Defense attorney Earl S. Spafford cannot practice law or even work in a law office for now, a judge has ruled.
The veteran lawyer may also be disbarred for his mishandling of client money.Third District Judge William B. Bohling entered an order of immediate interim suspension of Spafford's license last week based on 22 counts of misconduct.
State bar officials accused Spafford of failing to safeguard more than $280,000 that should have gone to clients for personal injury settlements. The money instead covered Spafford's salary and law firm bills, according to a memorandum supporting a motion for interim suspension.
Spafford also "robbed Peter to pay Paul" by giving settlements he received on behalf of some clients to other clients, whose settlements had been misappropriated in the past.
The practices resulted "in devastating and irreparable harm to clients and has inflicted great harm to the legal profession and the administration of justice in Utah," the complaint says.
Spafford argued that none of the clients named in the most recent complaint was represented by him. They worked with Lynn Spafford, Earl Spafford's son and partner who resigned from the bar two years ago amid allegations of massive mishandling of firm finances.
Earl Spafford's defense attorney, Jerry Mooney, said the elder Spafford turned over the practice to his son in 1992 and couldn't have possibly known about the misappropriations.
The judge disagreed and found "by clear and convincing evidence," that Earl Spafford knew or should have reasonably known about the handling of client funds.
"You can't turn a blind eye to the obvious," Bohling said from the bench.
Earl Spafford was the sole signatory on the client trust account and that made him responsible for money that passed through it, the judge noted.
He ordered Spafford to notify the courts and clients of his interim suspension and return any unearned fees to clients. Bohling also enjoined Spafford from being involved in the practice of law, even as a secretary.
"I think this decision helps define the duties of lawyers to safeguard client funds and to assure the public that lawyers who violate trust accounting rules and misappropriate funds will be disciplined," said Stephen R. Cochell, chief disciplinary counsel for the bar.
Spafford can appeal the interim suspension to the state Supreme Court.
The bar may now move for summary judgment on the charges. If granted, a sanctions hearing will be scheduled, which could result in Spafford's disbarment or suspension.