Trust Account Woes
March 19, 2015 § 2 Comments
The facts in Mississippi Bar v. Ogletree, handed down March 5, 2015, are straightforward:
¶3. . . . In January 2011, John Buckley hired Ogletree to represent him in a child-support modification matter. Ogletree requested a $1,000 retainer, from which he would charge $250 per hour. Buckley gave Ogletree a check for $400 as partial payment of the retainer. While Ogletree maintained three trust accounts at the time, he did not deposit Buckley’s $400 check into any of them. Rather, the check was deposited into Ogletree’s general operating account. Ogletree subsequently terminated his representation of Buckley. Ogletree wrote Buckley a check for $400 from one of his trust accounts to refund Buckley’s partial payment of the retainer. The check was returned for insufficient funds. Ogletree then delivered $440 in cash to Buckley.
Buckley’s wife, apparently unhappy with the caliber of representation, filed a bar complaint against Ogletree. The Bar, in its investigation, asked for Ogletree’s trust account information, which Ogletree could not produce. Instead, what records he had showed that he had a practice of commingling funds and using client funds to pay his personal expenses, and, worse, that his trust accounts were overdrawn from time to time.
The bar filed a Formal Complaint, and the Complaint Tribunal recommended a six-month suspension. Aggrieved, the Bar appealed, taking the position that a three-year suspension was warranted by the facts and precedent. The MSSC affirmed the Complaint Tribunal. Justice Coleman dissented, joined by Justice Randolph.
You can read the opinion for your own edification, but here are a few thoughts, especially for the young lawyers who haven’t given this much thought:
- Mr. Ogletree got off relatively light, if you can call not being able to practice the profession by which you earn a living for six months “light.” The fact is, as Justice Coleman’s dissent points out, misconduct involving trust accounts is serious misconduct, and disbarment is not out of the question.
- The purpose of a trust account is to hold the client’s money in trust until it is either withdrawn by agreement after having been earned by the lawyer, or is paid out according to the directions of the client. The client funds must be deposited in an account separate from the lawyer’s firm and personal accounts. The trust account should be in an entirely separate bank from the client’s firm and personal accounts.
- Before you withdraw any funds from a trust account, you should have authorization of the client. If the withdrawal is for fees or expenses, you should spell out how that will be done in a written agreement with your client.
- You must keep meticulous records of your trust account transactions, itemizing records of specific client deposits and withdrawals. Failure to keep adequate records of your trust account transactions is a violation in and of itself.
- Mr. Ogletree testified that he usually moved money and made personal deposits from his own funds to balance the accounts. That won’t work. You can’t “borrow” money from your trust account, no matter how badly you’re strapped, and “replacing” the funds before the transgression is discovered does not undo the wrong.
- Mr. Ogletree pled in his defense that his wife had been seriously ill, and that her illness had taken an emotional and physical toll on him. No doubt that swayed the majority of the Tribunal and the MSSC to pare down his punishment. Still, what effect would it have on your practice to close your doors for six months, much less three years?
When it comes to your trust account, don’t cut corners, keep accurate records, and never, ever succumb to the temptation to dip into it as a rescue fund.
Switching Parents
March 18, 2015 § 1 Comment
A lawyer presented me with an interesting adoption query not too long ago. The natural parents are agreeable to the paternal grandmother adopting their child, but they want the father to retain his parental rights so that he can provide health insurance covering the child, and so that he can maintain a relationship and regain custody in the event that something happens to the grandmother. In essence, the parties propose substituting the grandmother for the mother. Can this be done?
The answer, in a word, is no.
That’s because MCA 93-17-13 precludes it. Here’s the pertinent language:
… and all parental rights of the natural parent, or parents, shall be terminated, except as to a natural parent who is the spouse of the adopting parent.
So the only situation in which the parental rights of a parent may survive adoption is where the spouse of a natural parent is adopting the child. In that case, the natural parent/spouse retains his or her parental rights.
The same result would obtain in a situation where the parties agree that a third party may adopt the child, but want to retain their parental rights for some reason. That is not permitted under the statute.
The essence of adoption is the severance of the legal relationship between the child and one or both parents, with a substitution of a new parental relationship. If the arrangement you propose to the court does not accomplish that within the parameters of 93-17-13, you need to think through some alternatives.
