On Monday, April 24, 2023, the Presiding Disciplinary Judge of the Supreme Court of Arizona issued an order to reprimand attorney Leila L. Hale as a form of reciprocal discipline based on the earlier sanction imposed by the Supreme Court of Nevada against the same for her failure to promptly disburse client funds.
The case is entitled “In the Matter of Leila L. Hale,” and was brought by the State Bar with case no. 2023-9021.
On February 17, 2023, the Supreme Court of Nevada publicly reprimanded the respondent for violating the safekeeping of property and terminating or declining representation rules by failing to promptly disburse client funds. Specifically, the respondent’s violations are based on her prematurely taking of attorney fees from client funds held in trust and failing to promptly disburse the remaining funds held in trust after negotiating all the relevant medical liens.
The Nevada Order states:
“The violation of RPC 1.16 is based on Hale’s continued failure to disburse remaining settlement funds after the client terminated her. The panel concluded that Hale acted knowingly, but that she caused little to no actual or potential harm. It found, based on the party’s stipulation, two aggravating factors (prior disciplinary offenses and substantial experience in the practice of law) and four mitigating factors (full and free disclosure to disciplinary authority or cooperative attitude toward disciplinary proceeding, character or reputation, imposition of other penalties or sanctions, and remorse).”
The Nevada Order continues:
“The State Bar also argues that Hale violated RPC 1.5(a), which prohibits attorneys from charging or collecting an unreasonable fee, based on language in her retainer agreement regarding payment of fees following the client’s termination of Hale. The record, however, supports the hearing panel’s conclusion that Hale did not use that provision to collect an unreasonable fee in the matter at issue. We, therefore, agree with the hearing panel that Hale did not violate RPC 1.5.”
The Nevada Order further states:
“We conclude that the most serious violation is Hale’s failure to safe keep the property, a violation of RPC 1.15(a). We further conclude that she acted negligently, rather than with knowledge, and that her actions violated duties owed to her clients and to the profession. We agree with the State Bar that Hale caused actual injury with the potential for further injury because her misconduct deprived her client of access to and use of funds to which the client was entitled to more than two years.”
The Nevada Order additionally notes:
“Accordingly, we hereby publicly reprimand attorney Leila L. Hale for violating RPC 1.15 (safekeeping property) and RPC 1.16 (terminating or declining representation) by failing to promptly disburse client funds. The State Bar shall comply with SCR 121.1.”
In lieu of the said discipline of the respondent in the State of Nevada, State Bar in Arizona filed a timely response recommending that a reprimand be imposed as well against the same in the State of Arizona. The respondent has not asserted any claim that the imposition of the same that was imposed in Nevada would otherwise be inappropriate. For the reasons stated, the court decided to reprimand the respondent.
The Disposition states:
“IT IS ORDERED that Leila L. Hale, Bar No. 033212, is reprimanded for her conduct in violation of the Arizona Rules of Professional Conduct.”
As of today, Ms. Hale is listed in the Hale Injury Law firm as a practicing attorney. She practices in Henderson, Nevada. She is licensed in Nevada. Her info can be found on lawyers.justia.com.
A copy of the original filing can be found here.
