Opinion ID: 1855943
Heading Depth: 1
Heading Rank: 10

Heading: Testimony of F. Evans Schmidt

Text: Mr. Schmidt testified that he shared office space with respondent for more than a year and a half, beginning in 1993. During that time, he and respondent worked together on several cases on a fee-split basis, including the Bragg matter. Mr. Schmidt testified that he was the trial attorney on the Bragg case, and he asked respondent if he would like to work on that case with him. Respondent consented, and the two lawyers agreed that respondent would pay all the costs associated with the case and would handle the typing of pleadings and other administrative matters in exchange for 40% of the attorney's fees. After a partial settlement was reached in the case, respondent submitted to Mr. Schmidt a statement for $4,978.20 in costs he had already incurred, and he requested a $1,000 advance on future costs. Mr. Schmidt testified that he drew two checks from his client trust account payable to respondent, and asked respondent for an accounting, which he promised to provide but never did. Mr. Schmidt said he became very anxious about the matter, because the more he thought about it, the more he realized that there could not have been almost $5,000 in expenses. After a week of respondent's stonewalling on the accounting, Mr. Schmidt testified that he discussed his concerns with the client. Mr. Schmidt stated that the client instructed him to get the file, so he went to respondent's office on December 5, 1994 and retrieved the file from Ms. Burst. [6] Mr. Schmidt denied telling Ms. Burst that he needed the file to bring it to respondent; according to Mr. Schmidt, it was his case and he offered no explanation to the secretary as to why he wanted the file. After reviewing the file and respondent's accounting, Mr. Schmidt realized that some of the charges posted to the client's cost account were inappropriate or inflated. He discussed the matter with the client, and the client subsequently discharged respondent. Mr. Schmidt also testified that the original med pay check was not in the Bragg file when he retrieved it from respondent's office. Mr. Schmidt said that he had no knowledge the check had even been issued until he saw State Farm's records, which were subpoenaed during the hearing before the federal magistrate judge. Mr. Schmidt denied that he had ever endorsed the check or that he had ever attempted to negotiate the check.