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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Car
olina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
print version appearing in the North Carolina Reports and North Carolina Court of Appeals Reports, the latest print version is to be consid
ered authoritative.
FINESSE G. COUCH, Individually and as Administratrix of the
Estate of Carnell Simmons Couch, Plaintiff v. PRIVATE DIAGNOSTIC
CLINIC and DUKE UNIVERSITY, Defendant
No. COA00-1032
(Filed 6 November 2001)
1. Attorneys--attorney misconduct--sanctions--standard of review
The proper standard for appellate review of the propriety of a trial court's sanctions
imposed upon an attorney for violations of the Rules of General Practice for the Superior and
District Courts and the Rules of Professional Conduct is abuse of discretion.
2. Attorneys--attorney misconduct--sanctions--attorney fees--inherent power of trial
court
The trial court had authority to order plaintiff's attorney to pay attorney fees for her
violations of the Rules of General Practice for the Superior and District Courts and the Rules of
Professional Conduct even though no statutory authority exists for the imposition of fees,
because the trial court has inherent authority to sanction attorneys for misconduct including the
imposition of attorney fees.
3. Appeal and Error--appealability--issue previously decided by Supreme Court
Although a pro hac vice attorney contends she was denied due process of law when our
Supreme Court determined that she was in violation of the Rules of General Practice for the
Superior and District Courts and the Rules of Professional Conduct even though the Supreme
Court allegedly failed to give her notice or an opportunity to be heard on the issue, the Court of
Appeals is not at liberty to revisit issues previously decided by our Supreme Court and the only
issue properly before the Court of Appeals is whether the trial court's imposition of sanctions
was proper and appropriate as mandated by the Supreme Court.
4. Attorneys--misconduct--sanctions--attorney fees--customary fee for like work
Although the trial court did not abuse its discretion by imposing various sanctions on an
attorney admitted in this state pro hac vice based on the attorney's misconduct concerning her
characterization of the veracity of defense witnesses and opposing counsel during her closing
argument to the jury in a medical malpractice action, the record does not provide ample basis for
determining whether the trial court's sanction of $53,274.50 in attorney fees is error because it
cannot be held that it is reasonable to require opposing counsel to reimburse attorney fees that are
not objectively reasonable based upon a determination of what is customarily charged for such
services in the profession.
Appeal by Maria P. Sperando, attorney for plaintiff, from
orders entered 31 March 2000 and 1 June 2000 by Judge Catherine C.
Eagles in Durham County Superior Court. Heard in the Court of
Appeals 15 August 2001.
McMillan, Smith & Plyler, by Stephen T. Smith, for appellantMaria P. Sperando.
North Carolina State Bar, by Carolin Bakewell; Attorney
General Roy A. Cooper, III, by Assistant Attorney General
Staci Tolliver Meyer, for the State.
HUNTER, Judge.
Appellant Maria P. Sperando (Sperando) appeals an order of
the trial court imposing sanctions for her violations of the North
Carolina Rules of General Practice for the Superior and District
Courts and the Rules of Professional Conduct. For reasons set
forth herein, we reverse and remand on the issue of attorney's
fees, but affirm the remainder of the trial court's order.
Sperando, an attorney licensed to practice in Florida and New
York, was admitted pro hac vice to represent Finesse G. Couch
(Couch), the plaintiff in the underlying medical malpractice
action against Private Diagnostic Clinic and Duke University
(collectively defendants). During trial, Sperando was delivering
her closing argument to the jury when she made several statements
regarding the veracity of the defense witnesses and opposing
counsel.
Sperando characterized defense witnesses and opposing counsel
as liars approximately nineteen times during her closing argument,
including such statements as, defense witnesses came up here and
told lies. In your face lies; '[t]here is nothing worse than a
liar because you can't protect yourself from a liar. . . . [T]hese
people, and all the doctors that they paraded in here who told you
lie, after lie, after lie'; '[t]hey lied to your face, blatantly.
They didn't care. They tried to make fools of everybody in thecourtroom'; . . . '[t]hat's not even -- that's not shading the
truth . . . . How is that not a lie? How is that not a lie?';
'[s]o you see, when I say a lie, okay, I want the record to
reflect that I mean a lie'; . . . 'how do you think that they
intend to get out from under all these lies?'; '[t]his is another
blatant lie'; '[defense counsel] parade[d] these witnesses in one
after another and lied to your face. I mean, they were not even
smooth about it.' Couch v. Private Diagnostic Clinic, 133 N.C.
