Electronically Filed
Supreme Court
SCAD-XX-XXXXXXX
21-NOV-2019
07:56 AM
SCAD-XX-XXXXXXX
IN THE SUPREME COURT OF THE STATE OF HAWAI#I
OFFICE OF DISCIPLINARY COUNSEL,
Petitioner,
vs.
CLAYTON C. IKEI,
Respondent.
ORIGINAL PROCEEDING
(ODC Case No. 16-O-032)
ORDER OF PUBLIC CENSURE
(By: Recktenwald, C.J., Nakayama, McKenna, Pollack, and Wilson, JJ.)
Upon consideration of the January 23, 2019 report
submitted to this court by the Disciplinary Board of the Hawai#i
Supreme Court, the record submitted contemporaneously with that
report, and the briefs submitted by counsel for Respondent
Clayton Ikei and the Office of Disciplinary Counsel (ODC), we
make the following findings, and reach the following conclusions,
based upon clear and convincing evidence.
We conclude Ikei improperly withheld the bulk of the
United States Department of Veterans Affairs’ (VA) funds from his
former client R.Y. for 74 days, when he knew he had no right to
those funds, and used his control of them to attempt to obtain
agreement from R.Y. and R.Y.’s new attorney, Elbridge Smith, to
agree to pay the amount he had invoiced them for the assistance
provided by him and his Associate in preparing the petition for
fees and costs. His conduct in this regard violated Hawai#i
Rules of Professional Conduct (HRPC) Rules 1.15(d) and 1.15(e)
(2014).
We also conclude Ikei demonstrated a lack of candor by
misleading Smith and R.Y. to believe he would not disburse the
invoiced amount to himself without their permission when, in
fact, he had already done so, in violation of HRPC Rule 8.4(c)
(2014).
We also find, however, that R.Y. and Smith did agree to
pay Respondent Ikei for fees and costs incurred by him and his
Associate in assisting them with the preparation of the petition
and that Ikei had valid grounds for asserting a claim to the
disputed funds.
We conclude that the $6,695.47 in funds remain in
dispute and, therefore, that the funds should remain in the
client trust account until such time as the parties take steps to
resolve the dispute. See Comment [3] to HRPC Rule 1.15.
We find, in aggravation, that Respondent Ikei has two
prior minor disciplinary violations; evinced a dishonest or
selfish motive, committed multiple violations in the present
matter, refused to acknowledge the wrongful nature of his conduct
with regard to the disputed funds, and has substantial experience
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in the practice of law. We find, in mitigation, that he made a
full and free disclosure and evinced a cooperative attitude in
the disciplinary proceedings, and we find he has a good
reputation of character in the legal community. We find the
mitigating factors in this matter outweigh the aggravating
factors and find this disciplinary matter arose from a single
incident at the conclusion of Respondent Ikei’s legal career. We
further find that the record supports the conclusion that
Respondent Ikei has now entered retirement from the practice of
law. Therefore,
IT IS HEREBY ORDERED that Respondent Clayton Ikei is
publicly censured, pursuant to RSCH Rule 2.3(a)(3).
IT IS FURTHER ORDERED that Respondent Ikei shall bear
the costs of these disciplinary proceedings, upon the submission
and approval of a verified bill of costs from the Office of
Disciplinary Counsel, pursuant to RSCH Rule 2.3(c).
DATED: Honolulu, Hawai#i, November 21, 2019
/s/ Mark E. Recktenwald
/s/ Paula A. Nakayama
/s/ Sabrina S. McKenna
/s/ Richard W. Pollack
/s/ Michael D. Wilson
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