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Valentino J. Panizzut (WSBA No. 23074, admitted 1993), of North Carolina, has been disbarred by order of the Supreme Court effective June 20, 2001, following a stipulation. The discipline is based upon dishonest conduct, failing to properly preserve client funds, and charging an excessive fee in 1995 through 1998.
Matter 1: In 1995, Mr. Panizzut agreed to work for a law firm. His compensation was based on a percentage of the fees from the cases assigned to him, with a larger percentage if he brought the case into the office. The firm policy required Mr. Panizzut to advise his employer of client matters he opened, so that a client number and ledger could be prepared. Mr. Panizzut was required to deposit all client funds into the firm trust account.
In March 1999, the employer terminated Mr. Panizzut and reviewed his client files. During this review, the employer discovered at least 17 client files in which Mr. Panizzut had kept fees for himself, while the clients believed that the money would be applied to their fee obligation to the firm. Mr. Panizzut admitted keeping some of the fees, but disputed others, and returned $9,004.82 to the firm.
Matter 2: In 1996, Mr. Panizzut agreed to represent a client in a Labor and Industries (L&I) claim. In October 1997, L&I awarded the client $22,725.47. L&I mailed two checks totaling $6,156.88 to Mr. Panizzut in October and November 1997. The checks were made out to the client and Mr. Panizzut. Mr. Panizzut signed both his and the client’s name and deposited the checks into a separate trust account he established. He did not inform the client that he had received the funds and retained them as his fee. This amount is higher than the statutorily allowed fee in these cases.
In December 1997, Mr. Panizzut sent the client $1,011.86 he received from L&I. In August 1998, Mr. Panizzut sent a letter to L&I withdrawing an appeal, requesting a lump-sum payment, and changing the mailing address to his own address. On September 23, 1998, Mr. Panizzut deposited the $15,556.73 lump-sum payment into his trust account. When the client called to ask about her funds, Mr. Panizzut did not tell her he had received the payment. Instead, he offered to loan her money. In March 1999, the client contacted L&I and found out about the payment. She contacted the employer, who confronted and terminated Mr. Panizzut. In October 1999, the court set reasonable attorney’s fees in the case at $0.00. The employer notified Mr. Panizzut of this finding in December 1999.
Matter 3: In 1996, Mr. Panizzut agreed to represent a client in an L&I matter. In 1997, he represented the same client in a criminal matter. In October 1998, the client signed a power of attorney, so that Mr. Panizzut could handle some of his affairs while he was incarcerated. Mr. Panizzut arranged for the client’s pension checks to be deposited into Mr. Panizzut’s trust account; the pension fund directly deposited $1,532 into this trust account. Mr. Panizzut removed $766 without the client’s permission. The pension fund learned that Mr. Panizzut had left the area and reversed the last two monthly deposits. Mr. Panizzut also opened checking and savings accounts in the client’s name. Mr. Panizzut transferred $1,108 from the client’s savings account to his personal checking account without authorization. The source of this money was not established.
Mr. Panizzut’s conduct violated RPCs 8.4(c), prohibiting dishonest conduct; 1.14(a), requiring lawyers to preserve clients’ funds and to pay these funds promptly upon request; and 1.5(a), requiring lawyers’ fees to be reasonable.
Joanne Abelson represented the Bar Association. Mr. Panizzut represented himself.
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