June 2003
Lawyers' Fund for Client Protection
The Lawyers' Fund for Client Protection Committee meets quarterly to review applications for gifts from the fund. The committee is authorized to make gifts of up to $10,000 to eligible applicants. On applications for more than $10,000 the committee makes recommendations to the Board of Governors, who are the fund's trustees. The committee met on February 21, 2003, and took the following action, with approval by the trustees as necessary at their meeting on April 11, 2003:
Terry L. Deglow (WSBA No. 13357, Spokane; disbarred): Deglow was hired to probate an estate in 1994. The applicant (the executor and heir) surrendered a $5,000 life-insurance policy to Deglow to pay the estate costs and debts. Deglow did no work on the estate between April 1995 and 2000. The applicant paid delinquent real estate taxes on his brother's property and paid the burial expenses. Deglow reimbursed him approximately $1,600 from the estate funds, and paid $940.26 to the Department of Social and Health Services to pay the deceased's back-due child-support debt.
On July 10, 2000, the Supreme Court suspended Deglow, pending disciplinary proceedings in another matter. Deglow did not advise the applicant that he had been suspended, or provide him any accounting for the funds paid. The Supreme Court ordered that Deglow pay restitution of $2,454, and the committee approved payment of that amount to the applicant.
Mickie Jarvill (WSBA No. 14049, Snohomish County; disbarred): Jarvill and her husband each pleaded guilty to conspiracy to commit wire and mail fraud, and were sentenced to five years in prison. They admitted to defrauding about 30 people through their law office and investment businesses. The committee previously approved two applications concerning Jarvill.
The applicant was Jarvill's client beginning in 1989, when Jarvill handled sale of real estate that netted the applicant approximately $216,000. Jarvill advised the applicant to invest $200,000 in the Jarvills' investment project. Jarvill subsequently assisted the applicant with another real estate transaction that netted the applicant approximately $150,000. On Jarvill's recommendation, the applicant also gave those funds to Jarvill to invest.
The applicant received regular payments of about $3,400 from Jarvill until January 1999, when the full investment was due to be paid and payments stopped. Jarvill gave the applicant one check for $17,000 that was returned for insufficient funds. After criminal charges had been filed against the Jarvills, the applicant learned that the development Jarvill had advised her to invest in, in 1989 and 1994, had been in bankruptcy since 1993.
The committee recommended payment of $50,000 to the applicant, which was approved by the trustees.
Robert H. Lewis (WSBA No. 23635, Tacoma; disbarred): Lewis had worked as a contract attorney for another lawyer who had moved to Brazil and sold his practice to Lewis. Shortly thereafter, Lewis abandoned his practice. The committee previously approved four applications concerning Lewis.
Lewis represented the applicant on a medical claim. An insurance check was issued payable to the applicant and Lewis in the amount of $4,152. Lewis obtained the applicant's endorsement. He told her he would deposit the check into his trust account, and pay her the funds less his fees (25 percent). Lewis gave the applicant $100 and agreed to pay two bills she owed.
When the applicant confronted Lewis about the balance of her funds, Lewis gave her a promissory note agreeing to pay her one half of her funds by June 13, 2001. He did not do so, and a WSBA audit of his trust account showed that by June 30, Lewis did not have sufficient funds in his trust account to pay the applicant. Lewis never paid the applicant the balance of her funds, nor did he pay the bills as promised. The committee approved payment of $2,814 to the applicant.
Robert C. Lyons (WSBA No. 22275, Spanaway; disbarred): Lyons was disbarred based on allegations of sexual misconduct, as well as conversion of client funds and failure to return unearned fees. The committee previously approved two applications concerning Lyons.
The applicant was sued for $35,000 for legal fees allegedly owed to another lawyer. She paid Lyons $2,000 to represent her. A week prior to a mandatory arbitration hearing, Lyons falsely told her that he had filed a notice of appearance and had the hearing continued. As a result, a default judgment for $35,000 was entered against the applicant. The committee concluded that Lyons had lied to the applicant about the services he had performed, and that his failure to return his unearned fee was a dishonest act. They approved payment of $2,000 to the applicant.
Douglas M. O'Coyne Sr. (WSBA No. 15689, Spokane; deceased): O'Coyne became ill and abandoned his practice. A custodian was appointed to protect his clients' interests, and in several instances the custodian referred O'Coyne's former clients to the fund.
