People v. Bontrager
People v. Bontrager
Opinion of the Court
OPINION AND DECISION IMPOSING SANCTIONS UNDER C.R.C.P. 251.19(b)
William D. Bontrager (“Respondent”) engaged in misconduct while litigating the oil and gas leases of five separate clients. He failed to act competently during the representations, and he advanced frivolous claims during four of the litigations and four appeals. He.caused his clients considerable financial harm and wasted judicial resources. His misconduct warrants a nine month suspension, 'with the requirement that he pay restitution to his clients before petitioning for reinstatement under C.R.C.P. 251.29(c), if he wishes to resume the practice of law.
I. PROCEDURAL HISTORY
On April 29, 2016, Erin R. Kristofco, Office of Attorney Regulation Counsel (“the People”),
On May 31, 2016, Respondent filed a combined motion to dismiss along with his answer and affirmative defenses, asking the PDJ either to dismiss the People’s complaint in its entirety for failure to state a claim or, in the alternative, to order the People to replead théir complaint with more particularity. On August 15, 2016, the PDJ denied that motion in part as to Respondent’s representation of his five clients. But the PDJ ordered the People to make a prima facie showing under Professional Real Estate Investors, Inc. v. Columbia Pictures Industries, Inc. (“POME”)
During the prehearing phase of this matter, the parties filed numerous motions. The Hearing Board briefly limns these motions as follows:
•On September 23, 2016, the PDJ denied Respondent’s request to continue the hearing, permitted the parties to take six additional depositions,- and ordered the parties to file an advisement to potential hearing board members so they could make an informed decision about recusal.
•On October 26, 2016, the PDJ declined to declare, at Respondent’s request, a Colorado statute unconstitutional; clarified the People’s burden of proof; ruled that the People need not meet the standards set forth in POME for claims involving client representations; and denied Respondent’s request to exclude from evidence all district court orders and appellate opinions in the underlying cases.
•On November 18, 2016, the PDJ granted Respondent an extension of time to exchange with the People his expert witness reports.
•On December 9, 2016, the PDJ ordered the People to give Respondent a bookmarked, searchable CD of the stipulated exhibits and corresponding exhibit list; denied Respondent’s request to continue the hearing; and ordered the parties to present their stipulated exhibits in electronic form.
•On December 20, 2016, the PDJ denied Respondent’s request for sanctions based on his objections to the People’s experts, Thomas H. Shipps and*1242 Thomas P. Dugan. The PDJ also- precluded Respondent’s expert witness H.J. Ledbetter from opining on pure issues of law governing the disciplinary hearing and on certain issues that would not assist the Hearing Board.
•On December 22, 2016, the PDJ denied Respondent’s requests to continue the hearing and to order the- People to bookmark or index each individual document in the proposed stipulated exhibits or to order individual transcripts of the sanctions hearings in the underlying cases.
•On December 27, 2016, the PDJ directed the parties ■ to file a modified trial management- order by January 9, 2017, listing their proposed trial schedule, .and limited the parties’ opening arguments to fifteen minutes • and closing arguments , to twenty-five minutes.
•On January 4, 2017, the PDJ granted Respondent’s request to file a hearing brief in excess of thirty pages ■and struck Respondent’s exhibits to his healing brief, including expert . witness George Miller’s report.
•Before the hearing, the PDJ granted the People’s requests to permit absentee testimony from. Judge David A. Cole, Judge David L. Dickinson, and Judge Jeffrey R. Wilson.
•On January 6, 2017, the PDJ accepted the parties’ stipulation of exhibits 1-980. In so doing, the PDJ ruled that any trial court orders or appellate court opinions would not be admitted for the truth of the matters, asserted therein. ■
•On January 9, 2017, Respondent filed a motion to proceed in forma paupe-rus, asking not to be assessed costs in this disciplinary matter. The People were to file a-response by January 24, 2017, but they did not do so. The PDJ deferred ruling on Respondent’s motion,
On January 10, 2017, the PDJ held> a pre-hearing conference. Kristofco and Ikeler appeared for the People, and Respondent appeared by telephone. The PDJ also ordered the parties to submit a stipulated timeline of events in the underlying litigations, which they did on January 13,2017.
At the January Í7-20 hearing, the "PDJ presided, along with Hearing Board members Lucy Hojo Denson, Esq., and Robert A. Munson, M-D. Kristofco and Ikeler represented the People, and Respondent appeared pro se. During the hearing, the PDJ admitted stipulated exhibits S1-S1009, the People’s exhibit 1010, Respondent’s stipulated exhibits A-H, L, HH, and II, and his nonstipulated exhibits 3, K, OO, and PP, The Hearing Board considered the testimony of the People’s expert witnesses Thomas P. Dugan and Thomas H. Shipps, Respondent, Judge Jeffrey R. Wilson, Judge David L. Dickinson, Judge David A. Cole, Judge David R. Lass, and Respondent’s expert witnesses G. Robert Miller and H.J. Ledbetter.
II. FACTS AND RULE VIOLATIONS
Respondent took the oath of admission and was. admitted to the "bar of the Colorado Supreme Court on March 17, 2004, under attorney registration number 35359. He is thus subject to the jurisdiction of the Colorado Supreme Court and the Hearing Board in this disciplinary proceeding.
Background
Respondent received his J.D. from the University of Indiana in "1966. That same year he was admitted to practice law in Indiana. He opened his own general litigation firm, and his practice included civil litigation, business law, juvenile law, and criminal law. He did not practice in the areas of oil and gas, class actions, or Indian law, though he did settle tort claims. In 1977, Respondent was appointed as an Indiana Superior Court judge. He served until 1982, when he was held in criminal contempt by the Indiana Supreme Court. While a judge,, Respondent
In 1983, Respondent put his Indiana law license on inactive status. - He and his wife moved to Minnesota, where he became the director of a Christian conciliation .ministry service. There, he mediated disputes using secular and biblical principles. He testified that at that time, he was very troubled by. the quality of justice rendered by secular litigation. The couple moved in 1988 from Minnesota to Durango, Colorado, “where they “freelanced” their ministry services, while helping people to resolve conflicts.
The couple moved to Moscow: in 1994 to teach law and English at two universities, where Respondent compared biblical, conflict resolution principles and the laws and legal processes of modern society. He also developed and taught courses in criminal law, contracts, civil procedure, constitutional law, property, and equity. After leaving Moscow, ■ Respondent and his wife lived in various other places abroad before returning to the United States in" 2002 for health reasons.
In 2002, Respondent’s wife’s back “collapsed.” They spent a great deal of time trying to finance medical care, and Respondent decided to return to the practice of law. In 2004, he was admitted as a Coloradp lawyer and opened a solo practice in Duran-go, initially planning to draft wills or practice civil and criminal litigation. But he became intrigued with oil and gas litigation after speaking with three mineral rights owners whom, he believed, were owed royalties from various oil companies. According to Respondent, he successfully settled their cases by attacking the constitutionality of Colorado’s forced pooling statute. Thereafter, he testified, he began to see “a pattern” in which the oil companies failed to develop leaseholds as they were required to do, and he was motivated to assist lessees with these issues.
The People charge Respondent with misconduct in five separate client cases. We address each of the cases below.
The Adams Case
In 1931, Wallace Mollette acquired an undivided l/40th mineral interest (or four mineral acres) in a 160-aere tract of land in- La Plata County.
In the interim, on'August 22, 1960, Mol-lette and the Hathaway Company signed an oil and gas lease that covered Werner’s l/40th interest.
On December 15, 2008, Respondent filed a complaint for Penny Adams and Timothy Werner based on Charles Werner’s unrecorded deed and the 1950 oil and gas lease.
On January 12, 2009, Red Mesa and Madison Capital filed motions to dismiss
All deeds ... or other instruments in writing conveying, encumbering, or affecting the title to real property ... may be recorded in the office of the county clerk and recorder of the county where such real property is situated.... No such unrecorded instrument or document shall be valid against any person with any kind of rights in or to such real property who first records and those holding rights under such person, except between the parties thereto and against those having notice thereof prior to acquisition of such rights. This is a race-notice recording statute.22
On March 10,2009, the court converted the defendants’ motions to dismiss to motions for summary judgment, and ordered the parties to produce evidence that Hathaway had actual knowledge of Werner’s mineral interest.
Instead of submitting such evidence, Respondent filed on August 3, 2009, a cross-motion for partial summary judgment against Terra and Red Mesa.
In late August, the court issued two orders dismissing the case as to all defendants.
The People’s expert witness Dugan testified that when an individual has an interest in real property, that interest-holder must record the document with the applicable county clerk. In Colorado, if instruments conflict, the person who records his or her interest first prevails. Dugan also stated that the race-notice statute does not require a lessee to reexamine title during the terms of the lease, because the lessee is entitled to rely on the recorded title at the time the lease was executed. As Dugan explained, those principles are codified in the race-notice statute.
Dugan went on: when Hathaway and Mol-lette executed and recorded the oil and gas lease in 1950, Werner had not recorded, and thus Hathaway had no knowledge of his interest. According to Dugan, a reasonable lawyer would have applied the race-notice statute to the facts of the clients’ case before bringing claims against the defendants. Du-gan also stated that Respondent’s claims had no basis in the law and were illogical because there is no legal mandate that an oil producer continually recheck title when applying for a new permit, given the race-notice statute. Further, Respondent failed to produce factual evidence to support his constructive or actual notice arguments, Dugan said.
Respondent’s expert H.J. Ledbetter opined, on the other hand, that Respondent’s arguments were not meritless because Hathaway should have conducted a new title search at the time it sought the second permit to drill in a new formation. While Led-better acknowledged that a producer is not legally required to reexamine title under these circumstances, he opined that it is the industry standard for an oil and gas producer to do so. Ledbetter explained that under Respondent’s theory, a producer has a duty to reexamine title because the COGCC’s creation of drilling' spaces and declaration of how many wells can be drilled constitutes a Fifth Amendment taking of a person’s right to compensation for the person’s share of production. As a result, said Ledbetter, a producer is forced to pool any unleased minerals before seeking a drilling permit, and the producer should thus be required to undertake a new title .search if royalties are being paid from a different spacing unit. Although Ledbetter opined that Respondent’s arguments in the underlying case may not have been as “clear” as they could have been, he did not think Respondent’s theory, based on the ancient rule of capture, was frivolous or groundless.
Respondent filed a notice of appeal on October'7, 2009, once again ignoring the race-notice statute.
The Colorado Court of Appeals affirmed the lower court’s decision on June 10, 2010.
Colo. RPC 1.1
The People argue that R'éspondént transgressed Colo. RPC 1.1, which provides that a lawyer shall provide competent representation to a client, when he filed his appeal without adequately analyzing the substantive and procedural aspects of relevant law.
To determine whether a lawyer employs the requisite knowledge and skill in a particular case, we consider the following factors: the relative complexity and specialized nature of the case; the lawyer’s general experience and training in the held in question; the lawyer’s preparation and study; and whether the lawyer feasibly could associate with a lawyer of established competence in the field.
