Office of Lawyer Regulation v. Steven D. Johnson , 2023 WI 73 ( 2023 )


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    2023 WI 73
    SUPREME COURT OF WISCONSIN
    CASE NO.:              2022AP11-D
    COMPLETE TITLE:        In the Matter of Disciplinary Proceedings
    Against
    Steven D. Johnson, Attorney at Law:
    Office of Lawyer Regulation,
    Complainant-Respondent,
    v.
    Steven D. Johnson,
    Respondent-Appellant.
    DISCIPLINARY PROCEEDINGS AGAINST JOHNSON
    OPINION FILED:         November 2, 2023
    SUBMITTED ON BRIEFS:
    ORAL ARGUMENT:
    SOURCE OF APPEAL:
    COURT:
    COUNTY:
    JUDGE:
    JUSTICES:
    Per curiam.
    ATTORNEYS:
    
    2023 WI 73
    NOTICE
    This opinion is subject to further
    editing and modification.   The final
    version will appear in the bound
    volume of the official reports.
    No.   2022AP11-D
    STATE OF WISCONSIN                         :            IN SUPREME COURT
    In the Matter of Disciplinary Proceedings
    Against Steven D. Johnson, Attorney at Law:
    Office of Lawyer Regulation,                                     FILED
    Complainant-Respondent,                            NOV 2, 2023
    v.                                                       Samuel A. Christensen
    Clerk of Supreme Court
    Steven D. Johnson,
    Respondent-Appellant.
    ATTORNEY    disciplinary   proceeding.            Attorney's        license
    suspended.
    ¶1   PER CURIAM.     This disciplinary matter comes to the
    court on Attorney Steven D. Johnson's appeal of a report and
    recommendation   of   Referee   Sue   E.   Bischel.      After     holding       an
    evidentiary hearing, the referee concluded that the Office of
    Lawyer Regulation (OLR) had proven the five misconduct charges
    asserted in its complaint; namely, one count of engaging                         in
    offensive personality, in violation of Supreme Court Rule (SCR)
    No.   2022AP11-D
    20:8.4(g)1 and SCR 40.15;2 one count of failing to adequately
    supervise nonlawyer staff members, in violation of SCR 20:5.3(a)3
    and (b);4 two counts of violating the duty of candor toward a
    tribunal, in violation of SCR 20:3.3(a)(1);5 and one count of
    failing to properly communicate with his client in violation of
    SCR 20:1.4(b).6   As a sanction, the referee recommended that the
    court suspend Attorney Johnson's Wisconsin law license for six
    months and order him to pay the full costs of this disciplinary
    1 SCR 20:8.4(g) provides:    "It is professional misconduct
    for a lawyer to violate the attorney's oath."
    2 SCR 40.15 provides, in pertinent part:    "I will abstain
    from all offensive personality and advance no fact prejudicial
    to the honor or reputation of a party or witness, unless
    required by the justice of the cause with which I am charged."
    3 SCR 20:5.3(a) provides:    "With respect to a nonlawyer
    employed or retained by or associated with a lawyer a partner,
    and a lawyer who individually or together with other lawyers
    possesses comparable managerial authority in a law firm shall
    make reasonable efforts to ensure that the firm has in effect
    measures giving reasonable assurance that the person's conduct
    is compatible with the professional obligations of the lawyer."
    4 SCR 20:5.3(b) provides:    "With respect to a nonlawyer
    employed or retained by or associated with a lawyer a lawyer
    having direct supervisory authority over the nonlawyer shall
    make reasonable efforts to ensure that the person's conduct is
    compatible with the professional obligations of the lawyer."
    5 SCR 20:3.3(a)(1) provides: "A lawyer shall not knowingly
    make a false statement of fact or law to a tribunal or fail to
    correct a false statement of material fact or law previously
    made to the tribunal by the lawyer."
    6 SCR 20:1.4(b) provides: "A lawyer shall explain a matter
    to the extent reasonably necessary to permit the client to make
    informed decisions regarding the representation."
    2
    No.     2022AP11-D
    matter,      which,   as      of    June           14,    2023,        total     $33,001.74.
    Restitution is not at issue.