App. 93, 97, 515 S.E.2d 30, 34-35, affirmed, 351 N.C. 92, 520
S.E.2d 785 (1999).
Sperando also questioned the veracity of defense counsel in
front of the jury, referring to all of the lies that defense
witnesses told and defense counsel . . . 'knew before [the
witnesses] put their hands on the Bible that they were going to
tell those lies and [defense counsel] put them up anyway. That's
heavy. That's a heavy accusation.' Id. Defense counsel made one
initial objection to Sperando's statements, which objection was
overruled by the trial court.
At the close of the trial, the jury returned a verdict in
favor of Couch. Defendants appealed. This Court reversed as to
Private Diagnostic Clinic on an unrelated issue. See Couch, 133
N.C. App. at 104, 515 S.E.2d at 39. A divided panel affirmed the
verdict against Duke University despite its argument that
Sperando's conduct was prejudicial and required the granting of a
new trial. Id. All three judges expressed concern over Sperando's
conduct, with the dissent taking the position that Duke Universitywas entitled to a new trial as a result of Sperando's grossly
improper conduct. Id. at 105, 515 S.E.2d at 39.
Duke University then appealed to our Supreme Court on the sole
ground that Sperando's conduct was prejudicial to the defense,
requiring a new trial. The Supreme Court evenly split on the issue
of remanding the case for a new trial, thereby allowing this
Court's decision to affirm to stand without precedential value.
See Couch v. Private Diagnostic Clinic, 351 N.C. 92, 520 S.E.2d
785. However, a unanimous Supreme Court characterized Sperando's
conduct as grossly improper. Id. at 93, 520 S.E.2d at 785. The
Supreme Court determined that the trial court had erred in failing
to sustain defense counsel's initial objection or to subsequently
intervene ex mero motu to prevent Sperando's conduct. Id. A
unanimous Supreme Court concluded:
Furthermore, this Court, being of the
opinion that plaintiff's counsel's conduct
violated Rule 12 of the General Rules of
Practice for the Superior and District Courts
and was not in conformity with the Rules of
Professional Conduct, remands this cause to
the trial court for the determination of an
appropriate sanction.
Id.
On remand, a hearing was held on 9 February 2000. The judge
from the original trial testified that Sperando appeared to be
professional throughout the trial. He also stated that he did not
sustain the objection to Sperando's comments because he did not
think that her conduct constituted a violation of any rule.
On 31 March 2000, the trial court entered an order imposing
sanctions against Sperando. However, on 30 May 2000, the trialcourt entered an order withdrawing the 31 March 2000 order on its
own motion. In the trial court's order of withdrawal, it noted
that during the hearing, Sperando testified under oath that the
only time she had ever been disciplined by a court or a state bar
for improper conduct was when she was late once and that was the
only time. In its order of withdrawal, the trial court found that
Sperando and her attorney had failed to disclose a 9 December 1999
order from the Superior Court of Guilford County which found
Sperando to be in violation of several rules, including the Rules
of Professional Conduct. The order from Guilford County determined
that Sperando had conducted herself in a reprehensible manner in
wilful violation of [the rules], and concluded that her pro hac
vice status in that case must be revoked.
On 1 June 2000, the trial court entered an amended order
sanctioning Sperando. The trial court's order, which included
twenty-seven pages of extensive and thorough factual findings,
authority, and conclusions, imposed the following sanctions upon
Sperando: (1) a censure; (2) revocation of her pro hac vice status
to represent Couch; (3) a partial reimbursement to Duke University
for its attorney's fees in the amount of $53,274.50; (4)
reimbursement to Couch for any costs she incurred in defending the
appeal to the Supreme Court; (5) withdrawal from any cases pending
in North Carolina in which Sperando represented clients, and a one
year suspension of Sperando's ability to practice pro hac vice in
North Carolina; (6) the requirement that Sperando report the order
as an Order of Discipline when required to do so; (7) therequirement that prior to again being admitted to practice in the
State pro hac vice, Sperando attend continuing legal education
classes, and attach a copy of the court's order and an affidavit
showing compliance with the order to any motion to appear pro hac
vice in North Carolina for the next five years; (8) that its order
be delivered to the state bars of Florida and New York; and (9)
that Sperando file an affidavit with supporting documentation by 14
July 2000 establishing her compliance with the order. Sperando
appeals.
