Case Number(s): 04-O-10126-JMR, 04-O-11291-JMR, 04-O-13495, 05-O-0114
In the Matter of: Cathye E. Leonard, Bar # 177791, A Member of the State Bar of California, (Respondent).
Counsel For The State Bar: Mark Hartman, Bar # 114925
Counsel for Respondent: Jerome Fishkin, Bar # 47798
Submitted to: Settlement Judge – State Bar Court Clerk’s Office San Francisco.
Filed: July 27, 2005.
<<not>> checked. PREVIOUS STIPULATION REJECTED
Note: All information required by this form and any additional information which cannot be provided in the space provided, must be set forth in an attachment to this stipulation under specific headings, e.g., "Facts," "Dismissals," "Conclusions of Law," "Supporting Authority," etc.
1. Respondent is a member of the State Bar of California, admitted October 20, 1995.
2. The parties agree to be bound by the factual stipulations contained herein even if conclusions of law or disposition are rejected or changed by the Supreme Court.
3. All investigations or proceedings listed by case number in the caption of this stipulation are entirely resolved by this stipulation and are deemed consolidated. Dismissed charge(s)/count(s) are listed under "Dismissals." The stipulation consists of 15 pages, not including the order.
4. A statement of acts or omissions acknowledged by Respondent as cause or causes for discipline is included under "Facts."
5. Conclusions of law, drawn from and specifically referring to the facts are also included under "Conclusions of Law".
6. The parties must include supporting authority for the recommended level of discipline under the heading "Supporting Authority."
7. No more than 30 days prior to the filing of this stipulation, Respondent has been advised in writing of any pending investigation/proceeding not resolved by this stipulation, except for criminal investigations.
8. Payment of Disciplinary Costs-Respondent acknowledges the provisions of Bus. & Prof. Code §§6086.10 & 6140.7. (Check one option only):
<<not>> checked. Costs are added to membership fee for calendar year following effective date of discipline.
checked. Costs to be paid in equal amounts prior to February 1 for the following membership years: 2006, 2007, and 2008. (Hardship, special circumstances or other good cause per rule 282, Rules of Procedure.)
<<not>> checked. Costs are waived in part as set forth in a separate attachment entitled "Partial Waiver of Costs".
<<not>> checked. Costs are entirely waived.
Respondent entered into this stipulation.
With regards to case number 04-O-13495, respondent refunded the entire prepaid fee of $2,500 to her client Ronald Brooks, even though she earned $2,086.50.
Case Number(s): 04-O-10126-JMR, 04-O-11291-JMR, 04-O-13495, 05-O-0114
In the Matter of: Cathye E. Leonard, SBN: 177791
checked. a. Within 3 months of the effective date of the discipline herein, Respondent must develop a law office management/organization plan, which must be approved by the Office of Probation. This plan must include procedures to (1) send periodic reports to clients; (2) document telephone messages received and sent; (3) maintain files; (4) meet deadlines; (5) withdraw as attorney, whether of record or not, when clients cannot be contacted or located; (6) train and supervise support personnel; and (7) address any subject area or deficiency that caused or contributed to Respondent’s misconduct in the current proceeding.
checked. b. Within 1 years of the effective date of the discipline herein, Respondent must submit to the Office of Probation satisfactory evidence of completion of no less than 6 hours of Minimum Continuing Legal Education (MCLE) approved courses in law office management, attorney client relations and/or general legal ethics. This requirement is separate from any MCLE requirement, and Respondent will not receive MCLE credit for attending these courses (Rule 3201, Rules of Procedure of the State Bar.)
checked. c. Within 30 days of the effective date of the discipline, Respondent must join the Law Practice Management and Technology Section of the State Bar of California and pay the dues and costs of enrollment for 2 year(s). Respondent must furnish satisfactory evidence of membership in the section to the Office of Probation of the State Bar of California in the first report required.
Other:
Case Number(s): 04-O-10126-JMR, 04-O-11291-JMR, 04-O-13495, 05-O-0114
In the Matter of: Cathye E. Leonard, SBN: 177791
a. Restitution
checked. Respondent must pay restitution (including the principal amount, plus interest of 10% per annum) to the payee(s) listed below. If the Client Security Fund (“CSF”) has reimbursed one or more of the payee(s) for all or any portion of the principal amount(s) listed below, Respondent must also pay restitution to CSF in the amount(s) paid, plus applicable interest and costs.
