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Ethics and Professional Responsibility

Saturday, December 13, 2008

JUDGES: Financial reports show that Katie King raised $296,550 in her recent election with $194,000 of her own money

Andrew Wolfson has a post-election story on the election finances and concerns over the sources of funds for Judge Katie King's recent election which unseated Judge David Holton who had been appointed by Gov. Beshear.   Click on heading for his entire story.  Several readers have made some serious comments (and some a little biting) but nonetheless raise concerns about the financial reporting laws in Kentucky and enforcement.

Note that the personal loans from Katie King total an amount of her"own money" was comparable to the total amount spent by each of the individual candidates for the Kentucky Supreme Court race.

King lent $194,000 to her campaign for judge
She says source was 'personal accounts'

By Andrew Wolfson • awolfson@courier-journal.com • December 12, 2008


Katie King, who earned $41,465 a year as an assistant county attorney, lent $194,000 to her successful campaign for Jefferson District Court judge, campaign finance records show.
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King, who was sworn in and began serving Nov. 26, replied by e-mail to a reporter's query about the money this week by saying it came from her "personal accounts." But she declined to answer questions about how she accumulated the money, whether it came from relatives, or when she acquired it.

King's father, Jim King, the owner of King Southern Bank, president of the Louisville Metro Council and an active participant in his daughter's campaign, referred questions to his lawyer, Sheryl Snyder, who relayed them to Katie King.

* * *

Records filed last week show that Katie King raised $296,550 for the general election, including seven loans she made to her campaign totaling $194,000. She spent $250,966 on the campaign. Holton raised $44,310 and spent all but about $800 of it.

One of the comments to the Courier Story:  Professor72 wrote -

Judge King, your honor, you can stop all the speculation immediately. Reveal the campaign bank account deposit records to prove you loaned the money from existing funds in your own bank account before you filed for the office, because that is legal. Referring these simple questions to a lawyer to answer for you seems to indicate you need someone to speak for you so we citizens don't hear the answers from you directly. You are recieving the benefit of the doubt, but why allow any doubt at all?

Monday, November 10, 2008

LAWYERS: Former Humana Lawyer was not properly licensed for 15 years receives one-year sanction from Ky. Sup. Ct.

From Courier Journal (click on heading for entire post).  Interesting thought in this era of corporate responsibility and duties owed to shareholders and the public - would some consider a person claiming to be an attorney who was not an attorney was entitled to his compensation and benefits during that time period and should the corporation take action to protect their shareholders for this "mistake"?

Putative attorney Chris Watkins several years ago came under significant scrutiny and criminal charges when he practiced law without a license.  See, eg:  Jason Riley's story in the Courier Journal from 2005 - Prosecutors say Louisvillian posed as lawyer for years.

State supreme court suspends former Humana lawyer

By Andrew Wolfson • awolfson@courier-journal.com • October 27, 2008

Humana’s former general counsel has been suspended from the practice of law for one year as a sanction for working as a lawyer without a license for 15 years.

The Kentucky Supreme Court unanimously imposed the penalty last Thursday on Arthur Hipwell, who served as general counsel for the insurance company almost continuously from 1992 to 2007.

Hipwell’s Kentucky law license had expired in 1985 because he failed to pay his bar dues.

Hipwell, who retired from the company in July, claimed he wasn’t required to be licensed because he didn’t appear in court for Humana or perform legal work for the general public.

But in accepting the one-year suspension, Hipwell admitted that his duties as general counsel and senior vice president included supervising the work of in-house attorneys and signing corporate documents for the Securities and Exchange Commission and other agenices, which the Supreme Court said requires a license.

Sunday, October 26, 2008

ETHICS: Diet drug lawyers Gallion and Cunningham permanently disbarred

From Kentucky.com.  Links in the post were added by me and go to the KBA opinions referenced in the article.

Two fen-phen lawyers disbarred

Fen-phen settlement lawyers William Gallion and Shirley Allen Cunningham Jr. have been permanently disbarred from legal practice by the Kentucky Supreme Court.