    ¶2     Attorney Johnson has appealed the referee's report and
    recommendation.         In    his   appellate            briefing,      Attorney          Johnson
    argues that the referee made certain incorrect factual findings;
    that the OLR failed to meet its burden of proof; and that a six-
    month suspension of his license to practice law is an excessive
    sanction.7
    ¶3     After reviewing this matter and considering Attorney
    Johnson's appeal, we accept the referee's factual findings, and
    we agree with the referee that Attorney Johnson committed the
    charged violations.            We further agree with the referee                                that
    Attorney     Johnson's       misconduct            warrants    a       six-month          license
    suspension.     We impose full costs.
    ¶4     Attorney      Johnson       was       admitted       to    practice          law    in
    Wisconsin in July 2005 and practices in Appleton, Wisconsin.                                     He
    has   a    disciplinary      history.          In    August    2008,       he        received     a
    private      reprimand       for    being          convicted       of     one         count      of
    misdemeanor     battery       as    a    domestic          abuse       incident.          Private
    Reprimand     No.   2008-21.8           In   May     2010,    he       received       a    public
    7At oral argument, Attorney Johnson modified his argument
    regarding the factual accuracy of the referee's report.     While
    registering general disagreement with the referee's findings, he
    argued that even if all of the findings are accepted, they are
    insufficient to justify the recommended six-month suspension.
    8Electronic           copy           available           at
    https://compendium.wicourts.gov/app/54621f3d2a71043b345c4c516a74
    3019494e1732.continue?action=detail&detailOffset=13.
    3
    No.   2022AP11-D
    reprimand for being convicted of one count of felony child abuse
    (recklessly          causing       harm),       which        related     to     an     incident
    occurring at Attorney Johnson's home involving his 12-year-old
    son.       Public Reprimand of Steven D. Johnson, No. 2010-4.9
    ¶5      Attorney      Johnson        has       been    a   solo    practitioner       at
    Johnson Law Firm SC in Appleton, Wisconsin during his entire
    legal       career.          All    of     Attorney           Johnson's       employees     are
    nonlawyers.          His areas of practice are criminal defense, family
    law, personal injury, and bankruptcy.                          He takes public defender
    appointments in certain types of cases.
    ¶6      The behavior in question took place from late 2018 to
    late 2020.       As mentioned above, Attorney Johnson's behavior gave
    rise to five counts of misconduct.
        Count One
    ¶7      In Count One, the OLR alleged that Attorney Johnson
    engaged in offensive personality toward his staff in violation
    of the Attorney's Oath in SCR 40.15, which is enforced via SCR
    20:8.4(g).            Several       members           of     Attorney     Johnson's       staff
    testified       at    the     evidentiary             hearing     regarding      his    office
    conduct.       Attorney Johnson also testified regarding his office
    conduct.       After hearing competing testimony on the issue, the
    referee chose to believe the version of events to which several
    of his staff members testified.                       Specifically, the referee found
    that,      starting     in     late      2018     and      continuing     to    April     2020,
    Electronic
    9                    copy           available           at
    https://compendium.wicourts.gov/app/280d26380115475582510c652e62
    7c1c456d1251.continue?action=detail&detailOffset=1.
    4
    No.   2022AP11-D
    Attorney Johnson repeatedly used the words "bitches," "stupid
    bitches,"     "whores,"    "idiots,"      "retard,"       and   "retarded"     when
    addressing     staff.      The     referee     further    found   that   Attorney
    Johnson yelled at staff, sometimes for an extended period of
    time, and occasionally hit the counter or wall when upset.                      The
    referee further found that Attorney Johnson yelled at three of
    his staff members, "I hope you and all your fucking children
    die," causing one staff member to quit immediately because she
    had a young child suffering from cancer.                   The referee further
    found that on one occasion, Attorney Johnson uttered a racial
    slur that was overheard by two employees.                 Finally, the referee
    found that at least five of Attorney Johnson's staff members
    left their employment primarily because of Attorney Johnson's
    behavior.
    ¶8      Based on these findings, the referee concluded that
    Attorney      Johnson     failed     to       refrain    from     all    offensive
    personality in his interactions with his employees from late
    2018 through April 2020, and therefore violated the Attorney's
    Oath in SCR 40.15, which is enforced via SCR 20:8.4(g).
