Opinion ID: 2898045
Heading Depth: 2
Heading Rank: 2

Heading: Count II – Client B 6

Text: When Farris’ trust account check to Client A bounced in October 2011, the bank automatically notified the OCDC under Rule 4-1.15(g) 7 and related regulations adopted by the Advisory Committee. The OCDC conducted an audit and learned that Farris not only had misappropriated funds from Client A’s settlement, but he also had misappropriated settlement proceeds belonging to Client B under nearly identical circumstances. In September 2010, Client B settled their personal injury claims for $90,500, which was deposited in Farris’ trust account. After deducting Farris’ fee ($30,000) and expenses ($773.70), Client B was entitled to the remaining $59,726.30. Like Client A, however, Client B owed various medical creditors in connection with their injuries. The total of their combined bills was $27,132.20. No liens were filed, but the terms of Client B’s settlement required that their medical providers be paid from the settlement proceeds. Farris agreed to indemnify the defendant’s insurer if this was not done. OCDC’s audit showed that Farris’ operating account held only $2,221.32. That Farris knew the $93,000 was gone from both accounts is confirmed by his statement to Client A on November 15, 2011, that both his trust account and his operating account were too “low” for him to pay the $15,000 fee refund immediately. 6 Client B was a married couple, both of whom were injured. 7 After the amendment in 2012, this provision is now found in Rule 4-1.15(a)(2). 7 Farris wrote Client B a check from his trust account for $32,594.10 and told Client B he would use the remaining settlement funds (i.e., $27,132.20) to satisfy their medical providers. As he did with Client A, Farris promised Client B he would try to negotiate discounts with these providers. To the extent he succeeded, Farris told Client B he would distribute the savings to them. Farris never paid any of Client B’s medical bills, nor did he pay these funds to Client B. Instead, nearly all of the $27,132.20 that he was supposed to be holding in trust for Client B was transferred to Farris’ office account and spent. The available evidence shows that Farris knew of this since November 2011. To date, he has not paid or promised to pay any of this money to its rightful owners.