In Re the Disciplinary Proceeding Against Johnson

790 P.2d 1227, 114 Wash. 2d 737, 1990 Wash. LEXIS 57
CourtWashington Supreme Court
DecidedMay 3, 1990
Docket8313
StatusPublished
Cited by60 cases

This text of 790 P.2d 1227 (In Re the Disciplinary Proceeding Against Johnson) 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 Johnson, 790 P.2d 1227, 114 Wash. 2d 737, 1990 Wash. LEXIS 57 (Wash. 1990).

Opinion

Smith, J.

— Respondent David F. Johnson, an attorney admitted to the Washington bar, converted $21,051.16 of client trust funds for his personal use. This court on November 3, 1989, ordered Respondent Johnson to show cause why he should not be disbarred. We conclude that David F. Johnson violated specified Rules of Professional *739 Conduct and we rule that he is disbarred, there being insufficient evidence of "extraordinary mitigating circumstances" to justify a lesser sanction.

The facts in this case are not in dispute. David F. Johnson is a graduate of Gonzaga University Law School. He was admitted to the Washington bar on June 8, 1978. He has no prior disciplinary record. During all relevant times he was a sole practitioner in Spokane, Washington.

In a series of 21 transactions during the period May 18, 1987, through February 8, 1988, Respondent Johnson converted $21,051.16 of client trust funds 1 to his personal use. He also took calculated steps to conceal the conversions from his clients and other interested parties. He suffered from chronic alcoholism during that period.

In May of 1987, Ms. Laura Swisher entered into a Real Estate Purchase and Sale Agreement to acquire a residence from Howard and Peggy Clayman. Respondent Johnson was to act as closing agent for the transaction. Ms. Swisher gave respondent $2,000 earnest money, which he deposited in his client trust account. 2 Ms. Swisher financed $32,904 for the purchase through Shelter Mortgage Company of Spokane.

On July 15, 1987, Ms. Mary Blayden, Assistant Manager of Shelter Mortgage, met with Respondent Johnson to discuss the closing to be certain that the title was cleared so that Shelter could be in a first lien position in order to sell the loan in the secondary market. On July 24, 1987, Shelter *740 Mortgage tendered a check payable to the David F. Johnson Trust Account in the amount of $31,017.82, which Johnson deposited in his client trust account.

The daymans held the property subject to a real estate contract with Warren and Honey Poppe (the "Clayman-Poppe contract"). 3 Respondent Johnson had previously represented the daymans in a real estate contract forfeiture action initiated by the Poppes. As of July 24, 1987, the balance due on the Clayman-Poppe contract was $21,026.76. Shelter Mortgage's funding authorization directed Respondent Johnson to pay the real estate contract in full.

Respondent Johnson made unauthorized withdrawals of $2,300 4 from the trust account until the scheduled closing date of July 27, 1987. He used the funds for personal purposes, including payment of office expenses for his law practice.

Respondent Johnson executed a number of documents involved in the transaction and disbursed a partial payment of $8,000 to the daymans. A balance of $1,091.33 remains unpaid. Mr. Johnson did not pay the underlying real estate contract. When he contacted Ms. Honey Poppe by telephone inquiring about title to the property, he did not inform her of the sale.

The purchaser, Ms. Swisher, took early possession of the property. She believed the transaction had "closed" in July 1987. The daymans also believed the sale had closed and ceased making payments on their real estate contract with the Poppes.

*741 In the fall of 1987, Ms. Honey Poppe contacted Respondent Johnson because the daymans' payments were delinquent for 3 months. Respondent still did not advise Ms. Poppe that the property had been sold. Instead, he suggested that the daymans were having financial difficulties, and assured her the arrearages would be paid.

About October 1, 1987, respondent from his trust account paid $579 on the dayman-Poppe contract. For the next several months, through February 1988, he made monthly payments on the contract by checks drawn on that trust account. Meanwhile, in a series of 17 additional checks drawn on his trust account, Respondent Johnson withdrew $18,751.16 for his personal use between July 1987 and February 1988. Some of the funds were used in settlement of a foreclosure action involving his personal residence.

In February 1988, Ms. Mary Blayden called respondent to find out why the deed conveying the property from the Poppes to the daymans (the " Poppe-Clayman" deed) had not been recorded. He replied that the deed was in the basement of his office, and that he would retrieve it and arrange for recording. At the time, the Poppes had executed the deed, but Mr. Johnson knew it was in possession of the Washington Trust Escrow Department, the escrow collection service used for the dayman-Poppe contract. The contract remained unpaid.

On March 23, 1988, Gerald L. Bopp, an attorney representing Shelter Mortgage, wrote to respondent again requesting that the deed be recorded.

On March 25, 1988, Ms. Blayden contacted the Washington Trust Bank Escrow Department and discovered that the dayman-Poppe contract had not been paid, that intermittent payments had been made on the contract after the "closing" in July of 1987, and that the unrecorded deed remained with the Escrow Department. That same day, Respondent Johnson wrote to Shelter Mortgage's attorney:

It appears that the reason the Poppe to Clayman deed has not been recorded is because the underlying contract has not *742 been paid off. Why this happened is not clear from looking at the file. We are taking immediate steps to do so and will walk the document through recording to expedite issuance of the title policy by Safeco.

In March or April of 1988, Ms. Honey Poppe visited the property covered by her contract with the daymans and saw a commercial real estate sign in the yard. She introduced herself to the occupant, Ms. Swisher. Ms. Poppe learned that the property had been "sold" to Ms. Swisher. Ms. Swisher learned that the sale had not closed.

Shelter Mortgage, the daymans and Ms. Swisher all sought legal counsel.

On May 2, 1988, the Washington State Bar Association sent Respondent Johnson a request for response to a complaint filed by Gerald L. Bopp alleging Johnson's failure to pay the Clayman-Poppe contract.

On May 4, 1988, by check drawn on his trust account, respondent paid $21,126.15 to clear the Clayman-Poppe contract. He deposited his personal funds in the trust account to cover this check.

The complaint filed by Gerald L. Bopp resulted in a disciplinary hearing for Respondent David F. Johnson on May 23, 1989. The Hearing Officer concluded that Respondent Johnson violated Rules for Lawyer Discipline 1.1(a) and (i) by violating the Rules of Professional Conduct and provisions of the criminal code, summarized as follows:

1. RPC 1.4 (attorney must keep client reasonably informed about the status of a matter and promptly comply with reasonable requests for information);
2.

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Bluebook (online)
790 P.2d 1227, 114 Wash. 2d 737, 1990 Wash. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-disciplinary-proceeding-against-johnson-wash-1990.