Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Utah attorney disbarred for taking from client’s settlement funds
Court » Clayne Corey was suspended from practicing in 1993 for misuse of a client’s trust account.
First Published Mar 27 2012 04:13 pm • Last Updated Mar 27 2012 04:35 pm

The Utah Supreme Court on Tuesday decided a Utah attorney’s alleged conduct was so egregious that he should be disbarred.

In its ruling, the court said Clayne Corey, who prior to Tuesday was allowed to practice law, should be disbarred because the court found he knowingly and intentionally misappropriated a client’s settlement fund.

Join the Discussion
Post a Comment

In 1999, "law school chums" Clayne Corey and Randall Lund formed the law firm Corey & Lund and were retained by a client to represent her in a personal injury case, the court’s opinion shows. In February 1999, their client accepted a settlement offer of $122,500 and received a check from an insurance company that was made out to both the client and Corey. But instead of giving the funds to the client, Corey put all the money into his operating account and wrote checks against it, court records show. In a matter of months, the balance plummeted from $128,916.14 to less than $3,000, the ruling shows.

While the firm later paid the client back some of what she was owed, the client later sued Corey to recover the rest — about $50,000, court papers show.

At the conclusion of that suit, the Office of Professional Conduct initiated disciplinary action against Corey and recommended disbarment. A district court judge, however, ruled that suspension rather than disbarment was most appropriate, but then stayed the suspension finding that Corey "did not intend to cause harm or injury."

But in making its ruling, the Utah Supreme Court noted that Corey had previously been suspended in 1993 relating to the misuse of a client trust account.

In 2003, Corey’s law partner, Lund, in an unrelated matter, pleaded guilty to drug distribution and buying a car with a bad check, and was ordered to serve jail time. Facing disciplinary action, he had previously resigned from the Utah State Bar.

jstecklein@sltrib.com

Twitter @sltribjanelle




Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Login to the Electronic Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.