We find that Respondent’s appeal in the Adams case did not meet applicable standards of competence. We make this determination without giving the findings of the court of appeals preclusive effect.
Colo/RPC 3.1
The People’s second claim is premised on Colo. RPC 8.1, which precludes a lawyer from bringing or defending a proceeding, or asserting or controverting an issue therein, unless there is a basis in law and fact for doing so that is not frivolous, which includes a good faith argument for an extension, modification, or reversal of existing law. An objective standard is used to determine whether a lawyer’s claim is frivolous.
We agree with the People that Respondent violated Colo. RPC 3.1. Here, Respondent did not inform himself of the facts of his clients’ case or the applicable law before filing suit, nor did he have any evidence of Hathaway’s actual or constructive knowledge of Werner’s deed. And when he was 'given additional'time for discovery by the district court to produce such evidence, he could not do so.
Colo. RPC 8.4(d)
Last, the People charge that Respondent prejudiced the administration of justice, breaching’ Colo. RPC 8.4(d). According to the People, Respondent transgressed this rule by filing a frivolous complaint and appeal, causing actual injury to his clients, the defendants, , and the courts. We lack persuasive evidence, however, that Respondent’s conduct did indeed affect the judicial system to such a “serious and adverse degree” as to
The Martinez Matter
The Southern Ute Indian Tribe (“the Tribe”) is a federally recognized Indian tribe located on the Southern Ute Indian Reservation in. southwestern Colorado. In 1991, the Tribe, along with Red Willow, an oil and gas company considered a division of the Tribe, brought suit in Colorado federal court against Amoco Production Company, other oil and gas companies, and a class of landowners, among other defendants, to determine the Tribe’s ownership rights to coal seam gas extracted from coal beds on the Tribe’s land (“CBM case”).
According to Shipps, the CBM case eventually settled. Part of the settlement terms included an assignment, from the private oil companies to the Tribe, of a portion of the oil and gas lease mineral rights. In exchange, the Tribe agreed to withdraw its claims against the oil companies. Shipps explained that this settlement agreement also included a waiver of the Tribe’s sovereign immunity in the event of a dispute between the Tribe and the defendant oil companies. Shipps also explained that the Tribe and Red Willow have sovereign immunity, which means that they are immune from suit. According to Shipps, long-standing legal precedent upholds an Indian tribe’s sovereign immunity unless the immunity is clearly abrogated by Congress or is expressly and unequivocally waived by the Indian tribe. In the CBM case, said Shipps, the Tribe did not waive sovereign immunity as to the defendant class members. The relevant language of that settlement agreement provided:
The Tribe specifically surrenders its sovereign power, as to APC [Amoco Production Company], its parent company, BP Amoco p.l.c. and their respective Affiliates, shareholders, successors, and assigns, to the limited extent necessary to permit the enforcement of the terms of this Agreement. ... The Tribe’s limited waiver of sovereign immunity in any legal action arising out of this Agreement shall be further evidenced by a Tribal Resolution in accordance with Tribal Code § 1-1-115, which, among other things, shall expressly provide an exception to Tribal Code § 1-1-111, which states that tribal courts have exclusive original jurisdiction over all matters involving the Tribe, to the extent of the foregoing limited submission to the jurisdiction of the U.S. District Court for the District of Colorado. The Tribal Resolution shall waive any requirement under Tribal Code § 1-1-111 that actions arising under this Agreement be brought in tribal court or that tribal remedies be exhausted.54
In 1946, John Martinez, a landowner in La Plata County, entered into an oil and gas lease, which included certain minei'al rights, with Paul Davis.
On July 7, 2014, after receiving the complaint, Shipps called Respondent and sent him a letter, notifying him that the Tribe and Red Willow had tribal sovereign immunity from suit.
Respondent replied the same day, asking for additional time to review the cited cases.
Shipps wrote Respondent a second letter on July 10, 2014, informing him that an Indian tribe cannot be sued without proper consent from the Tribe.
In a letter dated July 10, 2015, Respondent informed Shipps that he had reviewed Shipps’s cited cases and did not agree with his position.
Seven days later, Respondent moved to dismiss Red Willow but not the Tribe.
On July 21, 2014, the Tribe moved to dismiss for lack of subject matter jurisdiction, claiming it had not waived sovereign immunity as to Respondent’s clients’ claims.
In reply, the Tribe again cited binding Colorado case law, which provided that only Congress or the Tribe can waive the Tribe’s sovereign immunity from suit. The Tribe averred that Respondent had not produced any evidence of an express waiver, instead simply speculating that a waiver must exist somewhere in CBM case documents.
On September 30, 2014, Judge Jeffrey R. Wilson ruled that Respondent had not met his’burden of controverting the Tribe’s sovereign immunity, but he granted Respondent additional time to obtain any CBM-related documents from the federal courts that might demonstrate a waiver of such immunity.
On October 25, 2014, Respondent moved to reconsider the court’s ruling and to request additional discovery to rebut the exhibits the
On January 12, 2015, the court dismissed the case against the Tribe.
The Tribe moved for sanctions under C.R.S. section 13-17-101, arguing that Respondent knew or should have known his clients’ claims were barred by the Tribe’s sovereign immunity, and thus his clients’ claims were frivolous and groundless.
On April 27, 2015, the court.granted.the Tribe’s motion for attorney’s fees without holding an evidentiary hearing.
Respondent testified that he spent hours researching the law of tribal, immunity during the Martinez litigation. He understood, he stated, that a Tribe can only be sued if immunity is abrogated by Congress or expressly waived by the Tribe. But he opined that C&L Enterprises, Inc. v. jCitizen Band Potawatomi Indian Tribe of Oklahoma
Ledbetter, on the other hand, opined that although Respondent could not prove that the Tribe had waived its sovereign immunity, he advanced a legal theory based on a line of cases demonstrating erosion in that area of law. Just because the courts did not agree with Respondent’s position, averred Ledbet-ter, does not mean that Respondent was incompetent or filed a frivolous suit.
Colo. RPC 1.1
The People argue that Respondent violated Colo. RPC 1.1 in this matter by naming the Tribe as a defendant, despite the Tribe’s sovereign immunity. Respondent’s suit against the Tribe, contend the People, was an outgrowth of his inadequate research and his failure to analyze the law of tribal sovereign immunity.
For his part, Respondent stands by the arguments he made in the underlying ease: that the Tribe should not have been permitted to hide behind immunity when it was assigned a share of an oil and gas lease between two nontribal entities; that the Tribe expressly waived its sovereign immunity when it received an interest in the Martinez oil and gas lease from a nontribal entity; and that the Tribe impliedly waived its immunity from suit when it entered into the CBM settlement agreement.
We conclude that the People have proved by clear and convincing evidence Respondent’s incompetence in this matter. Respondent agreed to represent the Martinez family having no prior Indian law experience, yet he did not confer with an experienced practitioner in this area of law before filing suit against the Tribe.
Perhaps realizing that the Tribe would decline to provide proof of a waiver, Respondent crafted an argument that the Tribe had expressly waived its immunity in the Martinez oil and gas lease and when it received an assignment of its interest. When the district court rejected those claims, Respondent scrambled, changing tack and advancing a vague, speculative argument that the Tribe impliedly waived its sovereign immunity. He did so despite lacking supporting evidence and case law. His attempts to distinguish his clients’ case from controlling law were not well developed, articulated, organized, or capable of being understood — either by the district court, by us, or, initially, his own expert.
Finally, lawyers are required to know and follow all applicable rules of procedure.
Colo. RPC 1.4(a) and (b)
We also determine that Respondent violated Colo. RPC 1.4(a), which requires a lawyer to promptly inform the client of any decision or circumstance requiring the client’s informed consent, and Colo. RPC 1.4(b), which requires a lawyer to explain a matter to the extent reasonably necessary to permit the client to make informed decisions. Respondent admitted that he transgressed these rules by failing to advise his clients about the risks of proceeding against the Tribe, and about the possibility that they might be required to pay the Tribe’s attorney’s fees and costs.
Colo. RPC 3.1
Next, we find that the People have proved Respondent’s violation of Colo. RPC
As already discussed, we - must use an objective standard to determine whether Respondent’s suit was frivolous.
We conclude that Respondent failed to reasonably investigate whether he could sue the Tribe — including by researching the law of tribal sovereign immunity — before filing suit against the' Tribe. As a result, he filed a frivolous complaint. Had Respondent informed himself of the governing law, he would have known that he could not sue the Tribe absent an express tribal waiver or a Congressional abrogation. As it stands, Respondent’s complaint was devoid of any factual allegations of sovereign immunity from suit, express waiver, or abrogation; this absence suggests not that Respondent believed it was likely that he could develop evidentia-ry support for his claims after further investigation or discovery, but rather that he did not even know of his burden to show waiver of immunity.
After receiving Shipps’s letters, Respondent attempted to cobble together an argument that the Tribe expressly waived immunity. Yet he lacked facts to advance this argument, as demonstrated by his rather shocking request that Shipps simply hand over any information that would prove tribal waiver. Respondent even asked whether the Tribe would waive its immunity in exchange for refiling the suit in tribal court, an implicit acknowledgment that he lacked even a modicum of factual support for waiver. In our estimation, Respondent at this point was grasping for any evidence to support his claims because he had not adequately investigated the validity of his allegations. Then, after the district court rejected his arguments that the Tribe had expressly waived immunity via the-Martinez oil and gas-.lease or by assigning that lease to the Tribe, Respondent pieced together an implied waiver argument. But that argument was premised neither on facts at hand nor on a cogent legal argument for broadening established federal law to encompass implied waiver theories. The law in this area is clear and has been for a long time. We are not persuaded by Respondent’s analysis of C&L Enterprises, as that case stands for the proposition that a tribe can expressly waive its sovereign immunity from suit through an arbitration clause in a contract.
Colo. RPC 8.4(d)
We do not find,‘however, that the People have demonstrated a violation of Colo. RPC 8.4(d) by clear and convincing evidence. Although Judge Wilson testified that he spent more time on the Martinez case than his other cases, he was not called upon to— and thus did not — elucidate what concrete harm to the administration of justice Respondent’s conduct occasioned. Nor do we find reason to believe that Respondent’s handling of the case affected Judge Wilson’s workload to a serious degree.
The Keith, Watson, and Cugnini Matters
The People also charge Respondent with committing misconduct while he represented the Keith Family Limited Partnership (“the Keith Family”), the Rose L. Watson Revocable Trust (“the Watson Trust”), and Patrick Cugnini (“Cugnini”) in three separate cases and appeals as to these parties’ leases of mineral rights to oil and gas production companies. Because these three cases transpired around the same timeframe and featured nearly identical legal and factual issues, we address them together, largely in chronological order. To place these cases in context, we begin by briefly discussing the relevant law governing oil and gas leases in Colorado. We follow with the Parry and Cugnini settlement agreements, which play integral roles in these three cases. Then, we discuss the relevant pleadings, orders, arguments, and rulings in the district and appellate courts. We conclude by analyzing the alleged rule violations.
