In re the Disciplinary Proceeding Against Huddleston

974 P.2d 325, 137 Wash. 2d 560, 1999 Wash. LEXIS 195
CourtWashington Supreme Court
DecidedApril 8, 1999
DocketNo. 18942-1
StatusPublished
Cited by59 cases

This text of 974 P.2d 325 (In re the Disciplinary Proceeding Against Huddleston) 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 Huddleston, 974 P.2d 325, 137 Wash. 2d 560, 1999 Wash. LEXIS 195 (Wash. 1999).

Opinion

Durham, J.

Attorney John C. Huddleston appeals the unanimous recommendation of the Washington State Bar Association Disciplinary Board (Board) that he be disbarred for violating the Rules of Professional Conduct. Huddleston challenges not only the conclusions reached by the Board, but the findings of fact underlying these conclusions. We agree with Huddleston’s argument that the record does not support the conclusion that he committed peijury. Nevertheless, in light of Huddleston’s multiple violations of the Rules of Professional Conduct, we conclude that he should be disbarred.

I

The alleged misconduct in this case arose out of a magazine subscription service owned and operated by Hud-dleston. Due to the inherently fact-specific inquiry involved in attorney discipline cases, we will discuss the facts underlying Huddleston’s misconduct in detail.

John C. Huddleston was admitted to the Washington State Bar in 1989. In 1990 and 1991, Huddleston started two magazine telemarketing businesses, Northwest Subscription Service and Pinnacle Subscription Service. Hud-dleston operated these businesses while working first as an associate at a Seattle law firm, and later as a deputy prosecutor at the Snohomish County Prosecutor’s office.1

In order to increase the number of subscriptions and renewals obtained by his magazine telemarketing businesses, John Huddleston made false representations to induce magazine publishers to give him copies of their subscriber lists. Huddleston was aware that magazine publishers take extensive measures to protect their subscriber lists, but he sought to obtain the lists by pretending to rent [565]*565the list for marketing purposes.2 He prepared a sample oak paper towel rack and a flyer advertising it, and told magazine publishers that Pacific Artisans, a nonexistent company, wished to rent subscriber lists to market the paper towel rack. He sent the publishers and list-brokers copies of the flyer, and provided false projected mailing dates for the flyers. Huddleston admits that he intended to trick magazine publishers into believing that he would market the paper towel rack to their subscribers, when in fact he had no specific intention of marketing the product at any time. Instead, Huddleston wanted to use the lists to solicit renewals from current subscribers.

Huddleston and his agents also misled magazine subscribers. After obtaining subscriber lists, Huddleston had the names “matched” with phone numbers. Telemarketers at Northwest Subscription Service and Pinnacle Subscription Service then called the subscribers to solicit renewals, using a standard “pitch” for each solicitation. The “pitch” informed subscribers that the telemarketer was calling from a subscription service to check on the service of a particular magazine. Telemarketers told the subscriber that subscription prices would be going up due to a recent increase in postal rates,3 and offered the subscriber an extension of their subscription at their current rate. Language in the pitch falsely implied that the telemarketers had information about when the subscribers’ subscriptions were expiring and the length of time that the subscribers had been receiving the magazine. Hundreds of consumers complained to the Seattle Better Business Bureau, attorneys general and postal inspectors across the [566]*566country about being misled by telemarketers from Hud-dleston’s subscription services. Consumers complained that they were misled to believe that they were dealing directly with magazine publishers, and also complained about receiving unwanted subscriptions and not receiving paid-for subscriptions.

In response to these complaints, magazine publishers, including McGraw-Hill, contacted Huddleston to inform him that he was not authorized to solicit renewals from their current subscribers. When contacted by publishers, Huddleston lied about the source of his subscriber lists. Huddleston also refused to comply with publishers’ demands that he stop soliciting their current subscribers, and continued to solicit subscriptions, sometimes using the same subscription service under a different name. On numerous occasions, Huddleston lied to magazine publishers in order to cover up the fact that he had surreptitiously obtained their subscriber lists using his paper towel rack scheme.

Huddleston made hundreds of thousands of dollars from his magazine telemarketing businesses, and admits that he made this money at the expense of magazine publishers. The subscription services sent invoices to the subscribers who they had contacted by phone, and the subscribers would then send their renewal checks directly to the services. As was standard practice, the subscription services retained 75 to 85 percent of this money, and remitted only the remaining portion to the magazine clearinghouses. McGraw-Hill lost over $88,000 in Business Week renewals alone to Huddleston.

Huddleston’s refusal to comply with McGraw-Hill’s demands that he stop soliciting subscriptions from their current subscribers caused McGraw-Hill to initiate a lawsuit against him. McGraw-Hill sought to permanently enjoin Huddleston from soliciting their subscribers and to obtain damages for his conduct. Shortly before the litigation was to begin, Huddleston filed various bankruptcy petitions, attempting to delay the litigation and to dis[567]*567charge his debt to the magazine publisher. The bankruptcy proceeding resulted in a nondischargeable judgment for McGraw-Hill against Huddleston in the amount of $825,000. The court specifically found that Huddleston “made or authorized the making of false representations; that he knew the representations were false at the time made; that the representations were made with intent to .deceive; and that [McGraw-Hill] justifiably relied on such representations and as a result [McGraw-Hill] suffered loss or damage.” Clerk’s Papers at 149.4

More than two years after the McGraw-Hill judgment, the Washington State Bar Association (WSBA) began disciplinary action against Huddleston. The formal complaint filed by WSBA charged Huddleston with five counts of alleged misconduct arising out of his magazine subscription marketing scheme and his conduct during the McGraw-Hill litigation. WSBA alleged that Huddleston obtained subscriber lists by means of false and fraudulent representations to magazine publishers in violation of the Rules of Professional Conduct and pertinent criminal statutes. Likewise, WSBA asserted that Huddleston should be disciplined for his dealings with subscribers, and his attempt to prolong his business after being contacted by magazine publishers. Finally, WSBA argued that Huddleston’s conduct during the course of the McGraw-Hill litigation violated the Rules of Professional Conduct as well as his attorney’s oath.

After a formal hearing, the hearing examiner found that evidence supported WSBA’s allegations that Huddleston engaged in misconduct that violated both criminal statutes and the Rules of Professional Conduct. Specifically, the hearing examiner concluded that Huddleston should be disciplined for his conduct in obtaining subscriber lists, dealing with subscribers, and his attempts to prolong his [568]*568business after being contacted by magazine publishers.

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Bluebook (online)
974 P.2d 325, 137 Wash. 2d 560, 1999 Wash. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-disciplinary-proceeding-against-huddleston-wash-1999.