The high court entered orders Thursday afternoon disbarring both attorneys. Neither man can ever apply for reinstatement to the bar, the orders say. Cunningham and Gallion had filed motions with the court asking to withdraw from the Kentucky Bar under terms of permanent disbarment.

Thursday's disbarment is just the latest twist in the legal saga involving the $200 million diet-drug lawsuit that began in 2001, shortly after the case was settled on behalf of 440 former clients who said the drug fen-phen damaged their hearts and lungs.

In agreeing to the court's disbarment order, Gallion and Cunningham admitted to committing eight of 22 ethical violations that had been alleged in their handling of the settlement money.

KBA OPINIONS ON LINE:

Sunday, October 12, 2008

BAR: "Bar leader tried to stall abuse deal, records show Bonar, facing complaint, denies any misconduct"

Andrew Wolfson, Courier Journal, has posted the following story; click on heading for his entire story on-line:

Bar leader tried to stall abuse deal, records show
Bonar, facing complaint, denies any misconduct

Saturday, October 11, 2008

ELSEWHERE: "Law - "Lawyers worry about liability if banks holding client trust accounts fail" By Marcia Oddi on General Law Related "

In the midst of this downturn in the economy, lawyers must also be concerned about their trust accounts too?  Here's a post noted by Marcia Oddi at the Indiana Law Blog:

Law - "Lawyers worry about liability if banks holding client trust accounts fail"   By Marcia Oddi on General Law Related

And this is not the only story on the internet on this topic, eg:

  • Hot Topic: Are Lawyers Liable for Client Trust Accounts at Failed Banks? from the ABA Journal

    By Martha Neil

    If the bank holding my client trust funds fails, could I be held responsible?

    That is the question many attorneys are now asking bar associations after the recent failure of California-based IndyMac Bank, and the answer appears to be a qualified yes, according to the National Law Journal.

    Disciplinary authorities in a number of states say they won't punish lawyers if the funds are held in an Federal Deposit Insurance Corp.-insured bank account at a bank that isn't obviously unstable, according to the legal publication. However, there could be an issue if the amount in the account exceeds the FDIC-insured limit, which is currently $250,000. (The safest course is to hold no more than $250,000 at any one FDIC-insured bank.)

    And civil litigation is always a possibility, as far as unhappy clients are concerned, the NLJ points out. "A New York lawyer was once sued when a bank failed, taking client funds with it. With that in mind, bar counsel are cautioning lawyers to consult their insurance carriers and 'take reasonable precautions.' "

    Related coverage:

    The Lawyer: "Law Soc advises on client money held in insolvent banks"

  • If Your Bank Goes Under, Are Your Clients’ Trust Account Deposits Fully Insured?

    James M. McCauley, Ethics Counsel
    Virginia State Bar
    July 30, 2008

    Here is a question that makes lawyers very nervous as the list of failed banks1 and banks on the "watch list" grows: Could a lawyer be liable if the bank that held a client's trust funds went under? After reading news articles about the recent collapse of Pasadena-based mortgage lender IndyMac Bank, lawyers are making inquiries on state bar ethics hotlines. With financial institutions recognizing losses on their sub prime loan portfolios, increasing mortgage foreclosures and steeply declining bank stock prices, concerned lawyers are making inquiries about the security of IOLTA/trust accounts in federal and state chartered banks.
 

Sunday, August 10, 2008

ELSEWHERE: "ABA: W. Va. case has chance to provide landmark ruling"

Judicial recusal issue is subject of post at West Virginia Record prompted by ABA story:

WASHINGTON, D.C. -- State Supreme Court Justice Brent Benjamin's controversial decision not to recuse himself from the appeal of a supporter should serve as a guideline for future similar issues, the American Bar Association says.

