In January 2021, I published Then Arrested. It essentially described "the next chapter" in a story of an attorney in south Florida. It was a follow-up on A Disciplined Attorney and Repercussions (September 2018). In that situation, the news reported that in 2018 an attorney asked the Florida Supreme Court to disbar him. A June 2018 order granted that request. Over a year later, the attorney was eventually arrested and prosecuted.
That whole matter apparently began with various clients contacting The Florida Bar and police authorities. The attorney was accused of taking money that belonged to clients. I noted in the 2021 post that "this would be lamentable and troublesome if it were isolated, unique, and novel." I then proceeded to recount there another similar story of alleged misappropriation. It is very troublesome to see such allegations repeated in the news periodically.
Last year, I was contacted by an injured worker who complained that he had settled his case several years ago. He recounted then receiving a significant disbursement check, and that he expected to receive further payments for the balance of his settlement. The worker was frustrated with several things.
First, he described struggling to discuss his questions with the attorney. While there was staff with whom he could discuss the case, he wanted to speak directly to the attorney. It is fair to say that all attorneys are busy, sometimes frantic. The demands of being a litigator are at times simply overwhelming. However, that may excuse not getting a call back for a few days, perhaps even a week if the attorney is in a trial. If an attorney will not return a call within a week, a client might want to schedule an appointment for a specific date and time.
Second, the injured worker described his expectation of receiving the remainder of the settlement proceeds. He was somewhat frustrated that the insurance company had issued checks and that those had somehow been cashed without the injured worker signing them. I learned in this regard that many law firms include a power of attorney in the documents they have clients sign when the attorney-client relationship begins. Thus, when disbursement is made, it is possible and perhaps likely that the attorney will negotiate and deposit the settlement checks. This is something attorneys perhaps need to discuss more fully with clients.
Mostly, the worker was concerned about the rest of his money.
In July, the Miami Herald (on Tampabay.com) reported that "a Tallahassee personal injury attorney already under emergency suspension . . . decided, officially, to give up." The story is about Gus Soto, "a 65 year-old admitted to the bar in 1984." The Herald reports that the attorney, Gus Vincent Soto applied "for disciplinary revocation without leave to seek readmission." The Florida Supreme Court accepted that application (request) and ordered Mr. Soto to pay "$396,931 in restitution to five clients who allege Soto misappropriated their settlement funds." I stress that this is an allegation only.
Photo courtesy of Jacobs & Whitehall,
https://www.jacobsandwhitehall.com/attorneys/authors/gus-vincent-soto-esq/
According to an article published on Jacobs & Whitehall (a book publisher), Mr. Soto "became board-certified in workers' compensation" in 1991. He expressed there that this "is the highest level of bar recognition an attorney can receive." He also noted his membership in other organizations. He stated, regarding workers' compensation, his perception of "how absolutely unfair the system was to the average working person." He lamented that "critical mistakes have occurred due to the injured worker’s lack of knowledge of their rights." He explained that his book, published in November 2021, is intended to "safeguard workers against the lies and misrepresentations that all too often occur during the workers’ compensation claims process."
The Miami Herald story goes on to describe how the Supreme Court decided in May to suspend Mr. Soto when he did not produce subpoenaed records regarding "trust account, closing statements, settlement agreements, client ledgers, and documentation evidencing the whereabouts of . . . settlement funds." That sentence is interesting and perhaps instructional.
What the public may not realize is that lawyers in Florida are licensed by The Florida Supreme Court. The Court has delegated authority to The Florida Bar in regards to regulation of lawyers, but it is the Court that is ultimately charged with the regulation, licensing, and discipline of lawyers. And, in that regard, the Court has adopted the Rules Regulating The Florida Bar. There is much of interest in the 733 pages of that document.
But, some quick that are pertinent to discuss here are the rules on trust accounts, closing statements, and communication.
Rule 4-1.4 requires that an attorney "promptly inform" clients of "decision(s) or circumstance(s)," to "reasonably consult with the client," to "keep the client reasonably informed," and to "promptly comply with reasonable requests for information." Additionally, it is the attorney's obligation to "explain a matter to the extent reasonably necessary to permit the client to make informed decisions." An attorney, after all, is both advocate and counselor. See Rule 4-2.1.
Rule 5-1.1 requires that an attorney is to keep their client's money "separate from lawyer's own property." There are requirements for "a separate federally insured" account for such funds. The maintenance of trust accounts can be cumbersome, and at times confusing. There are various regulations on how a lawyer must maintain and document such accounts, and even the interest that they earn. When a lawyer renews membership/licensure every year, and pays the fee, there are "certifications" required regarding trust accounts. Every Florida lawyer is reminded about the trust account responsibilities annually.
Rule 4-1.5 addresses attorney "fees and costs for legal services." When fees are "contingent," meaning that they are dependent "on the outcome of the matter for which the service is rendered," the lawyer is required to
"provide the client with a written statement describing the outcome of the matter and, if there is a recovery, showing the remittance to the client and the method of its determination."
This is referred to generally as the "closing statement." It is not a recommendation, "the lawyer must provide," and the statement "must include" information regarding the "cost, fees of each lawyer or law firm participating in the fee, and payments to third parties to be paid from the recovery." In short, the client should have a document at the end of a case that shows who was paid what from the recovery.
In Mr. Soto's case, the Court approved his "uncontested petition for disciplinary revocation." It noted that Mr. Soto did not include in that petition (request) any request for "leave to seek readmission." Therefore, the Court concluded, the "revocation is permanent." That is a distinction, as in some instances a disbarred lawyer can later seek to be readmitted by the Court.
It is important to acknowledge that there may be more to the story than what has been reported. There may be "another side" to the story. Allegations are not proof of any wrongdoing, nor is a "petition for disciplinary revocation." However, it is hoped that this example of allegations may be helpful to the public in learning that there are Rules Regulating lawyers and that lawyers have obligations to clients.
