Opinion ID: 1895294
Heading Depth: 3
Heading Rank: 1

Heading: The Allen Matter.

Text: In the fall of 1992, Joyce Allen retained Karl Carter, who was of counsel to respondent's firm, to represent her in two legal matters in the District of Columbia. Carter was successful in obtaining a settlement in one of the cases on Allen's behalf in July 1993, and the firm received a check in the amount of $4,750 which Allen endorsed over to the firm. Respondent, as financial officer for the firm, deposited the check into the firm's escrow account. After a series of conversations regarding disbursement of funds to Allen, on July 14, 1993, respondent sent Allen an invoice proposing to pay her $1,982.95 out of the settlement proceeds. Allen objected to the proposed distribution, arguing that the firm's fees were too high. That same day, Allen filed a complaint with Bar Counsel, alleging that the firm had failed to give her a proper written agreement for services and had charged an additional $1,000 retainer fee to which she had never agreed. Upon inquiry by Bar Counsel, in September 1993, respondent denied Allen's allegations and wrote that he considered the matter a fee dispute that should be referred to the fee arbitration panel. Respondent did not make any further attempt to pay Allen the $1,982.95 the firm originally had offered to disburse to her. [1] Respondent failed to inform Bar Counsel when his firm's escrow account was attached in November 1993, following a $422,846 judgment in favor of the firm's landlord for unpaid rent. Nor did respondent notify Allen or Bar Counsel when his firm initiated bankruptcy proceedings in December 1993. Bar Counsel only learned of the attachment of the firm's escrow account on May 20, 1994, after respondent changed his position as to whether the fee was in dispute and asked Bar Counsel for help in releasing the attachment against Allen's funds. Allen, however, still did not receive any funds until May 2, 1995, two years after the settlement proceeds were received, when the bankruptcy trustee paid her the original amount offered of $1,982.95. The trustee paid her an additional $1,050 on June 29, 1995.