Relevant Oil and Gas~ Law
Colorado courts recognize four implied covenants consistent with the expectations of parties to an oil and gas lease: to conduct exploratory drilling, to develop after discovering- resources that can be profitably developed, to operate diligently and prudently, and to protect the leased premises against drainage.
As relevant in this disciplinary case, the covenant to conduct exploratory drilling encompasses the reasonable and prudent operator standard, as measured by standards of the oil and - gas industry.
Whether a lessee has developed the leasehold as a prudent operator rests upon several factual considerations, including geological data, the number and location of drilled wells on the leasehold estate and adjoining property, the productive capacity of the producing well, the cost of drilling operations, the time elapsed between the completion of the last well and the demand for additional operations, and the acreage involved.
To decide whether there has been a breach of the implied covenant to reasonably develop the leasehold, a court must determine whether a reservoir of oil and gas has been found and, if so, whether that reservoir could be developed profitably.
The Parry ’& Cugnini Settlements '
Parry v. Amoco Production Co., n/k/a BP American Production Co., Case number 94CV111, consolidated with 94CV105, in La Plata County District Court, was an oil and gas class action filed in 1994.
In July 1996, the Parry case was certified as a class action under C.R.C.P. 23(a) and (b),
The pertinent terms of the 2005 Parry settlement are as follows:
1.34. ‘Released Parties’ means Defendant, and all other working interest owners or other royalty or overriding obligors in wells situated on lands covered by the Leasehold Estates for whom or on whose behalf Defendant has paid Royalty to members of the Plaintiff Class and/or for whom or on whose behalf Defendant made or makes Settlement Payments to members of the Plaintiff Class on their behalf, including but not limited to ... as well as ... successors and assigns of Defendant and all such other working interest owners or other royalty or overriding royalty obligors.136
1.38. ‘Settled Claims’ means any and all claims, causes of action, demands, rights, and liabilities, of any kind or nature, and any and all claims of breaches of express provisions, breaches of implied covenants, breaches of statutory duties, breaches of common laiv duties, omissions, failures to act, conflicts of interest, tortious acts, intentional acts, negligent acts, grossly negligent acts, acts of unjust enrichment, or any other duties or obligations or claims of damage, including claims for punitive damages, which are based upon, or which could be based upon or arise from, any of the matters alleged on behalf of the Plaintiff Class in the First Amended Complaint in the Action, including the following [sixty-three paragraphs]:
(i) ... (xxiv) failure to operate the Leasehold Estates in good faith and as a prudent operator, (xxv) failure to locate facilities used to gather, compress and treat natural gas produced from the Leasehold Estates in good faith and as a prudent operator, (xxvi) failure to calculate, account for and pay Royalty in good faith and as a prudent operator, (xxvii) the taking of opportunistic advantage of the Class by operating the Leasehold Estates or making decisions in a manner which benefits Defendant and harms the Class ... (xxx) failure to act as a reasonable and prudent operator,.. ,137
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12.5 This Agreement may be amended or modified only by a written instrument signed by or on behalf of all the Settling Parties or their successors in interest.138
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12.7 This Agreement and Exhibits hereto constitute the entire agreement among the Settling Parties,139
As pertinent to this disciplinary proceeding, plaintiff class member Charles N. Keith received $64,430.09
The Hearing Board received testimony offering two different interpretations of the settled claims clause. Dugan stated that section 1.38 was a broad ' release of ’ claims against BP and that the following sixty-three subparagraphs contained limiting language releasing more specific claims against BP. According to Dugan, the plain language of these provisions unambiguously released any claim asserted against BP arising from breach of implied covenants (including the implied duty of good faith'and fair dealing and to act as a prudent operator), which either arose from the first amended complaint in Parry or could have been brought in that complaint,
As Dugan testified, thé parties to this agreement understood that once a released party — -which included successors and assigns — accepted financial payment from BP, that party was enjoined from prosecuting any of the settled claims against BP,
Miller interpreted the settled claims provision in Pany more narrowly than Dugan. According to Miller, during the Parry settlement negotiations BP initially proposed a broad release of claims to include-any conceivable claim against BP,- which Miller viewed as an expansiori of the claims pleaded in the first amended complaint. Miller was concerned that this broad release would require' the plaintiff class to again amend the complaint and recertify the' class claims under C.R.O.P. 23. Thuá,' after somé negotiation, Miller stated, the parties agreed to the current language in the settlement agreement; Miller agreed that section 1.38 was a broad release of' claims but, contrary to Du-gan, he opined' that the sixty-three following subparagraphs _ specifically released only those claims against BP that were factually pleaded in the first amended complaint, e.g., arising from post-production cost deductions and the underpayment of royalties. If the releases were interpreted any more broadly, Miller stated, the plaintiff _. class members would have been deprived of due.process. Thus, according to Miller, for a claim against BP to have been released, the language of the limitation needed to be satisfied, and any claims exceeding that language could go forward in litigation.
In 2007, Respondent represented Cugnini Land, which had opted out of the Parry class action. Cugnini Land' hired Respondent to negotiate a settlement with BP based ón the Parry settlement agreement.
Respondent admitted before the Hearing Board that he had not asked for a copy of or read the terms of the Parry settlement in 2007 before he negotiated the settlement between BP and Cugnini Land, even though Cugnini Land’s settlement expressly incorporated terms from the Parry settlement agreement. Respondent also did not review the notice sent to the class members or Judge Dickinson’s final judgment approving the settlement, nor did he discuss with Miller his interpretation of Parry’s settléd claims before negotiating Cugnini Land’s agreement. Respondent testified that he did not read the settlement agreement because he assumed that the settled claims were limited to BP’s wrongful deduction of post-production costs and underpayment of royalties.
The Keith, Watson, and Cugnini ■ Complaints and Appeals
Charles N. Keith held mineral interests in the San Juan Basin in La Plata County.
The Rose L. Watson Revocable Trust, too, owned real property and associated mineral rights in La Plata County.
Edward and Viola Lipscomb and George Hams entered into an oil and gas lease with the Lama Corporation in 1979 for land in La Plata County known as Tract l.
On February 8, 2010, Respondent filed suit against BP on behalf of the Keith Family (“the Keith case”).
Also on February 8, 2010, Respondent filed a complaint against BP on behalf of the Watson Trust (“the Watson ease”).
Although predecessors of both the Keith Family and the Watson Trust had participated in the Parry settlement, Respondent testified that he did not read the Parry settlement agreement or the final judgment before filing complaints on behalf of those clients. Nor did Respondent consult with Miller— plaintiff class counsel in Parry — about the effect of the Parry settlement.
On March 31, 2010, BP filed three motions in the Keith case to dismiss various claims in Respondent’s complaint.
On May 17, 2010, BP moved to dismiss Respondent’s claims in the Watson case.
On November 10, 2010, Respondent filed a complaint against BP on behalf of Patrick Cugnini (“the Cugnini case”).
On March 25, 2011, Respondent filed a second amended complaint in the Watson case, again asserting thát BP failed to timely and reasonably develop the lease and requesting that the lease be deemed abandoned.
On May 6, 2011, the Cugnini court partially granted motions to dismiss filed by BP.
On June 7, 2011, BP moved for summary judgment in the Keith case.
Respondent failed to respond to BP’s motion for summary judgment in the Keith case. Instead, on July 6, 2011, he moved for additional discovery and to strike BP’s motion for summary judgment, asking to depose BP’s engineer under C.R.C.P. 26(b)(b)(A).
On June 27, 2011, BP moved for summary judgment in the Watson case and asked for an award of attorney’s fees under C.R.S. section 13-17-102.
On July 28, 2011, Respondent filed a .first amended complaint in the Cugnini case, in which he added several parties and included claims that had been previously dismissed a few months before.
On October 25, 2011, the Keith court granted BP’s motion for summary judgment.
On October 31, 2011, Dugan wrote to Respondent, advising him under C.R.C.P. 11 that while preparing discovery he had located a letter dated April 27, 2007, sent from BP’s former counsel to Respondent enclosing a fully executed settlement agreement and a check to Cugnini Land for $46,468.15.
Respondent testified that after receiving this letter in October 2011, he met with Miller for the first time; Miller gave him copies of the public Parry settlement documents, which he also reviewed for the first time. Respondent said that it never crossed his mind to ask Miller whether the plaintiff class members and BP had a meeting of the minds in entering the Parry settlement. Nor did he remember discussing with Miller whether the language in section 1.38 of the Parry settlement barred Keith’s, Watson’s, or Cugnini’s claims against BP. Respondent did not dismiss the Cugnini case as he believed Judge Dickinson’s order in Parry approving the class settlement was void because the released claims exceeded the certified class claims in the amended complaint.
In November 2011, BP moved for summary judgment on Respondent’s remaining claim in Cugnini, arguing that the Cugnini Land and Parry settlements barred Cugni-ni’s claims.
On November 4, 2011, the Watson court granted BP’s motion for summary judgment.
On November 7, 2011, Dugan again wrote to Respondent, notifying him that the Watson Trust’s and the Keith Family’s claims were barred by their predecessors’ participation in the Parry settlement agreement.
Respondent did not dismiss the Keith and Watson cases, Rather, under C.R.C.P. 59 and 60 he moved in the Watson case on November 21, 2011, to correct error, set aside default, and order new trial on summary judgment.
On December 6, 2011, BP moved for sanctions under C.R.C.P. 11 and C.R.S. section 13-17-101 based on the Keith Family’s predecessor’s release of claims in the Parry settlement.
On January 19, 2012, the Watson court denied Respondent’s post-judgment motion and granted Respondent’s request for a sanctions hearing.
On January 23, 2012, the Cugnini court granted BP’s summary judgment motion, determining that the Parry settlement agreement barred Cugnini’s complaint,
On February 20, 2012, Respondent moved under C.R.C.P. 121 section l-22(2)(b) in the Keith case to conduct additional discovery as to whether leasehold development claims were part of the Parry settlement.
On March 1, 2012, Respondent appealed the Watsop court’s summary judgment order and denial. of his request to depose BP’s petroleum engineer.
Respondent moved for an evidentiary hearing in . the Cugnini ease .on March 8, 2012, concerning BP’s request for attorney’s fees and costs.
On March 29, 2012, Respondent moved to compel BP to produce the memorandum of understanding from the Parry settlement negotiations or to dismiss its Parry-based assertions in the Keith case.
On April 16, 2012, the Watson court denied all of Respondent’s pending post-judgment motions.
On June 5, 2012, the Cugnini court awarded BP attorney’s fees against Respondent, individually, for $18,736.25, and the court awarded costs against Respondent and his client jointly and severally for $14,719.36.
On June 27, 2012, the Keith court issued sanctions jointly and severally against Re
Respondent testified that even when faced with the Keith sanctions order, he never believed his claims were frivolous. In fact, he maintained he was making a good faith effort to answer a question for thousands of plaintiff class members as to whether their claims were barred by Parry.
