In re Discipline of Laprath

After Tom Laprath became disabled, his former wife, Gwendolyn Laprath (plaintiff), represented Tom in disability-benefits proceedings before the Social Security Administration (SSA). Once Tom started receiving social security benefits, Gwendolyn acted as his representative payee and was responsible for managing those benefits in Tom’s best interest. However, Gwendolyn used Tom’s benefits, without his consent, to compensate herself for representing Tom in the SSA proceedings. Tom and Gwendolyn did not have a fee agreement, and Tom did not consent to Gwendolyn paying herself from his benefits. Subsequently, Gwendolyn used Tom’s benefits to retain herself to file a petition to appoint herself as Tom’s guardian and conservator. The court temporarily granted the petition ex parte, pending a hearing. When Tom received a copy of the ex parte order, he retained Rick Johnson to challenge the guardianship petition. Gwendolyn wrote to Johnson alleging she was owed over $15,000 in attorney’s fees in connection with the guardianship petition. In Johnson’s response, he stated that Tom was not incompetent and challenged Gwendolyn’s alleged fees. Johnson also pointed out that Gwendolyn had a significant conflict of interest because she was simultaneously (1) acting as Tom’s representative payee, (2) seeking to be appointed as Tom’s involuntary guardian and conservator, and (3) seeking to collect disputed legal fees from Tom. Regardless, Gwendolyn continued to work on the guardianship petition and continued to pay herself from Tom’s social security benefits. Johnson filed a motion to set aside Gwendolyn’s appointment as temporary guardian and conservator, which was granted. Johnson then filed a formal complaint against Gwendolyn with the disciplinary board (defendant) for misconduct. Gwendolyn had a lengthy prior disciplinary record. The disciplinary board found that Gwendolyn had violated her fiduciary duties to Tom and recommended disbarment. Gwendolyn appealed, arguing that her actions as Tom’s representative payee and attorney were within her discretion and therefore impervious to discipline.