KENTUCKY BAR ASSOCIATION V. DAVID R. STEELE
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TO BE PUBLISHED
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2009-SC-000246-KB
KENTUCKY BAR ASSOCIATION
4110-10 Ke,
MOVAN
IN SUPREME COURT
V.
RESPONDENT
DAVID R . STEELE
OPINION AND ORDER
On April 29, 2009, the Kentucky Bar Association (KBA) moved this Court
to enter an order directing David R . Steele, whose KBA member number is
88267 and whose bar roster address is 258 Suzanne Way, Florence, Kentucky,
41042, to show cause why he should not be subject to reciprocal discipline
after being publicly censured by the Supreme Court of Tennessee . The KBA
also requested that if such cause be lacking, this Court enter an order in
accordance with SCR 3 .435(4) publicly reprimanding Steele . On August 27,
2009, this Court granted the KBA's request and ordered Steele to show cause
why he should not be subject to reciprocal discipline . Although Steele filed a
response on September 17, 2009, his response failed to show adequate cause
why he should not be subject to reciprocal discipline pursuant to SCR 3 .435(4) .
AC. bvkb-C .
Therefore, this Court grants the KBA's motion and orders that Steele be
publicly reprimanded in this Commonwealth .
Steele was admitted to practice law in this Commonwealth on May 1,
2000 . On February 25, 2009, the Board of Professional Responsibility of the
Supreme Court of Tennessee issued a Public Censure against Steele for
violating Rules of Professional Conduct (RPC) 7.6(b), 1 .8(h), 1 .7(a), 1 .15(b),
1 .5 (c) . Tlie Board's sanction was based on Steele's condl.lct
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representing Billy and Deloris Cadle, both of whom had personal injury
automobile accident claims . During November 2005, Steele accepted a clientreferral from RedSolve, an accident resolution company that was not an
intermediary organization registered with the Tennessee Board of Professional
Responsibility in violation of RPC 7 .6(b) . Steele required Billy and Deloris
Cadle to sign a contract in which Steele prospectively limited his malpractice
liability in violation of RPC 1 .8(h) . Even though both Billy and Deloris had
separate claims, separate medical expenses, and separate settlements, Steele
represented them both despite a potential conflict and distributed their
settlement earnings with a single check in violation of RPC 1 .7(a) . In addition,
Steele failed to safeguard the settlement, disbursing disputed funds in violation
of RPC 1 .15(b) . Specifically, Steele paid the disputed portion of $4,200 to
RedSolve, claiming that it was for subrogation claims to be paid by RedSolve .I
Lastly, Steele did not prepare a written settlement disbursement letter
1 Steele has since reimbursed this $4,200 amount to his clients.
explaining the outcome of the case, the remittance to the client, and the
method of its determination in violation of RPC 1 .5(c) .
If an attorney licensed to practice law in this Commonwealth receives
discipline in another jurisdiction, SCR 3 .435(4) requires this Court to
impose the identical discipline unless Respondent proves by
substantial evidence :
(a) a lack of jurisdiction or fraud in the out-of-state
disciplinary proceeding, or
(b) 1- at misconduct estabiislle d W-----+'isubstant~all jr
different discipline in this State .
Furthermore, SCR 3 .435(5) requires this Court to recognize that a final
adjudication of misconduct in another jurisdiction establishes conclusively the
same misconduct for purposes of a disciplinary proceeding in Kentucky . Here,
four of the five rules Steele violated in Tennessee are nearly identical to the
corresponding Rules of Professional Conduct in Kentucky . RPC 1 .8(h) is
codified in SCR 3 .130-1 .8(h), and RPC 1 .7(a), 1 .15(b) and 1 .5(c) are identical to
SCR 3 .130-1 .7(a), 1 .15(b), and 1 .5(c) respectively. Although the Kentucky
Rules of Professional Conduct do not include a rule exactly like Tennessee's
RPC 7 .6(b), SCR 3 .130-7 .20(2) prohibits a lawyer from giving anything of value
to a non-lawyer for recommending the lawyer's services, and SCR 3.130-3 .4(c)
prohibits a lawyer from "knowingly or intentionally disobey an obligation under
the rules of a tribunal . .
2
."2
This Court notes that per the amendments to the Supreme Court Rules effective
July 15, 2009, the language of SCR 3 .130-3 .4(c) now states that a lawyer is
prohibited from "knowingly disobey[ing] an obligation under the rules of a
tribunal . . . ."
In his response to this Court's show cause order, Steele contends that he
should not be subjected to reciprocal discipline in this case because on October
9, 2007, two years before the Board of Professional Responsibility of the
Supreme Court of Tennessee issued its Public Censure against Steele, the
Inquiry Commission of the KBA ordered that Billy and Deloris Cadle's
complaint filed against Steele in Kentucky be dismissed . Steele argues that the
KBA should not subject him to discipline now because the Kentucky complaint
was dismissed two years ago . However, as the KBA notes, the reason Steele's
complaint was dismissed in Kentucky was so that Tennessee, the state of
primary jurisdiction and where the misconduct occurred, could proceed with
its disciplinary sanctions . Moreover, the Kentucky complaint was dismissed
without prejudice.
Once Tennessee publicly censured Steele, Steele was automatically
subject to reciprocal discipline in Kentucky pursuant to SCR 3 .435(4)
regardless of the fact that the Kentucky complaint had been dismissed . 3
Because Steele has not alleged a fraud or lack of jurisdiction in Tennessee, or
that his misconduct warranted a different discipline in Kentucky, SCR 3 .435(4)
requires this Court to impose reciprocal discipline . Because Steele has been
disciplined by the Board of Professional Responsibility of the Supreme Court of
Tennessee, because Steele's actions are also governed by the Rules of
Professional Conduct in this Commonwealth, and because Steele has not
3 This Court also notes that the original complaint filed against Steele in Kentucky
was styled as KBA File # 15464, whereas the current motion for reciprocal
discipline is KBA File # 17465 .
shown cause why he should not receive reciprocal discipline pursuant to SCR
3 .435(4), this Court grants the KBA's motion and adopts the recommended
discipline of a public reprimand .
Therefore, it is hereby ORDERED that:
l . Pursuant to SCR 3 .435(4), David R . Steele is publicly reprimanded for
his violation of the Tennessee Rules of Professional Conduct and the
Kentucky Rules
of Professional
Conduct.
2 . Pursuant to SCR 3 .450, David R. Steele is directed to pay the costs
associated with this proceeding, if any, for which execution may issue
from this Court upon finality of this Opinion and Order.
All sitting. All concur.
ENTERED: October 29, 2009 .
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