11/29/2023
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Pamela D. Bucy Case Number: PR 23-0693
2 Chief Disciplinary Counsel
P.O. Box 1099
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Helena, Montana 59624
4 Te1: (406) 442-1648
pbucy@montanaodc.org
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Office of Disciplinary Counsel
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9 BEFORE THE COMMISSION ON PRACTICE OF THE
10 SUPREME COURT OF THE STATE OF MONTANA
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Supreme Court Cause No.
12 IN THE MATTER OF JUSTIN J. KALMBACH,
ODC File No. 22-116
13 An Attorney at Law, )
3 COMPLAINT
14 Respondent.
) Rules 1.3 and 1.4, MRPC
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17 By leave of the Commission on Practice granted on November 7, 2023, the
18 Office of Disciplinary Counsel for the State of Montana (ODC), hereby charges
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Justin J. Kalmbach with professional misconduct as follows:
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General Allegations
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22 1. Justin J. Kalmbach, hereinafter referred to as Respondent, was admitted to
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the practice of law in the State of Montana in 2011, at which time Respondent took
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the oath required for admission, wherein he agreed to abide by the Rules of
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Complaint - Page 1
Professional Conduct, the Disciplinary Rules adopted by the Supreme Court, and
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2 the highest standards of honesty, justice and morality, including but not limited to,
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those outlined in parts 3 and 4 of Chapter 61, Title 37, Montana Code Annotated.
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2. The Montana Supreme Court has approved and adopted the Montana
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Rules of Professional Conduct (MRPC), governing the ethical conduct of attorneys
7 licensed to practice in the State of Montana, which Rules were in effect at all times
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mentioned in this Complaint.
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3. Option 1 is a national debt relief firm, which offers to turn a client's
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11 outstanding debts into affordable monthly payments, paid to Option 1. The
12 payments are drawn over an agreed upon number of months and Option 1 will then
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pay the debts. The clients' payments are placed in an account dedicated to them,
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known as a "Global account." After signing a contract with Option 1, clients are
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16 assigned local counsel who meets with them to discuss their fee and debt repayment
17 plan, their creditors and the status of those debts, and to review their file on both a
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quarterly and annual basis. At all times relevant to the Complaint, Respondent acted
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as local counsel for Option 1 and was also a class B shareholder in the same.
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21 Count One
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4. ODC realleges and incorporates paragraphs 1 through 3 of the General
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Allegations as if fully restated in this Count One.
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Complaint - Page 2
5. S.B. retained Option 1 in September 2019. Option 1 and their in-house
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2 staff began collecting S.B.'s debts and negotiating her approximate monthly
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payment. S.B. agreed to automatic monthly payments to her Global account and
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Respondent was assigned as her attorney.
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6. In approximately May of 2021, Discover credit card ("Discover"),
7 filed suit against S.B.in Lake County Justice Court. S.B. paid Respondent a $30
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filing fee and he responded on her behalf. Respondent negotiated a Stipulation
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between Butler and Discover, for less than 75% of the total debt. The Stipulation
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11 was signed in approximately May 2021, and was provided to Option 1 so S.B.'s
12 monthly payments and debt settlements could be updated.
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7. In June 2021, Option 1 emailed S.B. and notified her that considering
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the amount of the Discover settlement, her Global account would be short $157.
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16 Option 1 requested S.B. make an additional payment to cover the shortage by the
17 end of her contract in March 2023. S.B. responded and agreed to the extra payment.
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8. Respondent had access to Option l's case management system which
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permitted him to review log notes of non-attorney personnel, the payment ledger,
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21 and the accounts that had been settled to date. Respondent did not review the ledger
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for specific payments to creditors, or the log notes in S.B.'s file. A review of either
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the ledger or notes would have demonstrated a lack of payments to Discover.
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Complaint - Page 3
9. Respondent received an email from Option 1 administrative staff in
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2 November 2021, notifying him S.B.'s Global account would be short and that
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payments had not been made to Discover. Respondent failed to review this email
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for S.B.'s file reviews conducted in December 2021, January 2022, and March
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2022, and failed to communicate this information to S.B.