We address the following issues in this appeal: (1) the
appropriate standard of appellate review of the trial court's order
of sanctions; (2) Sperando's argument that the trial court was
without authority to impose attorney's fees as a sanction; (3)
Sperando's argument that she was denied due process of law when the
Supreme Court determined her to be in violation of the Rules of
General Practice and Rules of Professional Responsibility; (4)
Sperando's argument that the trial court's imposition of sanctions
was excessive and disproportionate; and (5) Sperando's argument
that the trial court's findings and conclusions are not supported
by sufficient evidence.
I. Standard of Review
[1]The State argues that the proper standard for this Court's
review of the propriety of the trial court's sanctions is abuse of
discretion. Sperando argues that this Court must sit as one of
original jurisdiction on such issues. Indeed, it does not appear
that this Court or our Supreme Court has clearly determined theproper standard for appellate review of the propriety of a trial
court's sanctions imposed upon an attorney for violations of the
General Rules of Practice for the Superior and District Courts and
the Rules of Professional Conduct. However, we find instructive
existing case law applicable to the review of sanctions imposed
under our Rules of Civil Procedure, and in cases involving the
trial court's exercise of its inherent authority.
In general, this Court exercises
de novo review over whether
to sanction an attorney under Rule 11 of our Rules of Civil
Procedure.
Page v. Roscoe LLC, 128 N.C. App. 678, 680, 497 S.E.2d
422, 424 (1998). However, once it is determined that sanctions
were proper, . . . 'we must review the actual sanctions imposed
under an abuse of discretion standard.'
Id. at 680, 497 S.E.2d at
424 (quoting
Dodd v. Steele, 114 N.C. App. 632, 635, 442 S.E.2d
363, 365,
disc. review denied, 337 N.C. 691, 448 S.E.2d 521
(1994));
see also,
e.g.,
VSD Communications, Inc. v. Lone Wolf
Publishing Group, 124 N.C. App. 642, 644-45, 478 S.E.2d 214, 216
(1996).
It is equally well-established that the propriety of sanctions
imposed for violation of discovery orders or other rules violations
is reviewed for abuse of discretion.
See State v. Weeks, 322 N.C.
152, 171, 367 S.E.2d 895, 906 (1988) (although trial court not
required to impose any sanctions for abuse of discovery orders,
what sanctions to impose, if any, is within the trial court's
discretion);
see also,
e.g.,
Crutchfield v. Crutchfield, 132 N.C.App. 193, 195, 511 S.E.2d 31, 33-34 (1999);
Hursey v. Homes By
Design, Inc., 121 N.C. App. 175, 177, 464 S.E.2d 504, 505 (1995);
Goss v. Battle, 111 N.C. App. 173, 177, 432 S.E.2d 156, 159 (1993).
Moreover, a trial court's revocation of an attorney's ability
to practice
pro hac vice is reviewed under an abuse of discretion
standard.
Smith v. Beaufort County Hosp. Ass'n., 141 N.C. App.
203, 540 S.E.2d 775 (2000),
disc. review denied, 353 N.C. 381, 547
S.E.2d 435,
affirmed, 354 N.C. 212, 552 S.E.2d 139 (2001). In
Smith, this Court recognized that the plain language of N.C. Gen.
Stat. § 84-4.2 (1999) (allowing summary revocation of
pro hac vice
status), gives the trial court discretion to summarily revoke an
attorney's ability to practice
pro hac vice.
Id. at 210, 540
S.E.2d at 780. We stated that the express language of N.C. Gen.
Stat. § 84-4.2 allows a superior court judge the authority and
discretion to summarily revoke an earlier order granting
pro hac
vice admission pursuant to § 84-4.1.
Id.
Most importantly, the proper standard of review for an act of
the trial court in the exercise of its inherent authority is abuse
of discretion. In
Chambers v.
NASCO, Inc., 501 U.S. 32, 115 L. Ed.
2d 27,
reh'g denied, 501 U.S. 1269, 115 L. Ed. 2d 1097 (1991), the
United States Supreme Court stated, [w]e review a court's
imposition of sanctions under its inherent power for abuse of
discretion.
Id. at 55, 115 L. Ed. 2d at 52.
North Carolina case law is equally clear that the exercise ofa court's inherent authority is reviewed for abuse of
discretion.
See,
e.g.,
State v. Golphin, 352 N.C. 364, 391, 533 S.E.2d 168, 190
(2000),
cert. denied, 532 U.S. 931, 149 L. Ed. 2d 305 (2001);
In re
Buck, 350 N.C. 621, 625, 516 S.E.2d 858, 861 (1999);
State v.
Warren, 347 N.C. 309, 324-25, 492 S.E.2d 609, 617 (1997),
cert.
denied, 523 U.S. 1109, 140 L. Ed. 2d 818 (1998).
