Section 37 - Suspension of Law License for Default on Student Loan or Service-Conditional Scholarship Program

As amended through November 4, 2024

37.1. Consistent with Chapter 519, Section 6, of the Public Acts of 2012 and with Tenn. Comp. R. & Regs. 1640-01-23 (2013), this Section 37 governs the suspension of an attorney's license to practice law when the attorney has been determined to be in default on a repayment or service obligation under any federal family education loan program, a student loan guaranteed or administered by the Tennessee Student Assistance Corporation ("TSAC"), or any other state or federal educational loan or service-conditional scholarship program.

37.2. Notice of Default; Show Cause Order. Any Notice of Default issued by TSAC pursuant to Tenn. Comp. R. & Regs. R. 1640-01-23 -.05(4) and pertaining to an attorney licensed to practice law in Tennessee shall be transmitted to the Supreme Court by sending the Notice to the Nashville office of the Clerk of the Supreme Court. Upon the Court's receipt of a Notice of Default advising the Court that TSAC has determined that an attorney is in default on a repayment or service obligation under any federal family education loan program, a student loan guaranteed or administered by TSAC, or any other state or federal educational loan or service-conditional scholarship program, the Court will promptly issue a show cause order directing the attorney to show cause within thirty days why the attorney's law license should not be suspended by the Court based on the attorney's default.

37.3. Service of Show Cause Order. A show cause order issued pursuant to Section 37.2 shall be sent to the attorney by a form of United States mail providing delivery confirmation, at the primary or preferred address shown in the attorney's most recent registration statement filed pursuant to Section 10.1 or at the attorney's last known address, and at the email address shown in the attorney's most recent registration statement filed pursuant to Section 10.1 or at the attorney's last known email address. A copy of the order also shall be sent to the Chief Disciplinary Counsel of the Board and to the Executive Director of TSAC.

37.4. Response to Show Cause Order; Disposition. The attorney shall serve a copy of his or her response to the show cause order, if any, on the Chief Disciplinary Counsel of the Board and on the Executive Director of TSAC. If the attorney's response demonstrates to the satisfaction of the Court that the attorney has remedied the default upon which the Notice of Default was based, the Court may file an order continuing the show-cause proceeding and allowing the attorney a reasonable period within which to seek a Notice of Compliance from TSAC. If the attorney's response fails to demonstrate to the satisfaction of the Court that the attorney has remedied the default, or if the attorney fails to timely file a response to the show cause order, the Court will file an order suspending the attorney's license to practice law. Any order filed pursuant to this Section 37.4 shall be served on the attorney, the Chief Disciplinary Counsel of the Board, and the Executive Director of TSAC.

37.5. Term of Suspension; Notice of Compliance. Upon the Court's issuance of a Suspension Order pursuant to Section 37.4, the attorney's law license shall remain suspended until reinstated by the Court. Upon TSAC's issuance of a Notice of Compliance pursuant to Tenn. Comp. R. & Regs. R. 1640-01-23 -.06, and if the attorney otherwise is eligible for reinstatement, the attorney may seek reinstatement pursuant to Section 37.7.

37.6. Suspended Attorney Required to Notify Clients, Adverse Parties, and Other Counsel. An attorney whose license is suspended pursuant to this Section 37 shall comply with the applicable provisions of Section 28.

37.7. Reinstatement. Reinstatement following a suspension pursuant to Section 37.4 shall require payment to the Board of a Two Hundred Dollar ($200.00) reinstatement fee and an order of the Court but shall not require a reinstatement proceeding pursuant to Section 30.4, unless ordered by the Court.

(a) An attorney suspended by the Court pursuant to Section 37.4 who wishes to be reinstated and who has remained suspended for one year or less before the filing of a petition for reinstatement shall file with the Board a petition for reinstatement of the attorney's license to practice law; the attorney must submit with the petition a Notice of Compliance issued by TSAC, stating that the attorney has remedied the default upon which the Notice of Default and subsequent Suspension Order were based and must pay to the Board the Two Hundred Dollar ($200.00) reinstatement fee. If the petition is satisfactory to the Chief Disciplinary Counsel and if the attorney otherwise is eligible for reinstatement, the Chief Disciplinary Counsel shall promptly submit to the Court a proposed Reinstatement Order. If the petition for reinstatement is denied by the Chief Disciplinary Counsel, the attorney seeking reinstatement may appeal to the Board within fifteen days of notice of the denial. The Board, or a committee of no fewer than three of its members, shall review the documentation provided by the attorney and approve or reverse the determination of the Chief Disciplinary Counsel. There shall be no petition for rehearing.

(b) An attorney suspended by the Court pursuant to Section 37.4 who wishes to be reinstated and who has remained suspended for more than one year before the filing of a petition for reinstatement shall file with the Court a petition for reinstatement of the attorney's license to practice law; the attorney must submit with the petition a Notice of Compliance issued by TSAC, stating that the attorney has remedied the default upon which the Notice of Default and subsequent Suspension Order were based and confirmation that the attorney has paid to the Board the Two Hundred Dollar ($200.00) reinstatement fee. The petitioner shall serve a copy of the petition upon Disciplinary Counsel, who shall investigate the matter and file an answer to the petition within thirty days. The Court shall review the record and determine whether to grant or deny the petition for reinstatement.

37.8. Fees. Upon the filing of a Suspension Order pursuant to Section 37.4, the costs of the show-cause proceeding shall be taxed to the suspended attorney.

Amended by Order filed October 23, 2009; by order filed May 2, 2011 ; Rule replaced in its entirety by order filed August 30, 2013, effective 1/1/2014; amended by orders filed October 3, 2013 and November 25, 2013, effective 1/1/2014; and by order filed2/14/2014; amended by order filed May 27, 2014, effective 7/1/2014; amended by order filed October 3, 2014; amended by order filed December 3, 2014; amended by order filed 4/23/2015 and effective 4/23/2015; amended by order filed March 31, 2015; amended by order filed October 6, 2015; amended by order filed March 28, 2016; amended by order filed May 9, 2016; amended by order filed and effective 10/4/2016; amended by order filed 12/1/2016 and effective 12/1/2016; and as amended by order filed April 18, 2017 and effective 8/30/2017.