Attorney Grievance Commission of Maryland v. Ada Elizabeth Cherry-Mahoi, 388 Md. 124

Summary

The Maryland Court of Appeals considered disciplinary charges against Ada Elizabeth Cherry-Mahoi arising from her handling of settlement and personal injury protection funds in an attorney trust account. The evidentiary court found violations involving diligence, fees, safekeeping of property, termination of representation, bar disciplinary matters, professional misconduct, trust-account rules, and misuse of trust money, while finding no violation of competence or communication rules.

Holdings

1. The hearing judge's finding that Cherry-Mahoi knowingly and willfully misappropriated entrusted funds was supported by clear and convincing evidence.
2. An attorney violates MRPC 1.15(b) and MRPC 1.3 when the attorney cannot promptly pay medical providers from settlement-related funds because the attorney depleted those funds, even where the client had temporarily directed that some payments be withheld.
3. Depositing personal funds and unrelated settlement proceeds into an attorney trust account containing client funds violates MRPC 1.15(a).
4. An attorney violates MRPC 1.5 and MRPC 1.16(d) by taking substantially more than the agreed fee, failing to inform the client of the additional withdrawals, and thereby converting client funds.
5. Mislabeling an attorney trust account as an IOLTA account violates Maryland Rule 16-606, and knowingly misusing trust funds or writing a trust-account check payable to cash violates Maryland Rule 16-609.
6. Intentional misappropriation of client funds violates MRPC 8.4(a), (c), and (d).
7. Disbarment is the appropriate sanction for intentional misappropriation of entrusted funds absent compelling extenuating circumstances.

Questions Presented

1. Whether the hearing judge's finding that Cherry-Mahoi knowingly and willfully misappropriated client trust funds was supported by clear and convincing evidence.
2. Whether Cherry-Mahoi violated MRPC 1.3 and 1.15(b) by failing to maintain sufficient funds and promptly pay medical providers from settlement-related funds.
3. Whether Cherry-Mahoi violated MRPC 1.5 and 1.16(d) by withdrawing fees substantially exceeding the agreed fee and failing to protect the client's interests.
4. Whether depositing personal funds and unrelated settlement proceeds into the attorney trust account violated MRPC 1.15(a).
5. Whether mislabeling the trust account and writing a check payable to cash violated Maryland Rules 16-606 and 16-609.
6. Whether intentional misappropriation of client funds violated MRPC 8.4(a), (c), and (d), and section 10-306 of the Business Occupations and Professions Article.
7. Whether disbarment was the appropriate sanction for the intentional misappropriation.

Disposition

other