KENTUCKY BAR ASSOCIATION V. STEPHEN P. BASINGER
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ENTERED: AUGUST 23,200l
TO BE PUBLISHED
WITHDRAWN: SEPTEMBER 20,200l
REJSSUED: SEPTEMBER 20,2001
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KENTUCKY BAR ASSOCIATION
V.
COMPLAINANT
IN SUPREME COURT
STEPHEN P. BASINGER
RESPONDENT
OPINION AND ORDER
Respondent, Stephen P. Basinger, whose last known address was 800
Alexandria Pike, Suite 2, Ft. Thomas, Kentucky 41075, was admitted to the practice of
law in the Commonwealth of Kentucky on May 1, 1991. The instant action consolidates
for consideration two separate complaints against Basinger-KBA Files 7615 and 7646.
KBA File 7615
On May 15,2000, the Inquiry Commission issued a two-count charge
against Basinger in connection with his representation of a Mr. and Mrs. Stone in a
case involving a faulty home furnace. The KBA filed charges against Basinger on May
15, 2000. Basinger did not answer the charges. Consequently, on August 25, 2000,
the case was submitted to the Kentucky Board of Governors (Board) by order of the
Inquiry Commission pursuant to SCR 3.210(l) for consideration in its September 22,
2000 meeting. Basinger submitted an answer denying all charges on September 22,
2000. Pursuant to SCR 3.210(3), the Board returned the case to the disciplinary clerk
to appoint a trial commissioner. We appointed a trial commissioner on October 19,
2000.
Thereafter, the appointed trial commissioner entered an order requiring each
party to submit a list of witnesses for the hearing. Basinger did not comply with this
order. The trial commissioner held a pre-hearing conference on November 21, 2000.
At this conference the trial commissioner issued an order requiring the parties to file
pre-trial briefs. Again, Basinger did not comply with this order. The hearing was held
as scheduled on January 25, 2001. Basinger did not attend this hearing. A
continuance was granted and the record was left open to give Basinger an opportunity
to respond to the charges. A supplemental hearing was held March 26, 2001.
Basinger did not attend this hearing and the record was closed on March 30, 2001.
Neither party filed a notice of review of the trial commissioner’s decision within the
thirty-day limit established by SCR 3.360(4). Therefore, we adopt the decision of the
trial commissioner pursuant to SCR 3.370( 10).
The trial commissioner found that: (1) an attorney-client relationship existed
between Basinger and the Stones; (2) the Stones did not have a clear understanding of
the type of fee that Basinger was to receive, viz., whether he was to be paid hourly or
on a contingency basis; (3) that Basinger failed to promptly return the Stones’
telephone calls; and (4) that Basinger failed to inform the Stones that he had filed a
lawsuit on their behalf in the Madison Circuit Court. Based on these facts, the trial
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commissioner concluded that Basinger violated SCR 3.130-A .5(b) by failing to
communicate to the Stones the nature of his fee. The trial commissioner further
concluded that Basinger violated SCR 3.130-I .4(a) by failing to return the Stones’
phone calls and to inform them of the lawsuit filed on their behalf.
The trial commissioner recommended that Basinger be suspended from the
practice of law for sixty days. Neither party filed a notice of review of the trial
commissioner’s report within the thirty-day limit established by SCR 3.370( 10).
Pursuant to SCR 3.370(10), we hereby adopt the trial commissioner’s report and
recommendation.
KBA File 7646
On September 14, 2000, the Inquiry Commission issued a multi-count charge
against Basinger in connection with his representation of a Mr. and Mrs. Reinhardt in a
case involving a lease/option agreement to purchase property located in the Cincinnati,
Ohio, area. Basinger did not answer the charges. The case was then submitted to the
Board as a default case pursuant to SCR 3.210(l). The Board entered its decision
after a hearing on the matter on March 9, 2001. Neither party filed a notice of review
within the thirty-day limit established by SCR 3.360(4). Basinger filed a motion for
extension of time to file his notice of review, which we conditionally granted on May 17,
2001. However, Basinger failed to comply with this order; consequently, the motion
was denied. We therefore adopt the decision of the Board of Governors pursuant to
SCR 3.370( 10) as follows.