• The applicant paid O'Coyne $1,500 for representation regarding unpaid income taxes in Oregon. O'Coyne wrote to the Oregon Department of Revenue that he was representing the applicant. The department said they could not disclose any information to O'Coyne, because he was not admitted to practice in Oregon. Other than the one letter, O'Coyne performed no services for the applicant. The committee approved payment of $1,500 to the applicant.
• The applicant paid O'Coyne $500 to represent him before the IRS. The applicant did not hear again from O'Coyne until he was contacted by O'Coyne's custodian and advised that O'Coyne had abandoned his practice. The committee approved payment of $500 to the applicant.
• The applicant and her husband hired O'Coyne for representation before the IRS, paying him $1,500. They never received any billings or accountings from O'Coyne, and he became ill shortly after they had hired him. Apparently he did nothing on their case. The committee approved payment of $1,500 to the applicant.
• The applicants paid O'Coyne $700 to represent them in a foreclosure of their home. O'Coyne agreed to file a petition for bankruptcy, which would have stayed the foreclosure, but did not do so, and the house was foreclosed upon. The committee approved payment of $700 to the applicants.
Jeffrey B. Ranes (WSBA No. 7732, Montesano; disbarred): The committee previously approved five applications concerning Ranes. The applicant hired Ranes for representation in a marriage dissolution. The issue in the dissolution was division of real property. An order was entered against the applicant, who paid Ranes $1,430 to file an appeal. The applicant says that throughout this period he had difficulty reaching Ranes, and when he did speak to him, Ranes told him that the judge had not yet signed the final order on the property distribution, and therefore the 30-day period in which to file a notice of appeal had not yet begun.
After several delays, the applicant contacted the WSBA and learned that Ranes had been suspended from practice on July 23, 2001. He then learned that the judge had signed the property order on October 30, 2000, and the period to file an appeal had expired. The committee approved payment of $1,430 to the applicant.
Lois M. Wood (WSBA No. 17878, Pasco; suspended): The applicant paid Wood $750 on behalf of her husband, who was in prison, to file a motion for discretionary review in the State Supreme Court regarding denial of a personal restraint petition. Wood did not file the motion for discretionary review, and falsely told the applicant she had filed the motion and that the Supreme Court had lost it. She said she would refile it with a motion for extension of time. The applicant paid Wood an additional $250 to refile the motion; however, Wood did not file it.
When the applicant learned from the court that the motion had never been filed, she contacted Wood. Wood told the applicant that she was trying to find out why the court had not received the motion and that she would call her back. The applicant heard nothing further from Wood. The applicant then contacted another lawyer, who contacted Wood, and Wood gave the new lawyer a copy of a motion she had prepared. After the new lawyer had reviewed and edited the motion, he filed it with the court with a $250 filing fee and a motion for extension of time. The filing fee was returned with the advice that no filing fee was required. The motion for extension of time was denied. The committee approved payment of $500 to the applicant.
Other Business: The committee reviewed nine additional applications denied for lack of evidence of dishonest conduct, or as fee disputes or claims for malpractice. One application was continued to the next meeting. One was dismissed because restitution had been made by a bank that had honored a forged endorsement.
Restitution: The fund seeks restitution from the lawyers who cause payments from the fund. Because in most cases those lawyers have no assets, the chief avenue of restitution is through court-ordered restitution in criminal cases. Prosecuting attorneys cooperate with the fund in getting the fund listed in restitution orders. As of February 2003, six lawyers were making regular restitution payments to the fund, and one lawyer had settled his restitution debt to the fund by payment of $22,203.
Thank-Yous: The purpose of the Lawyers' Fund for Client Protection is to assist persons who have been the victims of dishonest lawyers. Although the fund cannot fully compensate a person for the harm done by a dishonest lawyer, the fund receives notes of appreciation to the lawyers of Washington state:
• "I would like to thank you and the Bar Association members for the approval of the award from the Lawyers' Fund. My sincere thanks are extended to each one who has made an effort to make this possible. It will truly make a difference in my life."
• "Thank you for the refund. I sincerely appreciate any amount approved by the committee. I had lost all hope in collecting anything from [the lawyer]."
The Lawyers' Fund for Client Protection Committee chair is Pullman attorney Scott J. Bergstedt. WSBA General Counsel Robert Welden is staff liaison to the committee.
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