The Supreme Court of Ohio has suspended a Cuyahoga County attorney for two years, with 18 months stayed, partly due to his felony conviction for using his client’s settlement funds to pay his own expenses.
In a per curiam opinion, the Supreme Court suspended Robert Smith III of Beachwood. The Court found Smith violated several professional conduct rules by withholding settlement funds he received for a client for two years and misappropriating money owed to a medical center that treated many of his clients.
Justices Patrick F. Fischer, R. Patrick DeWine, Michael P. Donnelly, Melody Stewart, and Joseph T. Deters joined the opinion. Chief Justice Sharon L. Kennedy concurred in part and dissented in part, advocating for an indefinite suspension. Justice Jennifer Brunner did not participate in the case.
The Cleveland Metropolitan Bar Association filed a complaint against Smith in 2023 with the Board of Professional Conduct based on his most recent ethics violations. Smith had been previously suspended 30 years ago after being convicted in 1993 in federal court for theft of government property. He was suspended for two years and reinstated to practice law in 1995.
In 2014, Wilma Javey hired Smith to file a personal injury lawsuit against a Cincinnati area transit authority after she fell on a bus. Smith filed the lawsuit in March 2016. Nearly three years later, Javey agreed to settle the case for $12,000.
Smith deposited the settlement check into his client trust account and sent Javey a statement showing deductions of $3,996 for legal fees and another $840 in expenses. Javey contested the fee as excessive and requested an itemized list of services provided.
Smith sent her a list but did not give her any of the settlement funds initially. She filed a grievance against him. In April 2021, more than two years after the settlement, Smith agreed to waive his fee and provided Javey with the full $12,000.
Authorities investigated the use of Javey's funds while they were in Smith’s client trust account. Smith admitted that the account balance dropped below what he proposed to pay Javey because he used it to cover business and personal expenses.
He was indicted in January 2022 for grand theft related to retaining her settlement funds and spending them on personal purposes. He pleaded guilty to fourth-degree felony theft and entered a diversion program that allowed him to avoid incarceration but placed him on one year of community control.
Smith also withheld payments owed to Chagrin Medical Center from settlements involving four clients between 2017 and 2019, instead using those funds for personal expenses. The center's owner filed a grievance against him in 2020; by April 2021, Smith paid Chagrin $10,108 to cover these costs.
During his disciplinary hearing, when asked why he misappropriated these funds, Smith responded that he "guessed" it was out of desperation as he was "trying to stay afloat."
The bar association and Smith stipulated that he violated several rules including failing to keep client funds separate from his own property, not promptly delivering owed funds to clients or others, and engaging in conduct involving dishonesty or fraud.
The board recommended suspending Smith for two years due partly to his prior conviction and suspension from the '90s; however, both parties suggested placing less emphasis on this older conviction. They proposed suspending him for two years with an 18-month stay under certain conditions including monitored probation if reinstated.
The Court agreed with this recommendation requiring six hours of continuing legal education on managing a law office and client trust account along with no further misconduct during probation if reinstated.
Smith must also bear the costs associated with disciplinary proceedings.
Case reference: Cleveland Metro Bar Assn v. Smith (Slip Opinion No.: 2024-Ohio-4502).