Taylor Town Attorney Karl Lautz entered into a voluntary interim suspension with the Arizona State Bar on May 14, 2015, after admitting that, “He failed to comply with trust account rules for over two years,” and “he converted client funds for his own benefit and he is no longer able to manage his law practice in a professional and ethical manner,” according to an order of interim suspension signed May 18 by William J. O’Neil, presiding disciplinary judge.
Following the publication of a story on the suspension written by Barbara Bruce for The White Mountain Independent, Lautz made a statement on the suspension to the Taylor Town Council Oct. 1.
Lautz statement noted that, “In June 2015 I came to the town manager and advised him of the fact that I personally was dealing with some disciplinary issues with the State Bar and that per the advice of my privately retained attorney, she recommended that as part of that process that I voluntarily agree to an interim suspension while the investigation and exchange of information continued. As part of the agreement, I was required by the State Bar and the rules of professional conduct to make disclosures to all of the clients of the Lautz Law Group and make arrangements for those clients/files to be transferred to other counsel. As part of the process, I made arrangements with two separate attorneys/firms to take over the representation of each client with the client’s consent. One of those attorneys is my brother, Shawn, who is licensed in both Arizona and Kansas, and whose principal place of business is currently in Kansas. Shawn was a member of the Lautz Law Group for several years and practiced full time, in Arizona, until he moved back to Kansas in 2012.”
Lautz and Town Manager Gus Lundberg came up with an agreement that Lautz would “continue to represent the town through the stewardship of my brother Shawn and that I would remain involved in the representation of the Town of Taylor in the paralegal capacity.
“At all times, since the voluntary suspension went into effect, I have served under the direct supervision of my brother, Shawn, and in a limited paralegal capacity, which was known to Gus and the town. Per the advice of my own personal counsel and with the consent and understanding of the State Bar of Arizona, I remain actively involved in a paralegal capacity on all Lautz Law files that remain under the control of my brother.
“Shawn has been involved in, revised and directed all work performed by Lautz Law since my interim suspension. Shawn is available to the town, its manager and its council at any time. Similarly, I remain available to the town, its manager and its council at any time. We have also made specific arrangements for Shawn to be available, telephonically, during each council meeting if the need should arise for legal advice. I have attended those meetings in my paralegal capacity only, and to facilitate clear communication with Shawn and the town.”
Lautz said that this is the first time he has had any disciplinary action in the 23 years he has practiced law.
“I apologize to the town and each of you, individually, for my circumstances, but as you know we have provided the Town of Taylor with the highest level of legal services over the past two years. More importantly, I have personally enjoyed the opportunity to represent the town in a manner that I have not experienced with a client in many years. I believe and have felt that I am a part of this community, and have been committed to making this community the very best municipality that it can be.
“My voluntary interim suspension continues, as I navigate the disciplinary process, and I hope to have a final resolution by the end of this year, so that we can start the new year with a new direction.
“I am sorry that my very personal and professional issues have become the subject of public comment. What I can promise each of you and the Town of Taylor is that Lautz Law will continue to provide the Town of Taylor with the highest quality legal representation, as directed by Shawn Lautz. There is still a lot of work to be done to make the Town of Taylor the very best municipality that it can be.”
Lautz has taken responsibility for his mistakes, but stated, “My prior mistakes do not define who I am, and I will not be defined by them. As you all appreciate, none of us are perfect, none of us are without sin, and all of us have the right to be forgiven and receive the Grace of God, which is God’s unmerited favor.”
He thanked the town and council for their committed support.
“I think he (Lautz) has provided good legal assistance at a good value to the town. I think that it’s been nice to have counsel on preventative matters instead of active and trouble matters,” said Councilman Jason Brubaker.
“Karl, thank you. We appreciate your statement tonight, and I’m glad you’re here,” said Mayor Fay Hatch.
The mayor noted that Lautz will continue as a paralegal, and the town will get legal advice from the Lautz Law Group, overseen by Shawn Lautz, until the beginning of 2016, when Karl Lautz should have a final ruling from the Arizona State Bar.
In other business last week, Navajo County Emergency Management Director Mary Springer and Emergency Management Coordinator Catrina Jenkins gave a PowerPoint presentation on the Ready Navajo County notification system. If you are interested in signing up for the system, you can do so on the county website. Information for items not critical to go to the public is available at www.311info.net, or by calling 311 on your landline or cell phone.
The council approved Ordinance 2015-02, repealing and adopting Chapter 14, floodplain management. Building Official Allen Davis explained to the council that this updates the floodplain ordinance to come more into line with state requirements for flood plains. The ordinance will take effect in 30 days.
