Office of Lawyer Regulation v. Morse (In Re Disciplinary Proceedings Against Morse) , 386 Wis. 2d 654 ( 2019 )


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    2019 WI 53
    SUPREME COURT          OF   WISCONSIN
    CASE NO.:               2016AP1288-D
    COMPLETE TITLE:         In the Matter of Disciplinary Proceedings
    Against
    Daniel W. Morse, Attorney at Law:
    Office of Lawyer Regulation,
    Complainant-Respondent,
    v.
    Daniel W. Morse,
    Respondent-Appellant.
    DISCIPLINARY PROCEEDINGS AGAINST MORSE
    OPINION FILED:          May 21, 2019
    SUBMITTED ON BRIEFS:
    ORAL ARGUMENT:
    SOURCE OF APPEAL:
    COURT:
    COUNTY:
    JUDGE:
    JUSTICES:
    CONCURRED:
    DISSENTED:
    NOT PARTICIPATING:
    ATTORNEYS:
    
    2019 WI 53
                                                                      NOTICE
    This opinion is subject to further
    editing and modification.   The final
    version will appear in the bound
    volume of the official reports.
    No.     2016AP1288-D
    STATE OF WISCONSIN                             :             IN SUPREME COURT
    In the Matter of Disciplinary Proceedings
    Against Daniel W. Morse, Attorney at Law:
    Office of Lawyer Regulation,                                           FILED
    Complainant-Respondent,                             May 21, 2019
    v.                                                            Sheila T. Reiff
    Clerk of Supreme Court
    Daniel W. Morse,
    Respondent-Appellant.
    ATTORNEY     disciplinary       proceeding.         Attorney's         license
    suspended.
    ¶1     PER CURIAM.     Attorney Daniel W. Morse has appealed a
    report      filed by Referee    James    W. Mohr, Jr.,           concluding        that
    Attorney Morse committed four counts of professional misconduct
    and recommending that his license to practice law in Wisconsin
    be    suspended   for   two   years.     In   his     appeal,      Attorney      Morse
    challenges only the referee's recommended sanction.                          Attorney
    Morse argues that his misconduct warrants a public reprimand or,
    at most, a 60-day suspension.
    No.     2016AP1288-D
    ¶2    Upon      careful   review     of    this      matter,      we     uphold     the
    referee's findings of fact and conclusions of law.                            We conclude,
    however, that rather than the two-year suspension recommended by
    the referee, a one-year suspension of Attorney Morse's license
    to practice law is an appropriate sanction for the misconduct at
    issue.     In addition, we find it appropriate to follow our usual
    custom of imposing the full costs of this proceeding, which are
    $11,038.85 as of December 18, 2018, on Attorney Morse.                                    The
    Office of Lawyer Regulation (OLR) notes that Attorney Morse has
    already made restitution and it is not seeking an additional
    restitution award.
    ¶3    Attorney      Morse     was    admitted          to    practice         law   in
    Wisconsin in 1979.             He is also licensed to practice law in
    Florida and Pennsylvania.          He has no prior disciplinary history.
    ¶4    On June 29, 2016, the OLR filed a complaint alleging
    six   counts     of    misconduct    with       respect       to    Attorney        Morse's
    handling of the estate of M.G.                 Attorney Morse filed an answer
    on July 28, 2016.          Referee Mohr was appointed on October 8,
    2016, following Attorney Morse's motion for substitution of a
    previously     appointed       referee.         In   May    of     2017,      the   referee
    ordered the disciplinary proceeding stayed pending a criminal
    case filed against Attorney Morse arising out of the same fact
    situation that gave rise to this case.                      The stay was lifted in
    May of 2018.
    ¶5    On   June    21,    2018,     the    parties      filed      a     stipulation
    whereby    Attorney     Morse     stipulated         to    four    of   the     counts     of
    misconduct alleged in the OLR's complaint.                         The OLR dismissed
    2
    No.     2016AP1288-D
    the remaining two counts.             The parties agreed that the terms of
    the    stipulation      shall    serve      as   the   factual       basis     for   the
    referee's determination of misconduct and, in addition to any
    evidence received in the disciplinary phase of the matter, the
    referee's recommendation as to discipline.                    The parties agreed
    that the scope of the hearing in this matter would be limited to
    taking      additional    evidence       and     argument     to     facilitate      the
    referee's recommendation as to the appropriate sanction.
