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In the Circu it Court for P rince Geo rge's Cou nty Case No. CAE07-15239 IN THE COURT OF APPEALS OF MARYLAND Misc. Docket AG No. 14 September Term, 2007

ATTORNEY GRIEVANCE COMMISSION v. MICHAEL F. TAYLOR

Bell, C.J. Harrell Battaglia Greene Murphy Eldridge, John C. (Retired, specially assigned) Raker, Irma S. (Retired, specially assigned), JJ.

Opinion by Raker, J.

Filed: September 4, 2008

The Attorney Grievance Commission of Maryland filed a petition with this Court for disciplinary action against Michael F. Taylor, alleging violations of the Maryland Rules of Professional Condu ct. The Commission charged respondent with violating (1) Md. Rule 16607 Commingling of Funds, 1 as well as the following Maryland Lawyers' Rules of Professional Condu ct: (2) Ru le 1.15 S afeke eping P roperty, 2 (3) Rule 8.1 Bar Admission and

1

Maryland Rule 16-607 provides as follows:

"a. Ge neral pr ohibitio n. An attorney or law firm may deposit in an attorney trust account only those funds required to be deposited in that account by Rule 16-604 or permitted to be so deposited by section b. of this Rule. b. Exceptions. 1. An attorney or law firm shall either (A) deposit into an attorney trust account funds to pay any fees, service charges, or minimum balance required by the financial institution to open or maintain the accou nt, including those fees that cannot be charged against interest due to the Maryland Legal Se rvices Co rporation F und pursu ant to Rule 16-610 b 1 (D ), or (B) enter into an agreem ent with the financial institution to have any fees or charges deducted from an operating account maintained by the attorney or law firm . The attorney or law firm may de posit into an attorney trust account any funds expected to be advanced on behalf of a client and expected to be reimburse d to the attorn ey by the client. 2. An attorney or law firm may deposit into an attorney trust account funds belonging in part to a client and in part presently or potentially to the attorney or law firm. The portio n belongin g to the attorn ey or law firm shall be withdrawn promptly when the attorney or law firm becomes entitled to the funds, but any portion disputed b y the client shall remain in th e accoun t until the dispute is resolved. 3. Funds of a client or be neficial owner may be pooled and commingled in an attorney trust account with funds held for other clients or beneficial owners."
2

The version of Rule 1.15 in effect at the time the violation occurred read as follows:

"(a) A lawyer shall hold property of clients or third persons that is in a lawyer's possession in connection with a representation separate from the (continued...)

Disciplinary

Matters,

3

(4)

Rule

8 .4

Misco nduct,

4

(...continued) lawyer's own pro perty. Funds sh all be kept in a separate account maintained pursuant to Title 16, Chapter 600 of th e Maryland Rules. O ther proper ty shall be identifie d as suc h and a pprop riately safe guarde d. Complete records of such account funds and of other property shall be kept by the lawyer and shall be preserved for a period of five years after termination of the representation. (b) A lawyer may deposit the law yer's own funds in a client trust account for the sole purpose of paying bank service charges on that account, but only in an amount necessary for the purpose. (c) Unless the client gives informed consent, confirmed in writing, to a different arrangement, a lawyer shall deposit into a client trust account legal fees and expenses that have been paid in advance, to be withdrawn by the lawyer only as fees are earned or expenses incurred. (d) Upon receiving funds or other property in which a client or third person has an interest, a lawyer s hall promptly notify the client or third person. Except as stated in this Rule or otherwise permitted by law or by agreement with the client, a lawyer shall p romptly delive r to the client or third person any funds or other property that the client or third person is entitled to receive and, upon request by the client or third person, sha ll promptly render a full accounting rega rding suc h pro perty. (e) When in the course of representation a lawyer is in possession of property in which two or more per sons (one of who m may be th e lawyer) claim interests, the property sh all be kept separate by the lawyer until the d ispute is resolved. The lawyer shall promptly distribute all portions of the property as to which interests are not in dispute."
3

Rule 8.1 provides as follows:

"An applicant fo r admission or reinstatem ent to the bar, or a lawyer in connection with a bar admission application or in connection with a disciplinary ma tter, shall not: (a) knowingly make a false statement of material fact; or (b) fail to disclose a fact necessary to correct a misapprehension (continued...) 2