On October 9, 2012, Respondent appealed the Keith court’s award of sanctions based on the release of claims in Parry settlement agreement.
On October 11, 2012, the Colorado Court of Appeals affirmed the Keith court’s grant of summary judgment in a separate appeal filed by Respondent.
On November 15,2012, the Colorado Court of Appeals affirmed the Cugnini court’s summary judgment order and imposition of sanctions.
Respondent filed a reply in the Keith appeal on December 2, 2012, despite an adverse ruling by the same court in Cugnini less than a month prior.
On December 6, 2012, the Colorado Court of Appeals affirmed the Watson court’s summary judgment order.
On, February 28, 2013, the Watson court issued sanctions against Respondent in the amount of $134,573.55 — which he later discharged in bankruptcy — and against his client in the amount of $44,857.85.
Again, Respondent testified that the Watson court’s ruling — even coupled with numerous other adverse rulings — did not cause him to question his analysis of the Parry settlement agreement because he believed the courts had not evaluated the cases he cited or even looked at the first amended complaint in Parry. Respondent agreed that Parry released claims against BP for breaches of the implied covenants, but he testified that he thought that Parry covered a different category of implied covenants, although he did not discuss this theory with Miller or elaborate on it here.
On March 28, 2013, the Colorado Court of Appeals affirmed the Keith court’s award of sanctions, determining that Respondent’s appeal was frivolous and remanding for a determination of BP’s attorney’s fees.
On January.29, 2014, the court of appéals "affirmed the Watson court’s award of sanctions and found that appeal frivolous.
Colo. RPC 1,1
The People allege that Respondent acted incompetently in violation of Colo. RPC 1.1 when he filed the complaints and appeals in the Keith, Watson, and Cugnini matters without having adequately analyzed substantive and procedural aspects of the relevant oil and gas law and without reasonably preparing these three matters.
First, we conclude that Respondent failed to employ the requisite skill, thoroughness, and preparation when he brought the three cases against BP without first reviewing the Parry settlement agreement. Respondent knew about the agreement in 2007 when he negotiated the Cugnini Land settlement, which incorporated the Parry settlement. Respondent also knew that the Keith Family and the Watson Trust were successors of plaintiff class members in Parry. But- Respondent wholly neglected to read the Parry settlement agreement in 2007 or before filing the Keith, Watson, and Cugnini cases in 2010, though he knew that the clients had agreed to release claims against BP. Rather, he chose not to read the Parry settlement until November 2011. We" believe that a reasonable attorney would have reviewed the Parry settlement agreement before determining whether to proceed against BP in the three litigations;
Next, we find that Respondent acted incompetently in all three matters when he filed claims against BP for breach of the implied covenant to develop the leaseholds and for failure to act as a prudent operator. He filed those claims without conducting an adequate investigation and without employing the requisite legal knowledge. For instance, in the Keith and Watson complaints Respondent advanced arguments that were altogether incomprehensible.
Although Respondent may have initially stated sufficient facts in his complaints to satisfy Colorado’s notice pleading requirement and to survive BP’s motions to dismiss, he did not conduct an adequate investigation before filing suit and thereafter failed to discover facts specific to each leasehold to meet his burden. He instead chose to relentlessly pursue these claims without an adequate foundation. Nevertheless, Respondent then demonstrated incompetence when he failed to respond to BP’s motions for summary judgment or to counter BP’s affiant with controverted material facts as required under C.R.C.P. 56.
Further, throughout all three of these cases, Respondent exhibited a flawed understanding of the relevant procedural rules and a failure to recognize the importance of following courts’ instructions.
Lawyers need not have special training or prior experience before agreeing to handle a matter involving an area of law with which the lawyer is unfamiliar.
' We thus conclude the People have’ proved by clear and convincing evidence that Respondent violated Colo. RPC 1.1 in the Keith, Watson, and Cugnini cases.
Colo. RPC 3,1
The People charge Respondent with knowingly violating Colo. RPC 3.1 in the Keith, Watson, and Cugnini cases by advancing meritless claims and contentions in the complaints, in subsequent motions, and on appeal. Although Respondent made numerous arguments and defenses in these cases, we limit our analysis to his claims that BP breached the implied covenant of development by failing to act as a prudent operator, and his defenses to whether the Parry settlement barred his clients’ claims,
As previously discussed, we use an objective standard to analyze whether Respondent’s claims in these three cases were frivolous, A claim is frivolous if the proponent can present no rational argument based on the evidence or law in support of that claim or defense.
■ We conclude the People have proved by clear and convincing evidence that Respondent violated Colo. RPC 3.1 on two grounds in the Keith, Watson, and Cugnini cases. As stated above, Respondent had the burden to prove his clients’ claims that BP breached the implied covenant of reasonable development and failed to act as a prudent operator. Although we do not find that it was frivolous from the outset of these cases for Respondent to have advanced these claims, we do find that he had a continuing obligation to revaluate the factual'predicates of his clients’ claims, yet he failed .to do so. While Respondents factual allegations with respect to these claims were sufficient to survive BP’s motions to dismiss, he- thereafter did not produce the requisite evidentiary support for these claims,- despite, being, given additional time to file amended complaints.
We -credit Dugan’s interpretation of the case law governing breach of the implied covenant of reasonable development and his opinions about how a reasonable lawyer would have litigated these cases. According to Dugan, because profitability is site specific, a reasonable lawyer would have gathered substantial data supporting claims of profitability before filing a breach of implied covenant claim, including by investigating the property and the lands nearby, contacting a scientist or an engineer for an opinion, checking COGCC records, and reading the available scientific literature about the San Juan Basin. Respondent failed to act according to the standards of a reasonable lawyer.
We also reject Respondent’s defense that his clients did not have the burden of proof in these three cases. While testifying before the Hearing Board, Respondent proclaimed his reliance on Whitham Farms and Gillette. But we are not persuaded by Respondent’s interpretation of these cases and disagree that the eases mandate that an oil company has a duty to conduct exploratory drilling in each space on a unit to determine profitability. Whitham Farms is clear that where there is a proven reservoir of oil and gas — as there were in all three of Respondent’s cases — the lessee is required to further develop the lease only when there is a reasonable expectation that one or more new wells would be profitable.
We also do not agree with Respondent that whether his clients had the burden to prove a breach of the implied covenant of reasonable development was an open question in Colorado. Although the Colorado Supreme Court had accepted certiorari in the Whitham Farms case in 2004 to determine, among other issues, whether the Colorado Court of Appeals had erred by holding that the burden of proof is on the lessor to show breach of an implied covenant in an oil and gas lease, the parties to that case settled, and the issue was never resolved by the Colorado Supreme Court.
Next, we determine that it was frivolous for Respondent to file complaints for his three, clients without fully informing himself of the facts of his clients’ cases to determine whether he could proceed with their, claims. Respondent admitted that he failed to read the Parry settlement agreement and to investigate whether Parry precluded his clients’ claims in the Keith, Watson, and Cug-nini matters, acting on.his misguided assumption that Parry did not bar hi's clients’ claims. It appears that Parry never even entered Respondent’s mind until’ BP raised the issue in correspondence with Respondent in fall 2011, We credit Dugan’s expert testimony that a reasonable lawyer would have reviewed Parry before filing any claims against BP on behalf of members of or successors to the Parry plaintiff class, and we find that Respondent should have done so before filing these three cases. Even Respondent’s own expert, Miller, testified that he
Moreover, once Dugan brought the Parry settlement agreement to Respondent’s attention in October 2011, Respondent continued to aggressively pursue his clients’ claims and went so far as to request discovery in an attempt to learn BP’s intent concerning the Parry settlement, contrary to the law governing the confidentiality of settlement negotiations. Respondent never stopped to investigate whether BP might have a valid argument or to investigate Parry further. In fact, he did not choose to read the Parry settlement agreement until November 2011, after the court granted BP’s motion for summary judgment in Keith. Once Judge Dickinson — the same judge who presided over the Parry case and approved the settlement agreement — determined that Parry barred his Cugnini’s claims, it was frivolous for Respondent to continue to make arguments to the contrary in these three cases.
We reject Respondent’s contention that because no court had interpreted the settled claims clause in the Parry settlement agreement, he was advancing a novel legal issue. A settlement agreement is a binding contract, and there is a substantial body of law governing contract interpretation. Nor do we agree with -his averment that the Parry settlement agreement did not release his clients’ claims; rather, we agree with Dugan’s expert interpretation of the plain language of the Parry settlement agreement and find that the Parry agreement unambiguously precluded his clients’ claims.
Finally, we conclude that Respondent advanced frivolous appeals in all three cases. For instance, he continued to appeal the sanctions' awards in Keith and Watson even after the court of appeals issued its opinion in Cugnini, affirming that the plain language of the Parry settlement agreement unambiguously barred his client’s claims. Respondent thus violated Colo. RPC 3.1 by continuing to advance meritless claims and arguments in Keith -and Watson when numerous district courts and another division of the court of appeals all had declared that his arguments were frivolous. He then continued stubbornly and overzealously to assert the same arguments to the same court in three separate appeals. We simply do not credit Respondent’s testimony that he believed that he still could obtain favorable relief for his clients.
The Hearing Board is cognizant that punishment for frivolous litigation is generally left to presiding tribunals in all but the
Colo. RPC 8.4(d)
The People also allege that Respondent’s aggressive pursuit of frivolous claims in Keith, Watson, and Cugnini resulted in needless litigation and thus prejudiced the administration of justice. We agree. We have determined that Respondent engaged in three separate violations of Colo. RPC 3.1, and the evidence shows that Respondent’s persistence in advancing these claims resulted in unnecessary motions and appeals. Accordingly, we conclude that by continuing to litigate these frivolous claims, Respondent wasted considerable resources and thereby engaged in conduct prejudicial to the administration of justice.
III. SANCTIONS
The American Bar Association Standards for Imposing Lawyer Sanctions (“ABA Standards”)
ABA Standard 3.0 — Duty, Mental State, and Injury
Duty: Respondent acted in dereliction of the duties he owed to his clients by providing incompetent representation and by failing to adequately communicate with them. He breached duties he owed as a professional to the legal system by filing frivolous claims and prejudicing the administration of justice.
Mental State: Respondent’s incompetence and advancement of frivolous claims resulted from his overzealous advocacy, stubbornness in the face of adverse rulings, inadequate preparation and expertise in oil and gas law, insufficient investigation into the facts of his clients’ cases, and failure to effectively research and comprehend the relevant ease law. Although we do not believe Respondent was attempting to rectify what he perceived to be grievous wrongs against his clients, he was, however, repeatedly sanctioned at every judicial level for his meritless claims and failure to follow the civil rules. Regardless of whether Respondent agreed with these judicial rulings, they were certainly enough to give a reasonable lawyer conscious awareness that continued pursuit of those claims might subject him to disciplinary sanctions.
