Preview:

03/28/03 "See News Release 022 for any dissents and/or concurrences

SUPREME COURT OF LOUISIANA NO. 02-B-2974 IN RE: M. DANIEL LAGRONE, JR. ATTORNEY DISCIPLINARY PROCEEDINGS PER CURIAM
This disciplinary matter arises from one count of formal charges filed by the Office of Disciplinary Counsel ("ODC") against respondent, M. Daniel LaGrone, Jr., an attorney licensed to practice law in Louisiana.

UNDERLYING FACTS In the spring of 1994, James and Melanie Hutchinson incurred significant medical expenses resulting from complications of Mrs. Hutchinson's pregnancy and the subsequent premature birth of the couple's son, Kyle. Seeking relief from these and other debts, Mr. and Mrs. Hutchinson retained respondent to institute bankruptcy proceedings on their behalf. On May 23, 1994, respondent filed a Chapter 13 petition on behalf of his clients. In re Hutchinson, No. 94-BK-30513 on the docket of the United States Bankruptcy Court for the Western District of Louisiana, Monroe Division. On June 28, 1994, respondent filed schedules in the bankruptcy case in which Mr. and Mrs. Hutchinson attested that their assets totaled $10,220.00 and their liabilities totaled $73,623.92. The largest liability listed in the bankruptcy schedules was a $57,272.56 unsecured debt owed by the Hutchinsons to St. Francis Medical Center, the Monroe hospital where Mrs. Hutchinson and Kyle were treated. There was no insurance claim disclosed in the bankruptcy schedules as an asset owned by the Hutchinsons; notwithstanding this fact, at the time his wife and son were treated

at St. Francis, Mr. Hutchinson had medical insurance provided through his employer by Blue Cross of Louisiana. St. Francis filed claims with Blue Cross for the medical expenses incurred by Mrs. Hutchinson and Kyle. Blue Cross paid the claims in a series of four checks that were dated June 27, 1994; June 28, 1994; July 1, 1994; and July 26, 1994. However, Blue Cross sent these checks -- which totaled more than $70,000 -- directly to Mr. and Mrs. Hutchinson, rather than to St. Francis, because the hospital had not perfected an assignment of the Blue Cross insurance proceeds. It appears from the record that respondent first learned of the existence of the insurance claim and the Blue Cross proceeds sometime in late July or early August 1994. It is important to note, however, that respondent believed (erroneously) the insurance proceeds were assigned to St. Francis. On August 1, 1994, a representative of St. Francis telephoned respondent's office to inquire about the issuance of the Blue Cross checks to the Hutchinsons. Unfortunately, by this time, Mr. and Mrs.

Hutchinson had already spent several thousand dollars of the money sent to them by Blue Cross. On August 12, 1994, pursuant to respondent's direction, the Hutchinsons delivered the remainder of the insurance proceeds in their possession -- two checks totaling $61,242.56 -- to respondent. Respondent's paralegal gave the checks to the office manager and instructed her to "lock these checks up in a safe place until [respondent] has finalized his attempts and settlements [sic] with the hospital." On August 17, 1994, the Chapter 13 bankruptcy trustee, Paul Davidson, conducted a meeting of creditors (known as a "341 meeting")1 in the Hutchinson case. Mr. and Mrs. Hutchinson appeared at the hearing, and were represented by respondent's associate, Stacy Sessum. The transcript of the 341 meeting reveals that

Conducted pursuant to 11 U.S.C.

Download 2002-B-2974 IN RE: M. DANIEL LAGRONE, JR..pdf

Louisiana Law