Office of Lawyer Regulation v. Lynne Layber

Headline: Wisconsin Supreme Court Disbars Attorney for Misappropriation and Dishonesty

Citation: 2025 WI 9

Court: Wisconsin Supreme Court · Filed: 2025-04-08 · Docket: 2023AP000314-D
Published
This case underscores the Wisconsin Supreme Court's commitment to upholding stringent ethical standards for attorneys. It demonstrates that severe sanctions, including disbarment, will be imposed for serious misconduct such as client fund misappropriation and dishonesty, regardless of personal circumstances, to protect the public and maintain trust in the legal profession. moderate
Outcome: Defendant Win
Impact Score: 75/100 — High impact: This case is likely to influence future legal proceedings significantly.
Legal Topics: Attorney professional conduct rulesMisappropriation of client fundsCommingling of client fundsConversion of client fundsDishonesty and misrepresentation by attorneysFailure to cooperate with disciplinary investigationsSanctions for attorney misconduct
Legal Principles: Professional responsibilityDuty of loyalty to clientsDuty of candor to the tribunal and disciplinary authoritiesSanctioning authority of the Supreme Court

Brief at a Glance

Wisconsin attorney Lynne Layber disbarred for stealing client funds, dishonesty, and failing to cooperate with investigators.

  • Always verify that your attorney is maintaining client funds in a separate, properly managed trust account.
  • If you suspect your attorney is acting unethically, report them to the state's lawyer disciplinary agency immediately.
  • Keep detailed records of all communications and financial transactions with your attorney.

Case Summary

Office of Lawyer Regulation v. Lynne Layber, decided by Wisconsin Supreme Court on April 8, 2025, resulted in a defendant win outcome. The Wisconsin Supreme Court disbarred attorney Lynne Layber for professional misconduct, including misappropriation of client funds, dishonesty, and failure to cooperate with the investigation. The court found Layber's actions constituted serious violations of the attorney's oath and professional conduct rules, warranting the severe sanction of disbarment to protect the public and maintain the integrity of the legal profession. The court rejected Layber's arguments for a lesser sanction, emphasizing the gravity of her offenses. The court held: The court held that attorney Lynne Layber's misappropriation of client funds, including commingling and conversion, constituted serious violations of professional conduct rules, warranting disbarment.. Layber's pattern of dishonesty, including making false statements to the Office of Lawyer Regulation (OLR) and failing to maintain adequate client records, demonstrated a lack of integrity and trust, justifying disbarment.. The court found that Layber's failure to cooperate with the OLR's investigation, including failing to appear for a deposition and refusing to provide requested documents, further supported the imposition of disbarment.. The court rejected Layber's mitigation arguments, finding them insufficient to overcome the severity of her misconduct and the need for public protection.. Disbarment was deemed the appropriate sanction to protect the public, maintain the integrity of the legal profession, and deter future misconduct, given the nature and extent of Layber's violations.. This case underscores the Wisconsin Supreme Court's commitment to upholding stringent ethical standards for attorneys. It demonstrates that severe sanctions, including disbarment, will be imposed for serious misconduct such as client fund misappropriation and dishonesty, regardless of personal circumstances, to protect the public and maintain trust in the legal profession.

AI-generated summary for informational purposes only. Not legal advice. May contain errors. Consult a licensed attorney for legal advice.

Case Analysis — Multiple Perspectives

Plain English (For Everyone)

A Wisconsin lawyer, Lynne Layber, has been disbarred, meaning she can no longer practice law. This happened because she misused client money, lied to clients and investigators, and didn't cooperate with the investigation into her actions. The court decided this severe punishment was necessary to protect the public and the reputation of lawyers.

For Legal Practitioners

The Wisconsin Supreme Court disbarred attorney Lynne Layber based on findings of misappropriation of client funds, dishonesty, and failure to cooperate with the OLR. The court rejected Layber's mitigation arguments, emphasizing the gravity of her conduct and the need for sanctions that protect the public and uphold professional integrity, affirming the referee's recommendation for disbarment.

For Law Students

This case illustrates the severe consequences of attorney misconduct, specifically misappropriation of client funds and dishonesty. The Wisconsin Supreme Court's de novo review affirmed disbarment for Lynne Layber, highlighting the importance of safeguarding client property and maintaining candor with clients and disciplinary bodies.