Injury. Respondent’s misconduct harmed the legal system and injured his clients. His incompetence and advancement of frivolous claims wasted judicial resources and caused BP to expend significant sums of money defending his meritless claims. Judge Wilson testified that he spent three times longer presiding over the Keith, and Cugnini cases than he thought he should have spent based on his experience in oil and gas. Likewise, Judge Dickinson testified that he spent more than forty hours working on the Watson case, and he opined that the court should not have had to devote.so much time to frivolous issues. Judge Cole stated that he spent the better part of two days ruling on BP’s motion for summary judgment in the Watson case because Respondent’s incomprehensible filings complicated his task. Finally, Judge Lass testified that his work in ruling on five or six motions in the Keith case and the sanctions hearing took more than twenty-five hours.
Respondent’s misconduct also caused his clients significant financial harm. In Martinez, the district court awarded the Tribe attorney’s fees and costs against Respondent and his client jointly and severally in the amount of $34,683.71. In Keith, Respondent and his client were sanctioned jointly and severally in the amount of $223,448.00 for the underlying litigation and $10,000.00 on appeal. The Watson court sanctioned Respondent’s client $44,857.86. In the Martinez, Keith,, Watson, and Cugnini cases, Respondent discharged his obligations in bankruptcy, leaving his clients with the balance where the award was joint and several. Respondent told the Hearing Board that he decided to file for bankruptcy, knowing his obligations would be discharged, because BP attempted to file claims against his family home. Dugan testified at the hearing that after Respondent discharged his debt in bankruptcy, Respondent left his clients to hue new counsel to settle their debts with BP. For instance, Dugan stated, Keith lost his mineral rights in settlement of BP’s sanctions award.
ABA Standards 4.0-7.0 — Presumptive Sanction
Suspension is the presumptive sanction for Respondent’s misconduct in this casé, as set forth in two ABA Standards. ABA Standard 4;52 calls 'for suspension when a lawyer engages in an area of practice in which the lawyer knows he or she is not competent and causes injury or potential injury to a client. ABA Standard 6.0 governs a lawyer’s failure to bring a meritorious claim.
ABA Standard 9.0 — -Aggravating and Mitigating Factors
Aggravating factors are considerations that may justify an increase in the presumptive discipline to be imposed, while mitigating factors may warrant a reduction in the severity of the sanction.
Aggravating Factors
Pattern of Misconduct — 9.22(c): In all five cases, Respondent acted incompetently and advanced frivolous claims while representing five separate clients, demonstrating a pattern of misconduct that extended for nearly five years.
Refusal to Acknowledge Wrongful Nature of Conduct — Ú,22(g)\ During his representations, Respondent' himself testified that he never stopped to question his’ claims or reconsider his strategy even in the face of several adverse rulings, Dugan’s C.R.C.P. 11 letters, and heavy sanctions levied on his clients. At the disciplinary hearing, Respondent staunchly rejected the notion that any of his legal theories were-wrong or that his reading of case law had missed the mark. Although we give ‘Respondent some credit for admitting his violations of Colo. RCP 1.4(a) and (b), we nevertheless choose to apply significant weight to this factor in aggravation.
Mitigating Factors
Absence of a Prior Disciplinan Record— 9.32(a): Respondent has been practicing law in Colorado since 2004 with no instances of discipline, a fact that merits consideration in our analysis. We apply average weight to this factor, however, b.ecause Respondent presented little evidence of other cases he handled since becoming licensed in Colorado in 2004.
Absence of a Dishonest or Selfish Motive — 9.22(b): We do not find that Respondent’s misconduct was fueled by selfish or dishonest motives. Rather, we find that he was guided by what he perceived to be a noble and just cause, and we give him some credit for this factor in mitigation.
Remorse — 9.22(1)'. Although Respondent 'did- not specifically ask for application of this factor in mitigation; we choose to apply average weight to this factor in light of his credible statement at the hearing that since the conclusion of his clients’ cases, not a day goes by that he has not wrestled with the harm he caused his clients.
Analysis Under ABA Standards and Case Law
The Colorado Supreme Court has directed us to exercise our discretion in imposing a sanction and to carefully apply aggravating and mitigating factors,
The People seek imposition of a one-year- and-one-day suspension, with the requirement that Respondent pay full restitution to his clients. They cite cases in which both short and substantial periods of suspension have been imposed for similar misconduct. For instance, a one-year-and-one-day suspension was imposed in People v. Davies, where a lawyer prepared and filed child support sheets that failed to properly reflect the parties’ stipulation of joint custody.
In In re Fisher, the Colorado Supreme Court upheld a hearing board’s determination that a lawyer incompetently represent his client by failing to take the necessary steps to secure his client’s interest in her spouse’s federal pension,
We read these authorities to counsel for imposition of a lengthy suspension, particularly given the substantial and continuous nature of Respondent’s incompetence, his advancement of meritless claims in these five cases, and the significant financial ham his conduct caused his clients. Additionally, Respondent presented no evidence in mitigation, and the three mitigators we apply do not outweigh the three aggravators, two of which we accord great weight. Given the ABA Standards’ guidance to impose a sanction that is at least consistent with, and generally greater than, the sanction for the most serious disciplinary violation, we are all the more confident that a considerable period of suspension is warranted.
IV. CONCLUSION
The most important ethical duties are those responsibilities a lawyer owes to clients. Respondent violated his duties to represent his clients competently and to advance claims with a good faith basis in law and fact. Respondent’s failure to observe these duties justifies a nine-month suspension, with the requirement that he pay restitution to his clients, as set forth below, before filing any petition for reinstatement under C.R.C.P. 251.29(e).
V. ORDER
The Hearing Board therefore ORDERS:
1. WILLIAM D. BONTRAGER, attorney registration number 35359, is SUSPENDED FROM THE PRACTICE OF LAW FOR NINE MONTHS. The suspension will take*1281 effect only upon issuance of an “Order and Notice of Suspension.”369
2. Should he wish to resume the practice of law, Respondent MUST petition for reinstatement under C.R.C.P. 251.29(c).
3. Respondent SHALL promptly comply with C.R.C.P. 251.28(a)-(c), concerning winding up of affairs, notice to parties in pending matters, and notice to parties in litigation.
4. Within fourteen days of issuance of the “Order and Notice of Suspension,” Respondent SHALL comply with C.R.C.P. 251.28(d), requiring an attorney to file an affidavit with the PDJ setting forth pending matters and attesting, inter alia, to notification of clients and other jurisdictions where the attorney is licensed.
5. The parties MUST file any posthear-ing motion or application for stay pending appeal with the Hearing Board on or before Thursday, May 11, 2017. Any response thereto MUST be filed within seven days.
6. The Hearing Board DENIES Respondent’s motion to proceed in forma pauperis. Respondent SHALL pay the costs of these proceedings. The People SHALL submit a statement of costs on or before Thursday, May 4, 2017. Any response thereto MUST be filed within seven days.
7. Respondent SHALL pay his five clients restitution — which could include a settlement amount or a negotiated payment plan — as a condition precedent to filing any petition for reinstatement under C.R.C.P. 251.29(c). The People SHALL file a motion as to restitution with supporting affidavits on or before Thursday, May 4, 2017. Any response thereto MUST be filed within fourteen days.
Original Signature on File
LUCY HOJO DENSON HEARING BOARD MEMBER
Original Signature on File
ROBERT A. MUNSON HEARING BOARD MEMBER
. Kim E. Ikeler also entered his appearance for the People on August 31, 2016.
. 677 P.2d 1361 (Colo. 1984).
. See C.R.C.P. 251.1(b).
. Where not otherwise noted, these facts are drawn from testimony offered at the disciplinary hearing.
. Ex. S3 at 01063. During this proceeding, the parties never disputed the underlying facts in the Adams litigation.
. Ex. S3 at 0106; Ex. S58 at 01438-39.
. Ex. S58 at 01438.
. Ex. S3 at 01063; Ex. S37 at 01271.
. Ex. S3 at 01063.
. See Ex. S58 at 01438-39.
. Ex. S37 at 01270-71; Ex. S58 at 01465-66 (oil and gas lease).
. Ex. S3 at 01064; Ex. S37 at 01271.
. Ex. S3 at 01064.
. Ex. S37 at 01281.
. Ex. S37 at 01281.
. Ex. S3.
. Ex. S3. The case was styled Adams et al. v. Red Mesa et al., case number 08CV338, La Plata County District Court. Respondent alleged three claims: 1) quiet of the mineral title, 2) conversion and to impress a trust, and 3) accounting and payment of monies due.
. Ex. S38 at 01064.
. See Exs. S7 & S8.
. Ex. S3.
. Exs. S7&S8.
. C.R.S. § 38-35-109(3). Respondent later moved to dismiss Madison Capital. Ex. SI 1.
. Ex. S33 at 01225.
. Exs. S48&S53.
. Ex. S58.
. Ex. S58 at 01422-24.
. Exs. S69 & S70.
. Ex. S69 at 01651.
. Ex. S69 at 01652.
. Ex. S69 at 01652.
. Ex. S71 at 01654-65.
i Ex. S107 at 15227-68.
.C.A.R. 28(k)(l) (2009) (requiring a declaration of the applicable standard of review and a record reference to where the issue was preserved). This rule was revised in 2015.
. Ex. SI07 at 15241.
. Ex. S107 at 15240-54.
. Ex. Sill.
. Ex. SI 11 at 15348; Ex. Sill at 15355 (declining to consider Respondent's argument that the lease was void without Hathaway's signature because he did not point to the precise location in the record where the argument was raised and ruled on); Ex. Sill at 15356 (noting that Respondent cited no legal authority indicating that a lessee must reexamine title records before making first payments to owners under a lease, and noting that the race-notice, statute protects an . individual who properly records against unrecorded interests of which the individual had no notice); Ex. Sill at 15358-59 (rejecting Respondent’s constructive notice argument ■ because none of Respondent’s factual allegations bore on whether Hathaway had'notice of Werner’s deed when it recorded its lease in 1950).
. Ex. Sill at 15361.
. Ex. Sill at 15361.
. CompL ¶ 130(d).
. In their hearing brief, the People argue that Respondent violated Colo. RPC 1.1 on three additional grounds: (1) by incorrectly naming Madison Capital as a defendant; (2) by asserting a baseless alter ego claim against Madison Capital; and (3) by failing to join indispensible parties in the Adams case, specifically Mollette's successor, Kay Sherman. People’s Hr’g Br, at 13-16. Dugan provided testimony about all three of these issues it the hearing. These arguments, however, are not set forth 'in the People’s complaint. The People’s Colo. RPC 1.1 charge is limited to Respondent’s appeal in the Adams matter concerning the race-notice statute. Compl. ¶¶ 2-13, 128-133. The People did not seek to amend their complaint to expand their Colo. RPC 1.1 claim. The Hearing Board thus does not consider these arguments as a basis for Respondent’s rule violations, -as a lawyer cannot be disciplined for charges of which, -he or she was not put on notice. See In re Green, 11 P.3d 1078, 1088 (Colo. 2000); In re Ruffalo, 390 U.S. 544, 551, 88 S.Ct. 1222, 20 L.Ed.2d 117 (1968).
