Opinion ID: 1792167
Heading Depth: 3
Heading Rank: 2

Heading: The J.K. Client Matter

Text: ¶ 14. Counts 4-7 involved Attorney Scanlan's failure to deposit an advance fee in his trust account and failure to return an unearned fee to his client, J.K., giving rise to violations of former SCR 20:1.15(a), [5] SCR 20:1.16(d), [6] SCR 22.03(2), and SCR 22.03(6). [7] ¶ 15. The referee found that in October 2001 J.K. retained Attorney Scanlan in a divorce matter and paid a $2500 retainer as an advance toward hourly fees, which Attorney Scanlan deposited in his business account. Approximately one week later, J.K. notified Attorney Scanlan that she did not wish to proceed with the divorce. Eventually, J.K. hired another attorney to recover the $2500. Attorney Scanlan told J.K.'s attorney he would send a check and an accounting within a week but failed to do so. A grievance was filed on J.K.'s behalf and the OLR sent two letters to Attorney Scanlan, to which he did not respond. Attorney Scanlan eventually sent an accounting to J.K.'s attorney as well as a refund of $1990. ¶ 16. Attorney Scanlan did not respond to the OLR's request for information with which he was personally served. As a result, after this court issued an order to show cause, Attorney Scanlan's license was temporarily suspended on January 14, 2003. The OLR subsequently reported that Attorney Scanlan had responded to its request for information and Attorney Scanlan's license was reinstated on April 29, 2003. ¶ 17. In May 2003 the OLR again inquired whether Attorney Scanlan had deposited J.K.'s $2500 retainer into his trust account. Attorney Scanlan did not respond until August 2003 after the OLR had written another letter and Attorney Scanlan had asked for two extensions. Based on hearing testimony the referee found Attorney Scanlan never put J.K.'s $2500 retainer fee in his trust account. ¶ 18. As to Count 4, the referee concluded that Attorney Scanlan had an absolute duty to deposit the $2500 advance into his trust account and by failing to do so, he violated former SCR 20:1.15(a), providing that a lawyer must hold a client's property in trust, separate from the lawyer's own property. ¶ 19. As to Count 5, the referee concluded that Attorney Scanlan was obliged to refund J.K.'s unearned fees and by failing to do so for more than a year after termination of the client relationship, Attorney Scanlan violated SCR 20:1.16(d), providing that upon termination of representation, the attorney should take reasonable steps to protect a client's interests, including refunding unearned advanced fees. ¶ 20. With respect to Count 6, it was stipulated that by failing to provide a written response to J.K.'s grievance for over seven months after it was due, causing Attorney Scanlan's license to be temporarily suspended for non-cooperation, Attorney Scanlan violated SCR 22.03(2), requiring timely disclosure. ¶ 21. Concerning Count 7, the referee determined Attorney Scanlan's failure to respond timely to the OLR violated SCR 22.03(6), providing it is misconduct to willfully fail to provide information during an OLR investigation.