Sperando relies upon three cases for the proposition that our
proper standard of review is one of original jurisdiction. Upon
close review, however, each of these cases is distinguishable from
the present case. Two such cases cited by plaintiff,
In re
Robinson, 37 N.C. App. 671, 247 S.E.2d 241 (1978), and
In re Dale,
37 N.C. App. 680, 247 S.E.2d 246 (1978), arose out of the same
factual background and contain identical language pertinent to the
issue before us.
In those cases, however, we determined that the trial judge
erred in failing to recuse himself from hearing the merits of the
disciplinary proceedings, and we vacated the trial court's order of
discipline in both cases.
Robinson, 37 N.C. App. at 679, 247
S.E.2d at 246;
Dale, 37 N.C. App. at 685, 247 S.E.2d at 249. Once
the trial court's order of discipline was vacated, this Court
invoked its own inherent authority to review,
de novo, the merits
of the disciplinary proceeding to prevent the need for remanding
the case for a new hearing.
Robinson, 37 N.C. App. at 679, 247
S.E.2d at 246;
Dale, 37 N.C. App. at 685, 247 S.E.2d at 249. A
close reading of
Robinson and
Dale reveals that this Court neverreviewed the underlying order, but elected to exercise its own
inherent authority. We were therefore well within our authority in
those cases to review the imposition of sanctions
de novo.
We do not find such cases instructive in the instant case.
There are no allegations that the trial court's order in this case
is affected by judicial misconduct, nor are there other factors
which would require that the order be vacated. Unlike
Robinson and
Dale, we must review the order entered by the trial court.
Nor do we find instructive
Swenson v. Thibaut, 39 N.C. App.
77, 250 S.E.2d 279 (1978)
, appeal dismissed and disc. review
denied, 296 N.C. 740, 254 S.E.2d 181 (1979), upon which Sperando
also relies. This Court in
Swenson did not review the propriety of
a trial court's imposition of sanctions. Rather, we reviewed,
de
novo, whether the trial court correctly found that no ethical
violations of the Code of Professional Responsibility occurred.
Id. at 108, 250 S.E.2d at 299. Such a review is consistent with
the standard we enumerated above as applied to Rule 11 of the Rules
of Civil Procedure.
See Page, 128 N.C. App. at 680, 497 S.E.2d at
424. To the extent
Swenson cites and relies upon
Robinson and
Dale, we re-emphasize again that those cases did not involve review
of an underlying disciplinary order, but rather, the exercise of
this Court's own inherent authority.
In sum, Sperando has failed to cite persuasive authority for
the proposition that this Court sits as one of original
jurisdiction when reviewing the propriety of disciplinary sanctionsimposed by a trial court. To the contrary, the case law involving
our Rules of Civil Procedure and the exercise of the court's
inherent authority to discipline attorneys indicates that such a
review warrants an abuse of discretion standard. Therefore, we
review the trial court's order of sanctions in this case for abuse
of discretion.
II. Attorney's Fees as a Sanction
[2]Sperando argues that the trial court's sanction of
attorney's fees was error because the trial court did not have
express statutory authority to impose fees in this context.
Although we agree with Sperando that no statutory authority exists
for the imposition of fees here, we nevertheless hold that the
trial court had authority to order Sperando to pay attorney's fees
for her violation of the Rules of General Practice for the Superior
and District Courts and the Rules of Professional Conduct.
In its order, the trial court addressed the issue of its
authority to impose attorney's fees as a sanction. The trial court
noted that the general rule requires express statutory authority
for the imposition of attorney's fees; however, as the trial court
noted, the court has inherent authority to sanction attorneys for
misconduct, which sanctions may include the imposition of
attorney's fees, irrespective of statutory authority.
All courts are vested with inherent 'authority to do all
things that are reasonably necessary for the proper administration
of justice.'
State v. Buckner, 351 N.C. 401, 411, 527 S.E.2d
307, 313 (2000) (citations omitted);
See Beard v. N.C. State Bar,
320 N.C. 126, 129, 357 S.E.2d 694, 696 (1987). Inherent power isthat which a court necessarily possesses irrespective of
constitutional provisions. . . . Such power may not be abridged by
the legislature and is essential to the court's existence and the
orderly and efficient administration of justice.
Buckner, 351
N.C. at 411, 527 S.E.2d at 313.
This Court has the inherent power to deal with its
attorneys.