    ¶6     The hearing with respect to the sanction was held on
    July 2, 2018.         The referee issued his report and recommendation
    on September 7, 2018.            The referee adopted the facts as stated
    in the stipulation.           The following recitation of facts is taken
    from the stipulation.
    ¶7     M.G. passed away on October 11, 2013.                    Approximately
    four   days    later,    Attorney      Morse     met   with    the    heirs     of   the
    estate.       Since    three     of   the   four    heirs     resided      outside    of
    Wisconsin, and the fourth heir had physical limitations that
    prevented her from acting, it was agreed that Attorney Morse
    would be nominated as personal representative of the estate.
    Attorney      Morse    also     served      as   attorney      for     the     personal
    representative.          No    fee    agreement    was   entered       into     between
    Attorney      Morse     and     the   estate's      heirs,     although         it   was
    reasonably feasible that the total cost of the representation
    would exceed $1,000.
    ¶8     The estate was filed in Dodge County Circuit Court in
    November 2013.        No bills for Attorney Morse's services were sent
    to the heirs during his representation of the estate.
    3
    No.    2016AP1288-D
    ¶9     The heirs eventually expressed to Attorney Morse their
    frustration at his lack of communication and his seeming neglect
    of the estate.      On August 31, 2014, the heirs wrote to Attorney
    Morse expressing a general concern for his lack of communication
    and    attention   to     the    estate.        The   heirs'    letter      contained
    several      specific   requests     for       information     about      the    estate,
    including but not limited to requests for an itemized bill for
    Attorney      Morse's     legal     services,         an    accounting          for   all
    expenditures made on behalf of the estate, and the timing of
    payment of certain bills of the estate.                    The heirs requested a
    response to their letter within ten days.                      In a September 8,
    2014 email to the heirs, Attorney Morse stated he would respond
    to the August 31 letter that week, but he failed to do so.
    ¶10    In October 2014, the heirs met with Attorney Allen
    Larson and requested that he replace Attorney Morse as personal
    representative      for    the    estate.         From     October     2014      through
    January 2015, Attorney Larson tried to communicate with Attorney
    Morse about the estate.             Attorney Larson told Attorney Morse
    that the heirs wanted Attorney Larson to replace Attorney Morse
    as    personal   representative.           Attorney        Larson    requested        from
    Attorney Morse, among other things, an accounting of the estate
    and copies of the estate's banking records.                    Attorney Morse was
    largely      nonresponsive to      Attorney       Larson's     communications and
    requests for information.
    ¶11    On November 18, 2014, the probate court entered an
    order granting the stipulated substitution of Attorney Larson in
    4
    No.    2016AP1288-D
    place    of        Attorney    Morse       as     personal       representative         of    the
    estate.
    ¶12     On    December        19,    2014,       Attorney       Larson      received    a
    package from Attorney Morse containing a $3,000 check made out
    to the estate drawn on Attorney Morse's law firm trust account
    along    with       unopened        mail   relating       to     the    estate,       including
    bills,       some     of    which     had       arrived        since    Attorney       Larson's
    substitution in place of Attorney Morse.                             No accounting for the
    estate       was    enclosed,        nor    was       there    any     explanation      of    the
    purpose for the check or why it was drawn on Attorney Morse's
    law firm trust account.
    ¶13     Attorney Larson filed an inventory for the estate on
    January 23, 2015.              The due date for filing the inventory had
    passed during the period in which Attorney Morse represented the
    estate, but Attorney Morse never filed an inventory.
    ¶14     As a result of his inability to obtain information
    about the estate from Attorney Morse, including an accounting
    and    banking records, Attorney Larson                        filed an       order    to    show
    cause on February 25, 2015 directed to Attorney Morse, along
    with    an    accompanying          affidavit         demonstrating         over   $26,000     in
    estate funds were unaccounted for by Attorney Morse.
