This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
An attorney, suspended from practicing law in New Mexico, misappropriated $10,000 in client funds intended to pay medical bills and failed to provide an accounting or remit the funds to the client. The attorney also commingled personal and client funds, maintained an improper interest-bearing trust account, and made unauthorized cash withdrawals. The attorney did not cooperate with the disciplinary investigation or respond to formal charges (paras 4-6).
Procedural History
- In re Schmidt, May 24, 1994: The attorney was suspended for three years for dishonest conduct and other violations, with the second and third years deferred in favor of supervised probation (para 2).
- In re Schmidt, October 31, 1994: The deferral of suspension was revoked due to non-compliance, and the attorney was suspended for the full three-year period (para 3).
Parties' Submissions
- Disciplinary Board: Argued that the attorney violated multiple Rules of Professional Conduct, including misappropriation of client funds, failure to cooperate with the disciplinary process, and conduct involving dishonesty and fraud. Recommended permanent disbarment (paras 5-9).
- Attorney (Respondent): Did not appear, respond to charges, or participate in the proceedings (paras 6, 8).
Legal Issues
- Did the attorney violate the Rules of Professional Conduct by misappropriating client funds and failing to cooperate with the disciplinary process?
- What is the appropriate sanction for the attorney's misconduct?
Disposition
- The attorney was disbarred from practicing law in New Mexico, effective March 6, 1996 (para 11).
- The attorney was prohibited from applying for reinstatement until at least three years after May 24, 1997, and only upon meeting specific conditions (para 12).
- The attorney was ordered to reimburse the Disciplinary Board's costs and make restitution to the client (paras 13-14).
Reasons
Per curiam (Ransom, Baca, Franchini, and Minzner JJ.):
The Court found that the attorney's conduct, including misappropriation of client funds, failure to maintain proper trust account practices, and lack of cooperation with the disciplinary process, violated multiple Rules of Professional Conduct, including Rules 16-115(A), 16-115(B), 16-115(D), 16-804(C), 16-803, and 16-804(H) (paras 5-9). The Court emphasized that disbarment is the appropriate sanction for willful conversion of trust account funds, citing precedent (para 10). While the Disciplinary Board recommended permanent disbarment, the Court exercised discretion to allow the attorney to seek reinstatement after meeting specific conditions, including passing the Multistate Professional Responsibility Examination and making restitution (paras 10, 12). The decision underscores the privilege of practicing law and the necessity of respecting professional and ethical obligations (para 8).