In Re Disciplinary Proceeding Against Vanderbeek

101 P.3d 88
CourtWashington Supreme Court
DecidedNovember 24, 2004
Docket11884-1
StatusPublished
Cited by48 cases

This text of 101 P.3d 88 (In Re Disciplinary Proceeding Against Vanderbeek) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Disciplinary Proceeding Against Vanderbeek, 101 P.3d 88 (Wash. 2004).

Opinion

101 P.3d 88 (2004)
153 Wash.2d 64

In the Matter of the DISCIPLINARY PROCEEDING AGAINST Diane L. VANDERBEEK, Attorney at Law.

No. 11884-1.

Supreme Court of Washington, En Banc.

Argued May 18, 2004.
Decided November 24, 2004.

*90 Jonathan Henry Burke, Washington State Bar Association, Seattle, for Petitioner/Appellant.

Kurt M. Bulmer, Seattle, for Appellee/Respondent.

BRIDGE, J.

Attorney Diane L. VanDerbeek appeals the decision of the Washington State Bar Association (WSBA) Disciplinary Board (Board) to impose a two-year suspension for her billing and collection practices in violation of the Rules of Professional Conduct (RPC). VanDerbeek principally asserts that the hearing officer and Board wrongfully determined that disbarment was the presumptive sanction and that they failed to properly weigh the aggravating and mitigating factors. The WSBA supports the hearing officer's and Board's conclusions of fact and law but argues that VanDerbeek should be disbarred. We affirm the hearing officer's and Board's conclusions in substantial part but agree with the WSBA that disbarment is the proper sanction.

I

STATEMENT OF FACTS

VanDerbeek graduated from law school in 1981. In 1986, she opened a solo practice in family law. Her husband, John VanDerbeek, *91 managed her practice's bookkeeping and accounting.[1] VanDerbeek's practice grew dramatically in the early 1990s.

In 1995, 28 former clients sued the VanDerbeeks for charging excessive fees. VanDerbeek signed a declaration in June 1996 informing plaintiffs that she was "in the process" of changing her billing software to remedy client complaints about her billing practices. The case settled in 1996, but VanDerbeek did not change her billing software until May 2000.[2]

In response to grievances from these plaintiffs and other former clients, the WSBA instituted an investigation of VanDerbeek's billing practices. The WSBA consolidated these grievances and initiated the disciplinary action at issue here alleging, in relevant part, that in count I, VanDerbeek violated RPC 1.5(a), 8.4(b), and 8.4(c) by inflating clients' bills; in count IV, VanDerbeek violated RPC 1.5(a) and 8.4(c) by billing clients for fees and costs incurred in connection with her attempts to collect outstanding fees; in count V, VanDerbeek violated RPC 1.5(a), 8.4(c), and 8.4(d) by filing attorney liens on the proceeds of clients' real property sales and billing clients for fees and costs incurred in connection with filing such liens; in count VI, VanDerbeek violated RPC 1.4(b) and 1.5(b) when she refused to provide clients with itemized bills; in count VII, VanDerbeek violated RPC 8.4(c) when she intentionally misrepresented the capabilities of her billing software; in count IX, VanDerbeek violated RPC 3.3(a)(1) by making a misrepresentation to the court about her intention to promptly change her billing practices; in count X, VanDerbeek violated RPC 5.3(a) — (c) and 8.4(a) by failing to properly supervise her employees and take action to rectify their billing misconduct; and, in count XI, VanDerbeek is unfit to practice law. See WSBA's Second Am. Formal Compl. at 4-22 (Aug. 23, 2002). Counts I, IV, and V are at issue here; neither party disputes the hearing officer's and Board's conclusions on counts VI, VII, IX, X, and XI.

Count I

In count I, the WSBA alleged that VanDerbeek violated RPC 1.5(a), 8.4(b) (theft in the first degree in violation of RCW 9A.56.020), and 8.4(c) by charging 31 clients with "excessive and/or unreasonable fees by billing ... for services that were not performed and/or inflating the amount of times that was spent on a service, and/or billing a client at attorney rates for legal assistant work and/or billing for overhead and secretarial work." R. at 11, Findings of Fact (FOF) 43. The hearing officer dismissed allegations of excessive billing by 17 of VanDerbeek's clients, but grievances filed by 14 clients remained.

After considering testimony from experts on both sides — VanDerbeek, clients, and clients' billing statements — the hearing officer sustained charges that VanDerbeek violated RPC 1.5(a) by intentionally charging excessive and unreasonable fees to 11 clients: Vicki Gould, Denise DeBoer, Michelle Drake (Forkner), Andria Kennoy, Sharyn Langston, Rita Gibbons, Janice Erdman, Rene Wiswall (Roberts), Diana Aumack, Angela Hirschbeel, and Charlene Daniels.[3] But the hearing officer also concluded that the WSBA had failed to prove that VanDerbeek charged June Roetemeyer, Dori Viltz, and Monti Darnall excessive fees. Lastly, she concluded that the WSBA failed to demonstrate by a clear preponderance of the evidence that *92 VanDerbeek violated RPC 8.4(b) (theft in the first degree) or 8.4(c).

Count IV

In count IV, the WSBA alleged that VanDerbeek violated RPC 1.5(a) and 8.4(c) when she billed Daniel Breard, Charlene Daniels, Denise DeBoer, Michelle Drake (Forkner), Denise Gaffney, Rita Gibbons, and Susan Morris for her attorney fees and costs incurred in her attempts to collect these clients' outstanding fees. VanDerbeek claimed that her fee agreement permitted her to recover these fees and costs.[4]

The hearing officer found that, absent a court action, the plain language of the fee agreement did not permit VanDerbeek to bill clients for fees and costs associated with her attempts to collect her outstanding legal fees from these clients. However, she found credible VanDerbeek's testimony that she believed she was entitled to bill for the time spent collecting her fees. She concluded that VanDerbeek did not attempt to defraud her clients in violation of RPC 8.4(c) and that "[t]here is not clear and convincing evidence that the amounts billed for collecting attorney fees were unreasonable" in violation of RPC 1.5(a).[5] R. at 19, FOF 93, 95.

Count V

In count V, the WSBA alleged that VanDerbeek's practice of recording attorney liens on real property owned in whole or in part by clients Charlene Daniels, Susan Morris, and Dori Viltz violated this court's holding in Ross v. Scannell, 97 Wash.2d 598, 647 P.2d 1004 (1982), and thus violated RPC 1.5(a), 8.4(c), and 8.4(d). VanDerbeek admitted that she filed these liens but argued that the liens did not violate Ross since she filed them on the proceeds of her clients' real property sales.

The hearing officer found that VanDerbeek's testimony was not credible, "nor did Ms. VanDerbeek ever articulate the difference between filing on the real property and filing on the proceeds of the sale of real property when both filings appear as liens on a title report." R. at 20, FOF 102. She also found that VanDerbeek "intentionally ignored the statute and Supreme Court case law in deciding to file the liens," and that she "filed the liens in an attempt to coerce her clients into paying disputed fees." R. at 20, FOF 102, 104. Consequently, the hearing officer concluded that VanDerbeek's conduct was prejudicial to the administration of justice and violated RPC 1.5(a) and 8.4(d). The hearing officer, however, rejected the WSBA's claim that VanDerbeek violated RPC 8.4(c) reasoning that the WSBA failed to present any evidence that VanDerbeek "intentionally or knowingly misled clients about whether she was billing for filing liens." R. at 20, FOF 105.

Count VI

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101 P.3d 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-disciplinary-proceeding-against-vanderbeek-wash-2004.