Beard, 320 N.C. at 130, 357 S.E.2d at 696 (holding
trial court has authority to order attorneys to make payments to
Client Security Fund). 'The power is based upon the relationship
of the attorney to the court and the authority which the court has
over its own officers to prevent them from, or punish them for,
committing acts of dishonesty or impropriety calculated to bring
contempt upon the administration of justice.'
Id. (quoting
In re
Burton, 257 N.C. 534, 542-43, 126 S.E.2d 581, 587-88 (1962)).
In
In re Hunoval, 294 N.C. 740, 744, 247 S.E.2d 230, 233
(1977), our Supreme Court noted that this inherent authority
encompasses not only the power but also the duty to discipline
attorneys, who are officers of the court, for unprofessional
conduct.
Id. (citing Canon 3B(3), N.C. Code of Judicial Conduct).
Unprofessional conduct subject to this power and duty includes
'misconduct, malpractice, or deficiency in character,' . . . and
'any dereliction of duty except mere negligence or mismanagement.'
Id. (quoting
Burton, 257 N.C. at 542, 126 S.E.2d at 587). Even
absent an express grant of authority . . . trial courts have
inherent authority to impose sanctions for wilful failure to comply
with the rules of court.
Few v. Hammack Enter., Inc., 132 N.C.App. 291, 298, 511 S.E.2d 665, 670 (1999) (holding trial court
has
inherent authority to sanction parties for violation of Rules of
Mediation);
see also Cloer v. Smith, 132 N.C. App. 569, 573, 512
S.E.2d 779, 782 (1999) (trial court retains inherent authority to
impose sanctions for discovery abuses beyond those enumerated in
Rules).
In
Robinson, 37 N.C. App. at 676, 247 S.E.2d at 244, this
Court noted that the inherent power of the court to discipline
attorneys includes the imposition of monetary sanctions:
There is no question that a Superior
Court, as part of its inherent power to manage
its affairs, to see that justice is done, and
to see that the administration of justice is
accomplished as expeditiously as possible, has
the authority to impose reasonable and
appropriate sanctions upon errant lawyers
practicing before it. Sanctions available
include citations for contempt, censure,
informing the North Carolina State Bar of the
misconduct, imposition of costs, suspension
for a limited time of the right to practice
before the court, suspension for a limited
time of the right to practice law in the
State, and disbarment.
Id. (citations omitted);
see also, e.g., Daniels v. Montgomery Mut.
Ins. Co., 320 N.C. 669, 674, 360 S.E.2d 772, 776 (1987)
([s]imilarly, we hold it to be within the inherent power of the
trial court to order plaintiff to pay defendant's reasonable costs
including attorney's fees for failure to comply with a court
order).
In
Chambers, 501 U.S. at 44, 115 L. Ed. 2d at 44, the United
States Supreme Court reaffirmed that all courts have inherent
authority to punish lawyers for . . . 'disobedience to the ordersof the Judiciary, regardless of whether such disobedience
interfered with the conduct of trial.'
Id. (quoting
Young v.
United States ex rel. Vuitton et Fils S.A., 481 U.S. 787, 798, 95
L. Ed. 2d 740 (1987)). It further stated that [a] primary aspect
of that discretion is the ability to fashion an appropriate
sanction for conduct which abuses the judicial process, including
the assessment of attorney's fees.
Id. at 44-45, 115 L. Ed. 2d
at 45.
In
Chambers, the United States Supreme Court reviewed the
propriety of the trial court's imposition of sanctions in the
amount of the opposing party's full attorney's fees for the
attorney's bad faith conduct. The Court determined that the trial
court's imposition of attorney's fees as a sanction for the
attorney's misconduct was not an abuse of discretion and was a
proper exercise of the court's inherent authority.
Id. at 55, 115
L. Ed. 2d at 52. We likewise hold that the trial court here had
the inherent authority to impose attorney's fees as a sanction for
Sperando's misconduct.
III. Due Process
[3]Sperando next argues that she was denied due process of
law when the Supreme Court determined that she was in violation of
the Rules of General Practice and the Rules of Professional Conduct
because the Supreme Court failed to give her notice or an
opportunity to be heard on the issue. This Court is not at
liberty to revisit issues previously decided by our Supreme Court.
State v. Stephenson, 144 N.C. App. 465, 478, 551 S.E.2d 858, 867,
appeal dismissed and disc. review denied, 354 N.C. 227, 554
S.E.2d
829 (2001)
. On the remand of a case after appeal, the mandate of
the reviewing court is binding on the lower court, and must be
strictly followed, without variation and departure.
Collins v.