Newsroom Summary

Wisconsin attorney Lynne Layber has lost her law license permanently after the state Supreme Court disbarred her. The court found Layber engaged in serious professional misconduct, including stealing client money and lying during an investigation. The decision aims to protect the public and the legal profession's integrity.

Key Holdings

The court established the following key holdings in this case:

  1. The court held that attorney Lynne Layber's misappropriation of client funds, including commingling and conversion, constituted serious violations of professional conduct rules, warranting disbarment.
  2. Layber's pattern of dishonesty, including making false statements to the Office of Lawyer Regulation (OLR) and failing to maintain adequate client records, demonstrated a lack of integrity and trust, justifying disbarment.
  3. The court found that Layber's failure to cooperate with the OLR's investigation, including failing to appear for a deposition and refusing to provide requested documents, further supported the imposition of disbarment.
  4. The court rejected Layber's mitigation arguments, finding them insufficient to overcome the severity of her misconduct and the need for public protection.
  5. Disbarment was deemed the appropriate sanction to protect the public, maintain the integrity of the legal profession, and deter future misconduct, given the nature and extent of Layber's violations.

Key Takeaways

  1. Always verify that your attorney is maintaining client funds in a separate, properly managed trust account.
  2. If you suspect your attorney is acting unethically, report them to the state's lawyer disciplinary agency immediately.
  3. Keep detailed records of all communications and financial transactions with your attorney.
  4. Understand that misappropriating client funds is a severe offense that can lead to disbarment.
  5. Attorneys must cooperate fully with disciplinary investigations; failure to do so can result in additional sanctions.

Deep Legal Analysis

Standard of Review

The Wisconsin Supreme Court reviews attorney disciplinary proceedings under a standard of de novo review, meaning they examine the record and legal conclusions independently without deference to the lower tribunal's findings. This ensures a thorough and impartial assessment of the attorney's conduct and the appropriateness of the sanction.

Procedural Posture

This case reached the Wisconsin Supreme Court on a petition for review of a referee's recommendation for disciplinary action against attorney Lynne Layber. The Office of Lawyer Regulation (OLR) initiated the proceedings, and the referee recommended disbarment.

Burden of Proof

The burden of proof in attorney disciplinary proceedings rests with the Office of Lawyer Regulation (OLR), which must prove professional misconduct by clear and satisfactory evidence. The standard requires a high degree of certainty regarding the alleged violations.

Legal Tests Applied

Violation of Attorney's Oath and Rules of Professional Conduct

Elements: Misappropriation of client funds · Dishonesty, fraud, deceit, or misrepresentation · Failure to cooperate with the investigation · Breach of fiduciary duty

The court found that Lynne Layber's actions, including the commingling and conversion of client funds in her trust account, her misrepresentations to clients and the OLR, and her failure to respond to the OLR's inquiries, constituted clear violations of her attorney's oath and multiple Rules of Professional Conduct for Attorneys, including SCR 20:1.15(a), 20:8.4(c), and 22.03(2).

Statutory References

SCR 20:1.15(a) Safekeeping of Property — This rule was violated by Layber's commingling of personal and client funds in her trust account and her subsequent conversion of those funds for her own use, demonstrating a failure to properly safeguard client property.
SCR 20:8.4(c) Dishonesty, Fraud, Deceit or Misrepresentation — Layber's repeated misrepresentations to clients regarding the status of their cases and funds, as well as her dishonest responses to the OLR, directly violated this rule.
SCR 22.03(2) Cooperation with Investigations — Layber's failure to respond to multiple inquiries from the OLR regarding the allegations against her constituted a failure to cooperate with a disciplinary investigation, a violation of this rule.

Key Legal Definitions

Disbarment: The most severe disciplinary sanction, resulting in the permanent revocation of an attorney's license to practice law. It is reserved for the most serious professional misconduct.
Misappropriation: The wrongful taking or using of another person's property, particularly funds, for one's own purposes. In the legal context, it often refers to an attorney improperly using client funds held in trust.
Professional Misconduct: Actions by an attorney that violate the rules of professional conduct established by the state bar or supreme court, leading to disciplinary sanctions.
Attorney's Oath: A pledge taken by attorneys upon admission to the bar, promising to uphold the law, represent clients diligently and ethically, and maintain the integrity of the legal profession.

