
Turning now to the count respecting Wright, appellant contends
that: (1) the Louisiana Supreme Court’s suspension order was
violative of due process because it penalized appellant for
exercising his constitutionally protected property right to assert
an attorney’s lien for fees on Wright’s property; (2) the Louisiana
Supreme Court’s summary rejection of appellant’s claim of res
judicata violated both substantive and procedural due process; and
(3) Rule 1.16(d) of the Rules of Professional Conduct was
unconstitutionally vague because it failed to specifically provide
that an attorney was prohibited from holding a client’s property
against which a lien had been filed until the client posted a
security bond. We address these complaints seriatim.
Leaving aside the question of whether appellant was entitled
to assert a lien for fees in the first place, he makes out no
constitutional violation because the lien which he filed did not
entitle him to retain Wright’s property. Louisiana law recognizes
two types of attorneys’ liens: (1) the charging lien embodied in
LSA-R.S. 9:5001 which gives an attorney “the right to compensation
for services from the funds or judgment which the attorney has
13
recovered for the client;” and (2) the retaining lien found at LSA-
C.C. 3022 and 3023 which gives an attorney the “right to retain
possession of a client’s documents . . . until paid for services.”
Bd. of Trustees of the East Baton Rouge Mortgage Fin. Auth. v. All
Taxpayers, 361 So. 2d 292, 295 (La. Ct. App. 1978). Appellant’s
notice of privilege was filed under the former provision. As a
result, appellant had no valid lien which would entitle him to
retain Wright’s property. Appellant was disciplined for wrongfully
retaining a client’s property not for exercising his right to
obtain a lien for disputed attorneys’ fees.5
Appellant bases his claim of res judicata on the fact that a
letter dated March 24, 1988 indicated that the Committee on
Professional Responsibility had concluded that there was
insufficient evidence to support Wright’s allegations, yet the same
underlying events led to his suspension as the result of charges
brought against him by the Disciplinary Counsel on March 15, 1991.
Appellant claims that the Louisiana Supreme Court’s summary
rejection of his claim of res judicata deprived him of both
substantive and procedural due process. Appellant bases his
substantive due process argument on the Supreme Court’s decision in
Western Union Co. v. Pennsylvania, 82 S. Ct. 199 (1961), which he
claims stands for the proposition that res judicata is included
5
The Hearing Committee concluded that appellant’s “failure
to return the documents was not merely an oversight but was in fact
intentional upon the belief, however erroneous, that there was a
legitimate privilege on the documents and property pursuant to R.S.
9:5001 and that this privilege allowed the retaining of documents
and property.”
14
within substantive due process. Appellant bases his procedural due
process claim on the Louisiana Supreme Court’s summary rejection of
his claim of res judicata and failure to follow its own rules which
recognize that the Louisiana Code of Civil Procedure applies in
disciplinary proceedings except where specifically excluded. See
La. Sup. Ct. Rule XIX, §18.
Appellant cites no Louisiana authority indicating that the
Committee on Professional Responsibility’s investigatory decisions
are to be given res judicata effect nor do we find any such
authority. Indeed, we would be surprised to find such authority as
the doctrine of res judicata clearly requires a prior final
judgment. See, e.g., Steele v. Compass Welding Co., Inc., 590
So. 2d 1235, 1238 (La. Ct. App. 1991). Yet the Louisiana State Bar
Association’s disciplinary body has no authority to issue a final
judgment, but rather recommends appropriate discipline to the
Louisiana Supreme Court which acts as the trier of fact and
conducts an independent review. Louisiana State Bar Ass’n v.
Boutall,
597 So. 2d 444, 445 (La. 1992). It follows that
recommendations, much less investigatory decisions, of the
Committee on Professional Responsibility are not entitled to
preclusive effect. We find no constitutional flaw in the Louisiana
Supreme Court’s summary rejection of such a patently meritless
contention. Furthermore, since appellant had no arguably valid
claim of res judicata the Louisiana Supreme Court did not fail to
observe its own rules so as to deprive appellant of his right to
procedural due process.
15
Because appellant had no lien which would entitle him to
retain Wright’s property, we need not address his claim that Rule
1.16(d) of the Rules of Professional Conduct was void for vagueness
for failing to specifically provide that an attorney could not
retain a client’s property pursuant to a lien.
Having found no defect in either notice and opportunity to be
heard or in the reliability of the proof in the state proceedings,
we find no abuse of discretion on the part of the district court in
relying on the state disciplinary proceedings in imposing its
suspension order.
Accordingly the district court’s order is AFFIRMED.
16