           Count Two
    ¶9      Count Two concerns Attorney Johnson's alleged failure
    to   review    documents    prepared      by     his    staff   prior    to   those
    documents being filed with the court, and alleged failure to
    adequately supervise and train his staff, in violation of SCR
    20:5.3(a) and (b).        Several members of Attorney Johnson's staff
    testified at the evidentiary hearing regarding his supervisory
    and training efforts.        Attorney Johnson also testified regarding
    5
    No.    2022AP11-D
    his supervisory and training efforts.                   After hearing competing
    testimony on the issue, the referee chose to believe the version
    of   events    to   which    several       of    his   staff   members      testified.
    Specifically, the referee found that in criminal matters, which
    constituted the majority of Attorney Johnson's work, one or more
    of Attorney Johnson's nonlawyer staff performed the following
    duties    without      Attorney    Johnson's       participation      and    with   his
    permission:
           met with clients and completed fee agreements;
           drafted    various    motions,       affixed     Attorney      Johnson's
    signature, and filed them with the court;
           reviewed discovery materials and discussed them with
    clients;
           completed preliminary hearing waiver forms and plea
    questionnaires        with        clients,     including       answering
    clients'      questions       about      the     process,       affixing
    Attorney Johnson's signature, and filing them with the
    court;
           negotiated     plea    agreements         with   prosecutors       using
    Attorney Johnson's email;
           watched discovery videos to identify improper police
    procedures or possible defenses;
           prepared materials for trial (e.g. opening statements,
    witness    lists,     witness       questions,       cross-examination
    questions, and voir dire questions);
           automatically       prepared       and   filed   a    substitution    of
    judge request for one particular judge;
    6
    No.   2022AP11-D
           drafted, electronically signed, and filed motions for
    continuance because Attorney Johnson had a conflict or
    the court date was not convenient for him; and
           drafted, electronically signed, and filed motions for
    modification of bond.
    The referee noted that it was very uncommon for Attorney Johnson
    to review the documents his staff prepared in criminal cases
    before they affixed his signature and e-filed them.
    ¶10     Regarding Attorney Johnson's personal injury caseload,
    the referee found that he instructed nonlawyer staff to draft
    demand   letters——which     he   did   not    review——and      negotiate   with
    insurance companies.
    ¶11     Describing     Attorney        Johnson's    work     habits    more
    generally, the referee found that he knew his staff was engaging
    in all the above-referenced activities and did not tell them to
    stop.      He rarely drafted documents himself.                He was in the
    office a few times a week in 2018-2019——approximately 15% of his
    work week.    He was reluctant to accept phone calls from clients,
    told his staff to bring their questions to him, and instructed
    staff what to say to the client.
    ¶12     Based on these findings, the referee concluded that
    Attorney    Johnson's    conduct   violated     the    rules   requiring    his
    supervision of nonlawyer assistants, SCR 20:5.3 (a) and (b).
           Count Three
    ¶13     Count Three concerns Attorney Johnson's lack of candor
    toward a small claims court commissioner.              The referee found the
    following facts with regard to this count.              In two small claims
    7
    No.   2022AP11-D
    cases, Attorney Johnson had sought and received reimbursement
    from his insurance company for the damages he was seeking in
    small claims court.           Both small claims actions were against
    Attorney Johnson's former employee, F.W., and her husband; both
    actions concerned money spent on an expert in a case brought by
    Attorney Johnson on F.W.'s husband's behalf.                F.W. had written a
    $1,500 check on the law firm account to pay the expert.                        F.W.
    claimed that Attorney Johnson had authorized her to write the
    check; he claimed otherwise.           F.W. agreed to reimburse Attorney
    Johnson for that amount but paid only $200.                      Attorney Johnson
    filed a small claims action against F.W. and her husband in
    November 2019, shortly after F.W. quit working for him.                        Soon
    thereafter, Attorney Johnson retained a lawyer to represent him
    in    this   small   claims      matter.       Attorney    Johnson    obtained    a
    default judgment against F.W. and her husband for $1,300 plus
    costs.
    ¶14   Attorney Johnson subsequently received an invoice from
    the   expert   for   an    additional      $2,877.90.       In    February   2020,
    Attorney Johnson, through Attorney C.F., filed a second small
    claims action against F.W. and her husband for the additional
    amount invoiced.
    ¶15   On May 11, 2020, Attorney Johnson filed a claim with
    his insurance company, claiming that F.W. had stolen from him
    all   the    money   for   the    expert.       On   May   20,    2020,   Attorney
    Johnson's insurer issued a check to him for the entire amount
    less his deductible.          Attorney Johnson did not pay the expert's
    second invoice until August 4, 2020.