1. Payee: Dwight Ross
Principal Amount: $3, 032.00
Interest Accrues From: June 15, 2001
2. Payee:
Principal Amount:
Interest Accrues From:
3. Payee:
Principal Amount:
Interest Accrues From:
4. Payee:
Principal Amount:
Interest Accrues From:
checked. Respondent must pay above-referenced restitution and provide satisfactory proof of payment to the Office of Probation not later than November 30, 2005.
<<not>> checked. Respondent must pay the above-referenced restitution on the payment schedule set forth below. Respondent must provide satisfactory proof of payment to the Office of Probation with each quarterly probation report, or as otherwise directed by the Office of Probation. No later than 30 days prior to the expiration of the period of probation (or period of reproval), Respondent must make any necessary final payment(s) in order to complete the payment of restitution, including interest, in full.
1. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
2. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
3. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
4. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
<<not>> checked. If Respondent fails to pay any installment as described above, or as may be modified by the State Bar Court, the remaining balance is due and payable immediately.
checked.
1. If Respondent possesses client funds at any time during the period covered by a required quarterly report, Respondent must file with each required report a certificate from Respondent and/or a certified public accountant or other financial professional approved by the Office of Probation, certifying that:
a. Respondent has maintained a bank account in a bank authorized to do business in the State of California, at a branch located within the State of California, and that such account is designated as a “Trust Account” or “Clients’ Funds Account”;
b. Respondent has kept and maintained the following:
i. A written ledger for each client on whose behalf funds are held that sets forth:
1. the name of such client;
2. the date, amount and source of all funds received on behalf of such client;
3. the date, amount, payee and purpose of each disbursement made on behalf of such client; and,
4. the current balance for such client.
ii. a written journal for each client trust fund account that sets forth:
1. the name of such account;
2. the date, amount and client affected by each debit and credit; and,
3. the current balance in such account.
iii. all bank statements and cancelled checks for each client trust account; and,
iv. each monthly reconciliation (balancing) of (i), (ii), and (iii), above, and if there are any differences between the monthly total balances reflected in (i), (ii), and (iii), above, the reasons for the differences.
c. Respondent has maintained a written journal of securities or other properties held for clients that specifies:
i. each item of security and property held;
ii. the person on whose behalf the security or property is held;
iii. the date of receipt of the security or property;
iv. the date of distribution of the security or property; and,
v. the person to whom the security or property was distributed.
2. If Respondent does not possess any client funds, property or securities during the entire period covered by a report, Respondent must so state under penalty of perjury in the report filed with the Office of Probation for that reporting period. In this circumstance, Respondent need not file the accountant’s certificate described above.
3. The requirements of this condition are
in addition to those set forth in rule 4-100, Rules of Professional Conduct.
checked. Within one (1) year of the effective date of the discipline herein, Respondent must supply to the Office of Probation satisfactory proof of attendance at a session of the Ethics School Client Trust Accounting School, within the same period of time, and passage of the test given at the end of that session.
IN THE MATTER OF: Cathye E. Leonard, State Bar No. 177791
STATE BAR COURT CASE NUMBER: 04-O-10126-JMR, 04-O-11291-JMR, 04-O-13495, 05-O-0114
CONSOLIDATION
Pursuant to rule 108(a) of the Rules of Procedure of the State Bar of California, the parties stipulate that case number 04-0-10126, case number 04-O-11291, case number 04-0-13495, and case number 05-O-01114 ("the current cases") shall be consolidated.
DISMISSALS
Counts two and six of the Amended Notice of Disciplinary Charges, filed November 19, 2004, in State Bar case number 04-O-10126-JMR are dismissed. Counts two through seven of the Notice of Disciplinary Charges, filed February 2,2005, in State Bar case number 04-O-11291-JMR are dismissed.
FACTS AND CONCLUSIONS OF LAW
State Bar Case Number 04-O-10126
Violation of Rule 3-110(A) o f the Rules of Professional Conduct
On June 15,2001, Dwight Ross ("Ross"), a resident of Texas, hired respondent Cathye Leonard ("respondent") to address the issue of his child support arrearages in In re Marriage of Ross, Sacramento County Superior Court case number 0605019, ("Ross case") and to seek the reissuance of his US passport, which had been cancelled due to the arrearages. Ross, a merchant marine, told respondent that in order to qualify for jobs, he needed a passport. Ross signed a fee agreement drafted by respondent and paid her $3,000.00 in advance fees and $32.00 in advance costs.
On June 28, 2002, the Sacramento County Bureau of Family Support, represented by the Office of the District Attorney, filed a Notice of Motion for Modification of Support and Health Care in the Ross ease and obtained a hearing date of August 5, 2002. Ross did not receive the Notice of Motion. Because respondent had not informed the Sacramento County District Attorney or the Sacramento County Superior Court of her representation of Ross, the Notice of Motion was not served on respondent. Neither Ross nor respondent appeared at the hearing on August 5, 2002.
