NEWPORT BEACH ATTORNEY FACES DISBARMENT FOR MISAPPROPRIATING $95,000
Media Contact: Laura Ernde 415-538-2283 firstname.lastname@example.org
San Francisco (May 17, 2012) – The State Bar of
California has accepted a stipulated disbarment from Newport Beach attorney
Kendall R. Paulson, who misappropriated $95,000 that was supposed to be used to
settle his client’s lawsuit.
According to the disbarment stipulation approved by the
State Bar Court Wednesday, Paulson, 51, represented Carl Lovegren in a civil
suit filed against him in Orange County Superior Court in September 2006. The
following year, the parties entered into a settlement agreement whereby Lovegren
agreed to pay the plaintiffs $95,000. The agreement stated that should Lovegren
fail to pay an agreed-upon amount by Feb. 9, 2008, he would be responsible for
twice the balance, plus interest.
On Dec. 10, 2008, Lovegren gave Paulson $40,000 to pay part
of the settlement agreement, money that Paulson deposited into his client trust
account but later spent. Paulson misappropriated an additional $55,000 in
settlement money from another check Lovegren gave him in June 2009.
According to the stipulation, Paulson misled both Lovegren,
who thought he had been paying off the settlement, and the court, by telling a
judge that his client was trying to raise money to pay the judgment but needed
Paulson (bar number 120688), who had no prior history of
discipline, will be placed on involuntary inactive status May 18 until the
California Supreme Court acts on the disbarment recommendation. He has agreed
to pay restitution, plus interest.
The case was prosecuted by Deputy Trial Counsel Jessica A.
State Bar of California is an administrative arm of the California Supreme
Court, serving the public and seeking to improve the justice system for more
than 80 years. All lawyers practicing law in California must be members of the
State Bar. By May 2012, membership reached 237,000.