    8
    No.    2022AP11-D
    ¶16    On October 6, 2020, Attorney Johnson's second small
    claims      action    went     to     trial.         During      direct     examination,
    Attorney Johnson never disclosed that he had been reimbursed by
    his insurer.          F.W. then testified that she thought Attorney
    Johnson      had     been     reimbursed       by     his      insurer.          The    court
    commissioner asked Attorney Johnson if that was true, and he
    ultimately     confirmed        it    was.        The    court    commissioner           asked
    Attorney Johnson's lawyer, Attorney C.F., if he was aware of the
    insurance payment, and he stated he had become aware of the
    payment     only     within     the       previous      five    minutes.         The     court
    commissioner dismissed the case.                  Later, with Attorney Johnson's
    consent, the court commissioner dismissed the default judgment
    against F.W. and her husband that had been entered in Attorney
    Johnson's first small claims case.
    ¶17    At      the      disciplinary           hearing,         Attorney         Johnson
    testified that he had told Attorney C.F. about the insurance
    payment many times before the small claims trial, and that he
    had mentioned the insurance payment in a text to Attorney C.F. a
    few days before trial.                Attorney C.F. testified that he could
    not   specifically         recall     a    conversation        with    Attorney        Johnson
    about the insurance reimbursement prior to the text, and that he
    did not read Attorney Johnson's entire text before the small
    claims trial.        The referee deemed Attorney C.F.'s testimony more
    credible     than     that    of     Attorney     Johnson,       and    determined       that
    Attorney      Johnson        knowingly       omitted        material      facts    in     his
    testimony at the small claims trial in violation of SCR 20:3.3
    (a)(1).
    9
    No.    2022AP11-D
           Counts Four and Five
    ¶18     Counts Four and Five both concern Attorney Johnson's
    representation of D.P.           The referee found the following facts
    regarding these counts.          Attorney Johnson represented D.P. in a
    felony   matter    in     circuit   court.        One     of   Attorney       Johnson's
    nonlawyer   staff    reviewed       a    waiver   of     preliminary      examination
    form with D.P.      D.P. signed the waiver form on October 9, 2020.
    Attorney    Johnson's      electronic       signature      was     affixed      to   the
    waiver form, which attested that Attorney Johnson had personally
    explained   and    discussed       the    form    with    D.P.,    answered      D.P.'s
    questions, and observed D.P. sign the form.                      In fact, Attorney
    Johnson did not do any of those things before D.P. signed the
    waiver form on October 9, 2020, or before the form was filed
    later that day, or before the October 12, 2020 waiver hearing
    before a court commissioner.
    ¶19     In Count Four, the OLR alleged, and the referee agreed
    in a summary judgment order, that by failing to discuss the
    defendant's      waiver    of   preliminary       examination      form       with   D.P.
    prior to having D.P. sign the document, Attorney Johnson failed
    to explain matters to his client in violation of SCR 20:1.4(b).
    ¶20     In    Count    Five,    the     OLR    alleged,       and    the    referee
    determined in her report, that by filing with the court a waiver
    of preliminary examination form on which he falsely attested
    that he had personally explained and discussed the waiver with
    D.P. and answered his questions, Attorney Johnson made a false
    statement to the court in violation of SCR 20:3.3(a)(1).
    10
    No.    2022AP11-D
    ¶21     The     referee      next    addressed             the   issue        of    sanctions.
    The referee considered all of Attorney Johnson's violations to
    be very serious.           Regarding Count One, the referee noted that
    Attorney     Johnson's        offensive          behavior            and          language       was
    persistent and directed to his entire staff; that his comment
    about     wishing    his     staff's      children             would        die    was     "simply
    unconscionable"; and that the only relief staff could find was
    to quit.      As to Count Two, the referee wrote that she was
    "particularly       struck       with     the    seriousness                and        extent"    of
    Attorney Johnson's failure to adequately supervise his nonlawyer
    staff.     His violation of this rule was "egregious," the referee
    wrote, for "[i]n many respects, [Attorney Johnson] was demanding
    or encouraging all of his nonlawyer staff to essentially engage
    in the practice of law.               The potential consequences of that are
    particularly       alarming      in     criminal       cases."              Regarding       Counts
    Three and Five, the referee noted that Attorney Johnson's lack
    of candor toward the tribunal was particularly concerning given
    that he made false statements to a tribunal as both an attorney
    and a witness.        Regarding Count Four, the referee characterized
    Attorney Johnson's failure to explain the waiver of preliminary
    hearing     form     to    his        client     as        a     very       serious        matter,
    notwithstanding Attorney Johnson's claim that his client was not
    harmed and was happy with his representation.