On August 7, 2003, the Sacramento County Superior Court ordered a wage assignment of Ross’s wages in the amount of $1,800 per month. On August 7, 2003, the California Department of Child Support Services issued a Notice to Withhold Income for Child Support and served it on Ross’s employer.
By not advising the Sacramento County District Attorney’s Office or the Sacramento County Superior Court that she was representing Ross, respondent recklessly failed to perform legal services with competence in wilful violation of rule 3-110(A) of the Rules of Professional Conduct.
Violation of Business and Professions Code Section 6068. Subdivision (m)
Between June 2002 and October 2003, Ross telephoned respondent’s office several times to inquire about the status of his case. Ross did not reach respondent, but did leave telephone messages asking her for information about his case. Although respondent received these messages, she did not return his calls. By failing to respond to Ross’s status inquiries between June 2002. and October 2003, respondent wilfully violated section 6068, subdivision (m) of the Business and Professions Code.
Violation of Rule 3-700(D)(2) of the Rules of Professional Conduct
In October 2003, Ross sent respondent a letter terminating her employment and demanding the return of the $3,000.00 in advance fees and $32.00 in advance costs. In July 2004, Ross sent respondent another letter demanding the return of the advance fees and costs. Respondent was not entitled to the advance fees or costs. Although respondent received Ross’s letters, she did not return any funds him. By failing, upon termination of her employment, to refund the unearned advanced fees to Ross, respondent willfully violated rule 3-700(D)(2) of the Rules of Professional Conduct.
Violation of Rule 4-100(B)(4) of the Rules of Professional Conduct
Respondent did not use the $32.00 to pay costs. Although she received Ross’s letters demanding the repayment of the unexpended advance costs, she did not return the $32.00 to him. By falling to pay promptly, as requested by a client, funds in her possession which the client was entitled to receive, respondent willfully violated rule 4-100(B)(4) of the Rules of Professional Conduct.
State Bar Case Number 04-O-11291
Violation of Rule 3-310(F) of the Rules of Professional Conduct
In January 2004, Melanie Goldsmith ("Goldsmith") retained respondent for assistance in a marital dissolution matter. Respondent and Goldsmith met, and respondent indicated that her fee would be $2,500.00. Goldsmith paid respondent with a check from Bobbie Tolden ("Tolden").
Respondent did not obtain Goldsmith’s written consent to accept fees from Tolden. She did not disclose to Goldsmith in writing (1) that although she was accepting fees from Tolden, there would be no interference with her independence of professional judgment or with the client-lawyer relationship or (2) that although she was accepting fees from Tolden, any and all information relating to representation of the client was protected as required by Business and Professions Code section 6068, subdivision (e).
By accepting fees from Tolden for the representation of Goldsmith without obtaining Goldsmith’s informed written consent after written disclosures, respondent wilfully violated rule 3-310(F) of the Rules of Professional Conduct.
State Bar Case Number 04-O-13495
Violation of Rule 3-700(A)(2) of the Rules of Professional Conduct
On September 9, 2003, Ronald Brooks ("Brooks") hired respondent to represent him in a child custody case. He paid her $2,500 as an advance fee. On September 17, 2003, she substituted in as his attorney of record. She worked on his case until March 2004, but did not substitute out of it. By failing to substitute out as Brooks’s attorney of record, respondent wilfully violated rule 3-700(A)(2) of the Rules of Professional Conduct.
Violation of Rule 3-700(D)( 1 ) of the Rules of Professional Conduct
On August 23, 2004, Brooks sent respondent a certified letter asking her to send him all his documents. She did not return his documents until May 2005. By failing to release Brooks’s documents to him promptly upon request, respondent wilfully violated rule 3-700(D)(1) of the Rules of Professional Conduct.
Violation of Rule 3-700(D)(2) of the Rules of Professional Conduct
In his certified letter of August 23, 2004, Brooks also asked respondent to return his $2,500 advance fee. Because she had done $2,086.50 worth of work on his case, she owed him $413.50 as the unearned portion of the advance fee. She did not return any funds to Brooks until May 2005, when she refunded the entire $2,500 advance fee to him. By failing to return the unearned portion of the advance fee to Brooks promptly upon her termination of employment in march 2004, she wilfully violated rule 3-700(D)(2) of the Rules of Professional Conduct.