    ¶15     At    a     March    30,    2015       hearing    on    the    order    to    show
    cause,    Attorney          Morse    was    ordered       to    make    a    payment    to    the
    estate in the amount of $26,037.19 by April 9, 2015.                                   This sum
    represented the amount                of    funds belonging            to    the   estate for
    which Attorney Morse could not account.                         Attorney Morse was also
    5
    No.     2016AP1288-D
    ordered to provide to Attorney Larson all financial records and
    an accounting pertaining to the estate.
    ¶16    Attorney Morse timely made the payment ordered by the
    probate      court,       but    he     never    produced       the    financial       records
    relating to the estate.
    ¶17    At        the     March    30,      2015    hearing,       Attorney        Morse
    presented for the first time a billing statement for fees he
    claimed he incurred in representing the estate.                               The statement
    purported       to      show    that    the     estate   owed     Attorney       Morse       over
    $7,500       for     legal      services      rendered     in     connection          with    the
    estate.       In May of 2015, Attorney Larson asked Attorney Morse
    for    substantiation            of     the    various     entries       on     the    billing
    statement.           Attorney Morse did not reply, and the heirs never
    made any payment to Attorney Morse.
    ¶18    Attorney          Larson        eventually     obtained         the      banking
    records       relating          to    the     estate     without       Attorney         Morse's
    assistance.           The records reflected that Attorney Morse wrote
    checks and made electronic fund transfers totaling over $25,000
    to    himself      or    his    law     office.        Attorney       Morse   presented        no
    evidence to the probate court or to OLR that the more than
    $25,000 in payments were related in any way to the estate.                                   Bank
    records reflected additional payments made from estate funds for
    Attorney Morse's personal benefit, including payment of rent for
    his office space and payment of his cable bill.
    ¶19    By virtue of the stipulation, Attorney Morse admitted
    the following counts of misconduct:
    6
    No.   2016AP1288-D
    Count 1:    By failing to take steps to advance the
    interests of the estate, including but not limited to:
    failing to file an inventory, failing to open mail
    related to the estate, and failing to pay bills owed
    by the estate, Attorney Morse violated SCR 20:1.3.1
    Count 2:   By failing to promptly deliver to Attorney
    Larson all documents in his possession relating to the
    estate, including but not limited to, financial
    records pertaining to the estate, Attorney Morse
    violated SCR 20:1.16(d).2
    Count 3:   By failing to abide by the probate court's
    March 30, 2015 order, that he turn over to Attorney
    Larson all financial records pertaining to the estate,
    Attorney Morse violated SCR 20:3.4(c).3
    Count 4:   By failing to keep in trust funds totaling
    over $25,000 belonging to the estate, and by instead
    paying those funds to his law firm and himself and
    using the funds to pay personal obligations, Attorney
    Morse violated SCR 20:8.4(c)4 and SCR 20:1.15(b)(1).5
    1  SCR 20:1.3 provides: "A lawyer shall act with reasonable
    diligence and promptness in representing a client.
    2   SCR 20:1.16(d) provides:
    Upon termination of representation, a lawyer
    shall take steps to the extent reasonably practicable
    to protect a client's interests, such as giving
    reasonable notice to the client, allowing time for
    employment of other counsel, surrendering papers and
    property to which the client is entitled and refunding
    any advance payment of fee or expense that has not
    been earned or incurred. The lawyer may retain papers
    relating to the client to the extent permitted by
    other law.
    3  SCR 20:3.4(c) provides:   "A lawyer shall not knowingly
    disobey an obligation under the rules of a tribunal, except for
    an open refusal based on an assertion that no valid obligation
    exists."
    4  SCR 20:8.4(c) provides:  "It is professional misconduct
    for a lawyer to engage in conduct involving dishonesty, fraud,
    deceit or misrepresentation."
