In re Carter

Summary

The Louisiana Supreme Court considers disciplinary charges against Arthur L. Carter, a previously disbarred attorney, involving unauthorized settlements, conversion or delayed distribution of client funds, inadequate communication, and misrepresentation. The court finds violations of the Rules of Professional Conduct and permanently disbars Carter, orders restitution and an accounting, and assesses costs.

Holdings

1. When a lawyer fails to answer formal charges, the factual allegations are deemed admitted and proven by clear and convincing evidence under Supreme Court Rule XIX, § 11(E)(3), but legal conclusions flowing from those facts are not automatically deemed admitted.
2. Respondent violated the Rules of Professional Conduct by failing to communicate with clients, failing to safeguard and promptly deliver client funds, and engaging in dishonest, fraudulent, or deceitful conduct.
3. When later-charged misconduct occurred during the same period as misconduct underlying a prior disbarment, the court should determine the appropriate overall sanction by considering the misconduct together as if both proceedings had been before the court simultaneously, while preventing the lawyer from benefiting from the timing of prosecution.
4. Repeated or multiple instances of intentional conversion of client funds causing substantial harm warranted permanent disbarment.
5. A permanently disbarred attorney who failed to deliver client settlement funds must provide a complete accounting and full restitution to the affected clients.

Questions Presented

1. Whether the factual allegations were deemed admitted when respondent failed to answer the formal charges and whether the admitted facts established violations of the Rules of Professional Conduct.
2. Whether misconduct occurring during the same period as misconduct underlying a prior disbarment should be considered together in determining the appropriate overall sanction.
3. Whether respondent's cumulative pattern of intentional conversion of client funds with substantial harm warranted permanent disbarment.
4. Whether respondent should be ordered to provide an accounting and restitution to affected clients.

Disposition

other