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Attorney disbarred after fifth time in discipline court

A West Hollywood attorney who has been on disciplinary probation since 1994 and whose status has flipflopped between active and not entitled 11 times since 1987 was disbarred March 16. THOMAS NEIL THOMSON [#48785], 62, lost his license as a result of his actions in a bankruptcy matter when the State Bar Court’s review department rejected a hearing judge’s recommendation for a lesser discipline and recommended disbarment.

Thomson’s most recent wrongdoing — similar to the misconduct that led to previous discipline — included disobeying a court order, failing to report judicial sanctions or comply with probation conditions and engaging in the unauthorized practice of law.

Thomas “has been continuously on probation since 1994, yet he has repeatedly violated court orders, failed to report court sanctions and engaged in the unauthorized practice of law,” wrote review Judge Judith Epstein. “Aggravating circumstances abound, untempered by any mitigating circumstances.”

In an unusual move last year, the state Supreme Court, denying Thomson’s request to vacate a bar court order placing him on involuntary status, ordered the bar to investigate whether Thomson had been practicing while suspended. Bar prosecutors would not comment on the Supreme Court order or say if Thomson is under further investigation. Once a lawyer is disbarred, the State Bar has limited authority to act; it can seek a contempt order or refer a case to the district attorney for prosecution.

In the matter that led to Thomson’s disbarment, he represented a debtor, the debtor’s brother and a corporation owned by the two. Thomson filed suit in state court that adversely affected title to a piece of property that secured a $1.11 million note on which the brothers defaulted.

Thomson had sued to prevent foreclosure on the property and a few months later, one of the brothers filed for bankruptcy. The parties reached a complex settlement agreement, approved by the bankruptcy judge, but when the brothers failed to meet one of the conditions, the bank foreclosed. They nevertheless remained in possession of the property, so the bankruptcy judge issued a preliminary injunction enjoining them from taking any action relating to the settlement.

Despite the court order, Thomson sued the bank, prompting the bankruptcy judge to issue a permanent injunction prohibiting the brothers from committing further breaches of the settlement agreement. He also cited the brothers for criminal contempt.

Thomson represented the brothers in the contempt proceedings and continued to represent them in actively litigating matters relating to the property. As a result, he was found in civil contempt by the bankruptcy court, which ordered sanctions of $46,359.72. Thomson did not report the sanctions to the State Bar, as required.

In a separate matter, Thomson handled two cases while suspended for non-payment of bar dues.

The review department found that Thomson’s previous misconduct was similar to the most recent: in 1992, he was sanctioned more than $12,000 due to his actions involving questionable ownership interests of his clients in some real property and was sanctioned for a “pattern of failing to timely pay two previous monetary sanctions and three other sanctions in unrelated matters.” The review department said the circumstances were “remarkably similar to those in the instant case due to his bad faith actions in maintaining a frivolous quiet title action that was intended to cause unnecessary delay.”

When he did not comply with probation conditions, his probation was extended in 1997 and he was further disciplined for unauthorized practice while suspended and was ordered to make restitution to a client in the amount of $12,667.

In 2001, he was disciplined for failing to pay the restitution.

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