New Libby city attorney faces professional misconduct accusations

A Kalispell attorney put a lien on a client’s property for nonpayment of fees, pursued foreclosure and then anonymously bought the property for well below market value at a sheriff’s auction, the Montana Supreme Court’s Office of Disciplinary Counsel said.

The office has filed seven counts of professional misconduct against David Tennant, alleging Tennant continued to represent his client in a divorce case even after filing the lien in February 2012, creating a conflict of interest.

The Libby City Council hired Tennant as its city attorney Monday night. (See related story.)

Tennant said Tuesday he hadn’t represented the man for two years before he sought foreclosure on the property and that his contract with the man included provisions for collection efforts.

He said the foreclosed property is still for sale and if his former client wants it back, all he would have to do is arrange to pay what he owed.

Tennant filed a lien for $24,000 against two residential lots near Columbia Falls the man received in the divorce case. He illegally added to the lien $2,300 in fees the client owed him from an earlier case, the state office said. He then billed his client $3,200 for attorney fees incurred while he tried to collect his fees in the divorce case.

The foreclosure suit ended in May 2013 with a $34,000 judgment against Tennant’s client.

The Office of Disciplinary Counsel filed the misconduct counts Friday.

The office said Tennant used inside information about his client’s financial circumstances and created a limited liability corporation to buy his client’s property for $34,000 in September 2013. The two lots were put on the market for $80,000 each. If the lots sell, the disciplinary council claims Tennant will have charged an excessive fee in addition to those already levied against the client.

Before the sale, Tennant didn’t inform his client, in writing, that he might want to seek independent legal counsel with regard to the property, the office alleges.

In fact, Tennant didn’t withdraw as the man’s attorney until July 2015, the complaint said.

Tennant’s client filed an ethics grievance in September 2015.

In his response, Tennant didn’t indicate his limited liability corporation bought the property and instead referred to the buyer as “the purchaser.” He said his firm incurred another $1,400 in fees dealing with his client’s “recent illogical emails and this latest complaint filed with the Office of Disciplinary Counsel,” and suggested the property wasn’t worth much more than $34,000.

However, the complaint said Tennant knew the listing price of the property.

“The foreclosed property is on the market,” Tennant said in an email to the Associated Press on Tuesday. “If the previous owner wants them back, all he needs to do is contact me (and) arrange to pay what he owed.”

Tennant said that total includes his attorney’s fees, nearly $7,000 paid to his client’s ex-wife for child support after she also filed a lien on the property, along with about $7,600 in past and current property taxes.

Tennant has 20 days after being served with the complaint to file a response. A formal hearing will then be scheduled before the Commission on Practice’s adjudicatory panel, which will recommend any disciplinary action it believes is warranted.

Tennant officially was hired as the Libby city attorney on Monday night after serving in that role a little more than two months under a temporary contract authorized by Mayor Doug Roll.

The hire came after council member Allen Olsen asked whether or not Tennant’s contract gave council members enough access to legal advice. Olsen also questioned why Tennant was allowed to take an oath of office without first being approved by the council. Roll said the swearing-in was necessary for prosecutions to be done legally.

“In order to do prosecutions he does have to be sworn in,” Roll said. “City attorney, that’s the position – that was a temporary position. I did not appoint anybody. I hired him to fill in.”

Roll said the law required Tennant to be sworn in and that there were other applicants for the job in the interim, but most were unqualified.

Olsen honed in on what services Tennant could or could not provide for the council members.

“We as a council, as a whole need legal advice,” Olsen said. “I know you’ve been doing great on the criminal part. I’ve heard nothing but good stuff, but if we can’t get legal advice from you, then we are going to have to seek outside legal advice.”

Tennant clarified that as part of his contract, he could not weigh in on legal matters that were personal for council members, such as divorce proceedings. He also might not be able to give opinions on issues where council members are at odds.

“I don’t have a dog in whatever fight there is between the council members and the mayor,” Tennant said.

The Libby council unanimously voted to hire Tennant.