Taking Money From a Client Trust Account Warrants Severe Disciplinary Sanction
Post number 5383
Stealing from a Client is Reprehensible
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In Re: Derrick D.T. Shepherd, No. 2026-OB-00357, Supreme Court of Louisiana (June 25, 2026) petitioner Derrick D.T. Shepherd, a former Louisiana State Senator and attorney, pleaded guilty in 2008 to conspiracy to commit money laundering after using his client trust account to help launder nearly $141,000 in fraudulently generated bond fees. The Louisiana Supreme Court permanently disbarred him in 2012.
Shepard returned $75,000 to Ms. Moyo and kept the rest of the funds for himself, using $20,000 to retire his campaign debt. To conceal all of this activity, Shepard created false billing statements and time records reflecting work his law firm had purportedly done on behalf of his “client,” Ms. Moyo.
FACTS
Shepherd later sought relief from the permanent disbarment order in 2020, 2023, and again in 2026, requesting reconsideration and an evidentiary hearing on mitigation, rehabilitation, and sanction.
LAW
The principal legal framework is Louisiana Supreme Court Rule XIX, § 10, which authorizes permanent disbarment in cases of especially egregious attorney misconduct and as described in the court’s commentary, bars an attorney permanently disbarred under those circumstances from applying for readmission.
DISCUSSION
Chief Justice Weimer focused on two related concerns: the finality of Shepherd’s permanent disbarment and the propriety of representation by a former justice of the Louisiana Supreme Court.
ANALYSIS
The concurrence reasons that Shepherd’s request would effectively relitigate a sanction the court had definitively imposed in 2012 and emphasized that permanent disbarment was adopted as a deliberate public-protection measure.
CONCLUSION
The Louisiana Supreme Court denied Shepherd’s application for rehearing and underscored the importance of preserving public confidence in the legal profession and avoiding any appearance that former judicial status or personal connections could influence court outcomes.
ZALMA OPINION
Lawyers are expected to be honorable and care more for his client than his personal needs. A lawyer who steals from his client violates the basic oath he or she takes on being admitted to practice law. When attorney Shepard stole from Ms. Moyo and an insurer he put into motion the destruction of his career.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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Arsonist Tried To Represent Himself, Failed, and Sought Habeas Relief
Post number 5357
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Karacson’s Arson for Profit Attempt Required Skill & Experience to Succeed
In Steve Ellis Karacson v. David Shaver, Warden, No. 25-1089, United States Court of Appeals, Sixth Circuit (May 20, 2026) Steve Karacson was convicted in Michigan state court of arson and insurance fraud after evidence showed he burned his own insured home. Investigators found multiple points of origin, gasoline odor, and evidence tying him to the scene, including cell-phone location data and a receipt showing he had purchased a gas can and gloves shortly before the fire.
FACTS
Karacson initially had appointed counsel, but his relationships with both appointed attorneys ...
Foolish to Repeatedly Disobey Court Orders
All That Remains For Trial Is Plaintiff’s Damages On Each Of These Claims And Establishing Proximate Causation Of Those Damages.
Post number 5348
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In Linh Wang v. Esurance Insurance Company, No. C24-0447-JCC, United States District Court, W.D. Washington, Seattle (May 1, 2026) John C. Coughenour, United States District Judge, found that throughout this case, culminating with its briefing on Plaintiff’s renewed motion and that Defendant has subjected Plaintiff to unnecessary motion practice for clearly discoverable information and made dubious representations (including to the Court).
FACTUAL BACKGROUND
This case involves an underinsured/uninsured motorist insurance bad faith claim arising from a 2017 motor vehicle collision. The plaintiff, Linh Wang, alleges that Esurance Insurance ...
The Right to Negotiate with Insurer is Not an Assignment of Claims
Post number 5347
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Nebraska Requires an Actual Assignment to Allow Contractor to Sue Insurer
In Millard Gutter Company, a corporation doing business as Millard Roofing and Gutter v. Farmers Mutual Insurance Company of Nebraska, also known as Farmers Mutual Insurance, also known as Farmers Mutual, No. A-24-818, Court of Appeals of Nebraska (May 5, 2026) Millard sued Farmers as an assignee of Jane Anzalone who had hired Millard Gutter to repair the roof of her home and agreed to allow Millard Gutter to coordinate with her insurer, Farmers Mutual, concerning reimbursement for repairs authorized under her insurance policy.
FACTUAL BACKGROUND
In ...
Negligent Hiring Tort not Preempted by Federal Statute
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In Shawn Montgomery v. Caribe Transport II, LLC, et al., 608 U.S.__ No. 24-1238, United States Supreme Court (May 14, 2026) Shawn Montgomery suffered severe and permanent injuries when his tractor trailer was struck by a truck driven by Yosniel Varela-Mojena while Varela-Mojena was transporting plastic pots through Illinois for Caribe Transport II, LLC. C.H. Robinson Worldwide, Inc., acting as a transportation broker, had arranged the shipment.
Montgomery sued the driver, the motor carrier, the broker, and related entities, alleging that C.H. Robinson negligently hired Varela-Mojena and Caribe Transport despite safety information that allegedly showed Caribe Transport posed an unreasonable risk of crashes and injury.
LAW
The Federal Aviation Administration Authorization Act ...
Million Dollar Roundup Verdict Reversed by SCOTUS
FIFRA Preempts the State-Law Failure-to-Warn Claim
Post number 5381
Posted on June 26, 2026 by Barry Zalma
In Monsanto Co. v. Durnell, Certiorari To The Court Of Appeals Of Missouri, Eastern District, No. 24–1068, argued April 27, 2026, decided June 25, 2026, the Supreme Court reversed a $1 million judgment found by a Missouri state court.
Facts
John Durnell sued Monsanto in Missouri state court, alleging that his long-term use of Roundup caused his non-Hodgkin’s lymphoma and that Monsanto should have warned users of cancer risks. A jury awarded Durnell more than $1 million on a failure-to-warn theory, and the Missouri Court of Appeals affirmed. The Supreme Court granted certiorari to resolve whether FIFRA preempts the state-law failure-to-warn claim.
Monsanto manufactures and distributes Roundup, a glyphosate-based herbicide. The Environmental Protection Agency has repeatedly evaluated glyphosate and has concluded that it is not likely to cause cancer; ...
The Right to Self-Defense is not Given Up by Employment
Colorado Employer Cannot Punish Employee for Exercising Right of Self Defense
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Post number 5380
In Mary Ann Moreno v. Circle K Stores, Inc., 2026 CO 46, No. 25SA134, Supreme Court of Colorado, En Banc (June 15, 2026) Moreno, a seventy-two-year-old Circle K employee, was working when an armed robber approached the register with hunting knives, demanded cigarettes for free, and moved behind the counter toward her.
Moreno told him not to come behind the counter and extended her arms, which she characterized as an instinctive act of self-defense. The robber left with cigarettes and was later arrested for armed robbery. Circle K terminated Moreno for violating its “Don’t Chase or Confront” policy, and Moreno sued for wrongful discharge in violation of Colorado public policy.
The District court certified a question that only asked the Supreme ...
