Opinion ID: 2625596
Heading Depth: 1
Heading Rank: 5

Heading: Count 5: Failure to Account for Disbursement of $27,675.35

Text: ¶ 30 The Bar alleges that Poole violated RPC 1.14(b)(3) [b]y failing to account to Mr. Matson for the distribution of the BFC judgment award of $27,675.35. CP at 7. The hearing officer found that Mr. Poole failed to account for the distribution of the $27,675.35 payment from BFC for eight months and all the statements he sent to Mr. Matson (which he testified he personally reviewed) after receiving the check on January 2, 2001 gave Mr. Matson no credit for the payment. CL 72. The hearing officer concluded that this failure created misunderstanding, mistrust and direct financial harm to Mr. Matson. Id. Poole contends here that the hearing officer erred in entering this conclusion based on his contention that `an attorney need not account for funds which represent the sum due him for attorneys fees.' [8] Br. of Attorney Poole at 21 (quoting In re Disciplinary Proceeding Against Fraser, 83 Wash.2d 884, 894, 523 P.2d 921 (1974)). While Poole concedes that the $27,675.3[5] payment should have been accurately reflected on Mr. Matson's billing statements he asserts that RPC 1.14(b)(3) is inapplicable because it applies only to `properties of a client' and here the parties agreed to apply the award toward Matson's legal fees. Br. of Attorney Poole at 32. The Bar counters that Poole's poor[ ] and inaccurate[ ] mainten[ance of] records regarding the ... BFC judgment funds violated RPC 1.14(b)(3). Answering Br. of Bar at 32. ¶ 31 RPC 1.14(b)(3) mandates that [a] lawyer shall ... [m]aintain complete records of all funds, securities, and other properties of a client coming into the possession of the lawyer and render appropriate accounts to his or her client regarding them. ¶ 32 Contrary to Poole's position, it is axiomatic that, at some point, for Matson to agree to apply the $27,675.35 toward his legal fees, the $27,675.35 belonged to Matson. The BFC judgment was awarded to Matson not to Poole & Associates. FOF 15. While we agree with Poole that the parties agreed to apply the amount toward Matson's legal fees and, as such, Poole did not commit misconduct by failing to deposit the same in his trust account, [9] he did for eight months fail to properly account for the disbursement of Matson's $27,675.35. Poole accepted money rightfully belonging to Matson, per their oral agreement, and then failed to make any record of that acceptance and failed to create or provide Matson with an accurate invoice reflecting the application of these funds. As such, we affirm the Board's conclusion that Poole violated RPC 1.14(b)(3) by failing to properly account for the $27,675.35 BFC judgment award when, for a period of 10 months, he failed to [m]aintain complete records of all funds ... of a client coming into [his] possession and failed to even once render [an] appropriate account[] to his ... client regarding them. RPC 1 .14(b)(3).