U. S. Trustee v. Darren Delafield, No. 21-1632 (4th Cir. 2023)
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A bankruptcy court imposed sanctions against Defendant. The sanctions arose from an adversary proceeding in the bankruptcy court brought by the United States Trustee against Defendant, UpRight Law LLC, Sperro LLC and other defendants. UpRight is a Chicago-based bankruptcy legal services company that operates through a nationwide network of “local partners.” After Defendant signed a partnership agreement with UpRight, he filed more than 30 bankruptcy cases as a partner. The bankruptcy court also found that Delafield violated Virginia Rules of Professional Conduct 5.1 and 5.3. After the district court affirmed sanctions, Defendant appealed, asserting the sanctions order violated his due process rights.
The court explained that to be sure, a lawyer facing suspension or disbarment is entitled to notice of the charges for which such discipline is sought and an opportunity to be heard on those issues. The court explained that the complaint did not cite to the Virginia Rules of Professional Conduct that Defendant was ultimately found to have violated. Identifying such rules is certainly preferred in an action seeking suspension or disbarment. But this omission did not violate Defendant’s due process rights. The complaint adequately notified Defendant of the conduct for which he was being accused and the sanctions that were being sought.
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