Kentucky Bar Association v. Arthur Joseph Morburger ( 2023 )

TO BE PUBLISHED
Supreme Court of Kentucky
2022-SC-0430-KB
KENTUCKY BAR ASSOCIATION MOVANT
IN SUPREME COURT
V.
ARTHUR JOSEPH MORBURGER RESPONDENT
OPINION AND ORDER
On September 28, 2022, the Kentucky Bar Association (KBA) moved this
Court to enter an order directing Arthur Joseph Morburger, whose KBA
member number is 49880 and whose bar roster address is 19 West Flagler
Street, Suite 404, Miami, Florida 33130, to show cause why he should not be
subject to reciprocal discipline after being permanently disbarred by the
Supreme Court of Florida. The KBA also requested this Court enter an order
imposing identical discipline were we to find such cause lacking.
On October 19, 2022, pursuant to SCR1 3.435(2), this Court granted the
KBA’s request and ordered Morburger to show cause why he should not be
subject to reciprocal discipline. Morburger failed to file a response.
Accordingly, pursuant to SCR 3.435(4), this Court grants the KBA’s motion and
1 Rules of the Supreme Court.
orders that Morburger be permanently disbarred in this Commonwealth
consistent with the order of the Supreme Court of Florida.
Morburger was admitted to the practice of law in Kentucky on November
17, 1961. He was temporarily suspended by order of this Court on January
20, 2022, pending the outcome of the Florida disciplinary proceedings.2 On
August 25, 2022, the Supreme Court of Florida entered an order of disbarment
for violating Rules Regulating the Florida Bar Rule 4-1.15 (regarding
compliance with rules regulating attorney trust accounts), Rule 5-1.1
(regarding attorney trust accounts, which is substantively similar to SCR
3.130(1.15)), and Rule 4-8.4(c) (prohibiting a lawyer from engaging in conduct
involving dishonesty, fraud, deceit, or misrepresentation, which is
substantively the same as SCR 3.130(8.4)(c)). The violations arose from
Morburger’s mishandling and misappropriation of client funds. More
specifically, Morburger’s client was awarded approximately $37,000 in
attorney’s fees which were to be held in Morburger’s attorney escrow account
pending the outcome of an appeal. No other monies were held in the escrow
account. When the appeal was resolved in his client’s favor, Morburger was
ordered to pay over the funds, but he failed to do so. Instead, two checks
presented to the client were returned for insufficient funds and Morburger
insisted someone had stolen his escrow account checks and forged his
signature.
2 Kentucky Bar Ass’n v. Morburger, 638 S.W.3d 431 (Ky. 2022).
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An ensuing investigation uncovered no third-party fraud had been
committed but instead revealed the funds had been converted by Morburger for
the benefit of a former client and prospective business partner. Despite
substantial evidence to the contrary, Morburger continued insisting he was an
innocent victim and took no responsibility for his clear wrongdoings. He made
multiple misrepresentations in sworn depositions, in written responses to the
Florida Bar, and in his testimony before the Referee at his final hearing in the
disciplinary process. Based on these facts, including Morburger’s intentional
failure to appropriately protect client funds and the existence of multiple
aggravating factors, the Supreme Court of Florida disbarred Morburger.
If an attorney licensed to practice law in this Commonwealth receives
discipline in another jurisdiction, SCR 3.435(4) requires this Court to impose
identical discipline “unless Respondent proves by substantial evidence: (a) a
lack of jurisdiction or fraud in the out-of-state disciplinary proceeding, or (b)
that misconduct established warrants substantially different discipline in this
State.” Without such “substantial evidence,” “a final adjudication in another
jurisdiction that an attorney has been guilty of misconduct shall establish
conclusively the misconduct for purposes of a disciplinary proceeding in this
State.” SCR 3.435(4)(c). Morburger has failed to provide any response or
evidence showing a lack of jurisdiction or fraud in the Florida proceedings or
any reason our Court should impose a lesser discipline upon him. As such, we
impose identical reciprocal discipline.
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Therefore, it is hereby ORDERED:
1. Arthur Joseph Morburger is permanently disbarred from the practice
of law in the Commonwealth of Kentucky, effective from the entry of this
Opinion and Order;
2. Pursuant to SCR 3.390, Morburger shall, if he has not already done
so, within ten (20) days from the entry of this Opinion and Order, notify all
clients, in writing, of his inability to represent them; notify, in writing, all
courts in which he has matters pending of his permanent disbarment from the
practice of law; and furnish copies of all letters of notice to the Office of Bar
Counsel. Furthermore, to the extent possible, Respondent shall immediately
cancel and cease any advertising activities in which he is engaged; and
3. In accordance with SCR 3.450, Morburger shall pay all costs
associated with these disciplinary proceedings against him and for which
execution may issue from this Court upon finality of this Opinion and Order.
All sitting. All concur.
ENTERED: February 16, 2023.
______________________________________
CHIEF JUSTICE
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