November 18, 2017

Colorado Supreme Court: Failure to Pay Funds to Third Party Constituted Knowing Conversion by Attorney

The Colorado Supreme Court issued its opinion in In the Matter of Kleinsmith on Monday, October 30, 2017.

Colorado Rules of Professional Conduct—Attorney Discipline—Conversion—Due Process—Equal Protection.

This attorney disciplinary proceeding required the supreme court to determine whether an attorney commits knowing conversion, in violation of Colorado Rules of Professional Conduct (Rules) 1.15A and 8.4(c), when he bills a client for services performed by a third party and then uses for his own purposes the client funds he received that were intended to pay for the third party’s services. This proceeding further required the court to determine whether the Presiding Disciplinary Judge’s reading of the Rules violated the attorney’s rights to due process and equal protection. The court concluded that in the circumstances presented here, the attorney’s actions constituted knowing conversion in violation of the Rules and that the Presiding Disciplinary Judge’s construction of the Rules to reach the same result did not violate any of the attorney’s constitutional rights. Accordingly, the court affirmed the orders of the Presiding Disciplinary Judge and the hearing board, including the order disbarring the attorney from the practice of law.

Summary provided courtesy of Colorado Lawyer.