    ¶22     The referee noted there are a number of aggravating
    factors     that    affect       the     level        of       recommended             discipline.
    Attorney     Johnson's       disciplinary          history           arose         out    of     two
    previous     criminal      matters——one          concerning             a     domestic         abuse
    11
    No.     2022AP11-D
    incident, and another involving child abuse.                         His misbehavior
    here included a selfish motive, in that he tried to collect
    money in his small claims cases despite the fact he had been
    reimbursed      already      by    his       insurer.      His     various      forms    of
    misbehavior went on for some time, stretching over a two-year
    period.      His expressions of remorse were questionable.                           And he
    was untruthful during his sworn disciplinary hearing testimony.
    ¶23     The   referee      found      few     mitigating    factors      in    play.
    Attorney       Johnson      was     cooperative         during     the     disciplinary
    process, though this factor was diminished by what the referee
    deemed    to    be    his   "false"       testimony       during    the    disciplinary
    hearing.       His prior reprimands, from 2008 and 2010, are remote
    in time.       Although Attorney Johnson claimed that stress caused
    by certain personal events——particularly his ex-wife's illness
    and death in 2019——should be viewed as a mitigating factor,
    especially with regard to the offensive personality count, the
    referee was unconvinced, finding that the primary cause of his
    misbehavior in this regard was frustration over staff error and
    matters not going as planned in court.                     The referee noted that
    Attorney Johnson's claim that stress caused his poor behavior
    toward staff might be more persuasive if he had admitted to even
    some   of    the     allegations        of    poor    behavior——which        he    didn't,
    choosing instead to deny them all outright.
    ¶24     Ultimately,        the     referee       determined       that     Attorney
    Johnson's conduct merited a six-month suspension, as the OLR had
    requested.
    12
    No.     2022AP11-D
    ¶25     Attorney Johnson appeals.                      In conducting our review,
    we will affirm the referee's findings of fact unless they are
    found to be clearly erroneous, but we will review the referee's
    conclusions of law on a de novo basis.                            See In re Disciplinary
    Proceedings Against Inglimo, 
    2007 WI 126
    , ¶ 5, 
    305 Wis. 2d 71
    ,
    
    740 N.W.2d 125
    . 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
    .
    ¶26     As    to    Count       One    (offensive           personality),        Attorney
    Johnson claims that the referee seemed to place the burden of
    proof    on    him,      requiring       him       to    disprove        the   testimony           of
    individuals who had mischaracterized his conduct due to their
    own agendas and hostility toward him.                          He admits he used swear
    words in the office and uttered a racial slur when greeting a
    friend,       but   he        insists       that     his      poor       language      choices,
    considered contextually and in light of the stress he was under,
    should not constitute offensive personality.                               He specifically
    denies using the more vulgar language that employees attributed
    to him.       As to his former employees' claim that he stated he
    wished their children would die, he insists their testimony on
    this point was inconsistent and should not be believed over his
    testimony denying making that comment.
    ¶27     As    to    Count       Two     (failure        to     supervise        nonlawyer
    staff), Attorney Johnson claims he did not violate SCR 20:5.3(a)
    and     (b)    because        these     provisions           do    not    require          him    to
    personally      perform        training,       nor      do    they    prohibit        him        from
    13
    No.     2022AP11-D
    delegating these              functions.          The rule only requires that an
    attorney      ensure          his    or    her    employees          are       properly      trained.
    Attorney Johnson insists he made sure his staff was properly
    trained——by him, by more experienced employees, and by use of a
    detailed      employee          handbook.           He     claims         that       he    "had     many
    different       active        forms       of    communication            and    document      review"
    that he and his staff used daily, and the fact that the system
    wasn't perfect doesn't render the system nonexistent.                                              After
    all,   Attorney          Johnson         says,    SCR     20:5.3(a)            and    (b)    requires
    "reasonable efforts," not perfection.