Simms, 257 N.C. 1, 11, 125 S.E.2d 298, 306 (1962) (Parker, J.,
concurring in the result);
see also,
D & W, Inc. v. Charlotte, 268
N.C. 720, 722, 152 S.E.2d 199, 202 (1966).
The issue of whether Sperando violated the Rules of General
Practice and the Rules of Professional Conduct has already been
determined by our Supreme Court. The only issue properly before
this Court is whether the trial court's imposition of sanctions was
proper and appropriate, as mandated by the Supreme Court.
IV. Extent of Sanctions Imposed
[4]Sperando next maintains that the trial court's order must
be reversed because the sanctions imposed are excessive and
disproportionate to other sanctions that have been imposed in this
State for similar misconduct. Again, we review the trial court's
order for abuse of discretion. An '[a]buse of discretion results
where the court's ruling is manifestly unsupported by reason or is
so arbitrary that it could not have been the result of a reasoned
decision.'
State v. Fowler, 353 N.C. 599, 620, 548 S.E.2d 684,
699 (2001) (quoting
State v. Hennis, 323 N.C. 279, 285, 372 S.E.2d
523, 527 (1988)).
The sole basis for Sperando's argument is that she cannot
locate another case from this State wherein such severe sanctions
have been imposed for similar misconduct. We agree with Sperandothat there may not exist another case from this State wherein an
attorney has received such harsh sanctions for similar conduct.
However, the fact that no other court has imposed like sanctions
for such behavior does not mandate a conclusion that the trial
court has abused its discretion in ordering such sanctions here.
Our Supreme Court has expressly rejected an identical argument in
the context of attorney discipline.
See State Bar v. Frazier, 269
N.C. 625, 636, 153 S.E.2d 367, 374,
cert. denied, 389 U.S. 826, 19
L. Ed. 2d 81 (1967).
In
Frazier, the appealing attorney had been suspended from the
practice of law for one year for corrupt and unprofessional
conduct. Our Supreme Court noted:
[The appealing attorney] complains that he has
been singled out for prosecution; that others
have been guilty of unethical conduct who have
not been punished or who have not received as
severe punishment as did he, and, in effect,
because all have not been prosecuted and
punished, he should not be.
It is possible that others have not been
apprehended, but if in the effort to enforce a
high standard of conduct and ethics the
Council should be required in each case to
show the facts and results in every similar
case it had investigated, the inquiry would go
on endlessly.
This is equivalent to the position that
until all murderers, robbers, and other
criminals have been convicted and punished,
the remainder, even though their guilt is
clearly established, should not be either.
The fallacy of this position is apparent from
a statement of his contentions.
Id. As stated in section .0100 of our State Bar Rules (Discipline
and Disability of Attorneys): Discipline for misconduct is not inten
ded
as punishment for wrongdoing but is for the
protection of the public, the courts, and the
legal profession. The fact that certain
misconduct has remained unchallenged when done
by others, or when done at other times, or
that it has not been made the subject of
earlier disciplinary proceedings, will not be
a defense to any charge of misconduct by a
member.
R. N.C. St. B. B.0101, 2001 Ann. R. (N.C.) 317, 343.
Moreover, the recent trend in policing the legal profession
more strictly renders prior case law on these issues less
instructive. As our Supreme Court recently observed:
We have viewed with concern the apparent
decline in civility in our trial courts. This
Court shall not tolerate, and our trial courts
must not tolerate, comments in court by one
lawyer tending to disparage the personality or
performance of another. Such comments tend to
reduce public trust and confidence in our
courts and, in more extreme cases, directly
interfere with the truth-finding function by
distracting judges and juries from the serious
business at hand. We admonish our trial
courts to take seriously their duty to insure
that the mandates of Rule 12 are strictly
complied with in all cases and to impose
appropriate sanctions if they are not.
State v. Rivera, 350 N.C. 285, 291, 514 S.E.2d 720, 723 (1999).
The most significant of the court's sanctions in this case are
the immediate revocation of Sperando's ability to practice
pro hac
vice in North Carolina in all pending cases and for one year, and
the order that she partially reimburse Duke University for
attorney's fees in the amount of $53,274.50.
It is well-established that the '[a]dmission of counsel in
North Carolina
pro hac vice is not a right but a discretionary
privilege.'
Smith, 141 N.C. App. at 209, 540 S.E.2d at 779 (quoting
Leonard v. Johns-Manville Sales Corp., 57 N.C. App.
553,
555, 291 S.E.2d 828, 829 (1982)). Such a right is permissive and
subject to the sound discretion of the Court.
