In Re the Disciplinary Proceeding Against Caplinger

576 P.2d 48, 89 Wash. 2d 828, 1978 Wash. LEXIS 1381
CourtWashington Supreme Court
DecidedMarch 16, 1978
DocketC.D. 4130
StatusPublished
Cited by7 cases

This text of 576 P.2d 48 (In Re the Disciplinary Proceeding Against Caplinger) 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 the Disciplinary Proceeding Against Caplinger, 576 P.2d 48, 89 Wash. 2d 828, 1978 Wash. LEXIS 1381 (Wash. 1978).

Opinions

Dolliver, J.

This is an appeal from the findings, conclusions and recommendations of the Disciplinary Board of the Washington State Bar Association in regard to James J. Caplinger. A 3-member panel held a 2-day hearing and recommended a reprimand for respondent to the board. The board in turn imposed a 1-year suspension from practice. Respondent Caplinger challenges the suspension. Facts giving rise to these proceedings are as follows:

Mary Jones died intestate on May 22, 1968, and 2 years later her daughter, Fredericka Owens requested Caplinger to handle the estate for her. Fredericka Owens had met Caplinger through Jesse Brannon, whom she later married on June 21, 1970. Caplinger initiated proceedings by filing a petition for letters of administration on April 6, 1970. At the time the probate was filed, Fredericka notified Cap-linger she was the sole heir and several times made this same statement under oath.

On April 7, 1970, Fredericka Owens signed a quitclaim deed of her interest in the house to a local bonding company. This deed was to be used as a security for the bail bond of a friend of Jesse's and Fredericka's who also was one of Caplinger's clients. The deed was notarized by Cap-linger. On December 22, 1970, the bonding company quit-claimed the property back to Fredericka.

At this time, Jesse and Fredericka Brannon asked Cap-linger for a loan to repair the Jones' residence so it could be rented or sold. Pursuant thereto, on January 2, 1971, Fred-ericka signed a statutory warranty deed to Caplinger to be used as security. Beginning January 4, 1971, and for the [830]*830next 4 months, Caplinger advanced a total of $7,241 in cash to the Brannons. An additional $3,662.80 for various costs regarding the property and other legal matters was advanced over the subsequent 20 months.

No order permitting the encumbrance on the property was obtained from the court nor was any indication of its existence placed in the estate file. In addition, at no time did Caplinger prepare any documents which would reflect the security nature of the warranty deed, the interest to be paid by the Brannons, the pay-back requirements, or any other matters concerning the agreement. No written accounting was ever provided by Caplinger to his clients.

Caplinger rented the property for $150 per month beginning in March 1971. He signed an earnest money agreement in an attempt to sell the house to the renters in May 1971, but the title report from Transamerica indicated that clear title could not be given and the sale fell through.

On July 9, 1971, Caplinger filed a quiet title action in his own name and purported to remove all interest in the property except Fredericka's.

On August 4, 1971, Caplinger again rented out the house and signed an earnest money agreement to sell to the renter on September 21, 1971. Apparently financing could not be arranged and the transaction was never consummated.

During this period, state inheritance tax was allowed to accrue on the estate. On March 9, 1971, D. L. Cooper of the State Department of Revenue, Inheritance Tax Division, wrote Caplinger notifying him:

As this estate is 18 months past the interest date, we need it completed as quickly as possible. To this end, we have dated the file to April 22, 1971 to allow you to forward this information. Failure to reply will compel us to contact the Personal Representative to complete this matter.

Apparently this letter went unanswered and D. L. Cooper directed another letter on April 30, 1971, this time to Fred-ericka Brannon, stating:

[831]*831We have written your attorney a number of times, requesting that we be furnished an Inventory and Appraisement and an Inheritance Tax Report. To date we have received no response.
We are now writing you directly, since it is your responsibility to see that the necessary information and reports are furnished, and the tax, if any, paid.
You should also be advised that interest has attached and is accruing at the rate of 8 % per annum from August 22, 1969 on any tax due.
Please make the necessary arrangements to complete this matter by May 22, 1971.

On July 27, 1971, the following letter was directed again to Caplinger from Cooper of the tax division. It provided:

On May 4, 1971 Mrs. Storms, of this office, advised me that you requested her to ask me for a delay in this estate to June 30, 1971.
I dated the file accordingly, but, as yet, have not received the requested reports and information.
Our only course of action left is to have the court appoint a new Personal Representative. This, of course, we wish to avoid. Therefore, may we have action on this matter.

The record reveals that in September 1971 Caplinger finally did comply with the numerous tax division requests and sent in the inheritance tax report. After the division audit, Caplinger mailed in a check in the amount of $19.29 as payment in full for the tax and interest due. On February 7, 1972, an order was signed distributing the entire estate to Fredericka Brannon.

The judgment quieting title in Caplinger was entered June 21, 1972. On that same date, Mrs. Brannon signed a quitclaim deed granting her interest in the property to Caplinger. This quitclaim deed, as well as the previous warranty deed, was filed by Caplinger on June 22, 1972. Neither contained any reference to the estate's interest in the property.

On November 20, 1972, attorney Fred Winn of San Francisco wrote Caplinger notifying him that he represented Elizabeth Barrett, daughter of the deceased Mary [832]*832Jones, and inquired from whom Caplinger had purchased the property. This was the first notice that Caplinger had received that Mrs. Barrett, Mrs. Jones' other daughter, might be alive and have an interest in the estate. Although Caplinger submitted an affidavit claiming to have notified the Brannons of this letter, he failed to respond to Mr. Winn.

Slightly more than a month later, Caplinger borrowed money, using the property as security for the loan. The hearing panel's final finding of fact No. 7, adopted by the board, recites:

On December 28, 1972, Mr. Caplinger, without prior notice to the Brannons mortgaged the 15th Avenue home to a Seattle lending institution for the principal amount of $8,500. The record is not clear how much cash was actually received from the lender because loan costs and finance charges were subtracted from the loan proceeds. Evidence submitted after the hearing by Caplinger places the net amount received as $7,456.67. Caplinger used part of the net loan proceeds to pay off his own bank loans and the rest went into his office bank account. These amounts were intended by Caplinger to be used as credits against the amounts he claimed due from the Brannons. To date no statement of account has been rendered to the Brannons regarding the amount or disposition of the loan proceeds. None of the money was remitted to Fredericka Brannon or her husband, Jesse Brannon.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re the Disciplinary Proceeding Against Allper
617 P.2d 982 (Washington Supreme Court, 1981)
Disciplinary Proceeding v. Zedric
600 P.2d 1297 (Washington Supreme Court, 1979)
In Re Zderic
600 P.2d 1297 (Washington Supreme Court, 1979)
In Re the Disciplinary Proceeding Against Kumbera
588 P.2d 1167 (Washington Supreme Court, 1979)
In Re the Disciplinary Proceeding Against Caplinger
576 P.2d 48 (Washington Supreme Court, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
576 P.2d 48, 89 Wash. 2d 828, 1978 Wash. LEXIS 1381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-disciplinary-proceeding-against-caplinger-wash-1978.