    7
    No.     2016AP1288-D
    ¶20       The     OLR    dismissed          the    remaining      two     counts        of
    misconduct alleged in the complaint, saying the OLR director no
    longer       believed        that     the    OLR       could   prove    either        of    those
    violations by clear, satisfactory, and convincing evidence.
    ¶21       In    his     report,      the    referee     discussed        the    various
    witnesses who testified at the July 2, 2018 hearing.                                       One of
    M.G.'s brothers and heirs testified by telephone and expressed
    his    frustration           over   Attorney       Morse's     failure    to     handle       key
    aspects of the estate and his failure to respond to the heirs'
    reasonable inquiries.
    ¶22       Attorney Larson testified at the hearing.                      The referee
    said       Attorney      Larson     "seemed       genuinely     offended"       by     Attorney
    Morse's conduct, calling the conduct "inexcusable" and damaging
    to the public's perception of the legal profession.
    ¶23       Attorney Morse testified at the hearing that he has
    been an attorney for 39 years and practices primarily in the
    areas       of    tax,       estate    planning,         and   estate    administration.
    Although in the past he worked with a number of large firms in
    the Milwaukee area, he has been a solo practitioner since 2011.
    5   SCR 20:1.15(b)(1) provides:
    A lawyer shall hold in trust, separate from the
    lawyer's own property, that property of clients and
    3rd parties that is in the lawyer's possession in
    connection with a representation.        All funds of
    clients and 3rd parties paid to a lawyer or law firm
    in connection with a representation shall be deposited
    in one or more identifiable trust accounts.
    8
    No.       2016AP1288-D
    The referee said that Attorney Morse testified in a sincere and
    forthright manner and sounded quite embarrassed and genuinely
    remorseful about what he had done.              The referee said to Attorney
    Morse's credit, he did not deny the facts of the case or the
    ethical and moral lapses those facts represented.                         He admitted
    he had done something wrong and said the entire matter had cost
    him over $80,000 and was an embarrassment to him and his family.
    He   emphasized      he   would     never      again       act     as     a     personal
    representative.
    ¶24    The referee noted that Attorney Morse offered several
    mitigating explanations for his misconduct.                      He said he had to
    travel    to Florida on       numerous       occasions to         help his       elderly
    mother.      He    said   he    was    suffering          from     several       medical
    conditions   that    caused    extreme       pain    in    his    lower       back.     He
    admitted perhaps overusing drugs and alcohol to help deal with
    the pain, and he said the pain caused him to lose sleep and
    caused    an inability    to    concentrate         at    work.     Attorney          Morse
    testified he had back surgery in May of 2017 and the pain went
    away almost entirely.
    ¶25    Attorney Morse also said his automobile was stolen in
    June of 2014 and included in the items of personal property in
    the car at the time were files, including much of the file for
    the M.G. estate.      Attorney Morse testified that he had signed a
    personal signature bond as personal representative of the M.G.
    estate in the amount of $50,000.                    The referee said Attorney
    Morse    readily    admitted   to     comingling         estate    funds       with    his
    personal and business accounts and justified that behavior by
    9
    No.    2016AP1288-D
    saying that, in light of the signature bond, he was ultimately
    responsible for the full value of the estate and that it did not
    matter if he used estate funds so long as he was ultimately
    "good for it."
    ¶26     Attorney    Morse      was    charged      with    five       felonies     and
    three misdemeanors over his handling of the M.G. estate funds.
    The referee noted that the criminal case was resolved by a plea
    agreement      under    the     terms   of     which     the     felony        counts   were
    dismissed      and Attorney        Morse pled          guilty    to    three     counts    of
    theft (embezzlement), Class A misdemeanors, on January 7, 2018.
    As part of the plea agreement, Attorney Morse agreed that he
    would not oppose the district attorney's recommendation that, as
    a    condition    of    probation,      Attorney        Morse     be    prohibited      from
    practicing law for a period of two years.                         Attorney Morse also
    agreed    to    repay     to    the   heirs      and    the     estate    an    additional
    $10,710.17 in interest and attorney's fees.                          He has repaid that
    amount.
