## Facts

- Gwendolyn L. Laprath, a South Dakota attorney, represented her former husband, Tom Laprath, in Social Security disability proceedings.
- After Tom began receiving disability benefits, Laprath was appointed his Social Security representative payee, giving her control over his benefit payments and fiduciary duties to use them for his best interests.
- Laprath paid herself attorney’s fees from Tom’s disability benefits without a written fee agreement and without Tom’s knowing, informed consent.
- Laprath asserted she was owed a substantial amount in fees (exceeding $15,000) for her work for Tom, including work connected to a guardianship matter.
- Laprath filed a state-court petition seeking to be appointed Tom’s guardian and conservator, alleging incompetence, and obtained an ex parte temporary appointment.
- Tom retained independent counsel to contest the guardianship/conservatorship effort and Laprath’s claimed fees and to challenge her continuing use of his benefit funds to pay herself.
- The temporary guardianship/conservatorship appointment was set aside, and a grievance was filed with the State Bar’s Disciplinary Board.
- After proceedings before a referee and the Disciplinary Board, both recommended disbarment; the case proceeded to the South Dakota Supreme Court for final discipline, with Laprath appearing pro se.
- Laprath had a lengthy prior disciplinary record, considered in aggravation.

## Issues

1. Whether Laprath’s unilateral payment of attorney’s fees from a client’s disability benefits, without a fee agreement or informed consent, constituted misconduct involving misuse of client funds and breach of fiduciary duty.
2. Whether Laprath’s simultaneous roles as attorney, representative payee, and petitioner for involuntary guardianship/conservatorship created an impermissible conflict of interest.
3. What sanction was appropriate given the seriousness of the misconduct and Laprath’s prior disciplinary history.

## Decision

- The court found Laprath committed multiple serious violations of the South Dakota Rules of Professional Conduct involving fiduciary breach, improper self-dealing with client funds, and conflicts of interest.
- The court adopted the referee’s and Disciplinary Board’s recommendation of disbarment.
- Laprath was disbarred from the practice of law in South Dakota.

## Legal Principles

- A lawyer controlling client funds in a fiduciary capacity must use those funds solely for the beneficiary’s interests and may not engage in self-dealing.
- A lawyer may not take fees from client funds without an enforceable basis and informed client consent; disputed funds must not be unilaterally converted to the lawyer’s personal use.
- A lawyer must avoid representations and actions materially limited by the lawyer’s personal or financial interests; conflicts require withdrawal or informed consent under applicable rules.
- Conduct involving dishonesty, deceit, or misuse of entrusted funds constitutes professional misconduct and warrants severe discipline.
- Prior discipline is a significant aggravating factor; repeated misconduct supports escalating sanctions, including disbarment, to protect the public and the integrity of the profession.

## Conclusion

The court disbarred Laprath for taking disputed fees from a vulnerable client’s disability benefits without informed consent, pursuing control over the client through guardianship while asserting adverse financial claims, and continuing conflicted self-interested conduct, with her prior disciplinary history supporting the most severe sanction.


In re Discipline of Laprath, 670 N.W.2d 41 (S.D. 2003)