. Respondent’s Hr’g Br. at 26-27.
. Colo. RPC 1.1 cmt. 1.
. Id. at cmt. 5.
. See People v. Fitzgibbons, 909 P.2d 1098, 1104 (Colo. 1996) (finding the conclusions of the district court and court of appeals were evidence that the respondent's claims were frivolous and groundless); see In re Egbune, 971 P.2d 1065, 1067 (Colo. 1999) (noting that a trial court's ruling did not bind a hearing board because proof in civil actions typically is by a preponderance of the evidence, while in disciplinary proceedings proof is by clear and convincing evidence).
. C.R.S. § 38-35-109(1); Page v. Fees-Krey, Inc. 617 P.2d 1188, 1193 n.7 (Colo. 1980).
. See Tuttle v. Burrows, 852 P.2d 1314, 1315-17 (Colo. App. 1992) (finding a mineral lease subject to the race-notice statute); Page, 617 P.2d at 1194 (noting that an oil and gas lease is an interest in real property).
. Colo. RPC 1.0(h).
. In re Olsen, 326 P.3d 1004, 1009 (Colo. 2014); see also Geoffrey C. Hazard, W. William Hodes & Peter R. Jarvis, The Law of Lawyering, § 30.12 (4th ed. 2015) (even under the objective standard, "some element of subjectivity remains,” but discipline “should be imposed only if the lawyer persists in the error, or it is an error [not arising from] 'a single or simple mistake.”).
. Colo. REC 3.1 cmt, 2.
. W. United Realty, Inc. v. Isaacs, 679 P.2d 1063, 1069 (Colo. 1984) (finding a claim to be substantially groundless if the allegations in the complaint, while sufficient to survive a motion to ' dismiss for failure to state a claim, are not supported by any credible evidence at trial).
.In re Friedman, 23 P.3d 620, 628 (Alaska 2001) (noting this rule "contemplates ... conduct which frustrates the fair balance of interests or 'justice' essential to litigation or other proceedings,” and finding no violation where a lawyer’s "conduct affected or potentially affected his clients and the other plaintiffs ... [b]ut it did not adversely affect litigation proceedings or a process fundamental to the administration of justice”); In re Mason, 736 A.2d 1019, 1023 (D.C. 1999) (to find a violation of RPC 8.4(d), the conduct must "at least potentially impact upon the process to a serious and adverse degree”).
. This case was styled Southern Ute Indian Tribe v. Amoco Prod. Co. et at., case number 91-B-2273, United States District Court for the District of Colorado.
. Ex. S947 at 14818 (emphasis added).
. Ex. S885 at 13354.
. Ex. S885 at 13355.
. Ex. S885 at 13353-62.
. Ex. S885 at 13355-61.
. Ex. S885 at 13355.
. Ex. S1007.
. Ex. SI007.
. Ex. SI007.
. Ex. S1007.
. Ex. SI007.
. Ex.//at0572.
. Ex.II at 0572.
. Ex. S1008.
. Ex. S1008 at 0576 (citing Cash Advance & Preferred Cash Loans v. Colo., 242 P.3d 1099, 1107 (Colo. 2010)).
. Ex. S1008 at 0576 (citing Kiowa Tribe of Okla. v. Mfg. Techs., Inc., 523 U.S. 751, 754-55, 118 S.Ct. 1700, 140 L.Ed.2d 981 (1998)).
. Ex. S1008 at 0577.
. Ex.II at 0574.
. Ex.II at 0574.
. Ex. II at 0579.
. Ex. II at 0579-80.
. Ex. II at 0582-53.
. Ex. S890 (indicating that because Red Willow "is literally the Tribe 'doing-business-as[/3 it [was] unnecessary for Red Willow to be a party in these proceedings”),
. Ex. S895 at 13451-76, Each of the three defendants in this case filed a motion, to dismiss. See Ex. S950 at 14835.
. Ex. S895 at 13724.
. Ex. S904 at 13724.
. Ex. S904at 13725.
. Ex. S904 at 13724.
. Ex. S930 at 14494-506.
. Ex. S930 at 14496-98.
. Ex. S930 at 14500-51.
. Ex. S941. The court also noted that Respondent misconstrued two cases he was relying on for the proposition that a state can exercise juris
. Ex. S944.
. Ex. S946 at 14626-36.
. Ex. S947 at 14813-24.
. Ex. S950. In that order, the court ruled that the plaintiffs’ claims were barred by the statute of limitations and the settlement agreement in the Parry case, which will be discussed in further detail below. See Ex. S950 at 14838-39.
.Ex. S972.
. Ex. S956.
. Exs. S973, S975-977.
. Ex. S973 at 15086.
. Ex. S980.
. Ex, S980 at 15172-73.
. Ex. S980 at 15173.
. 532 U.S. 411, 121 S.Ct. 1589, 149 L.Ed.2d 623 (2001).
. See Colo. RPC 1.1 cmt. 1.
. Cash Advance, 242 P.3d at 1107.
. See People v. Boyle, 942 P.2d 1199, 1201 (Colo. 1997) (finding that a lawyer failed to adequately prepare for a hearing); People ex rel. Goldberg v. Gordon, 199 Colo. 296, 607 P.2d 995, 997 (1980) (finding that a lawyer who used a probate proceeding to transfer joint-tenancy assets demonstrated a "total lack of understanding of fundamental principles essential to the practice of law."); Fla. Bar v. Lecznar, 690 So.2d
.Ledbetter testified that initially he was skeptical of Respondent’s arguments, as they concerned narrow areas of law, but once he saw how exhaustively Respondent had researched his position, Ledbetter began to think that the arguments were correct. He predicted that the courts would not understand Respondent's arguments because he was “ahead” of his time, but Ledbet-ter opined that as the oil and gas industry develops, Respondent's arguments will prevail.
. See Lieber v. Hartford Ins. Ctr., 15 P.3d 1030, 1037-38 (Utah 2000) (finding that a lawyer failed to apply the black letter law where his brief relied on an overruled case and misrepresented distinguishable case law as the general rule; the lawyer also maintained that a case had no value as precedent if it was not recently cited); Lawyer Disciplinary Bd. v. Turgeon, 210 W.Va. 181, 557 S.E.2d 235, 238 (2000) (finding a lawyer incompetent when he did not understand how the federal sentencing guidelines applied to his client's case).
. See Ryan v. Ryan, 260 Mich.App. 315, 677 N.W.2d 899, 909 (2004) (filing a complaint without the required verification or supporting affidavits “calls into question the competence and good faith of the plaintiff's attorney").
. In re Olsen, 326 P.3d at 1009.
. Colo. RPC 3.1 cmt. 2.
. O'Brien v. Superior Court, 105 Conn.App. 774, 939 A.2d 1223, 1232 (2008); xee Hazard at § 27.12 (3d ed. Supp. 2007) (even under an objective standard, "some element of subjectivity remains," but discipline "should be imposed only if the lawyer persists in the error, or it is an error [not arising from] a single or simple mistake").
. See C.R.C.P. 11(a).
. 532 U.S. at 1597, 121 S.Ct. 1589 (finding . that the Indian tribe expressly waived its sovereign immunity by consenting to the terms of an arbitration agreement).
. See In re Egbune, 971 P.2d at 1069 (finding that a reckless state of mind is equivalent to knowing for disciplinary purposes).-
. See Michigan v. Bay Mills Indian Cmty., — U.S. -, 134 S.Ct. 2024, 2027, 188 L.Ed.2d 1071 (U.S. 2014); Kiowa Tribe of Okla. v. Mfg. Tech., Inc., 523 U.S. 751, 756, 118 S.Ct. 1700, 140 L.Ed.2d 981 (U.S. 1998); Cash Advance, 242 P.3d at 1107.
. See In re Mason, 736 A.2d at 1023.
. Whitham Farms, LLC v. City of Longmont, 97 P.3d 135, 137 (Colo. App. 2003).
. Id. at 137-38; N. York Land Assocs. v. Byron Oil Indus., Inc., 695 P.2d 1188, 1190-91 (Colo. App. 1984) (indicating that whether a lessee has complied with its obligations to explore or to develop is measured by the prudent operator standard and noting that this standard includes any obligation to develop reasonably or to explore further).
. See Gillette v. Pepper Tank Co., 694 P.2d 369, 372 (Colo. App. 1984) ("the work of exploration, development, and production should proceed with reasonable diligence for the common benefit of the parties, or the premises be surrendered to the lessor.... [Reasonable diligence is, 'whatever, in the circumstances, would be reasonably expected of all operators of ordinary prudence, having regard to the interests of both lessor and lessee.’ ") (quotation omitted); see also 1B Philip D. Barber, Colo. Practice, Methods of Practice § 13:6 (6th ed. 2016).
. Whitham Farms, 97 P.3d at 137.
. Id. at 137-38.
. Id. at 137 (citing Gillette, 694 P.2d at 369).
. Whitham Farms, 97 P.3d at 137.
. 1B Colo. Prac., Methods of Practice § 13:6.
. Id.
. Whitham Farms, 97 P.3d at 138. In all three of Respondent’s clients' cases, it was undisputed that a reservoir of oil and gas had been found.
. Id.
. Id. (finding that with regard to implied covenants in oil and gas leases, the “general rule is that the lessor has the burden of proof to show that the lessee did not act in good faith and as a reasonably prudent, similarly situated busi-nessm[a]n” and declining to adopt a burden-shifting approach urged by the plaintiff) (quotation omitted); see also Gillette, 694 P.2d at 372.
. Ex. S594 at 08666-85 (first amended complaint).
. See Ex. S594 at 08666-85.
. See Ex. S594 at 08666-85.
. Ex. S594 at 08686-98 (class certification).
. Ex. S594 at 08666-85.
. Ex. S594 at 08672-73.
. Ex. S594 at 08680.
. Ex. S594 at 08699-745 (Parry stipulation and settlement agreement).
. Ex. S594 at 08735-45 (Parry notice of proposed settlement of class action, which included a summary of the terms of the settlement and a reference to paragraph 1.38 of the settlement agreement). There was no dispute that the class members relevant to this disciplinary case received this notice.
. Ex. S594 at 08741-42.
. Ex. S594 at 08746-960 (transcript of the fairness hearing).
. Ex. S594at 08961-67 (Parry judgment).
. Ex. S594 at 08713 (emphasis added).
. Ex. S594 at 08713-15 (listing 63 subpara-graphs of settled claims) (emphasis added).
. Ex. S594 at 08730.
. Ex. S594 at 08730. Dugan testified that all the parties understood that the settlement was a fully integrated document covering all the essential terms of the parties' agreement.
. See Ex. S331 at 04074 & 04076; Ex. S402 at 05599.
. See Ex. SI004 at 0360.
. See Ex. S594 at 08713-15.