    ¶27     Attorney Morse was sentenced on the criminal charges
    on April 24, 2018.              The sentencing court stated there was an
    extremely low likelihood that Attorney Morse would do anything
    wrong in the future and the need to protect the public was also
    extremely      low.       The    sentencing       court       also     did     not   believe
    Attorney Morse was in need of rehabilitation and that he would
    be    sufficiently        deterred      from      engaging        in     similar     future
    conduct.       The circuit court imposed and stayed a sentence of six
    months in the House of Correction and placed Attorney Morse on
    probation for one year, without any conditions except for 40
    10
    No.       2016AP1288-D
    hours    of       community         service.           No    additional        restitution            was
    ordered,      nor       was    there          any    requirement       that        Attorney       Morse
    refrain from practicing law for any period of time.
    ¶28     The       referee      noted          that    this     case    presented          certain
    aggravating and mitigating circumstances.                              The referee said the
    aggravating circumstances present were a dishonest or selfish
    motive,       a     pattern         of        misconduct,          multiple        offenses,          and
    substantial experience                   in    the practice of              law.         The    referee
    identified         as    mitigating            factors       the     absence        of    any     prior
    disciplinary record, personal or emotional problems, a timely
    good faith effort to make restitution, cooperation with the OLR,
    character or reputation, and remorse.                           The referee said although
    Attorney      Morse       testified            about       medical    and     treatment         issues
    related to back pain, the referee did not take those issues into
    account when deciding the appropriate sanction because there was
    no testimony or evidence sufficient to find a causal connection
    between any medical condition and the misconduct.
    ¶29     The referee said in arriving at a recommendation for
    discipline,         it    was        worth          noting     that    Attorney           Morse       had
    previously agreed to a plea agreement in the criminal case which
    included his agreement not to practice law for a period of two
    years,      although          the    sentencing             court     did     not     impose         that
    condition as part of the sentence.                            The referee said this case
    involves serious misconduct and although the referee believed it
    was   unlikely          that    Attorney             Morse's       misconduct       would        recur,
    "nevertheless damage has been done to the public, the courts,
    the     clients,        and     to       the        legal    system     and     should         not     go
    11
    No.    2016AP1288-D
    unpunished."       The referee said attorneys with Attorney Morse's
    level of experience should certainly understand that they are
    not    supposed    to   comingle     client     trust    funds    with    their    own
    funds; that when called to account they must understand they
    cannot be allowed to wait until a court orders reimbursement;
    and that they must serve the public competently and promptly so
    that public trust in attorneys is maintained.
    ¶30   The referee discussed a number of prior disciplinary
    cases that involved misuse or conversion of client funds and
    concluded    that    the    fact    situation     here    was    similar      to   that
    presented in In re Disciplinary Proceedings Against Krezminski,
    
    2007 WI 21
    ,    
    299 Wis. 2d 152
    ,        
    727 N.W.2d 492
    .           Attorney
    Krezminski was the personal representative of an estate and took
    possession of $37,000 in funds from the estate.                    He began using
    some    of   the    funds    himself      and   was     only     able    to    forward
    approximately $16,000 of estate funds when the sole heir of the
    estate demanded payment.             Attorney Krezminski ultimately paid
    the balance of the funds, plus interest, to the heir.                         Attorney
    Krezminski also failed to keep a different client informed of
    the status of his case.            Attorney Krezminski had previously been
    privately    reprimanded.          This   court   suspended       his    license     to
    practice law for two years.            The referee concluded that Attorney
    Morse's conduct warranted a similar sanction.                    The referee again
    noted that, as part of his plea agreement, Attorney Morse had
    been willing to accept, as a condition of his sentence in the
    criminal case, a two-year suspension of his law license.
    12
    No.    2016AP1288-D
    ¶31    In his appeal, Attorney Morse argues that a two-year
    suspension       is    excessive      and      a     public      reprimand          would     be
    appropriate.          In the alternative, he says that if a suspension
    is to be imposed, the suspension should not exceed 60 days.