(5) Rule 1.3 Diligence,5 (6) Ru le 1.4 C omm unicatio n,

6

(7) Rule 1.5 Fees,7 (8) Rule 3.2

(...continued) known by the person to have arisen in the matter, or know ingly fail to respond to a lawful demand for information from an admissions or disciplinary au thority, except that this rule does not require disclosure of inform ation otherwise protected by Rule 1.6."
4

Rule 8.4 provides as follows:

"It is professional misconduct for a lawyer to: (a) violate or attem pt to violate the Maryland Lawyers' Rules of Professional Condu ct, knowin gly assist or induc e another to do so, or do so through the acts of another; (b) commit a criminal act th at reflects adversely on the lawyer's honesty, trustworthiness or fitness as a lawyer in other respects; (c) engage in conduct involving dishonesty, fraud, deceit or misrepresentation; (d) engage in conduct that is prejudicial to the administration of justice; (e) knowingly manifest by words or conduct when acting in a professional capacity bias or prejudice based upon race, sex, religion, national origin, disability, age, sexual orientation or socioeconomic status when such action is prejudicial to the administration of justice, provide d, howe ver, that legitim ate advocacy is not a violation of this paragraph; (f) state or imply an ability to influence improperly a government agen cy or official or to achieve results by means that violate the Maryland Lawyers' Rules of Professional Conduct or other law; or (g) knowingly assist a judge or judicial officer in conduct th at is a violation of applicable rules of judicial conduct or other law."
5

Rule 1.3 provides as follows:

"A lawyer shall act with reasonable diligence and promptness in representing a client." 3

6

Rule 1.4 provides as follows:

"(a) A law yer shall: (1) promptly inform the client of an y decision or circumstance with respect to which the client's informed consent, as defined in Rule 1.0(f), is required by these Rules; (2) keep the c lient reasona bly informed about the status of the matter; (3) promptly comply with reasonable requests for information; and (4) consult with the client about any relevant limitation on the lawyer's conduct when the lawyer knows that the client expec ts assistance not permitted by the Maryland Lawyers' Rules of Professional Conduct or other law. (b) A lawyer sh all explain a m atter to the extent reaso nably necessa ry to permit the clien t to mak e inform ed dec isions re gardin g the rep resenta tion."
7

Rule 1.5 provides as follows:

"(a) A lawyer shall not mak e an agreemen t for, charge, or collect an unreasonable fee or an unreasonable amount for expense s. The fac tors to be considered in determining the reasonableness of a fee include the following: (1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perfo rm the legal serv ice p rope rly; (2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment of the lawyer; (3) the fee customa rily charged in the locality for similar legal services; (4) the amount involved and the results obtained; (5) the time limitatio ns impose d by the client or by the circumstances; (6) the nature and length of the professional relationship with the client; (7) the experie nce, reputatio n, and ability of the lawyer or lawyers performing the services; and (8) wheth er the fee is f ixed or con tingent. (continued...) 4

Expediting Litigation,8 and (9) Rule 3.4 Fairness to Oppo sing Party and Counse l.9 Pursuant

(...continued) (b) The scope of the representation and the basis or rate of the fee and expenses for whic h the client w ill be respons ible shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation, except w hen the lawyer will charge a regularly represented client on the same basis or rate. Any changes in the basis or ra te of the fee or expen ses shall also b e comm unicated to the client. (c) A fee may be contingent on the outcome of the matter for which the service is rendered, except in a matter in which a contingent fee is prohibited by paragraph (d) or other la w. A co ntingent fe e agreem ent shall be in a writing signed by the client and shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue to the lawyer in the event of settlement, trial or appeal; litigation and other expenses to be deducted from the recovery; and whether such expenses are to be deducted before or after the contingent fee is calculated. The agreement must clearly notify the client of any expenses for which the client will be responsible whether or not the client is the prevailing party. Upon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement stating the outcome of the m atter, and , if th ere is a rec overy, showing the remittance to the client and the method of its determination. (d) A law yer shall not ente r into an arran gement f or, charge, o r collect: (1) any fee in a do mestic relation s matter, the payment or amount of which is contingent upon the securing of a divorce or custody of a child or upon the amount of alimony or support or property settlement, or upon the amount of an award pursuant to Md. Code, Family Law Article,

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