. See Ex. S594 at 08713 & 08714 ¶¶ XXIV (failing to operate the leasehold estates in good faith as a prudent operator), XXVII (taking opportunist advantage of the class by operating the leasehold estates), and XXX (failing to aot as a reasonable and prudent operator).
. See also Ex, S594 at 08741-42 (notice to class members of settlement, including the following provision: "In exchange for its payment of the sums identified above, and its commitment not to apply the Deductions in question in the future, Amoco and other working interest owners or other royalty and overriding royalty obligors for which Amoco has paid royalties and overriding royalties and on whose behalf Amoco shall make refunds as provided above, will be released from all 'Settled Claims,’ which means.,..”).
.SeeEx. S780 at 11893 & 11913.
. Ex. S780 at 11913 (indicating that his clients wanted to accept the terms and conditions of the Parry settlement).
. Ex. S780 at 11893. 11918-19.
. Ex. S780 at 11928 ¶ 2.
. See Ex. S780 at 11923-31 (signed settlement agreement).
. Ex, S780 at 11893 & 11918.
. Ex. S242 at 01794. There is no dispute in these cases as to the underlying facts,
.' Ex. S242 at 01794.
.Ex. S242 at 01795.
. Ex. S242 at 01795.
. Ex. S242 at 01795.
. Ex. S242 at 01828-29 (warranty deed).
. Ex. S513 at 06805.
. Ex. S513 at 06806.
. Ex. S513 at 06806.
. Ex. S513 at 06805-07.
. Ex. S513 at 06807.
.Ex. S740 at 15408, 15410,
. Ex. S740 at 15411.
. Ex. S740 at 15408, 15411.
. Ex. S740 at 15413.
. Ex. S242 at 01794-805. This case was styled Keith Family Limited Partnership v. BP American Production Co., case number 2010CV54, La Plata County District Court.
. Ex. S241 at 01763.
. Ex. S242 at 01794-805. It is difficult to determine the claims Respondent made as he did not clearly label them.
. Ex. S242 at 01794-805. Respondent advanced several claims in the Keith complaint and amended complaint. The People's complaint— and our analysis here — focuses on his claim that did survive the motion to dismiss: that BP breached the implied covenant of reasonable development and failed to act as a prudent operator.
. Ex. S513 at 06805-16. This case was styled Rose L. Watson Revocable Trust v. BP American Production Co., case number 2010CV55, La Plata County District Court. As in the Keith case. Respondent made several other claims in his complaint and amended complaint, but the only claim that survived BP’s motions to dismiss was based on alleged breach of the implied covenant to reasonably develop the leasehold and failure to act as a prudent operator.
. Ex. S518 at 06825.
. Ex. S513 at 06807. Respondent filed a first amended complaint on April 14, 2010. Ex. S520 at 06835-42.
. Ex. S249 at 01818-73 (motions to dismiss Parts 1 and 2 of Respondent's complaint); Ex, S250 at 01874-83 (motions to dismiss parts 3 and 4 of Respondent's complaint); Ex. S251 at 01884-93 (motion to dismiss part 5 of Respondent's complaint),
. Ex. S249 at 01824.
. Ex. S257 at 01963-67 (order dismissing complaint). The court also ordered Respondent to join the overriding royalty owners as defendants, which he did, but then he asserted no claim for relief against them in the amended complaint. See Ex. S262,
. Ex. S257.
. Ex. S258 at 01968-76.
. Whitham Farms, 97 P.3d at 139 (declining to adopt a burden-shifting approach). Ex. S258 at 01970-71. Respondent made similar arguments in his response to BP’s motion to dismiss. See Ex. S252.
. Ex. S260.
. See Ex. S262 at 01997-02015.
. See Ex. S262 at 01997-02015.
. Compare Ex. S262 at ¶¶ 49-69, 02020 ¶ H with S257 (dismissing parts 2-4 of the complaint).
. See Exs. S532 (motion to dismiss injury-to-water claim), S523 (motion to dismiss remaining claims), & S533 (reply in support of motion to dismiss remaining claims).
. See Ex. S523 at 06853-06855.
. Ex. S536.
. Exs. S537 (motion for reconsideration) & S537 (petition to join additional party). Respondent argued that adding Ms. Watson would cure any deficiencies in his other claims that had been dismissed. These motions were denied on December 8, 2010. Ex. S541.
. Ex. S542. This motion was granted. Ex. S543.
. Ex. S740. This case was styled Pat Duane Cugnini v. BP America Production Company, case number 2010CV468, La Plata County District Court.
. See Ex. S739.
. See Ex. S740.
. See Ex. S740 at 11552-53.
. See Ex. S740. Respondent made several claims for relief in the complaint, but because only his claim that BP failed to act as a prudent operator by developing the leasehold survived BP's motion to dismiss, we focus just on this claim in our analysis.
. Ex. S276 at 02207.
. Ex. S276 at 02208.
. Ex. S277. Respondent sent his second amended complaint to Dugan to review before filing it. See Ex. S1002. Dugan told Respondent that he again failed to assert specific facts sup- ■ porting his implied covenant to develop claim. See Ex. SI002.
. Ex. S277 at 02210.
. Ex. S277 at 02211-12.
. Ex. S277 at 02212.
. Ex. S544.
. Ex. S544 at 06970-71.
. Ex. S523 at 06975-81.
. Ex. S752.
. See Exs, 745 & 750.
. Ex. S752.
. Exs. S293 at 02358-02404. BP’s initial motion for summary judgment and supporting brief are exhibits S291-292.
. See Ex. S293.
. Ex. S293 at 02359-60.
. Ex. S293 at 02360.
. Dugan explained here that when a formation experiences a thinning, there is less opportunity for profit.
. See Ex. S294 at 02405-17. BP-included exhibits with its engineer's affidavit, which contains averments about the price of gas and the costs of drilling, as well as a 2004 study that BP had performed concerning these formations. Du-gan explained that this information is typically the -type of specific data needed to prove profitability.
. Exs. S301-02.
. See Exs. S302 at 02499-03711 & S303.
. See C.R.C.P. 56(f) ("Should it appear from the affidavits of a party opposing the motion that the opposing party cannot for reasons stated present by affidavit facts essential to justify its opposition, the court may refuse the application for judgment or may order a continuance to - permit affidavits to be obtained or depositions to be taken or discovery to be had or may make such other orders as is just.”).
. See Whitham Farms LLC v. Encana Energy Res., Inc., 2004 WL 2029371 (Colo. 2004) (summarizing the issues).
. Exs. S552 & S553.
. Ex. S553 at 07090-92.
. See Ex. S553.
. Exs. S556 (motion to strike) & S557 (motion for discovery),
. See Ex. S556 at 07115-08,181.
. See Ex. S760 at 11635-36 (including claims for forced pooling that had been previously dismissed).
. See Ex. S776 at 11866.
. Ex. S776at 11867.
. Ex. S315.
. Ex. S315 at 03881-84.
. Ex. S315 at 03883.
. Ex. S315 at 03883.
. Ex. S1005.
. Ex. S1005.
. Ex. SI005.
. See Ex. S780 at 11898-908 (motion filed on November 25, 2011).
. See Ex. S789 (filed January 5, 2012).
. See Ex. S789 at 12043-44.
. Ex. S571. Judge David A. Cole, a senior judge sitting on assignment, issued the ruling on BP’s summary judgment motion.
. Ex. S571 at 08321-22. The court made the same determinations as the court in Keith concerning Respondent's request for discovery, his request to depose BP’s engineer, and his failure to file a C.R.C.P. 56(f) affidavit or to provide citations to 1,500 pages of documents. Ex. S571.
. Ex. S571 at 08324.
. See Exs. S1003 & S1004 (letters dated November 7, 2011).
. Exs. S1003 &S1004.
. Ex. S581.
. Ex. S581 at 08413-14.
. See Ex. S581 at 08414.
. See Ex. S585 at 08515-19. Miller testified that Respondent asked him to prepare an affidavit so that he could submit it with his post-judgment motions. Miller was not permitted to testify at any sanctions hearing.
. Ex. S323.
. Ex. S331.
. Ex. S331.
. Ex, S331 at 04077.
. Ex. S337. Respondent filed a similar response in Watson to BP’s sanctions motion, arguing that the Parry settlement release was limited to the claims actually raised in the first amended complaint and asking the court to stay the case until Judge Dickinson ruled whether the Parry settlement agreement barred his clients’ claims in Keith, Watson, and Cugnini. Ex. S592. Respondent made this request even though Judge Dickinson was assigned to the Watson case.
. See Ex. S337,
. Exs. S342 (request for hearing) & S352' (court's order).
. Exs. S606, S607, & S608,
. Ex. S610 (filed January 30, 2012); Ex. S611 (BP’s response in opposition).
. Ex. S794 at 12378-79.
. Ex. S794 at 12378.
. Ex, S1006.
. Ex. S795.
. Ex. S795.
. Ex. S795 at'12385-86,
. Ex. S804 (declining to consider Respondent's argument that his client’s claims accrued after 2007 because .he had failed to raise that argument in response to BP’s motion for summary judgment).
. ( Ex. S354.
. Exs. S616 & S617 (BP’s response in opposition).
. See Ex. S616 at 09269.
. Exs. S694 (notice of appeal) & S705 (opening brief filed on June 13, 2012).
.See Ex. S705 at 10866-89.
.' See Ex. S354,
. See Exs, S809 (response) & S798 (BP’s motion for attorney’s fees and costs dated February 16, 2012).
. Ex. S809 at 12531-34,'
. Ex. S807.
. Ex. S817.
. Ex. S823 at 12712.
. Ex. S823 at 12712.
. Ex. S381.
. Ex. S387. This order was issued by Judge David R. Lass, sitting on assignment as a senior judge.
. See Ex. S402 at 05593.
. See Ex. K. Respondent stated that he did not submit Miller’s affidavit in Keith or Watson in response to BP's motion for summary judgment because Parry was not yet at issue. Nor did he submit Miller’s affidavit in Cugnini in response to BP’s motion for summary judgment.
. Ex. S637.
. Ex. S637 at 09583-84.
. Ex. S637 at 09584.
. Ex. S637 at 09584.
. Ex. S637 at 09584.
. Ex. S831 at 12780-81.
. Ex. S831 at 12780.
. Ex. S402. This order was amended on August 12, 2012, to add additional attorney's fees and costs in favor of defendant Schultz Energy. See Ex. S4i 1.
. Ex. S402 at 05599.
. Ex. S402 at 05600.
. Ex. S402 at 05600.
. Ex. S402 at 05601.
. Ex. S402 at 05602.
. Ex. S402 at 05602. The court made the same determinations as to the Keith Family. See Ex. S402.
. Ex. S503.
. Ex. S503 at 06567-68.
. 660 F.2d 9, 16-18 (2dCir. 1981).
. See Ex. S487. Respondent filed his opening brief in this appeal on June 11, 2012. See Ex. S478.
. Ex. S478 at 06050-51.