    ¶28    As    for        Count       Three       (lack        of     candor         toward     the
    tribunal),       Attorney           Johnson       takes    issue          with       the    referee's
    factual      findings.              He    insists   that       in    advance         of     the    small
    claims    trial,         he    told       his    lawyer,    Attorney            C.F.,       about    the
    reimbursement he had received from his insurer, and he left it
    up to Attorney C.F. to decide what to do with this information.
    The referee's determination that Attorney C.F. was not aware of
    the insurance reimbursement until Attorney Johnson admitted to
    the reimbursement during the disciplinary hearing is incorrect.
    And in any event, Attorney Johnson argues, to the extent he
    knowingly omitted a material fact from his representations to
    the court, any such error was fleeting:                             he truthfully testified
    at the small claims trial, after he was asked, that he had
    received an insurance reimbursement.
    ¶29    As to Count Four, concerning his failure to discuss
    with     D.P.      the        waiver       of    preliminary             examination         form     in
    violation of SCR 20:1.4(b), Attorney Johnson insists that he did
    14
    No.     2022AP11-D
    not    violate    the      rule      because       D.P.       did   not       testify    in    this
    disciplinary matter.               Thus, it is unknown what D.P. understood,
    or didn't understand, at the time of the hearing in question, or
    whether he truly had enough information to make an informed
    decision      regarding       the        preliminary         examination        waiver.         And
    there is no evidence that D.P. was harmed or otherwise unhappy
    with Attorney Johnson's representation.
    ¶30    Finally,        as    to    Count       Five,    Attorney        Johnson        claims
    that    the    OLR      did        not    prove        by    clear,       satisfactory,         and
    convincing evidence that he knowingly made a false statement on
    D.P.'s waiver of preliminary hearing form.                                    Attorney Johnson
    insists that his paralegal completed the form, and because he
    did not review it, he was not aware of the incorrect statement
    it    contained.        This        was       sloppy     work,      he   concedes,       but    not
    unethical work.         Thus, the report's conclusion as to this count
    should be rejected.
    ¶31    As to the appropriate length of suspension——the topic
    to which Attorney Johnson devoted most of his oral argument
    time——he      submits      that      a        suspension      short      of    six     months    is
    merited.         He    suggests           a     90-day      suspension         would     be    most
    appropriate.          In    recommending           a     longer      suspension,         Attorney
    Johnson      insists    the        referee       gave       insufficient        weight    to    the
    difficulties that he was experiencing in his personal life at
    the relevant time, including his ex-wife's sickness and death,
    the impact these events had on their child, and the stress of
    the COVID-19 pandemic.               He says that lesser discipline has been
    imposed for what he deems to be far more egregious behavior.
    15
    No.     2022AP11-D
    See, e.g., In re Disciplinary Proceedings Against Kratz, 
    2014 WI 31
    , 
    353 Wis. 2d 696
    , 
    851 N.W.2d 219
     (four-month suspension for
    sending      unsolicited,      sexually       suggestive       text    messages          to   a
    domestic abuse crime victim, as well as for making sexually
    suggestive statements to two social workers before or during
    court     proceedings);        In     re    Disciplinary          Proceedings       Against
    Blask, 
    216 Wis. 2d 129
    , 
    573 N.W.2d 835
     (1998) (public reprimand
    following two physical altercations and the provision of false
    information to the police regarding one of the altercations).
    Finally, Attorney Johnson notes that, given the time involved in
    the     reinstatement         process,        a     six-month       suspension        would
    effectively        stretch    into    a     much    longer    period,       which    is       "a
    professional        death     sentence"       for    a     solo     practitioner         like
    himself.
    ¶32    The OLR disputes Attorney Johnson's claims.                           The OLR
    notes, regarding Count One, that all conflicts in the testimony
    as to the facts necessary to determine whether Attorney Johnson
    engaged      in    offensive    personality         have     been    resolved       by    the
    referee and are supported by the evidence.                         The referee is the
    ultimate arbiter of credibility, and the referee determined that
    the    testimony     of     several    of    Attorney      Johnson's     former       staff
    members      was   more   credible         than    Attorney   Johnson's       testimony.
    This     credibility         determination          should     not     be     disturbed.
    Attorney Johnson's proven, chronic, ill-tempered conduct toward
    his staff plainly violates the offensive personality rule.
