In the Matter of Philip Kleinsmith

Summary

The court affirmed the disciplinary orders determining that Kleinsmith knowingly converted funds paid by a client for a third party’s services and violated the applicable professional-conduct rules. It held that the funds remained intended for the third party even though they were deposited into the firm’s operating account, and rejected Kleinsmith’s due-process and equal-protection challenges. Justice Eid, joined by Justice Coats, dissented, arguing that the conduct constituted nonpayment of an ordinary debt rather than knowing conversion warranting disbarment.