Maddux 1218 rel.PDF (2004)
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BOARD OF PROFESSIONAL RESPONSIBILITY
of the
SUPREME COURT OF TENNESSEE
LANCE B. BRACY WILLIAM W. HUNT, III
CHIEF DISCIPLINARY COUNSEL 1101 KERMIT DRIVE, SUITE 730 CHARLES A. HIGH
NASHVILLE, TENNESSEE 37217 SANDY GARRETT
LAURA L. CHASTAIN TELEPHONE: (615) 361-7500 JESSE D. JOSEPH
DEPUTY CHIEF DISCIPLINARY COUNSEL
(800) 486-5714 JAMES A. VICK
FAX: (615) 367- 2480 THERESA M. COSTONIS
BEVERLY P. SHARPE
E-MAIL: ethics@tbpr.org DISCIPLINARY COUNSEL
CONSUMER COUNSEL DIRECTOR
RELEASE OF INFORMATION
RE: H. OWEN MADDUX, NO. 515
CONTACT: JAMES A. VICK
BOARD OF PROFESSIONAL RESPONSIBILITY
November 24, 2004
CHATTANOOGA ATTORNEY SUSPENDED BY SUPREME COURT
H. Owen Maddux, a Chattanooga attorney, was suspended from the practice of law for
thirty days, placed on probation for one year, and otherwise sanctioned by Opinion and Judgment
of the Supreme Court of Tennessee entered August 27, 2004. A Petition for Rehearing filed by
the Board of Professional Responsibility was denied by the Supreme Court on November 9,
2004. Pursuant to Section 18.5 of Supreme Court Rule 9, the suspension became effective ten
days from the date of the denial of the Petition for Rehearing.
Mr. Maddux's suspension arose out of a Petition for Discipline filed against Mr. Maddux
on February 7, 2001. A hearing was conducted by a Hearing Committee of the Board of
Professional Responsibility on August 29, 2002. By Judgment of the Hearing Panel entered
September 17, 2002, the Hearing Panel found that Mr. Maddux had violated DR 1-
102(A)(1)(3)(4)(5)(6), suspended Mr. Maddux for thirty days, and required Mr. Maddux to
submit an artic le to the Tennessee and Hamilton County Bar Associations discussing partnership
law and the pitfalls of dissolving a partnership, to perform 100 hours of community service, to
comply with order of the Chancery Court, and pay the cost of the disciplinary proceeding. The
Board of Professional Responsibility filed a Writ of Certiorari to the Chancery Court for
Hamilton County. The Chancery Court for Hamilton County entered an Order dated April 10,
2003, affirming the Hearing Panel's decision and, in addition, placed Mr. Maddux on probation
for one year during which he would be monitored by an attorney approved by the Board of
Professional Responsibility. The Board of Professional Responsibility then appealed to the
Supreme Court. The Supreme Court affirmed the decision of the Chancery Court.
Mr. Maddux joined the existing law firm of Jahn, Jahn and Cavett as a partner on
January 1, 1991. No written partnership agreement was ever adopted by the members of the
firm. It was agreed and understood by all partners that any attorney fees generated by any
attorney during the duration of the partnership were partnership income and would be paid into
the partnership and partnership account. On October 21, 1994, Mr. Dick Jahn issued a "memo"
asserting that three partners, including Mr. Maddux, owed negative capital accounts. One
partner immediately withdrew from the partnership. The remaining partners continued to
practice pursuant to the prior agreement. On January 16, 1995, three other partners withdrew
from the partnership. In December, 1994, Mr. Maddux began taking and converting to his own
use partnership fees, income, and/or client payments made by at least seventeen separate
partnership clients on approximately fifty different occasions over a three-year period from
December, 1994, through November, 1997, in the total sum exceeding $92,000.00. Mr. Maddux
took the partnership fees, income, and/or client payments without the knowledge or consent of
the other partners. On October 16, 1996, the firm filed suit against Mr. Maddux in the Chancery
Court for Hamilton County to recover the firm monies. By Judgment filed in the Chancery
Court for Hamilton County, Tennessee, on October 2, 2000, Mr. Maddux was found to have
defrauded the partnership and wrongfully converted $92,534.57 in receivables from the
partnership. The Board of Professional Responsibility then filed the Petition for Discipline.
Mr. Maddux may resume the practice of law upon the expiration of the period of
suspension.
Maddux 1218 rel.doc