Opinion ID: 2565957
Heading Depth: 2
Heading Rank: 1

Heading: Ethical Violations/Misconduct

Text: Dynan challenges the Board's conclusions of law finding him guilty of all four counts of misconduct, and argues the WSBA did not prove the misconduct by a clear preponderance of the evidence. [10] We uphold the Board's conclusions of law because they are supported by the Board's unchallenged, modified findings of fact, and these findings of fact do not support the hearing officer's conclusions of law. [11] Therefore, we determine the WSBA proved misconduct by a preponderance of the evidence.
RPC 3.3(a)(1) states [a] lawyer shall not knowingly make a false statement of material fact or law to a tribunal. The Board's modified findings of fact show Dynan knowingly submitted material and false declarations and attached billings in support of his motions for attorney's fees. [13] Therefore, the Board correctly concluded that Dynan's conduct constituted a violation of RPC 3.3(a)(1).
Dynan argues that an attorney does not have to provide documentation of his actual fee rate to the court because the actual rate may not be the reasonable rate and is therefore not material to a determination of a reasonable fee award. Dynan further asserts that an attorney's actual rate is not material to a fee award because the purpose of fee awards is to penalize the opposing party and this may be accomplished by a reasonable fee greater than the actual fee charged. Dynan relies on the lodestar method of calculating fees, the context of his fee arrangement, and the overall purpose of fee shifting statutes to support his immaterial argument. We recognize there are instances where an attorney's actual fee may be less than a reasonable fee, that one purpose of fee shifting statutes is to penalize certain parties, and that the lodestar method may not specifically require an attorney to submit his actual billing rate. [14] However, Dynan's arguments focusing on the materiality of the undisclosed actual fee are inapposite because the real issue is whether statements Dynan submitted to the court (e.g., the declarations including a false rate) are material. Whether a false statement is material is a matter of law for this court, not Dynan, to decide. See RCW 9A.72.010(1) (defining materially false statements in the perjury context and stating that whether a statement is material is a matter of law for the court to determine); see also State v. Dial, 44 Wash.App. 11, 14, 720 P.2d 461 (1986) (stating in a perjury case that the materiality of a false statement is a matter of law). Material facts are generally those facts upon which the outcome of the litigation depends in whole or in part. In re Disciplinary Proceeding Against Carmick, 146 Wash.2d 582, 600, 48 P.3d 311 (2002); see also RCW 9A.72.010(1) (defining a materially false statement in the perjury context as any false statement which could have affected the course or outcome of the proceeding). Therefore, if the submitted declarations stating a false rate would affect or determine the fee award, the declarations are material. Judge Terry D. Sebring, the presiding judge in the Han case where fees were awarded, testified that typically when a lawyer wants a fee award that is higher than his actual fee the lawyer discloses this to the court. RP (Dec. 4, 2001) at 114-15, 119-20; see also RP (Dec. 4, 2001) at 56-57, 168 (two Washington lawyers testifying to this practice). [15] He testified that he assumed the rate in the billing submitted to the court was accurate, that changing the actual rate was inappropriate, and that factual misstatements are not acceptable. RP (Dec. 4, 2001) at 116, 119-21. Further, Judge Sebring awarded Allstate attorney fees based on the amount requested in the declaration, which used the false $150 hourly rate. See Ex. 8 (Dynan's declaration); Ex. 9 (award of attorney fees). Based on this evidence, we hold that the declaration Dynan submitted to the court was material to the determination of a fee award in Han, and the submitted declarations in Hedberg and Walls would have been material to the fee award if an award had been granted.
Dynan parses out his declarations and argues that the declarations do not contain false statements because he stated only that the rates were reasonable, not true and correct, and the rates in the attachments are reasonable. We disagree with Dynan's attempt to deconstruct his declarations and instead interpret each declaration as a whole. It is reasonable for a judge to read a declaration stating attached hereto ... are true and correct billings for my time and services expended on this matter, followed by a statement reciting the fee as reasonable, and assume that if the time and services are true and correct, the billing rate is as well. [16] Here that was not the case. Dynan concedes that he altered billing statements and attached those statements to a declaration stating the billing as true and correct. Therefore the declaration was false.