State v. Hunter,
290 N.C. 556, 568, 227 S.E.2d 535, 542 (1976),
cert. denied, 429
U.S. 1093, 51 L. Ed. 2d 539 (1977)).
Further:
The right to appear
pro hac vice in the courts
of another state is not a right protected by
the Due Process Clause of the Fourteenth
Amendment. The Federal Constitution does not
obligate state courts to grant out-of-state
attorneys procedural due process in the grant
or denial of their petition for admission to
practice
pro hac vice in the courts of the
state.
In re Smith, 301 N.C. 621, 630, 272 S.E.2d 834, 840 (1981)
(citations omitted). The purpose of the statutes governing an
attorney's ability to be admitted
pro hac vice 'is to afford
[North Carolina] courts a means to control out-of-state counsel and
to assure compliance with the duties and responsibilities of
attorneys practicing in this State.'
Smith, 141 N.C. App. at 209,
540 S.E.2d at 779 (citation omitted).
Under N.C. Gen. Stat. § 84-28, attorneys admitted to practice
pro hac vice are subject to the same disciplinary jurisdiction of
this State as are attorneys licensed to practice here. That
statute provides that a violation of the Rules of Professional
Conduct of this State shall be grounds for discipline, including
disbarment or [s]uspension for a period up to but not exceeding
five years. N.C. Gen. Stat. § 84-28(b), (c)(2) (1999). Clearly,
N.C. Gen. Stat. § 84-28 contemplates that an attorney admitted topractice
pro hac vice in this State may be suspended
8; from doing
so for an extended period of time.
See also,
Robinson, 37 N.C.
App. at 676, 247 S.E.2d at 244 (sanctions available against
attorneys practicing in North Carolina include suspension for a
limited time of the right to practice before the court, [and]
suspension for a limited time of the right to practice law in the
State). Moreover, N.C. Gen. Stat. § 84-4.2, providing courts with
the ability to summarily revoke an attorney's
pro hac vice status,
in no way limits a court's ability to do so, simply stating that
the court may revoke the status on its own motion and in its
discretion. N.C. Gen. Stat. § 84-4.2.
The trial court here examined in detail a variety of possible
sanctions it could impose upon Sperando. The court enumerated
various factors it considered in deciding to suspend Sperando from
the ability to practice in this State for one year. The trial
court weighed possible sanctions in light of all of the evidence
and the Court's duty to protect the public and the administration
of justice. The Court, having observed Sperando as a witness
during the hearing, noted that it had serious concerns about Ms.
Sperando's continued representation of clients in North Carolina,
in light of her repeated[] and reckless[] violation of clear
North Carolina rules without any inquiry into whether her conduct
was appropriate, and her lack of candor before the court.
The trial court also explained in detail its concern that
[Sperando] in the future will disregard North Carolina rules when
she does not agree with them, and that [h]er testimony and herconduct further demonstrate that she does not fully understand or
appreciate the problems caused by [her conduct]. It further
noted:
The Court has considered whether lesser
sanctions and shorter time frames would be
sufficient and has determined that they would
not. The Court has further considered
additional sanctions and longer time frames
but in view of the fact that Ms. Sperando did
apologize in open court, the serious effect
[of] her well-publicized misconduct has no
doubt already had on her reputation, the other
mitigating factors reflected in this Order,
and the other requirements of this Order, the
Court finds that further sanctions would be
unduly harsh for these violations and would
serve no reasonable purpose. The Court has
further considered a different mix of
sanctions and time frames and finds that the
sanctions imposed, taken together, are
appropriate under all the circumstances.
(Footnote omitted.)
We emphasize that Sperando does not have a right to practice
pro hac vice in this state. Her ability to do so is a privilege,
the granting of which is entirely within the discretion of the
court. Under N.C. Gen. Stat. § 84-28, attorneys practicing in this
state, including those admitted
pro hac vice, may be suspended from
practice for up to five years for a violation of the Rules of
Professional Conduct. The trial court's order in this case is
comprehensive in its examination of the applicable law, and in its
examination of all of the evidence, including equitable factors in
favor of Sperando. We discern no abuse of the trial court's wide
discretion in this matter.
With respect to the sanction of $53,274.50 in attorney's fees,
the trial court found as follows: The Court finds that the attorneys' fees
incurred by [Duke University] on appeal of
this case were reasonable given the amount of
the verdict and the seriousness of the issue;
those fees total almost $190,000. A
substantial issue before the Court of Appeals
and the only issue before the Supreme Court
was whether Ms. Sperando had broken the rules
in her closing argument, which Ms. Sperando
did not concede and indeed strenuously
contested . . . . Thus, most of [Duke
University's] attorneys' fees on appeal were
incurred as a direct result of Ms. Sperando's
unethical and unprofessional behavior. . . .