Rule Statements

The court found that Ms. Layber's misconduct was serious and extensive, involving multiple clients and spanning a significant period.
The court emphasized that the purpose of attorney discipline is to protect the public, maintain the integrity of the legal profession, and deter other attorneys from similar misconduct.
The court rejected Ms. Layber's arguments for a lesser sanction, finding that her actions demonstrated a pattern of dishonesty and a disregard for her professional obligations.

Remedies

Disbarment of attorney Lynne Layber.Layber is ordered to pay the costs of the disciplinary proceeding.Layber is prohibited from practicing law in Wisconsin.

Entities and Participants

Key Takeaways

  1. Always verify that your attorney is maintaining client funds in a separate, properly managed trust account.
  2. If you suspect your attorney is acting unethically, report them to the state's lawyer disciplinary agency immediately.
  3. Keep detailed records of all communications and financial transactions with your attorney.
  4. Understand that misappropriating client funds is a severe offense that can lead to disbarment.
  5. Attorneys must cooperate fully with disciplinary investigations; failure to do so can result in additional sanctions.

Know Your Rights

Real-world scenarios derived from this court's ruling:

Scenario: You hired an attorney, and they assured you that your settlement funds were being held in trust, but you later discover they have spent the money on personal expenses.

Your Rights: You have the right to have your funds protected and to expect honesty from your attorney. You have the right to report attorney misconduct to the Office of Lawyer Regulation.

What To Do: Immediately contact the Office of Lawyer Regulation (OLR) in Wisconsin to file a complaint. Gather all documentation related to your case and the funds in question. Consider seeking new legal counsel to assist you in recovering your funds and pursuing any necessary legal actions.

Scenario: You are involved in a disciplinary proceeding against an attorney, and the attorney is not responding to requests for information from the disciplinary board.

Your Rights: You have the right to expect the disciplinary process to be thorough and that attorneys are required to cooperate with investigations. The failure to cooperate can be grounds for further sanctions.

What To Do: Ensure all your communications and evidence are submitted to the Office of Lawyer Regulation (OLR). The OLR has procedures to address non-cooperation, and the court will consider this failure when determining appropriate sanctions.

Is It Legal?

Common legal questions answered by this ruling:

Is it legal for my lawyer to use my settlement money before it's disbursed to me?

No. It is illegal and a serious ethical violation for a lawyer to use client funds held in trust for their own personal expenses before they are properly disbursed to the client. This is known as misappropriation and is a form of theft and professional misconduct.

This applies in Wisconsin, as per the Office of Lawyer Regulation v. Lynne Layber case, and is a general rule across most jurisdictions.

Can I get my lawyer's license revoked if they steal my money?

Yes. If a lawyer is found to have stolen or misappropriated client funds, the disciplinary authorities can recommend and the courts can impose disbarment, which revokes their license to practice law permanently.

This is the outcome in Wisconsin in the case of Office of Lawyer Regulation v. Lynne Layber, and similar severe penalties are possible in other jurisdictions for such misconduct.

Practical Implications

For Clients of Lynne Layber

Clients who entrusted funds or legal matters to Lynne Layber may have suffered financial losses or delays in their cases due to her misconduct. They may need to take legal action to recover funds or find new counsel to complete their legal matters.

For Attorneys in Wisconsin

This ruling serves as a stark reminder of the severe consequences of violating professional conduct rules, particularly regarding client funds and honesty. It reinforces the importance of diligent record-keeping and ethical practice to avoid disciplinary action, including disbarment.

For The Public in Wisconsin

The disbarment of Lynne Layber protects the public from further harm by an attorney who engaged in serious misconduct. It reinforces public trust in the legal system by demonstrating that attorneys who violate ethical standards will be held accountable.

Related Legal Concepts

Trust Account Violations
Attorneys must keep client funds in separate trust accounts, and misuse of these...
Attorney Discipline
The process by which bar associations or courts investigate and sanction attorne...
Duty of Candor
Attorneys have a professional obligation to be truthful and honest with clients,...

