In re the Disciplinary Proceeding against Koehler

628 P.2d 461, 95 Wash. 2d 606, 1981 Wash. LEXIS 1047
CourtWashington Supreme Court
DecidedMay 21, 1981
DocketNo. C.D. 6396
StatusPublished
Cited by3 cases

This text of 628 P.2d 461 (In re the Disciplinary Proceeding against Koehler) 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 Koehler, 628 P.2d 461, 95 Wash. 2d 606, 1981 Wash. LEXIS 1047 (Wash. 1981).

Opinions

Brachtenbach, C.J. —

This attorney disciplinary matter, involving failure to render accountings and remit funds, originated in three separate client complaints to the Bar [607]*607Association. These complaints led to six counts alleging violation of the Discipline Rules for Attorneys (DRA); three counts involved the substantive client complaints and three related to an initial lack of cooperation with the Bar's investigation. The proceedings do not involve any misuse of clients' funds. Respondent's competency and integrity are not in question.

The hearing officer found that respondent did not respond in a timely manner to Bar requests for information regarding the complaints and that more timely responses to her clients and to the Bar investigators would have avoided these proceedings. The hearing officer concluded that the three counts based on her failure to promptly respond should be dismissed on condition that respondent pay the Bar's costs, with the admonishment that inquiries of the Bar regarding complaints must be answered immediately. Respondent's brief does not challenge that disposition; but we agree with it as being appropriate.

On one of the substantive complaints the hearing officer recommended an admonishment that an attorney is required to provide periodic accountings to a client indicating accrual of time and charges for legal services, credits for payments and a statement of balances. The hearing officer concluded that the respondent should be deemed to have waived her claim for balances indicated by her billing submitted more than 2 years after the client's last payment on account. We agree with that disposition.

For the other two substantive complaints, the hearing officer concluded that respondent's conduct violated (CPR) DR 9-102(B)(4); he recommended a single letter of reprimand on the condition that respondent periodically provide review of her accounting system to assure that time slips, charges, and costs expended for clients are recorded regularly and systematically and that periodic statements are produced to clients according to the Washington State Bar Association Trust Account Guidelines.

While not objecting to the thrust of the hearing officer's recommendation, Bar counsel questioned whether a repri[608]*608mand could be so conditioned. The Disciplinary Board, adopting the findings and conclusions of the hearing officer, responded to Bar counsel's concern by substituting for the reprimand a 60-day suspension from the practice of law; provided that that suspension shall be stayed and suspended pursuant to DRA 5.6(i) for a period of 2 years upon conditions identical to those suggested by the hearing officer.

Four of the board members voted for the board order. A fifth member voted for suspension and felt that the repeated violations warranted a 1-year suspension. Two members dissented on the basis that the circumstances did not justify conditional suspension since they did not suggest a lack of fitness or moral turpitude.

The respondent refused to stipulate to the stay and its conditions. Therefore, the proposed stay became null and void and the matter was transmitted to this court, pursuant to DRA 5.6(i)(l). We concur in the recommendation of the Board and order a 60-day suspension from the practice of law provided that that suspension shall be stayed and suspended pursuant to DRA 5.6 (i) for a period of 2 years from its beginning date upon the following terms and conditions: that respondent Koehler periodically provide review of her accounting system to assure that time slips, charges, and costs expended for clients are being regularly and systematically recorded and periodic statements are produced to clients according to the Washington State Bar Association Trust Account Guidelines.

To summarize, the three incidents leading to client complaints involve similar conduct. In one case the respondent represented some heirs in a probate estate. She received the heirs' funds from the estate about April 1, 1978. She made partial distribution on May 26, 1978. She held an additional $1,327 in her trust account until April 27, 1979, more than a year after the funds were received. Respondent was advised in November of 1978 that one of the heirs had filed a complaint with the Bar. She did not respond thereto until receipt of a second Bar inquiry in March of 1979.

[609]*609In the second matter, in December 1977 respondent received $21,565 on a judgment in a personal injury action. An immediate disbursement of $12,000 to her client and $7,188 for her fee was made on December 16, 1977. The balance of $2,377 was to be used to pay the cost of litigation and to satisfy the subrogated interest of her client's insurance company, with the balance belonging to the client. While there was some question about the amount of the subrogator's interest, it was not until July 1978 that respondent disbursed the balance to the client, after the latter had retained another attorney to collect the remaining funds.

In the third instance, respondent concluded a dissolution action in March 1976, at that time orally telling the client that the fee was approximately $1,000 plus costs. No billing statement for fees or costs was rendered until April 26, 1979, over 3 years after the services were performed and over 8 months after written notice by the Bar of the complaint.

Thus in the estate matter there was a delay of approximately 1 year in any accounting and payment of funds remaining after a partial disbursement. In the litigation instance the full account and final disbursement was not made for approximately 6 months. In the dissolution case respondent waited 3 years before rendering a written bill and accounting for partial payments received. In each instance the respondent did not promptly answer the inquiries of the Bar Association.

Respondent flatly contends, in her statement in opposition to the findings, conclusions and recommendations of the hearing officer, that her conduct did not constitute a violation of (CPR) DR 9-102(B)(4). That statement in contention was prepared and signed by respondent, not her attorney. Her attorney argues that a reprimand is warranted and sufficient.

Respondent mainly excuses her dilatory accounts, disbursements and responses to the Bar, after client complaints, by the fact that she was in temporary offices while [610]*610remodeling her permanent office and that a fire at the temporary office severely disrupted her practice, requiring additional moves. Of course, except for the fire her moves were voluntary. In any event even the fire does not justify these long delays in accounting and responding to the Bar inquiries. Prompt responses to the Bar Association and timely advice to the clients of the difficulties caused by the fire could well have avoided these problems.

The fire occurred June 28, 1978. At that point respondent had held the litigation funds for 6 months without accounting or disbursement. On that day she had held the balance of the estate funds for a month after partial distribution, without accounting or disbursement. After the fire she continued to hold these funds for 10 months without accounting or disbursement. The inquiry from the Bar, after client complaint, occurred 4 months after the fire and respondent did not respond to the Bar for another 5 months and then only after a second inquiry.

Quite apart from the disorder and disruption necessarily resulting from the office fire, it is evident that respondent did not maintain adequate records.

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Related

Disciplinary Proceeding v. Koehler
750 P.2d 254 (Washington Supreme Court, 1988)
In Re the Disciplinary Proceeding Against Rosellini
739 P.2d 658 (Washington Supreme Court, 1987)

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628 P.2d 461, 95 Wash. 2d 606, 1981 Wash. LEXIS 1047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-disciplinary-proceeding-against-koehler-wash-1981.