Section 31 - Expenses, Audit, Reimbursement of Costs

As amended through November 4, 2024
Section 31 - Expenses, Audit, Reimbursement of Costs
31.1. Expenses. The salaries of Disciplinary Counsel and staff, their expenses, administrative costs, and the expenses of the members of the Board and of members of the district committees shall be paid by the Board out of the funds collected under the provisions of this Rule.
31.2. Accounting. The Administrative Office of the Courts performs accounting functions for the Board, either directly or through its oversight and final approval of transactions performed by Board personnel.
31.3. Reimbursement of Costs.
(a) In the event that a judgment of disbarment, suspension, public censure, temporary suspension, disability inactive status, reinstatement, or denial of reinstatement results from formal proceedings, Disciplinary Counsel shall within fifteen days from the hearing panel's submission of such judgment pursuant to Section 15.3 make application to the hearing panel for the assessment against the respondent or petitioning attorney of the necessary and reasonable costs of the proceedings, including court reporter's expenses for appearances and transcription of all hearings and depositions, the expenses of the hearing panel in the hearing of the cause, and the hourly charge of Disciplinary Counsel in investigating and prosecuting, and shall serve a copy of such application on respondent or petitioning attorney and the petitioning attorney's counsel of record pursuant to Section 18.2. The application shall be accompanied by an affidavit or declaration under penalty of perjury and such other documentary evidence as Disciplinary Counsel deems appropriate documenting the hours expended and the costs incurred by Disciplinary Counsel in investigating and prosecuting the complaint or responding to the petition for reinstatement. Such proof shall create a rebuttable presumption as to the necessity and reasonableness of the hours expended and the costs incurred. The respondent or petitioning attorney may within fifteen days after Disciplinary Counsel's application submit to the hearing panel and serve on Disciplinary Counsel pursuant to Section 18.2 any response in opposition to the application for an assessment of costs. The burden shall be upon respondent or petitioning attorney to prove by a preponderance of the evidence that the hours expended or costs incurred by Disciplinary Counsel were unnecessary or unreasonable. Disciplinary Counsel or the respondent or petitioning attorney may request a hearing before the hearing panel, in which event, the hearing panel shall promptly schedule the same. The hearing panel shall within fifteen days from the conclusion of such hearing, or in the event no hearing is requested, within fifteen days from the date on which the respondent or petitioning attorney's response is due or is submitted, whichever is earlier, submit to the Board its findings and judgment with respect to Disciplinary Counsel's application for the assessment of costs. There shall be no petition for rehearing. The making of an application under this Section shall extend the time for taking steps in the regular appellate process under Section 33.1(a) unless, upon application of the Board to the Court and for good cause shown, the Court orders otherwise.
(b) In the event that a judgment as set forth in Subsection (a) is appealed to the circuit or chancery court pursuant to Section 33 and the Board is the prevailing party in such appeal, Disciplinary Counsel may make application to the circuit or chancery court for the assessment against the respondent or petitioning attorney of the necessary and reasonable costs of the trial court proceedings, including court reporter's expenses for appearances and transcription of all hearings and depositions and the hourly charge of Disciplinary Counsel for the trial court proceedings. Disciplinary Counsel shall file any such application within fifteen days from the circuit or chancery court's decree and shall serve a copy of such application on respondent or petitioning attorney and the attorney's counsel of record. The application shall be accompanied by an affidavit or declaration under penalty of perjury and such other documentary evidence as Disciplinary Counsel deems appropriate documenting the hours expended and the costs incurred by Disciplinary Counsel for the trial court proceedings. Such proof shall create a rebuttable presumption as to the necessity and reasonableness of the hours expended and the costs incurred. The respondent or petitioning attorney may within fifteen days after Disciplinary counsel's application file and serve on Disciplinary Counsel any response in opposition to the application for an assessment of costs. The burden shall be upon the respondent or petitioning attorney to prove by a preponderance of the evidence that the hours expended or costs incurred by Disciplinary Counsel were unnecessary or unreasonable. The circuit or chancery court may consider the application on the written submissions alone or may, in the court's discretion, conduct a hearing on the application. In the event the circuit or chancery court considers the application on the written submissions alone, the court shall within fifteen days from the date on which the respondent or petitioning attorney's response is due or submitted, whichever is earlier, enter and serve on the parties its findings and judgment with respect to the application for the assessment of costs. In the event the circuit or chancery court conducts a hearing on the application for costs, the court shall within fifteen days from the date of the hearing enter and serve on the parties its findings and judgment with respect to the application for the assessment of costs. The filing of an application under this Section shall extend the time for appeal to the Court under Section 33.1(d) and Tenn. R. App. P. 4.
(c) In the event that the decree of the circuit or chancery court is appealed to the Court pursuant to Section 33 and the Board is the prevailing party in such appeal, Disciplinary Counsel may make application to the Court for the assessment against the respondent or petitioning attorney of the necessary and reasonable costs of the proceedings before the Court, including court reporter's expenses for appearances and transcription of all hearings and depositions and the hourly charge of Disciplinary Counsel for the proceedings before the Court. Disciplinary Counsel shall file any such application within fifteen days from the Court's judgment and shall serve a copy of such application on respondent or petitioning attorney and the attorney's counsel of record. The application shall be accompanied by an affidavit or declaration under penalty of perjury and such other documentary evidence as Disciplinary Counsel deems appropriate documenting the hours expended and the costs incurred by Disciplinary Counsel for the proceedings in the Court. Such proof shall create a rebuttable presumption as to the necessity and reasonableness of the hours expended and the costs incurred. The respondent or petitioning attorney may within fifteen days after Disciplinary counsel's application file and serve on Disciplinary Counsel any response in opposition to the application for an assessment of costs. The burden shall be upon the respondent or petitioning attorney to prove by a preponderance of the evidence that the hours expended or costs incurred by Disciplinary Counsel were unnecessary or unreasonable. The Court shall consider the application on the written submissions.
(d) The provisions of subsections (a) - (c) shall not apply to costs assessed pursuant to a guilty plea in which the respondent or petitioning attorney has agreed to the payment of costs and the amount thereof.
(e) The hourly charges of Disciplinary Counsel on formal proceedings shall be assessed at the rates set forth in Tenn. Sup. Ct. R. 13, Section 2(c)(1) for compensation of counsel appointed for indigent criminal defendants in non-capital cases.
(f) Payment of the costs and fees assessed pursuant to this Section shall be required as a condition precedent to any later request for reinstatement of the respondent or petitioning attorney. Interest shall accrue on costs and fees assessed in disciplinary proceedings in accordance with Tennessee Code Annotated sections 47-14-121 and -122. In the discretion of the Chief Disciplinary Counsel, the respondent or petitioning attorney may, upon a showing of extraordinary need, be permitted to pay costs in periodic payments. If a payment plan is permitted, the respondent or petitioning attorney also shall pay the Board interest at the statutory rate. If for any reason, the respondent or petitioning attorney does not abide by the terms of the payment plan, the Chief Disciplinary Counsel may revoke the plan and the respondent or petitioning attorney shall be required to pay the balance of any unpaid assessment of costs and accrued interest within thirty days thereof.
(g) Attorneys successfully defending some or all disciplinary charges filed by the Board may not recover attorney's fees or costs from the Board.
Amended by order filed and effective 8/24/2021.