Frequently Asked Questions (36)

Comprehensive Q&A covering every aspect of this court opinion.

Basic Questions (7)

Q: What is Office of Lawyer Regulation v. Lynne Layber about?

Office of Lawyer Regulation v. Lynne Layber is a case decided by Wisconsin Supreme Court on April 8, 2025.

Q: What court decided Office of Lawyer Regulation v. Lynne Layber?

Office of Lawyer Regulation v. Lynne Layber was decided by the Wisconsin Supreme Court, which is part of the WI state court system. This is a state supreme court.

Q: When was Office of Lawyer Regulation v. Lynne Layber decided?

Office of Lawyer Regulation v. Lynne Layber was decided on April 8, 2025.

Q: What is the citation for Office of Lawyer Regulation v. Lynne Layber?

The citation for Office of Lawyer Regulation v. Lynne Layber is 2025 WI 9. Use this citation to reference the case in legal documents and research.

Q: What happened to attorney Lynne Layber?

Attorney Lynne Layber was disbarred by the Wisconsin Supreme Court. This means her license to practice law in Wisconsin has been permanently revoked due to serious professional misconduct.

Q: What are client funds?

Client funds are money or property belonging to a client that an attorney holds temporarily during the course of legal representation, such as settlement proceeds or retainers.

Q: Does disbarment mean the lawyer has committed a crime?

Not necessarily. While some misconduct, like theft of client funds, can also be criminal offenses, disbarment is a professional sanction for violating ethical rules, which may or may not overlap with criminal law.

Legal Analysis (15)

Q: Is Office of Lawyer Regulation v. Lynne Layber published?

Office of Lawyer Regulation v. Lynne Layber is a published, precedential opinion. Published opinions carry precedential weight and can be cited as authority in future cases.

Q: What was the ruling in Office of Lawyer Regulation v. Lynne Layber?

The court ruled in favor of the defendant in Office of Lawyer Regulation v. Lynne Layber. Key holdings: The court held that attorney Lynne Layber's misappropriation of client funds, including commingling and conversion, constituted serious violations of professional conduct rules, warranting disbarment.; Layber's pattern of dishonesty, including making false statements to the Office of Lawyer Regulation (OLR) and failing to maintain adequate client records, demonstrated a lack of integrity and trust, justifying disbarment.; The court found that Layber's failure to cooperate with the OLR's investigation, including failing to appear for a deposition and refusing to provide requested documents, further supported the imposition of disbarment.; The court rejected Layber's mitigation arguments, finding them insufficient to overcome the severity of her misconduct and the need for public protection.; Disbarment was deemed the appropriate sanction to protect the public, maintain the integrity of the legal profession, and deter future misconduct, given the nature and extent of Layber's violations..

Q: Why is Office of Lawyer Regulation v. Lynne Layber important?

Office of Lawyer Regulation v. Lynne Layber has an impact score of 75/100, indicating significant legal impact. This case underscores the Wisconsin Supreme Court's commitment to upholding stringent ethical standards for attorneys. It demonstrates that severe sanctions, including disbarment, will be imposed for serious misconduct such as client fund misappropriation and dishonesty, regardless of personal circumstances, to protect the public and maintain trust in the legal profession.

Q: What precedent does Office of Lawyer Regulation v. Lynne Layber set?

Office of Lawyer Regulation v. Lynne Layber established the following key holdings: (1) The court held that attorney Lynne Layber's misappropriation of client funds, including commingling and conversion, constituted serious violations of professional conduct rules, warranting disbarment. (2) Layber's pattern of dishonesty, including making false statements to the Office of Lawyer Regulation (OLR) and failing to maintain adequate client records, demonstrated a lack of integrity and trust, justifying disbarment. (3) The court found that Layber's failure to cooperate with the OLR's investigation, including failing to appear for a deposition and refusing to provide requested documents, further supported the imposition of disbarment. (4) The court rejected Layber's mitigation arguments, finding them insufficient to overcome the severity of her misconduct and the need for public protection. (5) Disbarment was deemed the appropriate sanction to protect the public, maintain the integrity of the legal profession, and deter future misconduct, given the nature and extent of Layber's violations.

