Opinion ID: 2571721
Heading Depth: 1
Heading Rank: 11

Heading: Presumptive Sanction For RPC 1.7(b)

Text: We find a violation of RPC 1.7(b) because McKean's financial interest in the Company may have materially limited his representation of the Bergman Estate, given that he had a majority interest in the Company, the Company was financially strapped, and he completely failed to disclose the conflict and secure consent from the Estate's heirs. We determine the presumptive sanction by considering the ethical duty McKean violated, his mental state, and the extent of actual or potential harm caused by the misconduct. Halverson, 140 Wash.2d at 492, 998 P.2d 833. The record establishes that initially McKean's bookkeeper debited the $11,128.25 loan from the ledger of another client for whom he held funds, DiPaula. Then in the fall of 1997, McKean instructed the bookkeeper to instead debit the loans from the Bergman Estate. McKean maintains that he had authority as the personal representative of the estate to loan the money to the Company as part of his nonintervention powers, but no documentation was offered to support his testimony. The loans were to be short term and carry a 12 percent interest rate. McKean fully reimbursed the Bergman Estate, with interest, and neither DiPaula nor the Estate suffered any actual harm. Nonetheless, he completely failed to disclose the transactions to either client. The record establishes that McKean was at least negligent in determining whether his financial interest in the Company created a conflict of interest between himself and his representation of the Bergman Estate. McKean, however, should have known that there was a conflict of interest adverse to the Estate. Suspension is the presumptive sanction for conflicts when a lawyer knows of a conflict of interest.... ABA Standard 4.32. The presumptive sanction is a reprimand when a lawyer is negligent in determining whether the representation of a client may be materially affected by the lawyer's own interests, or whether the representation will adversely affect another client, and causes injury or potential injury to a client. ABA Standard 4.33. We hold that a reprimand is the appropriate sanction for McKean's violation of RPC 1.7(b).