## Facts

- James R. Lisher was an Indiana lawyer who employed Heather Brant as an office assistant for about 17 years.
- Over time, Lisher gave Brant broad control over day-to-day office operations, including communicating with clients, handling banking functions, and managing or assisting with electronic court filings.
- During the last year of Brant’s employment, over the course of several months, Brant embezzled thousands of dollars from the firm’s operating account.
- Brant also caused the firm’s client trust account to be overdrawn.
- In addition to the financial misconduct, Brant created fraudulent legal documents in client matters, including fake court orders.
- Lisher’s lack of effective supervision and his failure to keep complete trust-account records made it easier for Brant to carry out and conceal the misconduct.
- After learning of the misconduct, Lisher repaid the clients affected by the misuse of funds.
- The Indiana Supreme Court Disciplinary Commission brought disciplinary proceedings based on Lisher’s failures related to supervision and trust-account administration.
- Lisher cooperated with the disciplinary process and entered into a “Statement of Circumstances and Conditional Agreement for Discipline,” stipulating to rule violations and proposing a 60-day suspension with automatic reinstatement.

## Issues

1. Did attorney James R. Lisher violate the Indiana Rules of Professional Conduct by failing to reasonably supervise a long-term nonlawyer employee and by failing to maintain required trust-account records and controls, warranting professional discipline?

## Decision

- The Indiana Supreme Court approved the parties’ Statement of Circumstances and Conditional Agreement for Discipline.
- The court concluded that Lisher committed professional misconduct by failing to properly supervise a nonlawyer assistant and by failing to maintain complete trust-account records and safeguards as required by the professional-conduct rules and Indiana trust-account requirements.
- The court suspended Lisher from the practice of law for 60 days, with automatic reinstatement at the end of the suspension period (assuming no other suspension was in effect).
- The court assessed disciplinary costs against Lisher.

## Legal Principles

- A lawyer with supervisory authority over nonlawyer staff must take reasonable steps to ensure the staff’s conduct is compatible with the lawyer’s professional obligations; delegating major office functions without sufficient oversight can constitute misconduct.
- Lawyers must safeguard client funds by using appropriate trust-account practices, including complete and accurate recordkeeping and controls designed to prevent misuse and detect irregularities.
- Even when a nonlawyer commits the theft or falsification, a lawyer may be disciplined when the lawyer’s supervision and trust-account management failures materially contribute to the harm.
- In setting a sanction, the court considers the seriousness of the misconduct and relevant circumstances, including cooperation, restitution, and the absence of intentional wrongdoing by the attorney.
- The court may resolve attorney-discipline matters through a conditional agreement when the admitted misconduct and proposed sanction adequately protect the public and the integrity of the legal profession.

## Conclusion

In *In the Matter of Lisher*, the Indiana Supreme Court accepted a conditional discipline agreement and suspended attorney James R. Lisher for 60 days with automatic reinstatement after finding that his inadequate supervision of a long-time nonlawyer assistant and deficient trust-account recordkeeping enabled the assistant to embezzle funds, overdraw the trust account, and generate fraudulent court documents; restitution and cooperation supported the agreed sanction.


In the Matter of Lisher, 137 N.E.3d 254 (Mem.) (2020)