Tuesday, August 05, 2008

BLOGS: "Courts - "A Primer on What Lawyers Can Say About Judges""

Admittedly, not every thought needs expression, nor every opinion voiced.  However, it is always a concern of mine while writing on this blog and in briefs as to the parameters of holding judges and justices accountable for what they say and do and whether that robe is made of teflon or tofu.

The following post and link from Marcia Oddi at the Indiana Law Blog references another site but gives you some insight on what to say and what not to say to judges.

Courts - "A Primer on What Lawyers Can Say About Judges"

By Marcia Oddi on Courts in general

Bruce A. Campbell of the Texas Lawyer has this article. A quote: What happens when an attorney makes a false statement about a member of the judiciary? Will the offending attorney be disciplined? Perhaps, but not necessarily.

Tuesday, July 29, 2008

WEB/TECH: Of jurors, Google (tm), oaths, and attorneys - the "eyes" have it.

Louisville lawyer Finis Price at TechnoEsq has posted commentary on a story about jurors "googling" for information in violation of judge's instructions.  See, Jurors Using Google and the Internet.

We all know the story of a lone jury member disregarding his/her instructions given by the presiding judge in a case and reading the newspaper or catching the local news to find out information about the case on which he/she is sitting.  However, apparently a new and more disturbing trend has arisen, jury members who perform research on the Internet or look up definitions of words and concepts on Google.

However, this story is disturbing on so many levels beyond the mere fact that we have "googlers" on the jury, but rather jurors who violate their oaths to the court and to the system, and then break their promises to lawyers and litigants alike to listen to the evidence and abide by the law as given to them by the judge and limit their decision to the facts presented in the courtroom and not the backroom.

Another even more disturbing implication is whether their googling efforts are limited to terms and definitions.   Googling for personal spaces/faces of litigants and lawyers is not a stretch either, and this involves two issues.

First and foremost, the gaining of information outside of the controls of the court system.

Second, lawyers and bloggers responsibilities to the system regarding their comments and analysis on pending cases or continuing issues. 

With regard to the blogging and web site issues, I do not have an answer but will continue to reflect on it further.  In a nutshell, the KBA permits blogging with approval of the about page (lawyer information).  However, the informal guidance by the KBA assumed (I believe) that blogging was a synonym for "journalism" or something other than "commercial speech".  Such an assumption is ill-conceived by the KBA and improvidently implemented by those lawyers who connect  seamlessly integrate their blogs into their web sites and thus make it commercial advertising on topics that are currently regulated by the bar. 

What do I mean by "seamlessly integrating"?  There are some blogs which are distinct and separate from their firm's web site (which must be approved entirely by the KBA) and each of which has a separate domain name.  Some even have a separate and distinct theme on top of the physical domain name separation.  Then there are blogs which are tied directly into the web site with just a topic in which the legal blogger remarks on items of interest relevant to the law and to his practice.  In these "seamlessly integrated" legal blogs, the reader can easily be confused where the "journalism" of the blog ends and the "advertising" of the firm's web page begins. 

Is the blog tied into the web site nothing more than an "on-line" mailing or is it really a piece of journalism and opinion that is clearly not advertising?  The KBA will probably be addressing this one day.  I, for one, like many other lawyers have opted to keep the "journalism" separate from the "advertising" to avoid confusing and misleading readers.  Plus, the "audience" for the Kentucky Law Review, the Kentucky Court Report, and Sixth Circuit Cases is lawyers and legal professionals, not general members of the public.  A distinction with a difference as probably envisioned by the informal guidelines from the KBA.  If the legal blog looks like it's just another page at your web site, then you may fall into the zone of KBA scrutiny, especially if the content focuses on you, your firm, and your lawyers with announcements and their availability to handle those matters or share the word on their accomplishments.  Note that Kentucky is one of the few states requiring pre-approval of some of the advertising, and in-state lawyer/bloggers need/should keep an eye on the out-of-state designers, many of which advocate the blog's integration into the web site.

Blogging is nothing more than push technology in the computer sense of the term.

Blogging is also considered by some as journalism.  However, it is not the label that will control but rather the language of the post.

