In 8th run-in with State Bar, Charlotte attorney who shared false drama avoids suspension
A prominent Charlotte lawyer — and owner of the seventh most expensive home in Mecklenburg County — avoided a license suspension during his eighth time being disciplined by the State Bar.
According to court documents, Michael A. DeMayo was last year accused of sharing false drama about a former colleague — that included a divorce, a custody battle, an ex-wife’s new boyfriend — with a client who intended to follow the lawyer after he left DeMayo’s firm.
When the Bar’s Disciplinary Hearing Commission sanctioned DeMayo with a one-year suspension of his law license in January 2023, DeMayo appealed the complaint.
On Tuesday, A North Carolina appeals court, in a unanimous decision by a three-judge panel, dropped the case. While the evidence showed that DeMayo’s statements were “incorrect,” it did not “establish (DeMayo) knew these statements were incorrect,” they decided.
“While I respect the process under which the North Carolina State Bar and DHC regulate attorneys, I strongly disagree with these findings,” DeMayo previously told The Charlotte Observer. “I did not violate any of the Rules of Professional Conduct.”
First, Michael DeMayo’s law firm overpaid her by $5K, then it threatened her with arrest
DeMayo’s 8th discipline under State Bar
In May 2020, Ryan Valente resigned from Demayo Law Offices. Two days later, one of his clients requested the office transfer her file to Valente, according to court documents. He would remain her lawyer, she said.
DeMayo asked to talk.
“I must discuss a few items related and unrelated to your inquiries and will potentially have a negative impact on the outcome of your case,” he wrote in an email, according to court documents. “...Understand that I have no desire to sway or impact who ultimately represents you... but I do have an ethical and professional obligation to communicate a few items about your case.”
She agreed to meet, and, according to a recording, DeMayo veered into Valente’s personal life:
“I’m not really sure what happened with him. I don’t want to get into his personal life, but there was a divorce,” he said, according to a video of the WebEx meeting. “There was a custody. There was a remarriage. There was a ex-wife dating one of the defense lawyers we go against all the time. So I’m sure all of that had some impact on his productivity, but notwithstanding, I’m not insensitive to my staff.”
When the client’s case was settled — with Valente as her lawyer — DeMayo requested 85% of the attorney fees, which totaled $196,313.68. This was based on Valente’s contract with the firm, according to court documents.
Valente told DeMayo he would “invoke the doctrine of unclean hands” if he pursued the fees, according to court documents. DeMayo violated the Rules of Professional Conduct, he said.
“As to mentioning your personal circumstances to this or any client, you are sadly mistaken,” DeMayo wrote back. “I personally was not aware of the severity and complexity of your personal struggles but they would have never been fodder or a topic of discussion with anyone much less a client.”
“The doctrine of unclean hands” bars relief when the party seeking relief or help of the court is guilty of misconduct or unethical actions, according to Bloomberg Law.
The bar’s order to suspend DeMayo’s license for a year — which was later modified to place him on probation for two years — was put on hold pending the outcome of DeMayo’s appeal.
The order marked the legal-watchdog group’s eighth public discipline of DeMayo since 1999. Others addressed misleading advertisements, improper direct mail solicitations and attempted recruitment of clients “using intimidation, coercion or threats.”
The next most recent case occurred in 2019, when DeMayo was censured after threatening to have a client arrested if she did not immediately refund a $4,900 overpayment she had received from DeMayo’s firm, according to the court filing.
State Bar again cites prominent Charlotte attorney Michael DeMayo for improper conduct
NC attorney complaints
Individuals can report concerns — usually by filing grievances — about any attorney through the State Bar. Once filed, a Bar attorney investigates it.
Most concerns are dismissed, The News & Observer recently reported, because they don’t identify a particular rule that was broken or because the accused attorney disproves the claims.
However, State Bar statistics show that complaints against attorneys have increased in recent years while discipline has declined.
The News & Observer reported that complaints, or grievances, in a growing North Carolina jumped to a nine-year high from 1,222 in 2014 to 1,504 in 2023.
In 2014, 33 grievances were resolved with private discipline and 28 were resolved with public discipline. The disciplinary hearing commission resolved 34 cases with discipline.
In 2023, those numbers dropped. Eighteen grievances were resolved with private disciplines, and 20 were resolved with public written disciplines. The disciplinary hearing commission resolved 14 cases with discipline.
The State Bar Review Committee, which was established through language in the Republican-crafted state budget, last month suggested lawyers needed to be protected from disciplinary complaints.’
At the most recent meeting, on Feb. 9, defense lawyers gave committee members recommendations that included the N.C. State Bar creating a system to expunge some public disciplinary actions against attorneys from the public record. They also asked that less information be shared with people who file complaints about lawyers.
Will state panel recommend more or less transparency for NC attorney complaints?
