ILNews

Report issued in UPL claim on trust mill case

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The Indiana Supreme Court has never determined whether the money spent during the prosecution of an Unauthorized Practice of Law claim fits into the "costs and expenses incurred by such a hearing" category, which means that a losing party pays under Administrative Disciplinary Rule 24.

Justices may now have that chance as they consider whether an estate planning company engaged in unlawful legal work.

Presenting an issue of first impression, a special commissioner on Monday submitted an 88-page report to the state's highest court regarding a UPL claim brought by the ISBA last October in a trust mill case, State of Indiana, Ex Rel. Indiana State Bar Association v. United Financial Services, et al., No. 94S00-0810-MS-551.

ISBA initiated the action against estate planning service United Financial Systems in Indianapolis, accusing it of operating a trust mill that engaged in unauthorized practice of law and wrongly collecting more than $1 million from at least five families throughout the state. A total of five counts are made in ISBA's action - one for each person or couple who bought an estate-planning package with United Financial.

In March, Senior Judge Bruce Embrey from Miami Superior Court was brought on as a special commissioner to consider the facts in this case. He held an out-of-court, two-day trial in late May and has now given his findings to the state's justices to determine whether any UPL occurred.

As part of his 266 findings of fact and conclusions of law, Judge Embrey noted that between October 2006 and March 29, 2009, about 0.09 percent of United Financial's total income from all national operations came from estate planning assistance in Indiana; 18.8 percent of the fee income generated nationally came from Indiana estate planning services.

Aside from requests that United Financial permanently stop any UPL in Indiana, ISBA also asks that the Supreme Court order a disgorgement of fees and reimbursement of money collected by the company to those people affected.

Judge Embrey notes that ISBA has never settled a UPL case in exchange for money from an individual or corporation accused of violating the state provisions, and that no costs or fees have been received by ISBA in the course of processing these cases.

In the instant case, ISBA paid about $25,882 to various vendors for copies and transcripts, and paid an attorney who testified in rebuttal to the company's evidence. ISBA also paid $11,093 to Indianapolis law firm Bingham McHale for legal counsel on this case, copies, long-distance phone calls, and other routine office expenses. The report details nearly $36,975 in expenses.

However, Judge Embrey points out that the terms "costs and expenses incurred by such a hearing" in the context of Administrative Disciplinary Rule 24, which are to be paid by the losing party, have not been defined by the court.

"Including the cost to the ISBA of engaging counsel to prosecute a UPL claim pursuant to Rule 24 is a matter of first impression," he wrote.

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  1. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  4. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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