    ¶32    Attorney         Morse   argues        that    the    relevant      mitigating
    factors    weigh      in     favor   of   a   much    lesser      sanction          than    that
    recommended by the referee.                   He points out he has no prior
    discipline, either in Wisconsin or in the other jurisdictions
    where he is admitted to practice law.                     He asserts that there was
    no dishonest or selfish motive and although he did mishandle the
    estate     funds,      "at    the    time     he    regarded       it    as     a    harmless
    convenience."         Attorney Morse says at the time he was handling
    the M.G. estate he was under significant stress, was new to solo
    practice,    was      trying    to   run      offices      in    two    states,       and    was
    helping his elderly mother.                 He says in the midst of all those
    events,    his    car,       which   contained       the    M.G.       estate       file,    was
    stolen.     He says there is no allegation that any of the heirs
    received less money than they should have in the absence of his
    misconduct.       He says he cooperated fully with the disciplinary
    process and freely entered into the stipulation.                           He says while
    he questions the validity of the criminal charges he does not
    question the fact that he did violate this court's rules of
    professional responsibility.
    ¶33    Attorney         Morse   describes        himself      as    "an    upstanding
    member of the community, a highly competent attorney, a good
    person, and a beloved family member."                      While he agrees that his
    back pain did not directly cause the misconduct, he says "there
    13
    No.     2016AP1288-D
    is good reason to conclude that adding pain, medication, and
    sleep deprivation to an otherwise high-stress period in Attorney
    Morse's life temporarily eroded his good judgment."                                 He says
    that he has already been sanctioned by virtue of the criminal
    conviction.         He says the Florida attorney regulatory authorities
    were       notified    about   this      case,        his     law    license       has    been
    suspended in Florida, and it appears all but certain that he
    will be disbarred there.             He notes that this case has been the
    subject       of      newspaper     articles,              which     have       caused     him
    embarrassment.          He says he is remorseful.                    He says he is not
    appealing the sentence in the criminal case, but he is appealing
    whether       the     transfers     he     made       as     personal       representative
    constitute the crime of theft under Wis. Stat. § 943.20(1)(b).6
    ¶34    Attorney     Morse     cites       a    number        of   cases     in    which
    attorneys      who     mishandled     or    converted         client      funds     received
    sanctions      less     than   a   two-year          suspension.          Attorney       Morse
    argues that the two-year suspension recommended by the referee
    "is drastic overkill."
    ¶35    Attorney     Morse    faults        the      referee       for    saying    that
    Attorney Morse, as part of the plea agreement, agreed "not to
    practice law for a period of two years."                            Attorney Morse says
    the actual terms of the plea agreement were that he would not
    oppose the State's request for such a condition.                               While he says
    6
    The court of appeals affirmed the judgment of conviction.
    State v. Morse, 2018AP1293, unpublished slip op. (Wis. Ct. App.
    Mar. 19, 2019). No petition for review was filed.
    14
    No.    2016AP1288-D
    if the sentencing court had imposed that condition he would have
    complied with it, he asserts his attorney advised him it was
    improbable the condition would be imposed and indeed it was not.
    ¶36   Attorney Morse also faults the referee for attaching
    significance to the fact that Attorney Morse failed to turn over
    estate records when ordered to do so by the probate court.                                          He
    says   those     findings          by    the    referee         overlooked the            fact    that
    Attorney     Morse's         car,       with    the       estate    file   in    it,      had     been
    stolen, which left him with no ability to provide the estate
    records.     While he says the referee is also correct that he did
    not make payment to the heirs until a court ordered him to do
    so, that was because he did not know what amount to pay.                                           He
    says it is undisputed that once Attorney Larson provided his
    accounting to the probate court, Attorney Morse promptly paid
    the amount ordered.                Attorney Morse says while the referee does
    not indicate to what degree the terms of the plea agreement and
    the    failure     to       turn    over       records        and   make   repayment        to     the
    estate    played        a    role       in     the    recommendation         for      a    two-year
    suspension, to the extent those factors are cited at all, they
    are inconsistent with the evidence.
