In re Discipline of Derrick S. Penney

Summary

The Supreme Court of Nevada suspended attorney Derrick S. Penney for 36 months, with all but six months stayed, based on violations involving diligence, client communication, safekeeping property, expediting litigation, disciplinary inquiries, and professional misconduct in a probate matter. The court imposed probation conditions, trust-account restrictions, continuing legal education requirements, and proceeding costs, while declining to adopt a recommended Client Security Fund payment.

Holdings

1. The court upheld the panel's findings that Penney violated RPC 1.3, RPC 1.4(a), RPC 1.15(a) and (d), RPC 3.2, RPC 8.1, and RPC 8.4(c) and (d).
2. A 36-month suspension, with all but the first six months stayed and subject to probationary conditions, was sufficient and appropriate discipline; disbarment was not warranted under the circumstances.
3. The court declined to adopt the panel's recommendation that Penney pay $3,100 to the Client Security Fund because the payment would operate as a punitive fine rather than compensate a demonstrated monetary loss, and such a fine exceeds the permissible scope of sanctions imposed with a suspension.

Questions Presented

1. Whether substantial evidence supported the disciplinary panel's findings that Penney violated the charged Nevada Rules of Professional Conduct.
2. What discipline was appropriate for Penney's knowing violations, considering the duties violated, his mental state, the actual or potential injury, and aggravating and mitigating circumstances.
3. Whether the recommended $3,100 payment to the State Bar's Client Security Fund could be imposed as part of the disciplinary sanction.

Disposition

other