KNOXVILLE -- On June 8, 2018, the Supreme Court of Tennessee suspended Knoxville attorney Charles Edward Daniel from the practice of law for three (3) years, with one (1) year to be served on active suspension and the remaining two (2) years on probation. The suspension will be effective 10 days from the date of the Supreme Court Order.

The Board of Professional Responsibility filed a petition for discipline against Mr. Daniel based upon a complaint of misconduct. Mr. Daniel made unauthorized deposits of funds from his law partnership into his personal account over a three-year period while he managed the partnership’s accounting books. Mr. Daniel claimed that his partners were aware of these deposits and that he was entitled to all of the funds that he took because of expense advances he had made to the partnership. A hearing panel found that Mr. Daniel intentionally concealed the transactions from his law partners and misappropriated funds from his law firm partnership, thus violating Tennessee Rules of Professional conduct 8.4 (b) and (c). The hearing panel imposed a three (3) year probation.

The Board of Professional Responsibility appealed the decision. The Tennessee Supreme Court affirmed the decision of the hearing panel, but concluded that the hearing panel acted arbitrarily and capriciously by probating the entirety of Mr. Daniel’s suspension. The Court modified the disciplinary sanction by including a period of active suspension for one (1) year.

Mr. Daniel must comply with the requirements of Tennessee Supreme Court Rule 9, Sections 18 and 30, regarding the obligations and responsibilities of suspended attorneys and may not return to the active practice of law until an order of reinstatement has been entered by the Supreme Court.