Q: What are the key holdings in Office of Lawyer Regulation v. Lynne Layber?

1. The court held that attorney Lynne Layber's misappropriation of client funds, including commingling and conversion, constituted serious violations of professional conduct rules, warranting disbarment. 2. Layber's pattern of dishonesty, including making false statements to the Office of Lawyer Regulation (OLR) and failing to maintain adequate client records, demonstrated a lack of integrity and trust, justifying disbarment. 3. The court found that Layber's failure to cooperate with the OLR's investigation, including failing to appear for a deposition and refusing to provide requested documents, further supported the imposition of disbarment. 4. The court rejected Layber's mitigation arguments, finding them insufficient to overcome the severity of her misconduct and the need for public protection. 5. Disbarment was deemed the appropriate sanction to protect the public, maintain the integrity of the legal profession, and deter future misconduct, given the nature and extent of Layber's violations.

Q: What cases are related to Office of Lawyer Regulation v. Lynne Layber?

Precedent cases cited or related to Office of Lawyer Regulation v. Lynne Layber: Office of Lawyer Regulation v. Schwartz, 2016 WI 29, 368 Wis. 2d 327, 879 N.W.2d 451; Office of Lawyer Regulation v. Sullivan, 2011 WI 104, 337 Wis. 2d 305, 805 N.W.2d 363; State v. Eisenberg, 78 Wis. 2d 102, 253 N.W.2d 517 (1977).

Q: Why was Lynne Layber disbarred?

She was disbarred for multiple violations, including misappropriating client funds, engaging in dishonesty and misrepresentation, and failing to cooperate with the Office of Lawyer Regulation's investigation.

Q: What does 'disbarment' mean for a lawyer?

Disbarment is the most severe disciplinary sanction. It means the attorney can no longer practice law in the jurisdiction where they are disbarred.

Q: What is misappropriation of client funds?

Misappropriation occurs when an attorney wrongfully takes or uses client funds for their own purposes, rather than holding them in trust for the client's benefit.

Q: What are the Rules of Professional Conduct for Attorneys?

These are ethical rules that govern lawyers' behavior, covering areas like client communication, handling of funds, conflicts of interest, and honesty. Violating them can lead to discipline.

Q: What happens if a lawyer doesn't cooperate with a disciplinary investigation?

Failure to cooperate with an investigation is itself a violation of professional conduct rules and can lead to additional or more severe disciplinary sanctions, as it did for Lynne Layber.

Q: What is the burden of proof for the OLR?

The Office of Lawyer Regulation must prove attorney misconduct by clear and satisfactory evidence, which is a high standard requiring a substantial certainty of the truth of the allegations.

Q: What are the potential consequences for an attorney found guilty of misconduct?

Consequences range from private reprimands to public censure, suspension of their license, or disbarment, depending on the severity and nature of the misconduct.

Q: How does the court decide the appropriate sanction for misconduct?

The court considers factors like the seriousness of the misconduct, the attorney's prior disciplinary record, the need to protect the public, and the need to maintain the integrity of the legal profession.

Q: What is the attorney's oath?

The attorney's oath is a pledge lawyers take upon admission to the bar, promising to uphold the law, represent clients faithfully, and maintain the integrity of the legal profession. Violating this oath can lead to discipline.

Practical Implications (5)

Q: How does Office of Lawyer Regulation v. Lynne Layber affect me?

This case underscores the Wisconsin Supreme Court's commitment to upholding stringent ethical standards for attorneys. It demonstrates that severe sanctions, including disbarment, will be imposed for serious misconduct such as client fund misappropriation and dishonesty, regardless of personal circumstances, to protect the public and maintain trust in the legal profession. As a decision from a state supreme court, its reach is limited to the state jurisdiction. This case is moderate in legal complexity to understand.

Q: How can I report an attorney for misconduct in Wisconsin?

You can file a complaint with the Office of Lawyer Regulation (OLR). They investigate allegations of professional misconduct by attorneys licensed in Wisconsin.

Q: What if I believe my lawyer has stolen my money?

You should immediately contact the Office of Lawyer Regulation (OLR) to report the suspected misappropriation. Gather any evidence you have, such as bank statements or correspondence.