RPC 3.3(a)(4) forbids knowingly offering false evidence to a tribunal. RPC 3.4(b) forbids falsifying evidence in regard to fairness due an opposing party or opposing counsel. As discussed above, each declaration, read as a whole, states that the billings are true and correct even though the submitted billings were altered. By altering the actual bills and then submitting them to the court with a declaration stating the bills to be true and correct, Dynan falsified evidence and then offered this evidence to the court. Further, opposing attorney Paul Apple received a copy of Dynan's pleadings in Hedberg, which included Dynan's declaration and falsified, altered billings. RP (Dec. 4, 2001) at 21-25. As opposing counsel in Han, Apple also received a letter regarding Dynan's motion for attorney fees in Han that referenced an attached current billing statement, which reflected a $150 hourly rate instead of Dynan's actual rate. Ex. 11. The Board correctly concluded that these actions violated RPC 3.3(a)(4) and 3.4(b).
RPC 8.4(c) states that [i]t is professional misconduct for a lawyer to engage in conduct involving dishonesty, fraud, deceit or misrepresentation. RPC 8.4(d) provides that [i]t is professional misconduct for a lawyer to engage in conduct that is prejudicial to the administration of justice. The Board correctly determined that Dynan's knowing misrepresentation of his actual hourly rate violated these provisions. To determine an RPC 8.4(c) violation, the court must decide whether the attorney lied. No ethical duty could be plainer. In re Disciplinary Proceedings Against Dann, 136 Wash.2d 67, 77, 960 P.2d 416 (1998). Various explanations as to why lying occurred may mitigate the charge, but does not change the truth of the underlying charge. Id. Dynan has tried to explain why he altered bills and submitted them to the court, but his motivation is inapposite. Reading each declaration as a whole, with the attached billings, proves Dynan misrepresented the billings as true and correct and misled the court, violating RPC 8.4(c). Under RPC 8.4(d), an attorney may prejudice the administration of justice if he engages in conduct in his official capacity or advocatory role that violates practice norms or engages in conduct that physically obstructs justice. In re Disciplinary Proceeding Against Curran, 115 Wash.2d 747, 764, 801 P.2d 962 (1990); Kuvara, 149 Wash.2d at 255-56, 66 P.3d 1057. Dynan argues that he did not prejudice the administration of justice because the court plays an active role in determining attorney fees and if the $150 hourly rate was not reasonable the court could reject it. He bases his arguments on the lodestar method of calculation and documentation required under that method. Where a fee shifting statute does not specify how fees are to be calculated the lodestar method may be used. Brand v. Dep't of Labor & Indus., 139 Wash.2d 659, 666, 989 P.2d 1111 (1999); see also Mahler v. Szucs, 135 Wash.2d 398, 432-33, 957 P.2d 632, 966 P.2d 305 (1998) (suggesting use of lodestar method to calculate fee award pursuant to MAR 7.3). Under the lodestar method the court multiplies the number of hours expended by a reasonable rate to determine a reasonable fee. Bowers v. Transamerica Title Ins. Co., 100 Wash.2d 581, 597, 675 P.2d 193 (1983). The attorney must inform the court of the number of hours worked, the type of work performed, and the category of the attorney performing the work. Id. Although Bowers does not specifically state that the attorney must provide the court with his actual billing rate, several witnesses testified that during a fee award determination, it is the normal practice for an attorney to present his actual rate and then argue for a higher rate if the actual rate is not reasonable. RP (Dec. 4, 2001) at 56-57, 114-15, 119-20, 168. This practice allows the court to reach a reasonable attorney fee based on actual and true evidence, adjusting the rate for other variables. See Bowers, 100 Wash.2d at 597, 675 P.2d 193 (noting that the actual rate of billing may not be reasonable and may be adjusted based on several factors). Dynan, in his official capacity, violated practice norms by not providing the court with his actual rate. Further, even if the submitted rate was reasonable, Dynan's misrepresentations prejudiced the administration of justice by preventing the court from determining an attorney fee award based on true evidence.