State ex rel. Oklahoma Bar Association v. Watkins

Chris Chaney hired attorney Brandon Watkins (defendant) after Chaney’s wife, Jeannie, died in a car accident. At the time of her death, Jeannie had one adult child and two minor children. Chaney was entitled to one-half of Jeannie’s estate, and her children were entitled to one-sixth each. The matter ultimately settled for $100,000. Watkins deposited the settlement funds into his client trust account in June 2014. After some delay, Watkins paid Chaney and Jeannie’s adult child out of the settlement proceeds. In June 2015, Chaney terminated Watkins. Although Chaney asked Watkins to pay the remaining heirs, Watkins did not do so. In November 2016, Chaney filed a grievance against Watkins with the Oklahoma Bar Association (bar) (plaintiff), at which time Watkins still had not paid Jeannie’s minor children the settlement proceeds to which they were entitled. Watkins never set up separate trust accounts for the minor children. Between July 2014 and February 2017, Watkins made numerous withdrawals and payments from his client trust account, including paying two loans on which he was the debtor and repeatedly transferring money to his personal account. Following an investigation, the bar filed a formal complaint charging Watkins with professional misconduct. Among other things, the bar alleged that Watkins converted or misappropriated client funds when he failed to timely pay the heirs. The bar further alleged that Watkins committed client neglect by, among other things, failing to return phone calls and failing to set up separate trust accounts for the minor heirs as required by Oklahoma law. A trial panel found, by clear and convincing evidence, that Watkins had misappropriated funds and was neglectful. The trial panel recommended a suspension of two years and one day. The matter then came before the Oklahoma Supreme Court.