The Court will require Ms. Sperando to pay to
[Duke University] the sum of $53,274.50, which
the Court finds to be the minimum amount spent
by [Duke University] on attorneys' fees
related to proceedings before the Supreme
Court and this Court in connection with Ms.
Sperando's misconduct.
(Footnote omitted.)
Although the trial court specifically found that [t]here is
no evidence before the Court that these fees were not incurred or
that they were unreasonable, the record does not provide ample
basis for determining whether the trial court's finding is in
error. The only supporting evidence in the record is the affidavit
of Niccolo A. Ciompi, a member of Duke University's Counsel staff,
who opined that the fees incurred by the University were
reasonable. While we do not doubt that these fees were actually
incurred by Duke University, or that the University may view such
amounts as reasonable, we cannot hold that it is reasonable to
require opposing counsel to reimburse for attorney's fees that are
not objectively reasonable based upon a determination of what is
customarily charged for such services in the profession. As this
Court has noted in other contexts, an award of attorney's fees
usually requires that the trial court enter findings of fact as tothe time and labor expended, skill required, customary fee for like
work, and experience or ability of the attorney based on competent
evidence.
See,
e.g.,
Porterfield v. Goldkuhle, 137 N.C. App. 376,
378, 528 S.E.2d 71, 73 (2000).
Ciompi's affidavit was accompanied by twenty-two pages of
invoices charged to the University by the law firms of Maxwell,
Freeman and Bowman, P.A. and Robinson, Bradshaw & Hinson, P.A., in
connection with the University's single-issue appeal to the Supreme
Court. The bills submitted by Maxwell, Freeman and Bowman, P.A.
clearly detail the work performed in connection with the appeal,
and particularly time spent on each task, totaling approximately
$8,000.00. However, the bills submitted by Robinson, Bradshaw &
Hinson, P.A., provide only a total amount due for services
rendered. Although the bills detail the dates on which particular
tasks were performed, the bills do not contain any information
regarding how much time was spent on any particular task, what rate
was charged for the performance of such tasks, how many attorneys
performed work on the matter, nor how much money was actually
charged for each task. The bills only list total sums owed by Duke
University, totaling approximately $48,000.00, including
approximately $42,526.00 in attorney's fees, $4,720.52 in
computerized research, and $452.52 in other expenditures.
The trial court in this case failed to make any findings of
fact regarding the reasonableness of the fees charged to Duke
University on appeal to the Supreme Court in light of what is
customarily charged for similar services. Nor does the record
allow us to determine the exact origin of approximately $42,526.00of fees charged to Duke University. The absence of such findings
and evidence is especially troubling in light of the substantial
amount of attorney's fees charged to Duke University for their
appeal to the Supreme Court on the sole issue of Sperando's jury
argument, an issue previously briefed and argued by the parties
before this Court.
We therefore reverse the trial court's imposition of
$53,274.50 in attorney's fees and remand for a new hearing on this
issue, with a focus on the exact amounts charged to Duke University
for particular legal services, and whether the amounts charged for
these services are objectively reasonable based upon the custom of
the profession for the providing of similar services.
We have reviewed the remaining sanctions imposed upon
Sperando, such as the censure, the requirement that she report the
order as an Order of Discipline when required to do so, her
reimbursement to Couch for any expenses she incurred as a result of
the appeal to the Supreme Court, and that the order be delivered to
the state bars of Florida and New York. We conclude that the
ordering of these sanctions was within the trial court's authority
and that the trial court did not abuse its discretion in doing so.
These assignments of error are overruled.
V. Sufficiency of the Evidence
In her final argument, Sperando contends that the trial
court's findings of fact and conclusions of law are not supported
by sufficient evidence. We have carefully examined the record
before us and conclude that, with the exception of the court's
imposition of attorney's fees, the evidence was sufficient tosupport the trial court's findings of fact, which findings in turn
support its conclusions of law.
We hereby affirm the trial court's imposition of all sanctions
against Sperando except the requirement that she reimburse Duke
University for its attorney's fees in the amount of $53,274.50. We
remand to the trial court for a new hearing on the issue of
attorney's fees.
Affirmed in part; reversed and remanded in part.
Judges TYSON and SMITH concur.
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