Opinion ID: 1124445
Heading Depth: 2
Heading Rank: 2

Heading: The Rawson Matter

Text: In the summer of 1992, Kevin and Patricia Rawson retained the respondent to file an action against their tax preparer, alleging that his negligence caused them to be liable for approximately $18,000 in additional taxes and penalties. The Rawsons paid the respondent a $3,000 non-refundable investigation fee to investigate whether their claim had merit. If it was determined that their claim was viable, the respondent was to apply the $3,000 against court costs and any recovery, pursuant to a contingent fee contract of thirty-three and one-third percent. The Rawsons never executed the contingent fee contract, however. Following an investigation, the respondent agreed to represent the Rawsons. Filing of the tax malpractice action was initially delayed until the Rawsons obtained a Chapter 7 bankruptcy discharge in March 1993. The respondent filed the complaint in district court in October 1993. Although he did not file an answer to the defendants' counterclaim, the opposing lawyer did not move for a default. Beginning in February 1994, the Rawsons were unable to reach the respondent by telephone. When they did meet with him in March 1994, he refused to refund their $3,000, but he did agree to proceed promptly with the case. The case was set for trial on October 18, 1994. When the respondent did not return their telephone calls, or reply to their certified letter in July 1994 demanding a status report in ten days, the Rawsons filed a request for investigation on August 1, 1994. Believing that it was improper for him to communicate further with the Rawsons, the respondent stipulated to a continuance in the tax malpractice case without their knowledge or consent. The respondent now admits that his silence was not an appropriate way to deal with the conflict and that he instead should have moved immediately to withdraw. He also failed to advise them of an offer to settle that he received from opposing counsel. In any event, he filed a motion to withdraw on July 27, 1995, which was granted over the Rawsons' objection on September 18. The Rawsons subsequently settled the case with the assistance of another lawyer. The respondent has stipulated that his conduct in the Rawson matter violated DR 2-106(A) (entering into an agreement for, charging, or collecting an illegal or clearly excessive fee). After January 1, 1993, the effective date of the Rules of Professional Conduct, he violated Colo. RPC 1.3 (neglecting a legal matter); Colo. RPC 1.4(a) (failing to keep a client reasonably informed about the status of a matter); Colo. RPC 1.16(a)(1) (failing to withdraw from the representation of a client if the representation will result in violation of the rules of professional conduct); and Colo. RPC 1.16(d) (failing to take reasonable steps to protect a client's interests upon termination of representation).