In re the Disciplinary Proceeding against Dann

136 Wash. 2d 67
CourtWashington Supreme Court
DecidedAugust 13, 1998
DocketNo. 7552
StatusPublished
Cited by80 cases

This text of 136 Wash. 2d 67 (In re the Disciplinary Proceeding against Dann) 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 Dann, 136 Wash. 2d 67 (Wash. 1998).

Opinion

Alexander, J.

Attorney Wade R. Dann appeals to this court the recommendation of the Washington State Bar As[71]*71sociation Disciplinary Board that he receive a year-long suspension from the practice of law due to four counts of misconduct. The misconduct involved Dann’s misrepresentations to clients, at two different law firms, concerning which attorneys and firm employees worked on four cases. We adopt the Disciplinary Board’s recommended sanction.

I. FACTS

Wade R. Dann was admitted to the practice of law in Washington in 1973. Prior to March 1991, Dann was a partner in a law firm called Ulin, Dann and Lambe (UDL). In March 1991, Dann and two associate attorneys left UDL and formed a new law firm, Dann Greenberg Radder (DGR). Dann’s new partners had considerably less experience as attorneys than Dann did. John Radder, the managing partner of DGR, and Charles Greenberg had begun their legal careers as associates with UDL in 1986 and 1988 respectively. For both Radder and Greenberg the founding of DGR represented their inaugural experience as partners in a law firm.

Dann’s specialty had long been construction law. DGR employed two nonattorney construction claims analysts, David Graham and William Werner, during 1991 and 1992. Graham had also worked for Dann at UDL. Attorneys and construction analysts at UDL and DGR used a computer billing system to record the time they spent on client matters. Billings were prepared at both firms in essentially the same way. The billing data for Dann was dictated to, and entered into the system by, a staff member. A bookkeeper would use this computer data to generate prebilling, or “work in progress” (WIP), statements. A WIP would identify alphabetically by client the number of hours billed by each timekeeper, coupled with a brief description of the services performed for the client. The initials of the person billing the time would be recorded on the WIP The WIPs would then be reviewed by the attorneys billing the hours. At DGR, Radder was generally responsible for initially reviewing Dann’s WIPs. That firm’s bookkeeper would take [72]*72the edited WIPs and prepare final billing statements for the clients.

On a daily basis Dann would record the names of clients for whom he had done work. He did not, however, keep time records contemporaneously. He would often write billing information on pieces of paper and then put them in his time book so that he could later remember what work he had done. At the end of the month Dann would reconstruct the time that he had worked from these pieces of paper and dictate it for entry into the WIP format. He would also jog his memory concerning his billable hours by reviewing the WIPs for his associates.

While a partner at both UDL and at DGR Dann switched initials on a number of WIPs, giving one person credit for work performed by another. At DGR the practice of initial-switching was openly discussed at partnership meetings that included the office administrator, Linda Crawford. In July 1992, Radder, Greenberg, and Crawford held an informal meeting where they decided to end the initial-switching practice. On July 15, 1992, Radder issued an e-mail to his other partners, Crawford, and the bookkeeper warning of “major league trouble” if the initial-switching practice continued and was discovered. Ex. 2C. The practice was discontinued.

A. Brutoco Account

Dann represented Brutoco Construction and Len Brutoco over a number of years beginning in the late 1980s. Tom Salata was Brutoco’s “right-hand man,” and handled bills and claims. Transcript of Proceedings (TP) at 376. One claim that Dann was involved with for Brutoco arose during 1992 and was referred to as the “Cerritos claim.” Salata specified that he did not want Dave Graham to work on the Cerritos claim. Dann and Salata agreed that Radder would work on the claim instead. Nevertheless, Dann and Radder agreed that Graham would work on the claim also, but that Graham’s initials would not be shown on the bill. [73]*73On a WIP for hours billed in February 1992, there is a notation in Dann’s handwriting: “Change DG’s [Dave Graham’s] time to JR’s [John Radder’s] time—but pay Dave for his time.” Ex. 2D. From that point forward Graham’s initials were removed from WIPs and replaced with those of Radder for purposes of the final billing, in addition to the record for the work that Radder actually did. Radder’s billing rate was higher than Graham’s, so Radder wrote off time in an amount that exceeded the aggregate amount of overbilling and the client was, thus, not overbilled. Dann admits that Graham actually worked hours attributed to Radder.

B. Henderson Account

William Henderson, a building contractor, had been a client of Dann’s since early 1990. In 1992, Dann worked on a claim involving the “North Cascades Visitor Center” project. Henderson specifically requested that just one attorney, Dann, and one claims analyst, Graham (who Henderson considered to be “extremely competent”), work on the case. TP at 167. During the course of the work Henderson believed that Graham was working on the claim because he met with Graham and Dann at the project site in June 1992 and was told by Dann that Graham was working on the claim for months after that. In fact, Graham had discontinued his work on the project following the death of his parents shortly after meeting with Henderson. The law firm’s other claims analyst, William Werner, took over Graham’s work.

Billing statements sent to Henderson in July and August showed that Graham was still working on the claim, when in fact Werner was. This misrepresentation began with the WIPs. On one WIR for example, Dann crossed out Werner’s initials and substituted Graham’s—instructing, though, that Werner should get “credit for hours.” Ex. 3E. On another WIR the bookkeeper wrote as follows: “Per Wade [Dann] reenter DG. WJW [William J. Werner] gets credit. No credit to DG.” Ex. 3B. On a third WIR the bookkeeper [74]*74made the following notation: “Per WRD [Wade R. Dann] delete WJW Replace DG.” Ex. 3C.

On a number of occasions Dann also told Henderson that Graham was working on the claim when, in fact, Graham was not and had actually left DGR. DGR wrote off time so that Henderson would not be overbilled, resulting in a slight underbilling in the aggregate. However, Henderson felt that his construction claim was so damaged by Werner’s involvement that no work should have been billed in the first place. He indicated, “[H]ow can you give me money back when you didn’t do anything?” TP at 179. Of Werner, he said that “I came to the conclusion that he couldn’t tell the inside of the building from the outside of the building. He knew nothing about construction.” TP at 172. In contrast, he felt that “Graham was one of the best construction people that I’d ever met.” TP at 172. Henderson subsequently sued Dann and DGR. The matter was settled in mediation, and Dann’s firm paid a $20,000 malpractice insurance deductible. Dann has expressed remorse over this matter.

C. Vertecs Account

Vertecs Corporation had been a client of Dann’s since the late 1970s. In 1990, a lawsuit was brought against Vertecs as a result of work it had done on the Kingdome roof. Handling the case with Dann was a UDL associate named Philip Hickey. Hickey was actually the attorney actively managing the case, and Dann reviewed his WIPs.

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