In April of 1994, Basinger was hired by Mr. and Mrs. Reinhardt to help them
resolve a conflict with the owners of property they were leasing. Basinger told the
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Reinhardts that he would file suit against the owners on the Reinhardts’ behalf.
Basinger also instructed the Reinhardts to make their monthly payments to him and
informed them that he would hold the monthly payments in escrow until the dispute was
resolved. Basinger did not file the lawsuit and he did not hold the monthly payments in
escrow. Instead, he made the payments to the landowners without the Reinhardts’
knowledge.
In December of 1996, the Reinhardts received a letter from the landowners’
attorney stating that the landowners had not received rental payments for November
and December. Basinger contacted the landowners, instead of the landowners’
attorney, notifying them that he was holding the payments pending resolution of the
dispute. The landowners’ attorney made a settlement offer that Basinger accepted
without consulting or notifying the Reinhardts. Basinger later released the settlement
monies to the Reinhardts when the Reinhardts terminated Basinger as their counsel.
Basinger is charged with seven counts. On count one, the Board found that
Basinger violated SCR 3.130-4.2 by making contact with represented parties he knew
to be represented. On count two, the Board found that Basinger violated SCR 3.1308.3(c) by settling the Reinhardts’ claims without their knowledge and consent. On count
three, the Board found that Basinger violated SCR 3.130-8.3(c) by misleading the
Reinhardts into believing he had filed a lawsuit on their behalf and by misleading the
Reinhardts into believing he had set up an escrow account into which he was placing
the rent money. On count four, the Board found that Basinger violated SCR 3.130-I .3
for failing to act with reasonable diligence in representing the Reinhardts, that Basinger
violated SCR 3.130-I .4 for failing to keep his clients reasonably informed and for failing
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to explain matters so that the Reinhardts could make decisions about their case, and
lastly that Basinger violated SCR 3.130-I .I 5(b) for failing to promptly release the
settlement monies to the Reinhardts. On count five, the Board found that Basinger
violated SCR 1 .I 30-I .5(a) in an unrelated matter involving the Reinhardts’ daughter by
attempting to charge a contingency fee when he had indicated he would charge an
hourly fee. On count six, the Board found that Basinger violated SCR 3.130-8.3(c) by
attempting to charge a contingency fee when he was only entitled to an hourly fee.
Finally, on count seven, the Board found that Basinger violated SCR 3.130-I .5(c) by
failing to have a written contingency agreement. By a vote of 12 to 5, the Board of
Governors voted to recommend a two-year suspension from the practice of law. We
adopt the Board’s findings and recommendation.
Upon the foregoing facts and charges, it is ordered that:
(1) Respondent, Stephen P. Basinger, is hereby suspended from the practice of
law in the Commonwealth of Kentucky for a period of two years in connection with KBA
File 7646, to run consecutively with the sixty-day suspension in connection with KBA
File 7615, and to run consecutively with any and all current suspensions. The period of
suspension shall continue until such time as Basinger is reinstated to the practice of law
pursuant to SCR 3.510, or any controlling amendment to SCR 3.510.
(2) Pursuant to SCR 3.390, Basinger shall provide notice to any clients, if
applicable, he currently represents of his inability to provide further legal services, to
notify all courts in which he has matters pending of his suspension, and to provide the
Director of the Kentucky Bar Association with a copy of all such letters simultaneously
to their mailing.
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(3) In accordance with SCR 3.450 and SCR 3.480(3), Basinger is directed to
pay all costs associated with these disciplinary proceedings against him, said sum
being $961.40. Upon the finality of this opinion, an order of execution may issue from
this Court for said costs.
All concur.
Entered: September20,2001.
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2001-SC-0191-KB
AND
2001 -SC-0484-KB
COMPLAINANT
KENTUCKY BAR ASSOCIATION
V.
IN SUPREME COURT
RESPONDENT
STEPHEN P. BASINGER
ORDER
On the Court’s own motion, the Opinion and Order entered herein on August 23,
2001, is hereby withdrawn and substituted with the Opinion and Order attached hereto.
Modifications, not affecting the holding, were made on several pages to correct
typographical errors.
All concur.
Entered: September20,2001.
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