Opinion ID: 1330482
Heading Depth: 1
Heading Rank: 3

Heading: hicks matter

Text: Sandra Hicks was a longtime friend of McMillan's and retained him to represent her in a personal injury action. Although McMillan did not provide any written fee agreement, testimony before the Panel established that he and Hicks had agreed that McMillan's fee would be one-third of any recovery he secured for her. The final settlement offer was $22,000, and McMillan agreed to increase the amount by $1,000 so that Hicks would get a larger share of the settlement. After McMillan received the settlement proceeds, he put the money, less his fee and certain medical bills, in his office escrow account. He then proceeded to use Hicks' settlement proceeds for other purposes, including his own personal expenses. There was testimony that Hicks had said she wanted McMillan to invest her recovery. McMillan told her he had a half interest in a house [2] in West Columbia, he was planning to sell the house, and the house might be a good investment for Hicks. McMillan told Hicks she could invest in the West Columbia house and keep half the sales proceeds. If that amount turned out to be less than the settlement amount to which Hicks was entitled, McMillan would protect her by making up the difference. McMillan did not advise Hicks she could consult independent counsel about her potential investment in the West Columbia house. McMillan never transferred to Hicks his deed to the West Columbia house. In fact, he did not execute any documents to protect Hicks' interest in the settlement proceeds, nor did Hicks sign any document authorizing her funds to be invested in such a way. Furthermore, the West Columbia house was in disrepair and was subject to tax liens. There was testimony that, after liens and other expenses, half the proceeds from the sale of the house would not equal Hicks' net recovery from the lawsuit. Hicks eventually consulted Ann Furr, a local attorney, concerning the use of the settlement proceeds. She learned that the co-owner of the West Columbia property was unaware of any interest she had in the property and that McMillan had never transferred his title in the property to Hicks. Hicks subsequently filed suit against McMillan for legal malpractice. The lawsuit settled for $15,000. [3] These actions all occurred prior to the effective date of South Carolina's Rules of Professional Conduct, so the Code of Professional Conduct governs the Hicks matter. The Panel and Committee found McMillan's conduct in the Hicks matter violated the following disciplinary rules: former Disciplinary Rule 5-101(A), which forbids an attorney from placing his own personal finances in a position of conflict with a client's; former Disciplinary Rule 5-104, which forbids an attorney from entering into a business transaction with a client without full disclosure and consent by the client; and former Disciplinary Rule 1-102, which forbids conduct adversely reflecting on the attorney's fitness to practice law as well as conduct tending to bring the courts and the legal profession into disrepute. We agree with these findings.