In the Matter of Bouyer
(Review Dept. 1991) 1 Cal. State Bar Ct. Rptr. 404

Overview

Attorney William H. Bouyer faced disciplinary proceedings for mishandling settlement proceeds in three personal injury cases, failing to maintain proper client trust accounting, and delaying distribution of client funds. The State Bar’s Review Department found multiple violations of former Rules 8-101(A) and (B), relating to safekeeping client property and timely notification. Although Bouyer did not intentionally misappropriate client funds, his deficient recordkeeping and delayed disbursements demonstrated gross negligence.

Facts of the Case

Bouyer, admitted to practice in 1977, represented several clients in personal injury matters. The key allegations involved the Ervin, Swanson, and Moore cases. In each, Bouyer negotiated settlements but failed to promptly notify clients when proceeds were received, delayed payment of medical liens, and failed to promptly remit remaining funds. Client files reflected missing or unsigned disbursement authorizations and handwritten notations that did not correspond with actual payments.

In the Ervin matter, Bouyer received $5,000 in settlement funds but delayed more than three months before paying the client’s medical provider and failed to remit the balance to the client until prompted by a complaint. His client trust account dipped below the required balance several times, suggesting commingling of personal and client funds.

In the Swanson matter, Bouyer deposited a $10,000 settlement check but failed to notify the client or provide an accounting for nearly five months. When he finally disbursed the funds, his trust account again showed irregularities, including withdrawals for unrelated purposes.

In the Moore matter, Bouyer withheld settlement proceeds to cover attorney fees and costs without providing documentation to the client or ensuring that lienholders were paid promptly. The Review Department determined that Bouyer had failed to supervise staff handling the trust account, resulting in inaccurate ledgers and missing receipts.

Proceedings and Findings

The hearing panel found Bouyer culpable of violating former Rule 8-101(A) (failure to properly maintain a client trust account) and Rule 8-101(B)(1) and (4) (failure to promptly notify and pay clients). Although the Office of Trial Counsel alleged moral turpitude under Business & Professions Code §6106, the Review Department determined there was no intent to misappropriate client funds. Instead, the misconduct arose from disorganization, negligence, and inadequate supervision of office staff.

The court noted that Bouyer’s deficient bookkeeping practices—failing to reconcile his trust account and commingling client and personal funds—constituted serious misconduct, even without intent to defraud. His failure to communicate with clients about disbursements compounded the violations, depriving clients of timely access to settlement funds.

Mitigation and Aggravation

In mitigation, Bouyer had practiced for over a decade without prior discipline and demonstrated cooperation during the investigation. He also took steps to reform his office procedures, hiring a certified bookkeeper and implementing a computerized accounting system. In aggravation, the Review Department considered multiple client matters, the extended duration of misconduct, and the potential harm caused by delayed payments to clients and medical lienholders.

Outcome

The Review Department adopted the hearing panel’s findings but increased discipline, concluding that Bouyer’s negligence constituted a serious breach of fiduciary duty. It imposed a one-year stayed suspension with a 30-day actual suspension, one year of probation, and required him to complete the State Bar’s Client Trust Accounting School and the Professional Responsibility Examination.

The decision emphasized that trust account mismanagement—even without intent—undermines public confidence in the legal profession and warrants meaningful discipline.

Sanctions Table