July 2002

Lawyers' Fund for Client Protection

by Robert Welden

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 qualified applicants. On applications for more than $10,000, the committee makes recommendations to the Board of Governors, who are the fund's trustees. At their meeting on May 13, 2002, the committee took the following action:

John B. Atkinson (WSBA No. 14715, Tacoma; disbarred): Mr. Atkinson represented the applicant in claims against the Department of Labor and Industries (L&I). Between January 1996 and October 2000, L&I paid a total of $106,420.21 to Mr. Atkinson on behalf of the applicant. Mr. Atkinson failed to account for nearly $49,000 of those funds. After reviewing the fee agreement between Mr. Atkinson and the applicant, the committee recommended payment to the applicant of $33,549.48.

C. Alan Grider (WSBA No. 16927, Clarkston; disbarred): The committee approved three applications concerning Mr. Grider, and continued one for further investigation.

•  Mr. Grider failed to account for $88,000 from an estate of which he was executor. In the disciplinary proceeding, Mr. Grider stipulated to restitution of $88,521.62. The committee recommended payment of the maximum gift of $50,000 from the fund.

•  Mr. Grider failed to account for $14,272 that he was to have deposited in a blocked account for the benefit of a minor in a personal injury settlement; he stipulated to restitution. The committee recommended payment of $14,272 into a blocked account for the benefit of the minor.

•  Mr. Grider failed to account for $42,067 from an estate account; he stipulated to restitution. The committee recommended payment of $42,067 to the applicant.

John Hess (WSBA No. 22308, Seattle; disbarred): The committee previously approved 10 applications concerning Mr. Hess, totaling $21,431. In this matter, Mr. Hess was paid $2,300 to represent the applicant on a reckless-driving charge and license-revocation proceeding. Mr. Hess paid a $100 fee to schedule the administrative license hearing, but failed to appear when the hearing was originally scheduled, and was unprepared and made misrepresentations when the hearing was continued. He failed to appear for the pretrial hearing on the reckless-driving charge, and, prior to the trial date, did not advise his client that he was suspended. The committee approved payment of $2,200 to the applicant.

Robert J. Lincoln (WSBA No. 15170, Bellevue; deceased): The committee previously approved one application for $1,500 concerning Mr. Lincoln. In this matter, the applicant paid fees of $2,500, plus a $500 court-reporter fee, in a marriage-dissolution proceeding, and $725 on a bankruptcy filing. Mr. Lincoln represented the applicant in the dissolution proceeding, but used only $222 of the fee to pay the court reporter, and did not file bankruptcy on his client's behalf. The committee approved payment of $1,003 to the applicant.

Jeffrey B. Ranes (WSBA No. 7732, Montesano; disbarred): The committee reviewed five applications concerning Mr. Ranes, and approved four of them.

•  The applicant paid Mr. Ranes $1,000 for representation on a charge of driving with a suspended license. Mr. Ranes filed a notice of appearance but failed to appear for a pretrial conference. Mr. Ranes failed to advise his client that he was suspended from practice before the new date was set for the pretrial conference. The committee approved payment of $1,000 to the applicant.

• The applicant paid Mr. Ranes $500 to seek expungement of a criminal conviction. Mr. Ranes took no action, and the committee approved payment of $500.

•  The applicant paid Mr. Ranes $700 to file bankruptcy. Mr. Ranes took no action, and the committee approved payment of $700.

•  The applicant paid Mr. Ranes $500, plus a $120 filing fee, to file a marriage dissolution. Mr. Ranes prepared the dissolution petition, parenting plan and other documents, but never filed them or paid the filing fee. After he was suspended, Mr. Ranes gave the applicant her file, and she filed the documents prepared by Mr. Ranes. The committee approved payment of $120 to the applicant, the amount representing the filing fee that Mr. Ranes never accounted for.

Daniel J. Rodriguez (WSBA No. 27321, Tacoma; suspended; recommendation for disbarment): The applicant paid Mr. Rodriguez $4,000 to file an appeal from a criminal conviction. Mr. Rodriguez filed a notice of appeal, but never paid the filing fee or application for indigency despite representations to the court that he would. Eventually, the court of appeals remanded the matter to the trial court. The disciplinary hearing officer ordered restitution of $4,000 to the applicant; the committee approved payment in that amount.

Chul Shirts (WSBA No. 24993, Vancouver; recommendation for disbarment): The applicant paid Mr. Shirts $800 for representation in a child-custody proceeding. Mr. Shirts cancelled their first appointment, and afterward the applicant could no longer reach him. The committee approved payment of $800.

The committee reviewed 12 applications that were denied for lack of evidence of dishonest conduct or as fee disputes. The committee also recommended an amendment to APR 15 to provide the committee with subpoena power to aid in its investigations, comparable to that provided under the Rules for Lawyer Discipline.

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. Since October 1, 2001, the fund has received total restitution of $5,135. In addition, with the approval of the Board of Governors, the fund entered into a contingent-fee agreement with private counsel to seek recovery in appropriate cases. So far, commencement of two court actions has been approved.

The purpose of the Lawyers' Fund for Client Protection is to assist persons who have been the victims of dishonest lawyers. Although the fund can never fully compensate a person for the harm done by a dishonest lawyer, since October 2001, we have received several thank-you notes from recipients of payments made on behalf of Washington lawyers:

•  "Please accept my sincere thanks and appreciation regarding this matter. More power to all of you, and Merry Christmas."

•  "Thank you for all your hard work in this matter."

•   "Thank you so much! I really appreciate this. I will be laid off from my job in a few months (I work at Boeing). So this will be one less bill for me to worry about."

•  "I know we have never met, but I wanted to thank you for all that you have done for us…. We didn't think there would be any way of recovering any of the money, but thanks to you we have. Have a wonderful Christmas."