Justices publicly reprimand Middleton trial lawyer Arellano

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Wisconsin Supreme Court Justices have publicly reprimanded Victor Arellano, a well-known, Madison-area trial lawyer.

Arellano, of Arellano & Phebus in Middleton, faced 14 counts of misconduct based on events from 1991 through 2007 involving four female former clients. They alleged a variety of ethics rule violations, including claims that Arellano engaged in improper sexual relations with them.

A report issued by referee John Murphy after a 2 1/2-day hearing concluded that Arellano had committed just two of the counts. Several of the counts were voluntarily dismissed prior to the hearing.

While the Office of Lawyer Regulation had initially sought revocation of Arellano’s license, Murphy recommended the public reprimand, which the justices adopted in Thursday’s 23-page, per curiam opinion.

The OLR prevailed on one count involving N.S.M., a former divorce client with whom Arellano had a relationship from 1996 to 2005. The agency alleged that Arellano made misrepresentations to it and the District 9 Committee during the investigation of N.S.M.’s grievance.

The opinion reads:

“The referee observed that Attorney Arellano was an experienced attorney who had been previously investigated in another matter unrelated to this case. He knew the rules and his obligation to be truthful even when not under oath. In spite of this knowledge, Attorney Arellano chose to lie and to mislead the District Committee and, in doing so, he undermined the integrity of both the lawyer regulation system and the legal profession itself.”

The OLR additionally prevailed on a count involving another female, who filed a discrimination charge alleging that then-Mayor John Norquist unlawfully harassed her.

The referee and the high court found that Arellano violated Wisconsin Supreme Court rules by initiating contact with the female and making one or more unsolicited telephone calls to her for the purpose of inducing her to hire him to represent her in the case.

The OLR sought costs totaling $40,960.49, while Arellano argued that at most he should bear 10 percent of those costs.

“[W]e agree that a reduction in costs is warranted in part because of the disparity between the allegations and recommended discipline in the complaint and the ultimate conclusions of this court,” the justices concluded. They assessed 25 percent, or a $10,240 fine.

Chief Justice Shirley Abrahamson and Justice Michael Gableman did not participate in the case.

Arellano, who represented himself, has been practicing since 1985. He was at a deposition earlier Thursday and could not immediately be reached for comment.

Milwaukee lawyer Richard Cayo, who represents attorneys facing ethics charges, said it’s very unusual for the OLR to voluntarily dismiss counts.

“I have to assume there was a pretty strong showing made for the lack of a factual predicate underlying those counts,” Cayo said.

“It’s also unusual to see only a portion of the costs assessed to the lawyer,” he added. “It’s been the experience of respondents, sadly, that they get tagged with all of the costs of a disciplinary case, notwithstanding when a substantial basis for the costs went toward counts that are dismissed.”

With regard to the discipline meted, Cayo said, “In a case where the OLR sought revocation, a public reprimand has to be thought of as a largely successful outcome.”