More later.

Updated 7/29/2008 @ 7:35 a.m.  I woke up this morning and thought I needed to clarify this post drafted last night.  Deletions are marked out with a line and additions noted in italics.  Mike.

Saturday, July 26, 2008

HL: "Fired court employee's appeal loses"

Brandon Ortiz's story from the Herald Leader focuses again of the behavior of those closely associated or related to members on our state's highest court.  This story is about an internal appeal of a fired employee who claimed that the oldest son of Supreme Court Justice Will T. Scott was given preferential treatment when promoted in January. 

Fired court employee's appeal loses
By Brandon Ortiz
bortiz@herald-leader.com  

The state court system rejected Wednesday the internal appeal of a fired employee who claimed that the oldest son of Supreme Court Justice Will T. Scott was given preferential treatment when promoted in January.

The appeal was filed by fired Administrative Office of the Courts employee Ruth Combs, a pre-trial officer whose employment record includes three disciplinary probations since 1995. She questioned the promotion of the Pikeville justice's oldest son, Andrew H. Scott, 32, to her former job.

The case, which the AOC refused to make public, marked the second time that Andrew Scott was accused of being improperly promoted.

According to Wednesday's decision, written by retired Justice James E. Keller, Combs' appeal had accused Justice Scott of conspiring with AOC Director Jason Nemes to give the younger Scott a supervisor job in Perry County.

A three-person AOC appeals board said Combs' claim of favoritism had ”no merit whatsoever,“ but recommended reinstatement because the evidence used to justify her firing was presented after her termination.

Keller overturned the board's recommendation that Combs get her job back. Combs was fired in January.

Andrew Scott was first hired as a pre-trial officer on Aug. 16, 2005, according to personnel records supplied by the AOC.

Pre-trial officers are court employees responsible for interviewing defendants in jail and providing information to judges so they can set bond. They also monitor compliance for defendants on pre-trial release.

On May 1, 2007, he was promoted to supervisor, a job that paid $30,576. But barely three weeks later, Scott was demoted, AOC records show. He was allowed to keep his $2,784 a year pay raise.

On Wednesday night, Scott denied ever being demoted. He declined further comment.

Andrew Scott's demotion was the result of another appeal, said Prestonburg attorney Ned Pillersdorf, who represents Combs.

Pillersdorf said Andrew Scott, who had less than two years experience as a pre-trial officer, was promoted over a veteran pre-trial officer with 18 years experience.

He declined to identify the officer, but records from Combs' appeal shows that it is Tamara Van Hoose, who works in Magoffin County.

Van Hoose filed an administrative complaint in April 2007 when she heard rumors that Scott would be promoted over her, Pillersdorf said.

Internal administrative appeals are not public record because the court system is exempt from the Freedom of Information Act. AOC also refused to release Scott's application for employment.

Documents in the case were given to the Herald-Leader by Combs' attorneys, Pillersdorf and Joe Childers of Lexington.

Pillersdorf is the husband of former Supreme Court Justice Janet L. Stumbo. Scott defeated Stumbo for re-election to the Supreme Court in 2004 after a contentious campaign. Stumbo is now a Court of Appeals judge.

In May, Will T. Scott, Andrew Scott and Nemes denied allegations of wrongdoing to the Herald-Leader.

”This is a political vendetta, but it comes with the job and I understand that,“ Will T. Scott said.

Replied Pillersdorf, ”I have a political vendetta against anyone who violates the rights of my clients.

”I got into this case because two employees of AOC came to me because they did not get a promotion because of Scott and Nemes,“ Pillersdorf said. ”And Ms. Combs is basically being fired, and, in my view, to allow Will Scott's son to get preferential treatment.“

Scott was promoted, again, from pre-trial officer to a pre-trial supervisor on Jan. 1., this time in Perry County.

According to an appeal letter written by Pillersdorf, Andrew Scott allegedly told a court system employee, Jim Marcum, that he got an earlier promotion after his father met with Nemes.

