A New York appellate court has suspended Matthew Melville, a former partner at Crowell & Moring, from practicing law in the state. The decision came after findings revealed that Melville improperly maintained a personal practice alongside his responsibilities at the firm, significantly underreporting his earnings from these activities.
Suspension and Monitoring
The Appellate Division, First Department, issued a six-month suspension for Melville. In addition to the suspension, he must undergo two years of business and mental health monitoring and reporting. The court emphasized that Melville “admitted that he engaged in conduct involving dishonesty, fraud, deceit, or misrepresentation,” a clear violation of New York’s professional rules.
Concealed Legal Work and Billing Irregularities
Melville, who joined Crowell in April 2020 as part of a group of lawyers from the now-defunct Atrium legal services company, secretly performed legal work for non-Crowell clients. Moreover, he billed Crowell clients for work outside the firm’s usual billing structure. The court disclosed that Melville earned over $360,000 from his undisclosed side practice.
Discovery by Crowell
Crowell became aware of Melville’s side practice in November 2021 when a client received invoices from both the firm and Melville. In response, the firm promptly terminated Melville’s partnership in 2021, citing violations of the firm’s practices and policies, as well as bar rules. Despite the misconduct, Crowell asserted that there was no adverse impact on their clients.
Disciplinary Actions and California Practice
Crowell took swift action by filing disciplinary complaints with the First Department’s attorney grievance committee and the California State Bar. However, the New York court revealed on Friday that the California State Bar declined to take action on Crowell’s complaint in June 2022.
California State Bar’s Response
A spokesperson from the California State Bar stated that a “consumer alert” would be posted on its website, notifying the public of Melville’s suspension in New York. Notably, the state bar reserves the right to discipline lawyers based on a final disciplinary order against an attorney in another jurisdiction.
Melville’s Response and Future Practice
San Francisco-based Melville declined to comment on the recent decision but mentioned his intention to continue practicing in California, where he now operates his firm.
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