State Bar Case Number 05-O-01114
Violation of Rule 4-100(B)(4) of the Rules of Professional Conduct
Respondent and three other trial attorneys represented plaintiffs in a wrongful death action. The four trial attorneys hired appellate attorney R. Stevens Condie ("Condie") to prepare a petition for writ of mandate. The action was settled in February 2004, and settlement finds were released in May 2004. In 2004, one of the trial attorneys, Alfi’ed Buchta ("Buchta"), paid Condie for his services and asked the other trial attorneys to reimburse him for their shares of Condie’s fee. Of the funds received by respondent and held in trust, $2,000 was earmarked for Condie. Respondent did not reimburse Buchta for her share of Condie’s fee until May 2005. By failing to pay Buchta the $2,000 promptly upon request from the funds which she held in trust, respondent wilfully violated rule 4-10003)(4) of the Rules of Professional Conduct.
DATE OF DISCLOSURE OF ANY PENDING INVESTIGATION OR PROCEEDING
On June 9, 2005, deputy trial counsel Mark Hartman ("Hartman") faxed a disclosure letter to respondent’s counsel. In this letter, Hartman advised respondent’s counsel of any pending investigation or proceeding not resolved by this stipulation.
ESTIMATED PROSECUTION COST OF THE CURRENT CASES
The estimated prosecution costs of the current cases are $4,363.85. This sum is only an estimate. If this stipulation is rejected or if relief from this stipulation is granted, the prosecution costs of the current cases may increase because of the costs of further proceedings.
SUPPORTING AUTHORITY
The Rules of Procedure of the State Bar, Title IV, Standards for Attorney Sanctions for Professional Misconduct, standards 1.3, 1.6, 2.2(b), 2.4(b), 2.6, and 2.10 support the discipline in this stipulation.
SIGNATURE OF THE PARTIES
Case Number(s): 04-O-10126-JMR, 04-O-11291-JMR, 04-O-13495, 05-O-0114
In the Matter of: Cathye E. Leonard, SBN: 177791
By their signatures below, the parties and their counsel, as applicable, signify their agreement with each of the recitation and each of the terms and conditions of this Stipulation Re Facts, Conclusions of Law and Disposition.
Signed by:
Respondent: Cathye E. Leonard
Date: June 20, 2005
Respondent’s Counsel: Jerome Fishkin
Date: June 21, 2005
Deputy Trial Counsel: Mark Hartman
Date: June 21, 2005
Case Number(s): 04-O-10126-JMR, 04-O-11291-JMR, 04-O-13495, 05-O-0114
In the Matter of: Cathye E. Leonard, SBN: 177791
Finding the stipulation to be fair to the parties and that it adequately protects the public, IT IS ORDERED that the requested dismissal of counts/charges, if any, is GRANTED without prejudice, and:
checked. The stipulated facts and disposition are APPROVED and the DISCIPLINE RECOMMENDED to the Supreme Court.
<<not>> checked. The stipulated facts and disposition are APPROVED AS MODIFIED as set forth below, and the DISCIPLINE IS RECOMMENDED to the Supreme Court.
<<not>> checked. All Hearing dates are vacated.
The parties are bound by the stipulation as approved unless: 1) a motion to withdraw or modify the stipulation, filed within 15 days after service of this order, is granted; or 2) this court modifies or further modifies the approved stipulation. (See rule 135(b), Rules of Procedure.) The effective date of this disposition is the effective date of the Supreme Court order herein, normally 30 days after the file date. (See rule 953(a), California Rules of Court.)
Signed by:
Judge of the State Bar Court: Pat McElroy
Date: July 27, 2005
[Rule 62(b); Rules Proc.; Code Civ. Proc., § 1013a(4)]
I am a Case Administrator of the State Bar Court of California. I am over the age of eighteen and not a party to the within proceeding. Pursuant to standard court practice, in the City and County of San Francisco, on July 27. 2005, I deposited a true copy of the following document(s):
STIPULATION RE FACTS, CONCLUSIONS OF LAW AND DISPOSITION AND ORDER APPROVING, filed July 27, 2005.
in a sealed envelope for collection and mailing on that date as follows:
checked. by first-class mail, with postage thereon fully prepaid, through the United States Postal Service at San Francisco, California, addressed as follows:
JEROME FISHKIN
369 PINE ST #627
SAN FRANCISCO, CA 94104
checked. by interoffice mail through a facility regularly maintained by the State Bar of California addressed as follows:
MARK HARTMAN, Enforcement, San Francisco
I hereby certify that the foregoing is true and correct. Executed in San Francisco, California, on July 27, 2005.
Signed by:
Laine Silber
Case Administrator
State Bar Court