Case Number(s): 08-O-11906
In the Matter of: Sue Ann Howard, Bar # 164265, A Member of the State Bar of California, (Respondent)
Counsel For The State Bar: Jayne Kim, Bar # 174614
Counsel for Respondent: Bar #
Submitted to: Assigned Judge State Bar Court Clerk’s Office Los Angeles
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 June 2, 1993.
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 12 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. until costs are paid in full, Respondent will remain actually suspended from the practice of law unless relief is obtained per rule 284, Rules of Procedure.
checked. costs to be paid in equal amounts prior to February 1 for the following membership years: next four billing cycles (hardship, special circumstances or other good cause per rule 284, Rules of Procedure.)
<<not>> checked. costs waived in part as set forth in a separate attachment entitled "Partial Waiver of Costs".
<<not>> checked. costs entirely waived.
IN THE MATTER OF SUE ANN HOWARD
CASE NO: 08-0-11906
1. Sue Ann Howard ("Respondent") was admitted to the practice of law in the State of California on June 2, 1993, was a member at all times pertinent to these charges, and is currently a member of the State Bar of California.
2. At all relevant times, Respondent represented Janyce B. Kakely ("Kakely") in Los Angeles County Superior Court case no. BC302648, entitled Kakely et al. v. White Fence Farms Mutual Water et al.
3. In or about October 2004, Respondent told Kakely that the Internal Revenue Service ("I.R.S.") had a lien on her house. That same month, Respondent asked to borrow $50,000.00 from Kakely.
4. On or about November 9, 2004, Respondent signed a promissory note in which she promised to pay back the entire $50,000.00 on or before January 30, 2005, with simple interest at an annual rate of one percent (1%).
5. At no time did Respondent advise Kakely that she could seek the advice of an independent lawyer of her choice.
6. In or about December 2004, Respondent asked to borrow an additional $5,000.00 from Kakely. Respondent told Kakely that she needed the money to retain a tax attorney to handle her case with the I.R.S. Kakely agreed and gave Respondent $5,000.00 on or about December 6, 2004. At no time did Respondent advise Kakely that she could seek the advice of an independent lawyer of her choice or put the terms of this additional loan in writing.
7. Respondent failed to pay back any portion of the loan to Kakely by January 30, 2005.
8. In or about April and May 2005, Respondent took out additional loans from Kakely totally $5,700.00. At no time did Respondent advise Kakely that she could seek the advice of an independent lawyer of her choice or put the terms of these additional loans in writing.
9. At no time did Respondent secure the aforementioned loans or otherwise make the terms fair and reasonable to Kakely.
10. At no time did Respondent pay back any portion of the aforementioned loans.
11. By borrowing approximately $50,000.00 from Kakely at an annual interest of one-percent interest without securing the loans and by failing to advise Kakely that she could seek advice from independent counsel, Respondent entered into business transactions Respondent entered into business transactions with a client without complying with the requirement that the terms be fair and reasonable, and without advising the client that she may seek the advice of independent counsel, in willful violation of Rules of Professional Conduct, role 3-300.
12. By borrowing approximately $10,700.00 more from Kakely at an annual interest of one-percent interest without securing the loans, by failing to advise Kakely that she could seek advice from independent counsel, and by fairing to put the terms of the December 2004 and April-May 2005 loans in writing, Respondent entered into business transactions with a client without complying with the requirement that the terms be fair and reasonable, without advising the client that she may seek the advice of independent counsel, and without obtaining the client’s consent in writing, in willful violation of Rules of Professional Conduct, role 3-300.
SUPPORTING AUTHORITIES FOR LEVEL OF DISCIPLINE:
Standards for Attorney Sanctions for Professional Misconduct:
Culpability of a willful violation of role 3-300, Rules of Professional Conduct, shall result in suspension unless the extent of the misconduct and the harm to the client are minimal, in which case the degree of discipline shall be a reproval. (Std. 2.8)
Generally, where a member has a record of one prior imposition of discipline, the degree of discipline in the member’s current proceeding shall be greater than that imposed in the prior proceeding. (Std. 1.7(a))
PENDING PROCEEDINGS:
The disclosure data referred to, on page one, paragraph A.(7) was July 23, 2008.
OTHER CONDITIONS (FINANCIAL)
Within one year from the effective date of discipline, Respondent shall commence making minimum monthly restitution payments to Kakely (and/or CSF if paid) as described on page 12.
COSTS:
Respondent acknowledges that the Office of Chief Trial Counsel has informed Respondent that as of July 23, 2008, the estimated prosecution costs in this matter are approximately $1,983.00. Respondent acknowledges that this figure is an estimate only. Respondent further acknowledges that should this stipulation be rejected or should relief from the stipulation be granted, the costs in this matter may increase due to the cost of further proceedings.
If Respondent fails to pay any installment within the time provided herein or as may be modified by the State Bar Court pursuant to section 6068.10, subdivision (c), the remaining balance of the costs is due and payable immediately and enforceable both as provided in Business and Professions Code section 6140.7 and as a money judgment unless relief has been granted under the Rules of Procedure of the State Bar of California. (Rules Proc. of State Bar, rule 286.)
Case Number(s): 08-O-11906
In the Matter of: Sue Ann Howard A Member of the State Bar
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: Janyce B. Kakely
Principal Amount: $50,000.00
Interest Accrues From: Jan. 30, 2005
2. Payee: Janyce B. Kakely
Principal Amount: $5,000.00
Interest Accrues From: December 6, 2004
3. Payee: Janyce B. Kakely
Principal Amount: $5,700.00
Interest Accrues From: May 30, 2005
4. Payee:
Principal Amount:
Interest Accrues From:
<<not>> checked. Respondent must pay above-referenced restitution and provide satisfactory proof of payment to the Office of Probation not later than
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) Janyce B. Kakely/CSF
Minimum Payment Amount $1,500.00
Payment Frequency monthly
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.
<<not>> 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.
<<not>> 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.
SIGNATURE OF THE PARTIES
Case Number(s): 08-O-11906
In the Matter of: Sue Ann Howard
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: Sue Ann Howard
Date: 8/12/08
Respondent’s Counsel:
Date:
Assistant Chief Trial Counsel: Jayne Kim
Date: 8/15/08
Case Number(s): 08-O-11906
In the Matter of: Sue Ann Howard
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 9.18(a), California Rules of Court.)
Signed by:
Judge of the State Bar Court: Richard A. Platel
Date: Aug 25, 2008
[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 Los Angeles, on August 27, 2008, I deposited a true copy of the following document(s):
STIPULATION RE FACTS, CONCLUSIONS OF LAW AND DISPOSITION AND ORDER APPROVING
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 Los Angeles, California, addressed as follows:
SUE ANN HOWARD
LAW OFC SUE ANN HOWARD
3311 MONTE CARLO CT
LANCASTER CA 93536
checked. by interoffice mail through a facility regularly maintained by the State Bar of California addressed as follows:
JAYNE KIM, Enforcement, Los Angeles
I hereby certify that the foregoing is true and correct. Executed in Los Angeles, California, on August 27, 2008.
Signed by:
Angela Owens-Carpenter
Case Administrator
State Bar Court