Helena attorney accused of professional misconduct

By The Associated Press - 11/15/2008

HELENA (AP) — The lead attorney representing Montana's public schools in their lawsuit over state funding has been accused of "professional misconduct" for repeatedly failing to pay state and federal income taxes.

Jim Molloy of Helena has withdrawn from the school-funding lawsuit and all other cases in which he is the counsel of record said Brian Gallik, a Bozeman lawyer who has been working with Molloy on the schools suit.

Molloy was charged in mid-September before the state Commission on Practice, which examines ethics complaints against lawyers.

Molloy declined comment, referring questions to Gallik, who is representing Molloy in the disciplinary proceeding.

"This is not a tax evasion issue; this is a professional responsibility issue," Gallik told Lee Newspapers of Montana.

Gallik said Molloy paid the back taxes and penalties last year, but he did not know the total amount. Molloy's formal reply to the charges in October indicated that he paid at least $220, for tax years 1995-96 and 1999-2005. Gallik said he doesn't know why Molloy didn't pay his taxes on time.

Gallik said the complaint "does not reflect on (Molloy's) character as a lawyer, his integrity as a lawyer, as an advocate for his clients, as a very competent attorney who did a very good job in the school funding case." The school funding lawsuit led to a 2005 Montana Supreme Court ruling that state funding of public schools is inadequate and unconstitutional.

The schools went back to court earlier this year, arguing that the state has failed to fully comply with the District Court's initial order to fund schools based on the cost of a "basic, quality education." Molloy helped present the latest case during a weeklong trial in September — a week after he was charged with misconduct by the Commission on Practice.

Tom Cotton, superintendent of Deer Lodge Elementary School and president of the Montana Quality Education Coalition said Molloy "was a consummate professional for us, and all the work he did for us was exemplary. This is a personal issue; we just happen to be one of his clients."