    ¶33    As to Count Two, the OLR submits that the facts, as
    found by the referee, speak for themselves.                         The referee found
    16
    No.      2022AP11-D
    that Attorney Johnson did very minimal training of his nonlawyer
    staff regardless of their education and experience.                               The referee
    further       found      that     Attorney    Johnson          permitted      his      staff   to
    perform       a    number    of    legal     duties       that     he    should     have      been
    performing himself——again, with nearly nonexistent supervision
    by him.           Finally, the OLR notes, the referee did not merely
    conclude that Attorney Johnson's conduct violated SCR 20:5.3 (a)
    and (b); she concluded that Attorney Johnson's violations of the
    rule    were       "rampant."         There    is        no    reason    to   question         the
    referee's determinations regarding this count.
    ¶34        As to Count Three, the OLR                    again submits that the
    facts speak for themselves.                 Attorney Johnson's primary argument
    is that Attorney C.F. was well aware of the insurance payment
    prior to the small claims trial and was responsible for what to
    do     with       that     information.            The        referee    found      otherwise,
    believing Attorney C.F.'s testimony that he did not fully read
    Attorney           Johnson's        text     that         mentioned        the         insurance
    reimbursement, and that he first became aware of the insurance
    reimbursement            during    the     small    claims        trial.         The    referee
    disbelieved Attorney Johnson's testimony that he told Attorney
    C.F.    many       times    about    the     insurance          reimbursement.           As    the
    ultimate arbiter of credibility, the referee's determinations
    should not be disturbed.
    ¶35        Regarding Count Four, the OLR once again submits that
    the    facts       speak    for    themselves.           The     plain    language       of    SCR
    20:1.4(b) states that a lawyer "shall explain a matter" to the
    client, and the referee specifically found that there was no
    17
    No.     2022AP11-D
    evidence that Attorney Johnson explained anything at all to D.P.
    about the waiver of preliminary examination form prior to having
    D.P. sign the form.             Attorney Johnson's failure to produce any
    evidence that he explained anything to D.P. makes it clear that
    the OLR was entitled to summary judgment on this count.
    ¶36        Regarding     Count    Five,        the   OLR     again    relies     on    the
    facts found by the referee.                    The referee found that one of
    Attorney       Johnson's     nonlawyer        employees        reviewed     a     waiver    of
    preliminary       examination     form     with       D.P.,      who   then       signed   the
    form.       The      referee    further        found      that      Attorney       Johnson's
    nonlawyer employee electronically signed Attorney Johnson's name
    on the waiver form and e-filed it, just as staff had done on a
    regular basis with other documents.                        The waiver form falsely
    stated     that      Attorney    Johnson        had      personally       explained        and
    discussed the form with D.P. and had personally observed D.P.
    sign the form.          And, the referee found, Attorney Johnson knew
    about    all    of   these     things.        In    light      of   these     non-clearly-
    erroneous      factual      findings,     the      OLR   says,      Attorney       Johnson's
    denials    about      his    intent     and     knowledge        merit    little      or   no
    weight.
    ¶37        Regarding        the      referee's          recommended            six-month
    suspension,       the    OLR     says    that       this       suspension         length    is
    supported by the evidence and is commensurate with the degree,
    extent, and nature of Attorney Johnson's misconduct.
    ¶38        As we view it, the OLR has the better of the two sets
    of arguments.           Most of Attorney Johnson's arguments                         rely on
    challenges to the referee's factual determinations.                                These are
    18
    No.        2022AP11-D
    long-shot       arguments,           as    this       court     defers    to     the       referee's
    determination         of      historical      facts        and    assessments          of    witness
    credibility.          See In re Disciplinary Proc. Against Boyle, 
    2013 WI 103
    ,    ¶     40,       
    351 Wis. 2d 713
    ,    
    840 N.W.2d 694
    ;        In     re
    Disciplinary Proceedings Against Polich, 
    2005 WI 36
    , ¶ 25, 
    279 Wis. 2d 266
    , 
    694 N.W.2d 367
    .                          The referee heard two days of
    testimony,        saw       the     witnesses,        gauged      their     credibility,            and
    wrote    a    lengthy         report       discussing          her    findings        in     detail.
    Attorney Johnson offers nothing that would cause this court to
    second-guess the referee's well-explained factual findings or
    the legal conclusions that follow from them.
    ¶39    As        for       Attorney         Johnson's          argument         that         the
    recommended         six-month         suspension          is     excessive,      we        disagree.