Q: What should I do if I have a dispute with my lawyer over fees?

While this case involved misappropriation, fee disputes can often be resolved through direct communication, fee arbitration services offered by bar associations, or potentially through the OLR if ethical violations are involved.

Q: What are the costs associated with disciplinary proceedings?

The disciplined attorney is typically ordered to pay the costs of the disciplinary proceeding, which can include expenses incurred by the Office of Lawyer Regulation, such as investigation and hearing costs.

Historical Context (1)

Q: Can a disbarred lawyer ever practice law again?

Generally, disbarment is permanent. While some jurisdictions allow for petitions for reinstatement after a significant period, it is rare and requires demonstrating rehabilitation and fitness to practice.

Procedural Questions (5)

Q: What was the docket number in Office of Lawyer Regulation v. Lynne Layber?

The docket number for Office of Lawyer Regulation v. Lynne Layber is 2023AP000314-D. This identifier is used to track the case through the court system.

Q: Can Office of Lawyer Regulation v. Lynne Layber be appealed?

Generally no within the state system — a state supreme court is the court of last resort for state law issues. However, if a federal constitutional question is involved, a party may petition the U.S. Supreme Court for review.

Q: What is the Office of Lawyer Regulation (OLR)?

The OLR is the agency in Wisconsin responsible for investigating allegations of attorney misconduct and prosecuting disciplinary cases before the Wisconsin Supreme Court.

Q: What is the standard of review for attorney discipline cases in Wisconsin?

The Wisconsin Supreme Court reviews attorney disciplinary cases de novo, meaning they examine the record and legal issues independently without giving deference to the referee's findings.

Q: How long does an OLR investigation typically take?

The duration of an OLR investigation can vary widely depending on the complexity of the case, the cooperation of the parties involved, and the caseload of the OLR. Some investigations can take months or even longer.

Cited Precedents

This opinion references the following precedent cases:

  • Office of Lawyer Regulation v. Schwartz, 2016 WI 29, 368 Wis. 2d 327, 879 N.W.2d 451
  • Office of Lawyer Regulation v. Sullivan, 2011 WI 104, 337 Wis. 2d 305, 805 N.W.2d 363
  • State v. Eisenberg, 78 Wis. 2d 102, 253 N.W.2d 517 (1977)

Case Details

Case NameOffice of Lawyer Regulation v. Lynne Layber
Citation2025 WI 9
CourtWisconsin Supreme Court
Date Filed2025-04-08
Docket Number2023AP000314-D
Precedential StatusPublished
OutcomeDefendant Win
Impact Score75 / 100
SignificanceThis case underscores the Wisconsin Supreme Court's commitment to upholding stringent ethical standards for attorneys. It demonstrates that severe sanctions, including disbarment, will be imposed for serious misconduct such as client fund misappropriation and dishonesty, regardless of personal circumstances, to protect the public and maintain trust in the legal profession.
Complexitymoderate
Legal TopicsAttorney professional conduct rules, Misappropriation of client funds, Commingling of client funds, Conversion of client funds, Dishonesty and misrepresentation by attorneys, Failure to cooperate with disciplinary investigations, Sanctions for attorney misconduct
Jurisdictionwi

Related Legal Resources

Wisconsin Supreme Court Opinions Attorney professional conduct rulesMisappropriation of client fundsCommingling of client fundsConversion of client fundsDishonesty and misrepresentation by attorneysFailure to cooperate with disciplinary investigationsSanctions for attorney misconduct wi Jurisdiction Know Your Rights: Attorney professional conduct rulesKnow Your Rights: Misappropriation of client fundsKnow Your Rights: Commingling of client funds Home Search Cases Is It Legal? 2025 Cases All Courts All Topics States Rankings Attorney professional conduct rules GuideMisappropriation of client funds Guide Professional responsibility (Legal Term)Duty of loyalty to clients (Legal Term)Duty of candor to the tribunal and disciplinary authorities (Legal Term)Sanctioning authority of the Supreme Court (Legal Term) Attorney professional conduct rules Topic HubMisappropriation of client funds Topic HubCommingling of client funds Topic Hub

About This Analysis

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