But Marcum, when reached in May, denied ever making such a statement. He repeated his denial at a hearing in June, according to Wednesday's decision.

Andrew Scott originally agreed to an interview request with the Herald-Leader in May. But he changed his mind after speaking with AOC lawyers.

”Because of the ongoing legal issues surrounding a confidential personnel matter of which you are aware, the AOC Office of General Counsel has advised me that it is inappropriate to speak to the media at this time except to say that I have never asked my father to intercede on my behalf regarding employment with the Administrative Office of the Courts,“ Scott said in a statement released by AOC. ”Any statements to the contrary are inaccurate.“

Nemes said he was not aware of Andrew Scott's promotion until Combs filed the appeal. ”I didn't know that he got this job until this appeals stuff came on,“ Nemes said. ”Did he get the job because he's Scott's son? The answer is, to my knowledge, no. I don't know if a supervisor made a decision, but it certainly didn't come up to me like that. He got the job because he's qualified for the job.“

On Dec. 1, 2007, Combs accepted a voluntary demotion, according to personnel records.

On Jan. 1, Andrew Scott was promoted to Combs' supervisor position and got another raise. He made $34,836 a year as of May. Combs was then fired Jan. 22.

Childers, one of Combs' attorneys, said she took a demotion because she felt she was being harassed by supervisors. She was planning on retiring in May.

Will T. Scott said his son got the promotion on his own.

”Whatever Andrew does or gets in pre-trial services, he has to earn. I mean, that's just the way I am,“ Scott said.

According to letters filed in Combs' appeal, she was accused of misinforming Perry Circuit Court Judge William Engle III about the status of a defendant's drug tests.

Engle told the Herald-Leader that he's not aware of ever being misled by Combs. But he also acknowledged to the appeals board that he did not double-check her work.

Engle said he was satisfied with her performance and had never complained to the Administrative Office of the Courts.

According to the appeals board decision, Combs was also accused of falsifying drug tests and attempting to get a man out of jail for violating the conditions of his pre-trial release. Once he was released, Andrew Scott said, he saw the man eating dinner with Combs.

Combs, hired in May 1984, does not have a clean employment record. According to personnel records released by AOC, she received a three-month disciplinary probation and two-day suspension in 1995. She signed a letter of understanding in 2002 and was put on six months disciplinary probation in 2003.

She received a written reprimand in 2004, and another six months disciplinary probation that year. In 2006, she was put on six months disciplinary probation and was suspended three days. She was put on another six months probation again in 2007.

The records do not state why she was disciplined.

The appeals board recommended reinstating Combs because the evidence against her was presented after her termination. But Keller, who was asked to review the case because Nemes recused himself, said the AOC was justified in continuing its investigation of Combs after her termination. He said the evidence against her and her past employment history were reason enough to fire her.

The decision is the final word in the administrative appeal process. But Combs has the right to appeal the decision to circuit court. Childers said she has not decided yet whether she will appeal.

This story follows previous stories, similarly focused:

Saturday, June 14, 2008

UofL Law: "Avoiding Plagiarism in Legal Documents" by Prof. Fischer

"Avoiding Plagiarism in Legal Documents" Free Download


Kentucky Bench & Bar, Vol. 68, May 2006
University of Louisville School of Law Legal Studies Research Paper Series No. 2008-22

JUDITH D. FISCHER, University of Louisville - Louis D. Brandeis School of Law

Lawyers may believe they know what constitutes plagiarism in student papers, but the rules about plagiarism in the practice of law are less clear. Forms from form books and law firm files are meant to be copied, so there is no issue of copyright violation. Still, the lawyer who uses such a form must tailor it to the needs of the specific case. And lawyers have been disciplined for filing documents containing language they copied from treatises without attribution. This problem was exacerbated in one case where the lawyer asked for fees for preparing material he had not written. Professionalism means that documents filed with a court must analyze the facts and issues in the pending case, and any material from published sources must be properly attributed.