. Ex. S478 at 06051.
. Ex. S487 at 06478.
. Ex. S487 at 06479.
. Ex. S487 at 06479.
. Ex. S876; see also Exs. S857 (notice of appeal), S865 (opening brief), & S867 (answer brief).
. Ex. S876 at 13248-50.
. Ex. S876 at 13250.
. Ex. S876at 13250.
. Ex. S876 at 13250 n.3 & 13251-53.
. Ex. S876 13253-54.
. Ex. S508.
. See Ex. S508.
. Ex. S709.
. Ex. S709 at 11054.
. Ex. S709 at 11057-58.
. Ex. S709 at 11059-60.
. Ex. S709 at 11063.
. Ex. S709 at 11064.
. Ex. S709at 11064.
. Ex. S648. Respondent appealed this order on April 10, 2013. Exs. S714 (notice) & S726 (opening brief).
. See Ex. 648.
.Ex. S509.
. Ex. S509 at 06760-61. Although Respondent raised seven claims on appeal, the'court of appeals limited its analysis to the Parry settlement. It also refused to consider Respondent's claim that the Keith cause of action reaccrued, because he did not provide any relevant legal citations nor advance any cogent argument. Ex. S509 at 06771.
. Ex. S509 at 06761.
.Ex. S509 at 06762.
. Ex. S509 at 06764-65.
. Ex. S509 at 06772-73,
. Ex. S509 at 06773.
.’ Ex. S733 at 11407-19.
. See Ex. S726. He also filed a one-sentence motion to dismiss the appeal on December 1, 2013. Ex. S733 at 11405-06. This motion was denied. See Ex. S733 at 11413 (declining to dismiss the appeal to serve the interests of justice and fairness because Respondent had reason to believe that the court of appeals would conclude that his appeal was frivolous and because BP and the court had devoted substantial resources to this case).
. Ex. S733 at 11414.
. Ex. S733 at 11417-19.
. Colo. RPC 1.1 cmt. 4.
. See In re Willis, 505 A.2d 50, 50 (D.C. 1985) (finding that pleadings were sloppy, incoherent, incomplete, and misleading); In re Hogan, 112 Ill.2d 20, 22-23, 96 Ill.Dec. 75, 490 N.E.2d 1280, 1281 (1986) (finding that a lawyer lacked a fundamental skill when he filed nineteen pleadings
. See Lecznar, 690 So.2d at 1285-86 (finding that a lawyer's failure to name an insurance company as a defendant in a personal injury suit within the statutory time limit indicated a failure to understand relevant legal doctrines or procedures). We note.that the Keith, Watson, and Cugnini courts dismissed a number of Respondent's claims, finding in part that he failed to join indispensible parties, failed to state several other claims for relief, and to exhaust administrative remedies. These rulings further demonstrate Respondent's lack of competence, though we do not base our rule violation findings on these failings.
. See C.R.S. § 13-22-307 (1991) (“Any party or the mediator or mediation organization in a mediation service proceeding or a dispute resolution proceeding shall not voluntarily disclose or through discovery or compulsory process be required to disclose any information concerning any mediation communication or any communication provided in confidence to the mediator or a mediation organization.... ”).
. See Ryan v. Ryan, 260 Mich.App. 315, 677 N.W.2d 899, 909 (2004) (the filing of a complaint without the required verification or supporting affidavits "calls into question the competence and good faith of the plaintiff's attorney”).
. See C.R.C.P. 26(a)(l)(A)-(D) (requiring that once a case is at issue, litigants must automatically disclose individuals with discoverable information relevant to the claims and defenses); C.R.C.P. 26(a)(2)(A)-(C) (setting forth deadlines for expert witness disclosures as triggered by a trial date); WKWC, LLC v. Arvada, 107 P.3d 1002, 1006 (Colo. App. 2004) ("Plaintiff's speculation that further discovery may uncover such facts is insufficient.... Although plaintiff could have moved the trial court for a continuance under C.R.C.P. 56(f) to conduct further discovery, it made no such motion.”); In re Estate of Heckman, 39 P.3d 1228, 1231 (Colo. App. 2001) (finding that because the plaintiff did not submit an affidavit under C.R.C.P. 56(f), the trial court did not err in failing to defer ruling on the defendant's motion for summary judgment).
. Our analysis of Respondent's rule violations does not rest on other judicial rulings made in the three cases. Rather, we reach our own conclusions based on the additional evidence — including these rulings — presented at the disciplinary hearing. Fitzgibbons, 909 P.2d at 1104 (finding the conclusions of the district court and court of appeals were evidence that the respondent’s claims were frivolous and groundless); In re Egbune, 971 P.2d at 1067 (noting that a trial court’s ruling did not bind a hearing board because proof in civil actions typically is by a preponderance of the evidence, while in disciplinary proceedings, proof is by clear and convincing evidence).
. See In re Laprath, 670 N.W.2d 41, 61-63 (S.D. 2003) (finding that a lawyer demonstrated lack of understanding of basic legal procedure in. multiple client matters).
. See Conrad v. Imatani, 724 P.2d 89, 94 (Colo. App. 1986) (holding that affidavits submitted after summary judgment was granted could not be considered on a motion to reconsider); Witcher v. Canon City, 716 P.2d 445, 457 (Colo. 1986) ("A motion for summary judgment supported by an affidavit, to which no counter-affidavit is filed, presents no issue of fact and the court is entitled to accept the affidavit as true.”).
. See Colo. RPC 1.1 cmt. 2 ("A lawyer need not necessarily have: special training or prior experience to handle legal problems of a type with which the lawyer is unfamiliar.... A lawyer can provide competent representation in a wholly novel field through necessary study. Competent representation can also be provided through the association of a lawyer of established competence in the field in question.’’).
. Id.
. See C.A.R. 42(b) (providing for a dismissal of an appeal where the parties file a signed dismissal agreement specifying how costs and fees will be paid).
. As we stated earlier, although Respondent made several claims for relief in his complaints, only his claim that BP failed to act as a prudent operator by neglecting to develop the leasehold survived BP’s motion to dismiss, and we thus focus on this claim in our analysis.
. W. United Realty, 679 P.2d at 1069.
. See C.R.C.P. 11 ("The signature of an attorney constitutes a certifícate by him ,., that to the best of his knowledge, information, and belief formed after reasonable inquiry, it is well grounded in fact and is warranted by existing law..,.”). , .,
. See W. United Realty, Inc., 679 P.2d at 1069 (finding that a claim is substantially groundless if the allegations in the complaint, while sufficient to survive a motion to dismiss for failure to state a claim, are not supported by any credible evidence at trial); Witcher v. Canon City, 716 P.2d 445, 457 (Colo. 1986) ("A motion for summary judgment supported by an affidavit, to which no counter-affidavit is filed, presents no issue of fact and the court is entitled to accept the affidavit as true.”).
. Whitham Farms, 97 P.3d at 137-38.
. Whitham Farms LLC v. Encana Energy Resources, Inc., 2004 WL 2029371 (Colo. 2004) (summarizing the issues); see Phillip D. Barber, The Implied Covenants, 1B Colorado Prac., Methods of Practice § 13:6 at n.11 (6th ed. 2016).
. Whitham Farms, 97 P.3d at 138 (declining to adopt the burden-shifting approach); Gillette, 694 P.2d at 372 (noting that the burden is on the lessor); IB Stephen A. Hess, Colorado Practice, Methods of Practice § 25:3 (6th ed. 2016) (noting that "[s]tare decisis is the broad doctrine that the decisions of appellate courts should be given effect in subsequent cases in similar circumstances and that the legal principles adopted by appellate courts should not be examined anew each time a dispute arises, even in the face of a contention that the rule at issue has wrongly been decided by prior courts.’).
. See In re Foster, 253 P.3d 1244, 1258 (Colo. 2011) (finding that a lawyer’s reassertion of judicial bias without any reason to expect a different result was the very definition of an objectively baseless claim).
. 660 F.2dat21.
. See Peter A. Joy, The Relationship Between Civil Rule 11 and Lawyer Discipline: An Empirical Analysis Suggesting Institutional Choices in the Regulation of Lawyers, 37 Loy. L.A. L. Rev. 765, 806-07 (Winter 2004) (pointing to the "negligible correlation between [F.R.C.P.] 11 sanctions and reported lawyer discipline for that same conduct”),
. Found in ABA Annotated Standards for Imposing Lawyer Sanctions (2015).
. See In re Roose, 69 P.3d 43, 46-47 (Colo. 2003).
. See In re Levine, 174 Ariz. 146, 847 P.2d 1093, 1118 (1993) (finding that a lawyer knowingly abused the legal process in the face of repeated sanctions).
, In reEgbune, 971 P.2d at 1073. We conclude that Respondent’s incompetent representation of his five clients and his advancement of frivolous claims was done recklessly, not merely negligently, which for our purposes is equivalent to knowingly.
. ABA Annotated Standards 6.2 at 314 ("[T]he following sanctions are generally appropriate in cases involving failure to expedite litigation or bring a meritorious claim
. Respondent was found to have violated C.R.C.P. 11 and C.R.S. § 13-17-101. See In re Levine, 847 P.2d at 1117-18 (imposing a six-month suspension on a lawyer for pursuing frivolous claims and applying ABA Standard 6.22 for the lawyer's abuse of the legal process).
. See ABA Standards 9,21 & 9.31.
. See In re MacAskill, 163 Ariz. 354, 788 P.2d 87, 94 (1990) (applying a pattern of misconduct where “[r]espondent engaged in numerous acts of misconduct in handling several clients' mat
. See In re Thompson, 991 P.2d 820, 822 n.1 (Colo. 1999) ("in determining the proper level of discipline, we do not simply add up die number of rules violated, but focus instead on the nature and seriousness of the conduct itself”).
. Although Respondent testified that he was removed from the bench in Indiana, we do not consider that to be prior discipline based on the evidence presented.
. See In re Attorney F., 285 P.3d 322, 327 (Colo. 2012); In re Fischer, 89 P.3d 817, 822 .(Colo. 2004) (concluding that a hearing board ,,had overemphasized the presumptive sanction ■ and undervalued the importance of mitigating factors in determining the needs of the public).
. In re Attorney F., 285 P.3d at 327 (quoting People v. Rosen, 198 P.3d 116, 121 (Colo. 2008)).
. See In re Olsen, 326 P.3d at 1011.
. 926 P.2d 572, 573 (Colo. 1996).
. Id.
. Id.
. 202 P.3d 1186, 1194 (Colo. 2009).
. Id.
. 962 P.2d 261, 263 (Colo. 1998).
. Id.
. 937 P.2d 724, 731 (Colo. 1997).
. ABA Standards § II at 7.
. In general, an order and notice of sanction will issue thirty-five days after a decision is entered under C.R.C.P. 251.19(b) or (c). In some instances, the order and notice may issue later than thirty-five days by operation of C.R.C.P. 251.27(h), C.R.C.P. 59, or other applicable rules.
Reference
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