Indianapolis Attorney Suspended for Practicing without a License and Renegotiating Fees

In the Matter of Douglas Krasnoff, Krasnoff was automatically suspended for noncompliance with CLE requirements in Indiana and reciprocal discipline was imposed by the U.S. District Court for the Southern District of Indiana. In 2002, Krasnoff agreed to represent an individual in a claim against their employer.  In exchange, the client agreed to pay Krasnoff a $5,000 retainer fee and would also provide him between 33 to 40 percent of any recovery in the matter as a contingency fee.  The following month after retention, Krasnoff was suspended for noncompliance with CLE requirements.  However, he nevertheless then proceeded to file the lawsuit in the U.S. District Court for the Southern District of Indiana on the behalf of the client.

During the litigation, Krasnoff subsequently charged the client an additional $10,000 “appeal fee” and also charged him $8,000 to add claims to the lawsuit (which were never added).  The lawsuit ultimately settled for $30,000 and the settlement agreement stipulated that Krasnoff receive $20,000 in attorney fees, but the $5,000 retainer was not applied as a credit.  The client never received the $10,000 and subsequently filed a grievance against Krasnoff.

Krasnoff was found in violation of Rule 1.8(a) for renegotiating his fee agreement without advising his client that they should consult with independent counsel. He was also found to have violated rule 5.5(a) for practicing law with a suspended license. As a result of his actions, he was suspended for at least 180 days without automatic reinstatement.

In the Matter of:  Douglas Krasnoff, No. 49S00-1308-DI-517 (Ind. 2017).

Alex Passo and the Patterson Law Firm, LLC handle legal malpractice actions throughout Illinois and Indiana.  If you have a legal malpractice case that you would like to discuss with Alex, you can reach him at (312) 750-1820 or apasso@pattersonlawfirm.com.

ARDC Panel Recommends Suspension of Attorney who Mishandled Clients' Property

An Illinois ARDC Hearing Board Panel slapped a Springfield attorney with a recommendation that she be suspended for at least one year due to her mishandling of client funds.  Specifically, this Springfield attorney was retained in 2016 by a client to help modify a child custody order and was provided a $1,500 retainer.  The attorney deposited these funds in her business account instead of a separate client trust account.  The client asked the attorney on several occasions for a detailed billing statement and update on the case. But, the attorney failed to respond to these requests.  Ultimately, the attorney was fired and failed to return the retainer to the client. 

Similarly, in another matter, the attorney was retained to help modify a visitation and custody order and was paid an advanced fee of $1,500.  The attorney deposited these funds in her business account opposed to a client trust account again.  The panel commented in its report, “[i]t is disturbing that an attorney who has practiced law for more than 30 years and has represented ‘many clients’ has never recognized her need for a client trust account or recognized that the advance payment for fees, such as those made by [these clients] must be deposited into a trust account.”

The hearing board panel also found that the attorney violated Rule 8.4(c) because she lied under oath that she returned the $1,500 retainer to the client in the 2016 matter.  The matter is In re Babette Pauline Salus, 16 PR 127.

Alex Passo and the Paterson Law Firm, LLC handle legal malpractice actions throughout Illinois and Indiana.  If you have a legal malpractice case that you would like to discuss with Alex, you can reach him at (312) 750-1820 or apasso@pattersonlawfirm.com.

ARDC Recommends Suspension of Lawyer Due to His Repeated Failure to Attend Court Hearings

Under Rule 1.3 of the Illinois Rules of Professional Conduct, attorneys have a duty to act with reasonable diligence in the representation of their clients.  It should go without being said; but, once an attorney files their appearance in a matter, they must attend the hearings that are set for the case.  Recently, the ARDC Hearing Board considered whether an attorney committed professional misconduct by neglecting to appear in over six court hearings in an eviction defense case that he was handling.

As a result of the attorney’s failure to diligently defend the case, the ARDC sent the attorney an inquiry letter and subpoena.  The attorney then made a critical mistake in how to handle ethic’s complaints by behaving like an ostrich and ignoring the inquiry and subpoena.  Due to his silence in the proceedings, the ARDC Board recommended that the attorney be suspended for a year and until further order of the Court.

Alex Passo and the Patterson Law Firm, LLC have experience in defending ARDC inquiries and prosecuting legal malpractice actions.  If you have any questions, you can reach Alex at (312) 750-1820 or apasso@pattersonlawfirm.com.

Gary Attorney Arrested for Theft of Client Funds

Attorneys are oftentimes entrusted with handling their clients’ funds.  One of the most egregious breaches of our code of professional conduct is when an attorney intentionally misappropriates client funds.  Unfortunately, it does occur.

On June 19, 2017, the Indiana State Police arrested Gary attorney Ruth Batey for allegedly stealing her clients’ funds.  The Police state that Batey settled a personal injury case on the behalf of two Gary police officers that were involved in a car crash.  However, she never notified the police offices that she settled the case and kept the proceeds.

Alex Passo and the Patterson Law Firm, LLC have experience handling legal malpractice actions throughout Illinois and Indiana.  If you have a legal malpractice matter, you may reach Alex Passo at (312) 750-1820 or apasso@pattersonlawfirm.com