7 10. On March 7, 2022, Respondent emailed S.B. a subsequent settlement
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with Discover. In reviewing the correspondence from Discover, S.B. learned
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Respondent received the settlement offer in January 2022, and that the deadline to
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11 respond had been February 25, 2022. S.B. emailed Respondent in response to the
12 offer, but Respondent failed to respond.
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11. Shortly thereafter, S.B. received a Notice of Levy from Discover.
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S.B. again attempted to contact Respondent, but he failed to respond. S.B. then
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16 contacted Option 1 administrative staff who explained for the first time, despite her
17 regular monthly payments, they had not made payments to Discover in over ten (10)
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months. Respondent was removed from S.B.'s case; S.B. terminated Option 1; and
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Option 1 provided S.B. a Settlement Agreement which refunded the payments she
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21 had made, and which were held in her Global account.
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12. S.B. renegotiated an agreement with Discover on her own, but on less
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favorable terms than Respondent previously negotiated.
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Complaint - Page 4
13. Respondent knew that S.B.'s defaulting on a settlement was likely to
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2 affect her financial obligations or alternatively, require a renegotiation of the
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settlement. Both directly affected Respondent's representation of S.B. and were
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circumstances required to be discussed with S.B. By Respondent's failure to
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communicate the circumstances directly affecting S.B.'s representation and
7 requiring her informed consent constitutes a violation of Rule 1.4(a)(1).
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14. Respondent's conduct as outlined above occurred over many months
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and resulted in actual harm to S.B. By Respondent's failure to timely communicate
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11 Discover's January 2022 subsequent settlement offer, and thereafter, respond to
12 S.B.'s inquiries about the status of the Discover settlement and Notice of Levy,
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constitutes a violation of Rule 1.4.
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Count Two
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16 15. ODC realleges and incorporates paragraphs 1 through 3 ofthe General
17 Allegations and paragraphs 4 through 14 as if fully restated in this Count Two.
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16. Respondent failed to fully review S.B.'s file and recognize and rectify
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the accounting/administrative error. Respondent's failure resulted in S.B.'s bank
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21 account being levied and a significantly less advantageous Discover settlement.
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17. Respondent's conduct as outlined above constitutes a violation of
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Rule 1.3.
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Complaint - Page 5
WHEREFORE, the Office of Disciplinary Counsel prays:
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2 1. That a Citation be issued to the Respondent, to which shall be attached a
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copy of the complaint, requiring Respondent, within twenty-one (21) days after
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service thereof, to file a written answer to the Complaint;
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2. That a formal hearing be had on the allegations of this complaint before an
7 Adjudicatory Panel of the Commission;
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3. That the Adjudicatory Panel of the Commission make a report of its
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findings and recommendations after a formal hearing to the Montana Supreme
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11 Court, and, in the event the Adjudicatory Panel finds the facts warrant disciplinary
12 action and recommends discipline, that the Commission also recommend the nature
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and extent of appropriate disciplinary action, including an award of costs and
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expenses incurred in investigating and prosecuting this matter; and,
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16 4. For such other and further relief as deemed necessary and proper.
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DATED this I day of November, 2023.
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OFFICE OF DISCIPLINARY COUNSEL
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By:
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Pamela D. Bucy
23 Chief Disciplinary Counsel
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Complaint - Page 6
CERTIFICATE OF SERVICE
I, Pamela D. Bucy, hereby certify that I have served true and accurate copies of the foregoing
Complaint - Formal Complaint and Citation to Appear to the following on 11-29-2023:
Shelly Smith (Court Reporter)
Office Administrator
Supreme Court Boards and Commissions
P.O. Box 203002
301 S. Park Ave., Ste. 328
Helena MT 59624
Service Method: eService
E-mail Address: shellysmith@mt.gov
Electronically signed by Shelby Streib on behalf of Pamela D. Bucy
Dated: 11-29-2023