Reinstatement to the Maryland Bar Requires Disclosure of all Relevant Material Facts
(September, 2009) By Tamiya N. Wilkes, Associate.
For more information, contact Paul Farquharson.
Attorney Grievance Commission of Maryland v. Lester A.D. Adams
(Md. App. September 2009)
In August 1998, Lester Adams was suspended indefinitely from
the practice of law in Maryland for improper management of his attorney trust
account. The terms of his suspension permitted him to reapply for admission to
the Bar after one year. Almost nine years after his suspension, Mr. Adams was
reinstated to the practice of law in Maryland.
At the time of his reinstatement, Mr. Adams was involved in
litigation in federal court with Christopher Brooks – the subject of the
litigation between Mr. Adams and Mr. Brooks was fraud connected to the
acquisition of an investment property. Mr. Adams had informed Bar Counsel that
the pending litigation involved a disputed title to real property but advised
that the matter would likely settle without a trial. Counsel for Christopher
Brooks challenged Mr. Adams' reinstatement by filing a Motion to Strike Order
Granting Reinstatement, arguing that Bar Counsel had not sufficiently
investigated Mr. Adams' representations regarding the litigation involving the
investment property. The federal trial court ruled against Mr. Adams with regard
to the fraudulent acquisition of the investment property and found that Mr.
Adams' testimony at the trial was not credible.

Mr. Adams denied the allegations set forth in the Motion to
Strike Order Granting Reinstatement and argued that counsel for Mr. Brooks
lacked the right or authority to challenge his reinstatement to the practice of
law. Mr. Adams further argued that the only grounds in Md. Rule 16-781, of the
Maryland Lawyers' Rules of Professional Conduct, for striking a reinstatement to
the Bar of Maryland are: 1) failure to comply with order of reinstatement, or 2)
knowingly making a false statement or material omission in the Petition for
Reinstatement – counsel for Mr. Brooks had not alleged either ground.
The Court of Appeals of Maryland agreed with Mr. Adams and
dismissed the Motion to Strike Order Granting Reinstatement. The Court held that
only Bar Counsel may file a petition to vacate a reinstatement to the Bar of
Maryland.
Subsequently, Bar Counsel filed its own Motion to Strike
Order Granting Reinstatement alleging that Mr. Adams failed to disclose the
nature of the litigation that was pending at the time he sought reinstatement.
Specifically, Bar Counsel alleged that Mr. Adams failed to disclose that the
pending federal litigation involved an allegation that he had appended Mr.
Brooks' name to a contract for the purchase of real property, without Mr.
Brooks' knowledge. The failure to disclose the true facts of the litigation
combined with the finding against him in federal court, argued Bar Counsel,
satisfied the requirements for vacating the reinstatement order. According to
Bar Counsel, along with disclosing the fact that litigation was pending, Mr.
Brooks was also required to disclose the precise theory on which the opposition
party relies to establish his liability; in other words, Mr. Adams should have
disclosed that the pending litigation involved an allegation of fraud.
Mr. Adams argued that Bar Counsel was not knowingly misled
and that he substantially complied with the reinstatement order. Mr. Adams
further argued that the outcome of the federal litigation, because it was
rendered after he had been reinstated, had no bearing on the disciplinary
proceedings.
The Court of Appeals in considering the arguments of both
parties, held that if an individual seeking reinstatement to the Bar fails to
completely disclose a material fact that is relevant to the disposition of his
or her reinstatement petition, the order reinstating the attorney may be
vacated. Although Mr. Adams failed to disclose that there was an allegation that
he defrauded Mr. Brooks and acted without authority in taking title to the
property in Mr. Brooks' name, he had supplied Bar Counsel with a Memorandum
Opinion filed by the federal judge that ruled on the pre-judgment motions in
that case. According to the Court of Appeals, the Memorandum Opinion submitted
by Mr. Adams clearly set forth the precise nature of the litigation between Mr.
Adams and Mr. Brooks that was pending in federal court. In light of the fact
that "Bar Counsel was fully aware, or should have been, of the nature and
gravity of the allegations being made against Mr. Adams in the federal
litigation," the Court of Appeals held that Bar Counsel had the true facts in
advance of the entry of the Order of Reinstatement. The Court further held that
Mr. Adams had provided adequate disclosures to Bar Counsel prior to
reinstatement and that the outcome of the federal litigation or the trial
judge's factual findings did not render the Mr. Adams' disclosures incomplete or
inadequate.