    ¶37   The    OLR       argues         that         a   two-year     suspension        is    an
    appropriate sanction for Attorney Morse's admitted misconduct.
    The OLR notes that the primary goals of attorney discipline are
    to address the seriousness of the misconduct; to protect the
    public, courts, and the system from repetition of misconduct; to
    impress upon the attorney the seriousness of the misconduct; and
    to deter other attorneys from engaging in similar misconduct.
    15
    No.        2016AP1288-D
    In re Disciplinary Proceedings Against Arthur, 
    2005 WI 40
    , ¶78,
    
    279 Wis. 2d 583
    , 
    694 N.W.2d 910
    .          The OLR says the referee's
    report was extremely thorough and well-reasoned.
    ¶38    The OLR says that Attorney Morse misappropriated more
    than $25,000 of the estate's funds for his own personal use.
    The OLR notes that while in his brief Attorney Morse tries to
    recast his criminal conversion of estate funds as a "harmless
    convenience" that lacked any dishonest or selfish motive, at the
    sanctions hearing he agreed that the mishandling of the funds
    involved intentional acts and was not just a function of sloppy
    recordkeeping.
    ¶39    The OLR says while Attorney Morse now complains that
    he was unable to calculate the amount due to the estate and was
    unable to furnish estate records because the estate files were
    in his stolen car and he no longer had access to the estate bank
    accounts     after   Attorney    Larson   replaced   him     as     personal
    representative, Attorney Morse did not advance either of those
    arguments at the order to show cause hearing before the probate
    court.     The OLR also says Attorney Morse fails to identify where
    in the referee's report the referee attributed undue weight to
    those facts.     The OLR says even if the referee had given undue
    weight to the facts, it is unclear why such reliance would be
    inappropriate     given   that    Attorney   Morse   stipulated        to   a
    misconduct count of failing to abide          by the   probate court's
    order    to turn over to    Attorney Larson all financial            records
    pertaining to the estate.
    16
    No.    2016AP1288-D
    ¶40   The    OLR    goes     on    to     argue      that   the      estate    was
    vulnerable to Attorney Morse's predatory conversions because he
    was unsupervised.        It points that Attorney Morse had substantial
    experience    in   the    practice      of    law   when    he    agreed     to    handle
    M.G.'s estate.         The OLR says Attorney Morse's conduct was not
    just unethical, it was illegal, as evidenced by the criminal
    conviction.
    ¶41   The    OLR    argues       that    Attorney      Morse      presented     no
    medical     evidence     that    his    back    pain     caused      him     to    commit
    misconduct so that cannot be considered a mitigating factor.
    While Attorney Morse says he was under stress at the time of the
    misconduct, the OLR says he again presented no medical evidence
    that the stress caused him to embezzle from the estate or commit
    any of the other admitted misconduct.                   The OLR says it does not
    generally dispute Attorney Morse's position that he has been
    cooperative with the disciplinary process.                        However, the OLR
    observes that Attorney Morse's willingness to enter into the
    misconduct stipulation occurred only after the conclusion of the
    criminal case.
    ¶42   The OLR acknowledges that the referee found Attorney
    Morse to appear genuinely remorseful at the sanctions hearing.
    The OLR says while it generally agrees with that conclusion, it
    says the remorse does not appear to be categorical because while
    Attorney Morse may not have appealed his sentence, he did appeal
    his   conviction,      continuing       to     question     whether        his    actions
    constituted    a   crime.        The    OLR    argues      that   Attorney        Morse's
    17
    No.       2016AP1288-D
    attack       on    the     criminal         conviction            undercuts          his       claims           of
    remorse and acceptance of responsibility for his actions.
    ¶43    The        OLR     agrees         with        the    referee           that          the        fact
    situation         at     issue       here       is     similar       to     that          presented             in
    Krezminski        and     warrants         a    similar         sanction,        i.e.          a    two-year
    suspension.             The     OLR    argues         that        Attorney      Morse's             proposed
    discipline of either a public reprimand or a 60-day suspension
    seriously undermines multiple goals of attorney discipline.
