JEFFERSON CITY — The Missouri Supreme Court has indefinitely suspended an attorney from practicing law, with no leave to apply for reinstatement for three years, following findings of professional misconduct related to a civil lawsuit settlement.
The court ruled that Paul Eric Petruska violated multiple Rules of Professional Conduct and determined that his actions warranted suspension rather than probation.
The Office of Chief Disciplinary Counsel (OCDC) had accused Petruska of misconduct in handling a lawsuit involving Zurich Insurance Company and its insured, an automobile dealership.
Following an evidentiary hearing, a disciplinary hearing panel recommended that Petruska be indefinitely suspended with no leave to apply for reinstatement for three years.
However, the panel also suggested staying the suspension and placing Petruska on probation for the same period, according to the Missouri Supreme Court court filing.
While Petruska accepted this recommendation, OCDC rejected it, arguing that he was ineligible for probation due to the severity of his violations. The Missouri Supreme Court agreed with OCDC and imposed a full suspension.
Petruska, admitted to the Missouri Bar in 1995, was employed as a chief trial attorney at Zurich Insurance Company’s Law Office of Craig A. Hansen, where he handled large, catastrophic injury claims.
In July 2018, he was assigned a case defending an automobile dealership and its employee against a lawsuit filed by two individuals injured in an accident.
During the litigation, Petruska failed to inform Zurich or the defendants of critical case developments, including court-ordered sanctions due to a missing witness.
He also neglected to obtain an expert witness requested by Zurich’s claims department to counter medical evidence presented by the plaintiffs.
In November 2019, Petruska engaged in unauthorized settlement negotiations with the plaintiffs.
Without approval from Zurich or the defendants, he offered a $120,000 settlement, which was accepted. He then proceeded to draft settlement agreements and a court order indicating the case had settled, despite lacking proper authority to do so.
As the plaintiffs sought payment, Petruska misrepresented the status of the settlement funds. He falsely informed plaintiffs’ counsel that payment had been issued and fabricated delays, even requesting updated tax documents under the pretense of processing the check.
He later arranged for a FedEx envelope to be sent to plaintiffs’ counsel, which arrived empty.
Throughout this period, Petruska continued misleading Zurich’s claims department, falsely presenting the case as ongoing while discussing additional legal strategies. Meanwhile, he sought to secure settlement funds directly from the automobile dealership through an “Advance and Reimbursement Agreement,” which was ultimately rejected.
The Missouri Supreme Court conducted a de novo review of the evidence and determined that Petruska violated a handful of rules.
Given the severity of Petruska’s misconduct—including misrepresentations to the court, clients and opposing counsel—the Missouri Supreme Court ruled that an indefinite suspension with no possibility of reinstatement for three years was the appropriate discipline.
Zurich Insurance ultimately covered the settlement, paying an additional $5,000 in compensation to the plaintiffs for delays caused by Petruska’s actions.
Petruska was terminated by Zurich in early 2020 and later established his own law practice. The ruling serves as a reminder of the legal profession’s ethical obligations and the consequences of violating client trust and court integrity.
The chief disciplinary counsel, Laura E. Elsbury, represented her office in Jefferson City
Petruska was represented by Michael P. Downey and Paige A.E. Tungate of Downey Law Group in St. Louis.
Attorneys did not respond to requests for comment before publication.
Missouri Supreme Court case number: SC100727