I posted in 2012 about a similar adoption conundrum. You can read about it here.
Wearin’ O’ the Green
March 17, 2015 § Leave a comment
U-Turn in a Temporary Administrator Case
March 16, 2015 § Leave a comment
I posted here previously about how and why the chancery court may appoint a temporary administrator in a contested estate case. The post dealt with the case of Parker v. Benoist, decided in August, 2014, which is notable for establishing the good faith exception to challenges to in terrorem clauses in wills.
In its 2014 decision, the MSSC affirmed the chancellor’s refusal to appoint a temporary administrator, even though the court was troubled by the chancellor’s statement that he believed uncontested evidence was necessary to support removal of the executor and appointment of a temporary administrator. I said about the appellate decision, “To put it in simpler terms: even though the chancellor followed the wrong road map, he arrived at the right destination, so no reversal.”
The MSSC granted rehearing, and in an opinion rendered February 19, 2015, withdrew its original opinion and substituted a new opinion reversing the chancellor’s decision and remanding on the basis that he applied a wrong legal standard in refusing to appoint a temporary administrator.
So, I withdraw my prior statement and substitute the following: “To put it in simpler terms: the chancellor followed the wrong road map, and even though he may have arrived at the right destination, the case is reversed and remanded so he can follow the correct road map.”
The 2015 opinion does not affect the court’s original ruling about in terrorem clauses.
Courthouses of Mississippi
March 13, 2015 § 4 Comments
Here’s the next helping. I still need your submissions.
Pie Are Squared
March 12, 2015 § 3 Comments
What’s so special about 3-14-15 at 9:26:53 a.m. and p.m.?
I’ll give you a few minutes to ponder that configuration of numbers. (Waiting. Waiting. Waiting.)
Okay, for you non-math-nerds out there: the numbers of the date and time together are the first ten digits of the mathematical constant pi (π), which, as I am sure you dimly recall, is the ratio of a circle’s circumference to its diameter.
The coincidence of date and time = π happens only once each century.
What does this have to do with the law? Well, nothing, I guess. Except that if the courthouse were open on the notable day, you could bring a pecan π to the courthouse for all to share. That not being the case this particular century, simply bake your own and enjoy it Saturday with a scoop of vanilla ice cream. You deserve it after a busy week practicing law.
Spring Broke
March 11, 2015 § 4 Comments
Years ago I had a school-teacher client. She came into my office for an appointment one day and greeted me with, “And how is your summer going?” I answered, “About the same as my fall, winter, and spring.”
Point being that school schedules operate in a kind of time warp that has no direct relation to the Gregorian calendar observed by the rest of us, but impacts us nonetheless.
Court calendars take on a decidedly vacant look when the time for Spring Break arrives. Lawyers report that their clients are off on far-flung journeys with vacationing school children in tow, and so are unavailable for those court hearings that were seemingly so urgently needed to be scheduled only a few months ago when no one paid close attention to what else might be going on in that second week of March.
And the lawyers themselves are taking the calendar loophole to make treks to exotic places. Even lawyers with no school-age children. Hey, why not, it’s Spring Break, after all! I know of lawyers here in our district — encumbered or unencumbered with children — who are off to the beach, or on cruises. Put the snow and ice behind and get away for a few days to a sunnier clime.
Meantime, the courts plod along this week in their pedestrian way — Spring Break or no. It’s a gray, showery, thunder-stormy week here in most of Mississippi, so you Breakers have the right idea, I guess.
When I practiced law, I often pointed out that I had the liberty to take off as much time as I wished, but with the realization that I didn’t get paid if I did not work. Or, as another lawyer put it when he was asked by his wife, “Why don’t you take off a week and take me on a trip?” He responded, “And which week will you go without eating?”
Anyway, best wishes to all you Breakers — with child and childless alike. We know you’re having a wonderful time. Wish we were there.
A Most Aptly-Named Case
March 10, 2015 § 6 Comments
Be sure to file this away to include in your next appellate brief. It’s a quote from the recent COA case, Bell v. Stevenson, at ¶ 10, decided February 17, 2015:
The Supreme Court of Mississippi has previously stated that the appellate court “is not required to address any issue that is not supported by reasons and authority.” In re B.S., 105 So. 3d 1120, 1122 (¶9) (Miss. 2013).



