    ¶44    A        referee's      findings             of   fact      are     affirmed               unless
    clearly erroneous.                  Conclusions of law are reviewed de novo.
    See In re Disciplinary Proceedings Against Eisenberg, 
    2004 WI 14
    , ¶5, 
    269 Wis. 2d 43
    , 
    675 N.W.2d 747
    .                                   The court may impose
    whatever      sanction          it    sees          fit,    regardless          of    the          referee's
    recommendation.                See    In       re    Disciplinary          Proceedings               Against
    Widule, 
    2003 WI 34
    , ¶44, 
    261 Wis. 2d 45
    , 
    660 N.W.2d 686
    .
    ¶45    We conclude there has been no showing that any of the
    referee's findings of fact, which incorporate the terms of the
    parties' stipulation, are clearly erroneous.                                         Accordingly, we
    adopt them.            We further agree with the referee's conclusions of
    law that Attorney Morse violated the supreme court rules set
    forth above.
    ¶46    Turning          to     the       appropriate            level         of     discipline,
    although no two disciplinary proceedings are identical, we find
    this     fact      situation          to       be     somewhat         comparable              to        In    re
    Disciplinary            Proceedings            Against          Bauer,     
    2018 WI 49
    ,        
    381 Wis. 2d 474
    , 
    912 N.W.2d 108
    .                         Attorney Bauer misused trust funds
    belonging         to    seven    clients,            transferred          large       sums         of     trust
    18
    No.    2016AP1288-D
    account money from one client fund to another, but ultimately
    repaid all balances in the clients' accounts.                              Like Attorney
    Morse, Attorney Bauer had substantial experience in practicing
    law and had no prior disciplinary history.                       Like Attorney Morse,
    Attorney      Bauer    cooperated        with      the    OLR    and    entered         into    a
    partial stipulation.            The sums of money involved in Bauer were
    significantly greater than the instant matter, but in this case
    there was a criminal prosecution and conviction that did not
    exist in Bauer.
    ¶47    It appears that the referee may have accorded undue
    weight to the fact that, as part of the plea agreement in the
    criminal case, Attorney Morse agreed not to oppose the State's
    request for a condition of the sentence imposed that he not
    practice law for two years.                 For that reason, we conclude that a
    two-year suspension is excessive.                      However, acceding to Attorney
    Morse's      request      for   either       a    public    reprimand      or       a    60-day
    suspension        would    unduly      depreciate          the   seriousness            of     the
    misconduct at issue here.              It cannot be overstated that Attorney
    Morse converted estate funds to his own personal use, and his
    conduct resulted in a criminal conviction.                       After careful review
    of the matter, we conclude that a one-year suspension of his
    license      to   practice      law    is    an    appropriate         sanction         for    his
    admitted      misconduct.         As    is       our    usual    custom,       we       find    it
    appropriate to assess the full costs of the proceeding against
    him.
    19
    No.    2016AP1288-D
    ¶48   IT IS ORDERED that the license of Daniel W. Morse to
    practice law in Wisconsin is suspended for a period of one year,
    effective July 2, 2019.
    ¶49   IT IS FURTHER ORDERED that within 60 days of the date
    of this order, Daniel W. Morse shall pay to the Office of Lawyer
    Regulation the costs of this proceeding, which are $11,038.85 as
    of December 18, 2018.
    ¶50   IT   IS   FURTHER   ORDERED    that    Daniel   W.    Morse    shall
    comply with the provisions of SCR 22.26 concerning the duties of
    an attorney whose license to practice law has been suspended.
    ¶51   IT   IS   FURTHER    ORDERED    that     compliance     with    all
    conditions of this order is required for reinstatement.                    See
    22.29(4)(c).
    20
    No.   2016AP1288-D
    1
    

Document Info

Docket Number: 2016AP001288-D

Citation Numbers: 927 N.W.2d 543, 2019 WI 53, 386 Wis. 2d 654

Judges: Per Curiam

Filed Date: 5/21/2019

Precedential Status: Precedential

Modified Date: 10/19/2024