    Attorney Johnson's first category of misconduct——his pervasive
    verbal abuse of his staff members, compelling many of them to
    quit——alone         justifies         a    not-inconsequential              suspension.              In
    Kratz,       this     court         imposed       a      four-month       suspension           on    a
    prosecutor——who,              unlike       Attorney        Johnson,       had     no        previous
    disciplinary history——for sending inappropriate text messages to
    a    domestic       abuse     crime       victim,        and    for   making     inappropriate
    verbal statements to two social workers before or during court
    proceedings.            A     four-month      suspension          might     be    a    reasonable
    suspension length for Attorney Johnson's long course of highly
    inappropriate verbal behavior toward his staff members if this
    were the only category of his misconduct.
    ¶40    But       there        are     several           additional       categories           of
    misconduct to consider.                   First, the court must consider Attorney
    19
    No.     2022AP11-D
    Johnson's        "rampant,"        "egregious,"           and     "appalling"           (in       the
    referee's words) violation of his duty to supervise nonlawyer
    staff, in which he demanded or encouraged his nonlawyer staff to
    essentially         engage      in      the    practice           of     law     without          any
    supervision by him.                Second, the court must consider Attorney
    Johnson's lack of candor with tribunals——both as a lawyer and a
    litigant.        And third, the court must consider Attorney Johnson's
    failure     to    explain       anything      at    all     to    his    client       about       the
    waiver     of    his    right      of   preliminary         examination.10              To       these
    categories       of     misconduct,         the     court    must        also     add       to    its
    consideration the various aggravating factors presented here;
    i.e.,      Attorney     Johnson's          disciplinary          history,       the     referee's
    determination          that   he     was    untruthful       during       portions          of    his
    disciplinary          hearing      testimony,        his    questionable           ability          to
    acknowledge       the    wrongful          nature    of    his     conduct,       the       selfish
    nature     of    certain      of    his     acts,    and    the        length    of     time       his
    misconduct spanned.
    ¶41       Considering all of these factors, the recommended six-
    month suspension is merited.                  Although we are not unsympathetic
    to   the    personal       difficulties           Attorney        Johnson       has     faced      in
    recent years, these circumstances cannot serve as carte blanche
    for him to disregard his professional obligations in the manner
    proven      here.        His       misconduct        is     blatant;        his       two     prior
    reprimands clearly failed to have their intended effect.                                            We
    Given this constellation of misconduct, it is not
    10
    surprising there is no precedent that is precisely on all fours
    with this case.
    20
    No.     2022AP11-D
    agree with the referee that a more severe sanction is warranted
    this time around.      And the fact that a six-month suspension will
    require him to go through a formal reinstatement proceeding is a
    plus, not a minus.       See SCR 22.28(3).              For the benefit of the
    public and the bar, it is important that Attorney Johnson be
    fully vetted before being allowed to practice law again.
    ¶42    We   turn   now     to     the    issue      of    costs.         They   are
    considerable    ($33,001.74     as    of     June    14,     2023),    but    Attorney
    Johnson does not dispute them, and we see no reason on this
    record to shift them          away from       Attorney Johnson          and towards
    other members of the bar.             We impose them in full.                  See SCR
    22.24(1m).
    ¶43    Finally,     we     note     that      the      OLR   does        not    seek
    restitution. None is ordered.
    ¶44    IT IS ORDERED that the license of Steven D. Johnson is
    suspended for a period of six months, beginning December 7,
    2023.
    ¶45    IT IS FURTHER ORDERED that, within 60 days of the date
    of this order, Steven D. Johnson must pay to the Office of
    Lawyer    Regulation    the     amount       of     this     proceeding       totaling
    $33,001.74.
    ¶46    IT IS FURTHER ORDERED that Steven D. Johnson shall
    comply with the requirements of SCR 22.26 pertaining to the
    duties of a person whose license to practice law in Wisconsin
    has been suspended.
    21
    No.   2022AP11-D
    ¶47   IT   IS   FURTHER   ORDERED   that   compliance    with   all
    conditions with this order is required for reinstatement.           See
    SCR 22.29(4)(c).
    22
    No.   2022AP11-D
    1
    

Document Info

Docket Number: 2022AP000011-D

Citation Numbers: 2023 WI 73

Filed Date: 11/2/2023

Precedential Status: Precedential

Modified Date: 11/2/2023